Hello All,

I am doing research for a graduate class regarding Harley Davidson and what it is exactly they are doing right but more importantly what it is they are doing wrong.

For instance is there a supply issue, does it take too long to get a custom bike?

What could Harley do to get to a younger demographic to help improve their sales? Right now it is 35-54. How can it appeal to younger riders?

Are there enough dealers? Are parts stocked or do you have to wait. Is there enough access to merchandise.

If you were Harley's CEO...........what would you do?


Thanks in advance for any help you can offer!!!

Joel

 

If I were Harley's CEO, I'd give free bikes to old geezers.

Seriously, you should poke around the website here regarding the 2006 Dyna's and the transmission issue. That one may be a R&D gone bad. I'd also research the V-Rod. That was really HD's first attempt in a long while to radically change their bike design and reach a different demographic. Wow, that sure sounded scholarly, didn't it? Good luck.

 

In reply to your question, I can give you my opinion of 35 years of riding and wrenching and you may find some of it usefull and may not.

The "supply" issue is more of a dealer issue from what I have personally seen. My local dealer has the old "list" that they put you on and will call you at the end of the month and tell you "somebody cancelled" but it is blue not red, are you interested? Now sure you're going to run right up and look it over and talk yourself into that blue bike and plunk down the money and go home with your pride and joy. Now the problem is this. This particular dealer stored his bikes in crates in a warehouse that just happened to belong to a friend of mine and I happened to mention this to him one day in conversation. He invited me to his warehouse for lunch the next week and when I accepted his offer to see what he was up to, I saw over 200 bikes in crates in rows 3 across and 10 deep, row after row and some boxes marked with marker "don't sell before XXX" Now is this a fair way to treat customers I ask? I formed a new opinion of this dealer after this, and I really do not think he is the only one doing this. It keeps prices up if the supply is down (so to speak)

How can it appeal to younger riders?

Most younger riders are priced out of ownership because of the prices od harleys. If the price were lower, perhaps the younger riders would be able to buy a harley too.


Are there enough dealers? Are parts stocked or do you have to wait.

Dealers are not too plentifull in some states and this I think will give the dealers an edge to keep prices up higher than MSRP in some cases and become a bit more independent than if there were more competition between dealers for sales.
Parts are for the most part in stock with the exception of some of the higher $$$ parts that do not move much. The problem with parts seems to be a qualified parts person to know what you need. A lot of dealers employ parts people that don't know the product and are a bit on the lazy side to look things up IMO.

If you were Harley's CEO...........what would you do?

I would offer better customer relations with the company (harley), an 800 number for support, encourage customers to report dealers who mistreated the customer and did not fix the problem that was the cause of the visit to the dealership. I would also take action against these dealers in a way that if there are too many reports that were unfavorable about them to cut down their allotment of bikes to them by a percentage of the complaints received. This would hit them in the pocket and would get their attention rather quickly. Maybe things would change for the better then.
I would also work on a recall system for the known problems that these bikes have and not wait until it blows up to act on it , leaving a rider stranded in the middle of unfamiliar areas or perhaps in a situation that could cause injury or even death from a failure. Some of these issues that I site here are cam bearing failures and cam chain tensioner shoe failure, both of which usually destroy the engine and cause the rear wheel to lock up suddenly.

I hope I helped your research with my comments.

 

They kinda do appeal to the younger crowd because im 16 and they sell buells which appeal to the younger crowd but i would say if they would lower the price a little that it would appeal more to the younger kids.

 

There is a lot that Harley does wrong, but even more that they do right. For starters, Harley's reputation is second to none in the world of bikes. They built that reputation by being a hardworking American company. Think about all this company has endured over the years. They have experienced the ups and downs of both World Wars, The Korean War, the Vietnam and Gulf Wars, they have struggled through soft markets when companies like the original Victory and Indian couldnt survive. Regardless of how many riders use their Harley as their sole means of transportation, the fact is today, owning a Harley is still a luxury for most riders. The average cost of a Harley is almost $20,000! Thats a 10% downpayment on a $200,000 house. Yet people/HOGS still flock to these bikes over everything else out there. In my opinion, it's because of the reputation that Harley has built over the years. It is a true American company and everything they do is based on that. One of the reasons I believe that Harley has been so successful is because it's always been an operation that was driven by family members. Only during the AMF years did they have their issues and we all saw how fast that operation went under. Today in 2005, Willie G. still plays an active role in the company and that is an important trait that needs to be considered when evaluating Harley. Does anybody know who Mr Honda is? Or Mr. Yamaha?

Although Harley is one of the biggest players in the motorcycle industry, they were always behind the curve in technology. For one, I believe this is the case because they try to give the customer what the customer wants. Most of us Harley owners do not want a decked out 21st century style bike. We like tradition and the back to basics all chromed out, big cu in loud engines. Thats what Harley does best. This is a company that is faced with government and EPA retrisctions yet they seem to go out of their way to buck the system rather than to give in to the technology. This isn't really a bad thing either. Keeping tradition is another pretty cool trait of Harley and I believe that is another reason for their success. The V-ROD was the one exception Harley made to tradition and look at how many traditionalists dislike this particular bike. It's a very un-Harleyish Harley but it is technologically advanced machine. Harley has the skills and capability to produce and introduce any technology to the market they want to.

Many will argue however, that what Harley does right to some, is also what they do wrong for others. Technology is an evolving science and the engine's of all Harley's except the Revolution are not nearly as technologically advanced as what Honda or Victory has introduced. These bikes hands down have the technological advantage over Harley. But Harley clearly still sells more bikes than both of these companies, and at a much higher premium than both of the companies too. That alone is a phenomenom when looking at Harley from a business minded view-point. Harley has the marketing, the reputation, the owner's groups, the prestige, the history, the pride of ownership and the list goes on and on. It's an American icon such as the Corvette and Mustang. This is the one major trait that Harley's competition will never steal from them. All the bike manufacturers produce great bikes; the problem is, they are just not Harley's.

For me personally, I have never had a better purchasing experience then when I purchased my Harley. The dealership was out of this world and they went out of their way for me all around. The respect they showed me was nothing like that of a car dealership. They had awesome customer service and were easy to deal with. I think customer service is another key factor to consider when it comes to company success. From what I have seen, Harley does take every initiative to go out of their way for the customer. I'm sure the ball gets dropped from time to time, but that stuff happens. I doubt Harley's customer

 

Here's some HD history
and also engine history too

In 1903, three men from Milwaukee had a really unique view of what they thought motorized bicycling should be. In a 10 X 13 foot shed, with borrowed tools, and some metal, Arthur and Walter Davidson along with Bill Harley set out to build the very first Harley-Davidson motorcycle.

Using only a three horsepower engine, the trio designed a unique loop frame, which would set it apart from any other cycle in its time. They would go on to build a total of three bikes in their first year. In 1907, the eldest Davidson brother, William, joined the team. Later that same year, after building 150 bikes, these four men followed their vision and incorporated what is today The Harley-Davidson Motor Company.

The following year found the company employing a total of 18 people and expanding into a 2,380 square foot production facility. In 1920, Harley Davidson became the largest motorcycle manufacturer in the world, boasting dealers in 67 countries. Also that same year, only thirteen years since incorporation, Harley Davidson enjoyed an incredible 5000 percent increase in sales.

Through the years, the Harley Davidson would prove to be the benchmark for all other motorcycles. By the end of World War I, 20,000 cycles were used in military duty. Harley Davidson would continue to dominate racing events, eventually becoming the first motorcycle ever to win a race with a top speed of over 100 mph.

Though we look back and see many changes in its design, Harley Davidson has not changed. It has remained successful by remembering its heritage.

1903 Harley-Davidson is founded
1903 The first Harley-Davidson motorcycle is manufactured
1905 The "Silent Grey Fellow" nickname coincides with the new standard grey color.
1907 The first Harley-Davidsons sold for police duty
1909 First "V-Twin" engine
1912 First clutch mechanism
1914 Stepstarter and internal expanding rear brake
1915 Three speed transmission
1916 The first issue of "The Enthusiast" publication
1922 74" Twin engine debuts
1928 Front wheel brake appears
1929 WL 45" Twin engine
1932 45" Servicar
1936 80" Side Valve Twin engine and the first "Knuckle Head" 61" engine
1937 William A. Davidson dies
1941 74" OHV Super Power engine
1942 Walter Davidson dies at age 65
1943 Bill Harley dies at age 66
1947 74" OHV Big Twin engine
1948 74" "Panhead" engine is introduced
1949 The Hydra-Glide debuts
1950 Arthur Davidson dies at age 69
1957 XLH Sportster
1958 The Hydra-Glide turns into the Duo-Glide
1959 XLCH Sportster
1960 The "Topper," a fiberglass motorscooter, was introduced.
1960 Harley-Davidson teams up with Italian manufacturer Aeronautica Macchi S.p.A. to produce a line of smaller bikes including the Shortster and Sprint models.
1965 The Electra-Glide debuts
1965 George Roeder sets a world land speed record (177.225 m.p.h.) for 250 cc motorcycles on a much modified Harley-Davidson Sprint.
1965 After being privately held for over 60 years, Harley-Davidson goes public.
1966 The introduction of the "shovel head" engine
1967 Electric start Sportster
1969 Merger with American Machine and Foundry Company (AMF)
1971 FX 1200 Super Glide
1972 1000 cc XLH/XLCH Sportster
1972 First disc brakes on a Harley
1977 FXS 1200 Low Rider and FLHS
1978 75th Anniversary models
1978 FLH 80 Electra-Glide
1978 First electronic ignition on a Harley
1979 FXS 80 Low Rider
1980 FLT rubber mounted engine
1981 Senior executives at Harley-Davidson purchase the company from AMF. Harley-Davidson once again becomes a privately owned company.
1983 President Reagan imposes additional tariffs on all Japanese motorcycles 700 cc or larger.
1983 The Harley Owners Group (H.O.G.) is established.
1984 The Introduction of the "Evolution" engine
1984 First Softail models and Air Assisted Anti-Drive
1986 By offering common

 

TC

That's some great history. I love reading about what Harley has done over the years. I truly think they are an amazing company despite many of the quirks we riders complain about from time to time. The fact is, they were one of the true innovators of the motorcycle as we know it today. I think this family is one of America's biggest success stories. The best way to put it is the Harley brothers and W. Davidson were to motorcycles what Henry Ford was to cars. The difference is the comradarie that goes along with Harley owners. Harley has built their reputation on that, hence the reason why this whole site exists. The only way to truly experience it is to own one and to get involved with the Harley community. Ride Safe but keep riding :-)

 

WOW! Great read, TCSTD! Thanks!

 

Great read, but didnt you forget the Iron head (Sportster) motor?

 

joelb,
Great reading from the other posts...here is my .02.

Motorcycles do not need to have the quality and technology of our everyday transportation, i.e.; cars, mini-vans, pickups, etc. This is why Harley was able to survive the old AMF days and why they can still lag behind the rest of the motorcycle world when it comes to innovation and quality. They are an image...a product that sets the tone for the way people will look at you just because they overheard you mention that you have a "Harley", spent the weekend with some friends riding "Harley's", stopped at the dealership to look at the new "Harley's" etc. etc. As long as that image survives, they will always be able to sell bikes, clothes and accessories but not necessarily at the rate, or with the profits they would like to. The next generation of riders have grown up with as many Honda's and Toyota's in their parents' garages as GM and Ford products. Many of these same youngsters probably ride to school in their own little Honda Civic or Toyota Corolla whereas the 35 to 45 year olds that are buying Harley's today, drove, rode in, and even wrenched on Camaros, Mustangs, Chevelles and Chargers. Point being---tomorrows potential Harley buyers will have no preformed convictions to looking for the "Made in USA" label.

If you read enough posts on this website, or if you do a Google search of "Harley's Suck" you will quickly learn that the bad old days of AMF aren't really that far behind us. Has the quality improved? Yes. Does it continue to get better? Doubtful. Is the quality at the level of a Japanese manufacturer? No way! If a Harley owner is really honest with his/herself, there is no way they could look at the fit and finish of a Japanese motorcycle and say that their Harley is superior. Look at the detail and obsession with the routing of wires and hoses on a Yamaha compared to a Harley. Look at the horsepower and torque numbers right out of the crate on a big twin Honda or Kawasaki. Look at a Goldwing--period...what a machine! And you don't have to go oversees to see the difference. Victory Motorcycles, a company that is about 95 years younger than Harley, was first with 4-piston brakes, first to offer a 100 cubic inch engine on a stock bike, first with the 6-speed transmission.

Harley is stuck in what I like to call the "tradition only" phase, where the emphasis is on the air cooled, 45 degree, v-twin (yeah, the V-Rod is a break from that but most people find it too expensive and too uncomfortable, especially since it is only offered as a cruiser). I say, why not keep that tradition alive in some, or even most, of the bikes but start giving the rest of us something beyond that? How about a liquid-cooled touring bike? How about a V-4? Hydraulic clutch? More comfortable seats? And for the loyal traditionalists, how about bigger displacement without having to pay $2,000 to $5,000 to get it? How about a reliable 6-speed tranny for all of us? Most importantly, how about some obsession with the quality?

You know, the tradition thing is a little misleading when you think back on the history. The MoCo and all of its' followers like to brag about the v-twin tradition as if that was the first motor produced in that shed back in 1903. Fact is, that first motor, and every motor that followed for the next 6 years, was a single cylinder. If the original founders had been as stuck on "tradition" as the current crop, would we all be driving one-cylinder bikes? I think not. More than likely Harley would have eventually withered on the vine due to a lack of innovation and excitement for their products, and, not that they are anywhere near that point now, but hard times may be on the horizon if they do not bump up the quality another notch or if they continue to only listen to the 40, 50, and 60 year-old traditionalists that refuse to accept anything other than a 60 horsepower, 45 degree, air cooled, v-twin.