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Man, I hope those cows move out of the way.

Seriously, Harleys are obnoxious. There is nothing worse than getting one of my kids to sleep and have one of these things thunder past and wake up the house. How they’ve skirted noise ordinances is a mystery.

^ missing the point.

This is pretty interesting, It’s is just like what apple is doing, keeping prices steady but making the product better.

What other brand is tattooed on people.

Harley has also embraced the “open-source” motorcycle community by selling parts and engines to other frame builders extending their brand way beyond their core products.

Ferrari is probably one of the other passionate brands.

You either love it or hate it. Polarizes you.

They have built a community.

I ride a BMW R1200C , but I learned to ride on a friends ‘84 Softtail. While I like my bike a lot (I couldn’t really afford a Harley, believe it or not) it doesn’t engender the kind of passion a Harley does.

Case in point. We were riding two-up on that Softtail when we stopped for gas. It was at one of those out of the way, corner convenience store/gas station places. We pulled up on the bike and started filling the tank when the attendant came out to stare.

Now the Softtail has a “Fat Bob” tank, which has two fill spouts. When my friend was moving the hose from one to the other, a small amount of fuel spilled on the tank.

He looked at the attendant and asked if he has a rag or something he could use to wipe up the gas. Without hesitating, this guy making minimum wage walked over and used the sleeve of his shirt to dry the tank.

You can’t buy that.

For the skeptics like me that wanted to know whether their growth was sustainable and whether they met their 2003 goal of doubling production to 200,000 bikes, their total shipments for the last few years was:

2003 – 291,147
2004 – 317,289
2005 – 329,017
2006 – 349,196
2007 – 330,619

Matt, it looks like the “trying something like this” link at the bottom of this post is your admin link, not the link to the actual post.

I’m curious how they’ll do when the crunch actually hits America. Most of their sales are via credit or other financing.

+1 Mike

Harleys are loud and obnoxious. I was camping among the sequoias last year. A group of Japanese bikes drove past the camp site early in the morning. Shhh, shhh, shhh, was the only noise they made. Fifteen minutes later a similar size group of Harleys drove up the road. The rumbling and noise woke everyone up before they arrived. The noise was unbearable while they drove past. We continued to hear them has the sound echoed off the mountains for miles.

Harley == noise pollution.

The idea of intentionally limiting supply for its own sake disgusts me. It’s pure manipulation and has nothing to do with quality. DeBeers has made billions on that principle.

I think the final link should be 37signals.com/svn/posts/384-37signals-customer-summit-exploration

What a compelling brand.

No, they couldn’t compete with Honda on cost. But don’t forget that they also were unable to compete with Honda on technology, performance, reliability, or any other measure that would ostensibly distinguish a “good” motorcycle from a “bad” motorcycle.

HD and Apple are frequently mentioned in the same breath, and there are obvious similarities between their fan bases. But I think most of us would agree that Apple’s appeal revolves around their product being better than the competition. HD’s product just has more attitude.

While Apple’s increased popularity may mean their product is less scarce/cool, the inherent and undiminished “goodness” of their stuff keeps the long-term Apple acolytes happy.

In contrast, the explosion of first-timer/non-hardcore HD owners and the fairly gratuitous brand merchandising is (eventually) going to kill the HD cool factor. Then the owners are left with a sub-par bike they paid a premium to acquire, while less image-obsessed guys like my dad ride past them on faster, more reliable, cheaper bikes.

Not saying HD hasn’t done amazing things in growing the company, but it’s a limited-term play and the expiration date is looming.

I work in downtown Milwaukee and I gotta say that it is very inspiring to see the passion from H-D riders first-hand. At this year’s 105th Anniversary event, the entire Milwaukee area was filled with riders from all over the world – people who love their H-D’s enough that they ship their bikes across the world or ride them home specifically for the anniversary event. Some of the riders have some pretty cool stories about their ride home. Its such a rare thing to see that kind of dedication to a brand, its not surprising to see people pay more for a higher quality product, they do the same things with Apple products.

Disclosure: I’m not a H-D employee, but I’ve worked on some H-D web projects like the Ride Planner.

Interesting post.

Harley may tout “individualism”, “adventure”, etc., but what they’ve actually been successful at is convincing a segment of the American population that Harleys are what “real” Americans ride. Just like parts of Virginia are more “real” than others.

I applaud Harley’s success. But, lucky for us, the Republican Party’s stumbling attempt to run the same strategy seems to be failing miserably.

While I don’t ride motorcycles, I have to admit I was captured by the magic of this brand. And trust me, I hate the noise pollution – not only do you wake up when one comes buy, but you have to wait for all the car alarms that it set off to slowly peter out (another thing I’d like to see banned in dense cities). I’d be all lined up to dislike these bikes, except that when I look at them, I think they’re just about the coolest thing I’ve ever seen.

Mark Wilden – I don’t think the way De Beers restricts supply has much to do with the Harley situation. De Beers has basically bought up existing mines and only allows a limited production – a classic cartel. Harley Davidson is in an intensely competitive market and has no cartel-like control over supply. Also, Harley manufactures its product and determines how much to produce per year. It’s not like there are a bunch of motorcycles sitting under a mine somewhere in the australian outback that have been purchased and deliberately kept off the market to keep prices high.

Noisy bikes are safe bikes.

Here’s some data in support of the relative strength of Harley’s brand, based on owner satisfaction. http://www.netpromoter.com/calculate/nps.php

I’m not motorcycle fan for the most part and I don’t really care about Harleys. But the community that surrounds Harley in general is amazing. Like GeoffB said, the magic of the brand is just fascinating.

Harley can tell whatever story it wants, but the idea that they turned the company around with plain old gumption and listening to customers is just hooey.

As the case study briefly notes, in 1983 Harley went to the US Government for help, hat in hand. Reagan slapped a staggering 50% tariff on foreign bikes:

After its hearing on November 30, 1982, the ITC found that Harley-Davidson made up 75 percent of the American motorcycle industry (as measured in terms of capital and labor). The rest of the industry is composed of one Honda plant and one Kawasaki plant. On January 19, 1983, the ITC concluded by a vote of two to one that imports of heavyweight cycles, but not power-train subassemblies, posed a substantial threat to the American motorcycle industry.[14]

To provide relief, the ITC recommended the following five-year tariff plan for heavyweight motorcycles: Raise the current tariff of 4.4 percent to 49.4 percent and keep it there for a year; lower the rate to 39.4 percent in the second year, to 24.4 percent in the third year, to 19.4 percent in the fourth year, and to 14.4 percent in the fifth year. After the fifth year the tariff is to return to 4.4 percent.

So basically they knocked Honda and the others out of the US market for 5 years while they retooled. Not every company has the luxury of hitting the “pause” button on their competition like that.

@GeoffB: De Beers and Harley are doing the same thing in this respect, at least: they are both restricting sales solely in order to increase the price. As a result, consumers pay more – due to a constraint of their own making, not the market. So much for the invisible hand. What counts is not selling products that people want at a competitive price, but how making as much money as you can. But that’s just capitalism for you. It’s the worst economic system ever invented – except for all the others. So far. :)

Frank, concerning the tariff, you failed to mention that it was Harley-Davidson who petitioned to have the tariff lifted (which it was), even though they didn’t have to. I’ve been a rider since 1968 and have owned seven Harleys, several of which I built myself (not to be confused with “customizing”). On my very large Harley website I constantly strive to get riders to muffle their bikes, not only because it’s annoying to non-riders but because it will only lead to unwanted legislation. This has already begun in many cities across the country. Unfortunately the average Harley owner of today is what we call a fadster; one who’d sell their low-mileage hog (and its requisite trailer) the second it becomes perceived as uncool. Therefore they have no interest whatsoever in the future of motorcycling. Those are the people who are making all the noise, not real motorcyclists.

I find noisy bikes obnoxious, but Mike and Jon Fail are right – they’re safer.

If a new generation of electric bikes emerges, such as a road version of the “stealthy” Zero X, they’re going to have a serious problem being noticed in traffic.

There was a story some time back of Harley releasing a new generation engine. This new engine didn’t leak oil like the old ones had a reputation of doing, so they actually offered a plastic fake “oil-slick” to drop under your new bike to complete the image.

Just shows the brand loyalty even if the product has known faults.

Disclaimer: This is anecdotal story, if anyone can back it up with evidence, please do.

It sounds like Norton Motorcycles in the UK had a similar troubles, but didn’t do as well as Harley did. BBC News has an article about Norton’s comeback attempts.

I ride a Vespa. I suppose it would be safer if I beeped my horn every two seconds, but I’m not going to do it. I doubt very seriously that many Harley riders prefer their “potato-potato” noise pollution for safety reasons, especially when they’ve wearing a brain bucket instead of a real helmet.

Tim, Mike and Jon, do you you have any evidence louder bikes are safer? I’ve heard this argument a number of times without seeing any evidence to either support or disprove it (and apparently I’m not not alone).

I do know that when I switched to a performance set of pipes on my Triumph (that happened to louder) it didn’t seem to make a bit of difference on the number of drivers that failed to notice me.

1. Harleys don’t come with loud pipes from the factory. The exhaust note IS very distinctive, but out of the box, it’s not particularly loud. Owners go out and FIND ridiculous, obnoxious exhaust systems.

2. Loud pipes don’t save lives. Most of the noise is BEHIND the bike. I can’t usually hear a motorcycle until it’s in front of me.

@Ryan: The argument you are reading about about states that “loud pipes save lives”. I’m not saying that. I’m just saying that they’re safer. I may not be able to see a loud bike in my blind spot, but I can hear one. Personal experience is evidence enough for me.

Motorcycles are fun toys (I’ve had a few, incl. HD and BMW ), but ultimately they’re just toys. There’s no justification for owning one over another that doesn’t come down to bravado and your own sense of style or nerdiness. Enjoy your ride. Noise ordinances should be enforced, tho. These jerks are just begging for attention and annoying everyone around them.

I like Harleys the same way I like ‘57 Chevys: They’re interesting to look at, but I wouldn’t ever buy one.

Besides the marketing and design approach, they also had to change how they do manufacturing:

http://www.evolvingexcellence.com/blog/2007/02/what_harleydavi.html

The funniest thing about the fad HD riders is their “rebel” image. Except that look at a Harley rider and they’re all wearing a uniform: black HD T -shirt from some dealership and blue jeans. Every single one.

I will silence my Harley when the cages (cars and trucks) stop running us over. I am sick and tired of seeing my brothers and sisters go down to preserve the rights of idiots to drive like dicks.

@Loud Pipes Save Lives There are bad auto drivers and bad motorcycle riders. Riding a motorcycle is inherently more dangerous than riding in a car and everyone on a motorcycle knows that, so don’t claim that 1) loud motorcycles will prevent accidents and 2) auto drivers are always at fault.

@Mike and Jon – Please read the article again. The authors point (and mine) is that there is no evidence one way or another that loud pipes make a difference one way or another.

Tim, I pity the fool that listens to your advice. There’s no concrete evidence to demonstrate that noisy bikes are safer.

The only thing provent to increase rider safety is rider safety training.

Mike: Good point that auto drivers AREN ’T always at fault…bad assumption that riding a motorcycle is inherently dangerous. Driving a car is inherently dangerous and far more people are injured in car accidents. Flying commercially is inherently dangerous: an extrapolation a while ago with (now meaningless) growth rates of flight suggested that there would be one airliner hitting the ground full of people EVERY DAY . (Growth rates have declined, but this may yet happen.)

Riding a motorcycle isn’t any more or less “inherently dangerous” than these other activities. What IS true is that the danger is a bit more absolute: with no exterior frame to buffer an impact, and only safety gear on your body (which many many riders don’t wear, Harley riders or not) the likelihood of a SERIOUS accident is higher.

Put another way, you’re not that much more likely to get into an accident than a driver, but if you do get into an accident you’re more likely to die.

Loud Pipes Save Lives reminds me of why I’ll never ride a Harley. It’s not the bike, it’s the OTHER people who ride them.

Just read the article and as the owner of a small consulting company, that regularly competes against very large companies, I appreciate the idea of branding and in some way making your-self different.

I am 55 and just completed my motorcycle safety course and obtained my M1 license (motorcycle) here in California. I have been shopping for a used Harley for the last 3 weeks and I wouldn’t consider any other motorcycle. While they are undeniable cool, the look has been copied by any number of manufacturers (including the Japanese) and to many nonriders all probably look (and may even sound a bit) like Harley’s. For me it’s about buying American when I can. If there is a good American product I will buy it every single time over an import. Just bought the 2008 Cadillac CTS …I looked at, and admire, some of the Japanese luxury cars. But there are many reasons that this country is slipping and a failure to at least consider American products is one of them.

If you don’t vote, don’t bitch about the results, if you don’t buy American don’t gripe about our economy.

Taking the argument back to one of branding…

I was window-shopping for a new bike and was trying to decide to buy a cruiser or a rice-rocket. They both have their pros and cons. On one particular day I had my girlfriend with me, and asked her which basic design she liked better.

From her perspective, nothing could have been more unappealing than a Harley. Her perspective? The chick on the back of the bike. She didn’t want to be associated with the older and fatter Harley chick with the blurred tatts. Sitting up on a postage sized seat in her tight jeans leaning forward, legs and arms wrapped around me was way more appealing.

To her, the crotch rocket was young and sexy while the hogs had the appeal of a 1970’s station wagon. Looking around at my fellow riders, I started thinking she had something there.

I think all auto manufacturers have a lot to learn about how to stage a comeback. It is amazing to see the resurgence in interest for Harley Davidson’s right now. They implemented an ingenious plan and it worked perfectly.