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Harley-Davidson Posts 4thQ Loss, first in 16 Years
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A lot of this sort of thing going on. Wouldn't surprise me if it gets worse, in spite of the sunshine our government is blowing up our skirts. Unemployment figures are spin-doctored BS, "stimulus package" seems to be only stimulating large bonuses for financial fat cats, the government aids and abets "free trade" and sending jobs out of the country, and is giving billions of tax dollars to huge multi-national corporations that are U.S. in name only. People who aren't working, or have traded good paying jobs for flipping hamburgers to make ends meet, aren't buying luxury items, like bikes.
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It's been a tough two years for all manufacturers. Here's what I found to be most interesting from the announcement of Harley-Davidson's 4th Quarter 2009 Financial Report:
Harley said shipments of its bikes to dealers in 2009 fell 27 percent to 223,023. For 2010, Harley said it expects shipments to fall another 5 to 10 percent to between 201,000 and 212,000 Harley-Davidson motorcycles.
During the same period, industrywide sales of heavyweight bikes in the U.S. fell a smaller 21 percent, Harley said, costing it almost 5 percentage points of market share during the quarter.
Chief Financial Officer John Olin blamed the market share on aggressive discounts by competitors. Harley is not interested in discounting its bikes - which generally run between $10,500 and $36,000 for its 2010 lineup - because it weakens the brand, Olin said in an interview.
"You gotta pay full price for a Harley," Olin said.
Is it me or does it sound strange that Harley doesn't recognize that the prices may have to adjust to attract buyers? Hello Harley? Did you know that the world is currently experiencing a recession and there's still a possibility that we could experience a "double dip recession" and see things get worse before they get better?
The statement referencing "Aggressive Discounts By Competitors" caught my attention.
And, in reference to the statement, "You Gotta Pay Full Price For A Harley," I have to ask...
Says Who?
I can only guess that Dealers who have purchased inventory may see things a different way and welcome warm bodies with cash or available credit into the dealerships.
I can only guess the Cross Bikes, the Vision and other Victory models are digging into H-D's sales. It may be time for H-D to adjust the pricing of its bikes. Yes, H-D sells a heck of a lot more bikes than Victory, but think about it this way:
For every bike that Victory sells, there's another manufacturer that just lost a sale. It's a fairly safe "assumption" that a lion's share of Victory's sales could be taking away from Harley.
Just my two cents.
Harley said shipments of its bikes to dealers in 2009 fell 27 percent to 223,023. For 2010, Harley said it expects shipments to fall another 5 to 10 percent to between 201,000 and 212,000 Harley-Davidson motorcycles.
During the same period, industrywide sales of heavyweight bikes in the U.S. fell a smaller 21 percent, Harley said, costing it almost 5 percentage points of market share during the quarter.
Chief Financial Officer John Olin blamed the market share on aggressive discounts by competitors. Harley is not interested in discounting its bikes - which generally run between $10,500 and $36,000 for its 2010 lineup - because it weakens the brand, Olin said in an interview.
"You gotta pay full price for a Harley," Olin said.
Is it me or does it sound strange that Harley doesn't recognize that the prices may have to adjust to attract buyers? Hello Harley? Did you know that the world is currently experiencing a recession and there's still a possibility that we could experience a "double dip recession" and see things get worse before they get better?
The statement referencing "Aggressive Discounts By Competitors" caught my attention.
And, in reference to the statement, "You Gotta Pay Full Price For A Harley," I have to ask...
Says Who?
I can only guess that Dealers who have purchased inventory may see things a different way and welcome warm bodies with cash or available credit into the dealerships.
I can only guess the Cross Bikes, the Vision and other Victory models are digging into H-D's sales. It may be time for H-D to adjust the pricing of its bikes. Yes, H-D sells a heck of a lot more bikes than Victory, but think about it this way:
For every bike that Victory sells, there's another manufacturer that just lost a sale. It's a fairly safe "assumption" that a lion's share of Victory's sales could be taking away from Harley.
Just my two cents.
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In 2009 I was going to buy a Harley and had already bought a Harley helmet. At the last minute I bought a Victory.
What turned me off was I was going to forced to pay full price for the bike, shipping costs, alarm, and building costs. (over $1000 in BS fees) I did not pay those fees for a Victory, plus I got a small discount on the bike and extended warranty for free with the Victory 2009 model.
What turned me off was I was going to forced to pay full price for the bike, shipping costs, alarm, and building costs. (over $1000 in BS fees) I did not pay those fees for a Victory, plus I got a small discount on the bike and extended warranty for free with the Victory 2009 model.
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One of the main reason I bought a Vic in the end was they words the HD dealer said to me. We do not deal on price or somethingclose to that. Plus they add on a bunch of other cost. I heard that from not one dealer but a few.
I guess I like to think I am getting a deal and HD would not budge on a thing.
I would like to seeany car dealer do that. You pay full price to get a car and thensee how many they sell.
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