About a year ago, I shut down a secondary business that I was 1/2 partner in. What we were doing is detailing motorcycles. We were actually endorsed by Ron Simms, and had an awesome product. My partner ran the shop, I did the financials. He decided to do something else, because he wasn't preparred for the long haul. I'll NEVER partner again...Anyway, my point is this. I was working on franchising this business. My research took me into all sorts of data, but interestingly, what impacted me was the leaps and bounds that riding was experiencing. Basically, the numbers are growing at near 20% annually, in the USA. Interestingly enough, several countries were seeing a decline. All-in-all, the manufacturers were running at near defficit. That is to say, they couldn't keep up with demand. There weren't a lot of figures for the used arena, as dealers don't want to sell used, and they don't publicize it much. They make all their money in new sales. H-D dealers get this years amount based on last years sales. As soon as there's a "ripple" in the sales numbers, their little house of cards starts crumbling. I believe two factors were strong for the USA's numbers. Baby boomers getting divorced, and finally be able to get a m/c, because the ex wouldn't let them have one B 4 (or Mom), and the fast paced rising fuel costs. If you're lucky to live near the sun belt, you can commute for a fraction. Its ten times more fun, and if you live in California, you can "split lanes" legally, which saves you a whole bunch of time not to mention the adrenelline rush that goes along with it. California alone was seeing NEW registry owners of over 130,000 annually (last 5 yrs), coupled with existing riders, and you can see the staggering amount of dollars the manufacturers are after. The Japanese are agressively after that loyal Harley-Davidson consumer, (H-D sells 1/2; the combined Japanese sells the other 1/2) but together, all of them cannot light a candle to the quality that H-D puts out. My only hope is that Q.C. doesn't suffer in a attempt to keep up with demand. I am actually glad to hear the reports from this membership, concerning the excessive inventories out there. I also do not wish ill to anyone (ecxcept San Jose H-D), because I feel that this industry is ready for re-alignment, like so many of the other industries that have done so already. I have seen a complete turn-around to manufactured US products. I deal in home furnishings of the luxury level. I can attest that the lead times have doubled, and quality is slipping, as the manufacturers try to trim their overhead; run smaller crews; reduce inventory and sell more of a made-to-order basis. Well, we'll see. I wish I was buying a new '06 SE CVO(any one, doesn't matter, just that they are pricey), because I would most certainlly have some fun (a lot!) toying with them. Any sales person who sluffs a potential buyer off, should be discharged immediately. He has not only lost this sale, but as is written above, he's turned that potential customer "off" forever. I strive to keep loyality from my customers, and so far, it has worked. Later to all... N.H.
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Topic: Too Many 2006 H-D's produced? (Read 3717 times)