Iconic Motorcycle Dealership shuts down after 110 YEARS

[indyblue]

Some dealers make more off clothing than motorcycles. My gear didnt come from a dealer either. I have a Harley sliding jacket, it was a gift. I'm kinna locked in to wearing it.

I know Harley riding gear is top tier but like all top tier gear it is not cheap.

Sounds like most common business practices today. Sell the product for at or below cost and make bank on accessories and upgrades. See: automobile trim options, bars (lose or break even on the food, but make up for it on the booze).

 

[BehindBlueI's]

Four new ones in my life, I haven't worn any of them or the others out yet.
I suggest you go to a Poker Run, to a weekend rally or to a swap meet and see what ages are actually attending.
I'm at them all the time. I believe what I see, not what I read.

Well, the source is Harley so if you can think of a compelling reason they are lying about their sales dropping drastically, you can take it up with them I suppose. Nobody is saying they aren't selling *any* bikes, they still sell a lot...but the trajectory continues downward at an accelerating pace and their market value reflects that.

 

[Creedmoor]

Sounds like most common business practices today. Sell the product for at or below cost and make bank on accessories and upgrades. See: automobile trim options, bars (lose or break even on the food, but make up for it on the booze).

Could be,

 

[Gingerbeardman]

I know ZERO about motorcycles, but I am curious to know how many Harley riders are under 40?

It seems like there is always some "old" (not 20/30-something) person on them. Will that hurt their company/business long term?

Would enjoy hearing from someone who knows motorcycles on this topic!

I worked at a dealership from 2017-2020 and I would say the general demographic would be about 35% under 40. I would also say the female demographic, all ages, was about 15%. Most riders were all Harley for life, a few were bike enthusiasts with multiple makes in the garage. A surprising amount has been sportbike riders before coming to Harley for the comfort.

I also know a few people still in dealerships and the word is Harley is making it really hard to run a dealership profitably.

Anyone with more solid or accurate data is more than welcome to correct me, I'll take no offense. As to their stock value or the direction the current boss is taking the brand, I'd say neither look promising.

 

[Creedmoor]

Well, the source is Harley so if you can think of a compelling reason they are lying about their sales dropping drastically, you can take it up with them I suppose. Nobody is saying they aren't selling *any* bikes, they still sell a lot...but the trajectory continues downward at an accelerating pace and their market value reflects that.

Its not the first time Harley Davidson has had slowing sales, many American motorcycle company's have had the same issues over the last 100 years. Unlike all the others, Harley Davidson just managed to stay in business through all of that.

I just know what I see. I also see so many other motorcycle companies build motorcycles that look and try to sound just like Harley Davidsons.
I wonder why they do that...
Are we done here?

 

[Nazgul]

I have an Indian motorcycle. This thread prompted me to look at their performance. Polaris has declined for 2 years after record growth. They blame supplier issues since Covid.

Not sure that is all the problem. The demographic is definitely changing.

Don

 

[Shadow01]

Maybe AMF will buy them again…

 

[Creedmoor]

Maybe AMF will buy them again…

You mean the company that brought out the new and improved XR750.
You know the one that Riders have won 29 of the 37 AMA Grand National Championships from 1972 to 2008 inclusive. Besides having more wins than any other bike in AMA racing, it has been called the "most successful race bike of all time", and has a claim to have more wins than any other racing motorcycle in history.

 

[Longhair]

I know Harley riding gear is top tier but like all top tier gear it is not cheap.

Top Tier?....Most of that crap is made in China or some other country and most people that buy it have never even sat on a harley.

 

[Ark]

Per the article:

“In 2022, Harley-Davidson did $270 million in clothing and gear sales alone, which means Harley’s apparel business is already bigger than many big fashion brands.”

Kind of like how Browning sells more deer stickers, deer hats, and deer shirts than guns

 

[KokomoDave]

I bought my HD's used for a reason. Let the first guy take the hit and when he becomes disillusioned, I'd buy his old scoot. I've had HD's for 40+ years but now pilot a KTM. I bought it used as a demo bike and love it. 375lbs and 125hp. NO reason why the Sportster S weighs so much with anemic hp. Why build a sh!*box when you can promote exhilarating riding like you used to promote?

 

[Leadeye]

Maybe they will go the way of revolvers, still available new, old ones sell at a premium and hold their value, and always have a following. Times change and many American icons have headed into the sunset but will always be with us.

 

[Twangbanger]

Maybe they will go the way of revolvers, still available new, old ones sell at a premium and hold their value, and always have a following. Times change and many American icons have headed into the sunset but will always be with us.

I'm sure "Farmall M rallies" are probably a thing, a good time is had by all and seems 100% real to the participants.

There are other more diversified players in the market who aren't dependent on a single product. Best bet is HD ends up being the CaseIH of motorcycles.

 

[BiscuitsandGravy]

 

[BehindBlueI's]

I'm sure "Farmall M rallies" are probably a thing, a good time is had by all and seems 100% real to the participants.

There are other more diversified players in the market who aren't dependent on a single product. Best bet is HD ends up being the CaseIH of motorcycles.

It looks to me like most of the growth is in low cost developing nations sales. My *guess* is that's probably like 200cc and smaller urban scooters and motorcycles with very low entry costs and not much maintenance requirement needs.

There's still a lot of bikes sold in the US, but I think you're right it'll be tough to be a single product company and retain size. HD's financials talk about seeking other sources of revenue aside from motorcycles and merchandise, but no specifics as to what that could be. Subscription models, maybe? Roadside assistance, theft recovery, that sort of thing?

The good news is they are still profitable and don't have much debt on their books. Cash flow was positive last year. They are in the position to keep limping forward but I don't know they have the money to really reinvest and turn things around. I certainly wouldn't risk investing in them and their dividend is very unattractive even with the depressed price of shares, roughly 1.5%. They aren't another Colt who *has* to either get acquired or go under any second now.

 

[printcraft]

Maybe they will go the way of revolvers, still available new, old ones sell at a premium and hold their value, and always have a following. Times change and many American icons have headed into the sunset but will always be with us.

I lust after the old old Harleys, I usually enter the "Wheels Through Time" raffles as I can't afford a 100 year old motorcycle...

 

[BigRed]

Four new ones in my life, I haven't worn any of them or the others out yet.
I suggest you go to a Poker Run, to a weekend rally or to a swap meet and see what ages are actually attending.
I'm at them all the time. I believe what I see, not what I read.

The cool guys are the ones on an Indian.

 

[Creedmoor]

The cool guys are the ones on an Indian.

 

[Creedmoor]

 

[foszoe]

The cool guys are the ones on an Indian.

So you are NOW endorsing Kamala .... or becoming a Willie Brown fanboy... which is it?

Both?