Glad you added this to the discussion. You're absolutely right. Probably no chance with out Big Brother intervention by Reagan, one of the few things I ever agreed with him about.
But of course I was addressing not how they saved themselves, but rather how their customs came to be so valuable on the market. I skipped the bail out, because I didn't see the relevance to the marketing strategy. I don't recall HD marketing ever bragging about being bailed out. Maybe they did and I missed it.
I used to freelance a bit for motorcycle magazines and have actually toured the York plant with management, written about it, discussed their expansion in KC, and discussed their styling and marketing efforts with some knowledgeable motojournalists, as well as having read about, observed and thought about their marketing efforts since at least the early 90s.
Thanks for you comments.
Don Wilson
Los Olivos, CA
> Don,
>
> HD was able to survive solely because they sought
> and received relief thru import tariff hikes on the
> foreign competition. This is well documented in the
> business/economic press in articles circa '84 - '86.
> HD execs themselves admit that the company would
> have gone bankrupt w/o this tariff hike, which
> resulted a an extremely unlevel playing field tilted
> in HD's favor. Everything you rattle off below was
> made possible only because of this tariff hike. So
> yes, HD is a success story, but only due to
> government interference that resulted in trade
> barriers to fair market competition.
>
>
> Dave Patrick
> Chelsea, Michigan
>
> Don Wilson <dcwilson3@yahoo.com> wrote:
> 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
> >
> >
> > _______________________________________________
> > Classicrendezvous mailing list
> > Classicrendezvous@bikelist.org
> >
>
http://www.bikelist.org/
> >
>
>
> D.C. Wilson dcwilson3@yahoo.com
>
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