Re: [CR]Survey Says: keep KOF prices where they are...:-)

(Example: Framebuilding)

Date: Wed, 15 Mar 2006 02:47:29 -0800 (PST)
From: "Don Wilson" <dcwilson3@yahoo.com>
Subject: Re: [CR]Survey Says: keep KOF prices where they are...:-)
To: Classic Rendezvous <classicrendezvous@bikelist.org>
In-Reply-To: <237.8a67072.314938f9@aol.com>


What set the custom motorcycle business off was a combination of forces.

HD fought, survived and became a market power based on style.

That style and HD's authentic rebel image were fused and massively promoted through marketing.

HD bikes were promoted in every form of media that could carry the rebel image to the next higher income cohort.

All the while this was going on, gifted Custom Stylists like Arlen Ness were working on customs based on HD.

The customizers fed off the HD marketing machine and HD fed off the customizers effectively creating concept bike after concept bike that stimulated new interest in HD.

HD encouraged the customizers.

HD constantly jammed price as high as they could and held supply tight.

HD fostered HOG, the Harley Owners Group, that promoted fanatical consumer loyalty.

HD had a competitor, the Japanese Big Four bike makers that made a great opponent/villain, because of the lack of soul and flashy design in their bikes.

HD worked hard to get their products placed in celebrity hands.

In short, any motorcycle had a chance to do what HD did, but only HD did it.

HD's styling kept the emphasis on complex paint, ornamaent, chrome and detail.

HD promoted accessories out the kazoo.

HD pursued, cultivated and promoted the gotta have it factor.

HD constantly expanded up market to build share and increase margins, rather than move down market to higher volumes and lower margins.

Debt finaning and low depreciation/even appreciation because of continually fanned consumer demand and tight supply allowed consumers to justify spending on customizing that was increase the value of the bike, not decrease it. This created a huge demand for customizers even at the customizers high prices.

Customizers with big margins could afford to really advance the styling of the bikes.

The key to HD's and HD custom's success is: Harley equals individualism. The currency of individualism is customization. therefore, HD customs are worth more to own.

Can that model be adapted some how? Not sure. So are psycholists want the feel, not just the look of a custom bike.


--- LouDeeter@aol.com wrote:


> Don Wilson said:
> but $10K to $20K for a bike, if custom bikes were
> marketed correctly and
> effectively, wouldn't even make today's wealthy
> blink.
>
>
> This past week was "Bike Week" in Daytona. The
> event has spilled over big
> time into Orlando. And, we're not talking about
> pedal power bikes. These are
> the motorcycle variety. And, Don's right, wealthy
> people will drop a ton of
> money for the right item. I was talking to a guy in
> the office yesterday and he
> told me about a bike that was on the market in
> Daytona for $137,000, with a
> $40,000 paint job. These custom choppers are
> extraordinary works or art
> (whoops, there I go again). I believe prices are
> creeping up for great custom
> bicycles and their paint, but if the crowd that
> descends on Cirque is any
> indication, I doubt we'll see any of them dropping
> even $20,000 on a custom model
> anytime soon, at least not a new one. Some of the
> old, historically significant
> bikes might fetch that though. The number of people
> chasing the product does
> have a BIG thing to do with pricing--I think the
> economists call that demand.
> Take a look at how many people come to Bike Week in
> Daytona, how many attend
> and watch Barrett-Jackson Car Auctions, and how many
> come to Cirque or
> VeloRendezvous. Do you catch the drift here?
> Lou Deeter, Orlando FL
>
>
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