Re: [CR]Survey Says: keep KOF prices where they are...:-)

(Example: Component Manufacturers:Chater-Lea)

From: "dddd" <dddd@pacbell.net>
To: "Classic Rendezvous" <classicrendezvous@bikelist.org>
References: <20060315104729.6272.qmail@web52507.mail.yahoo.com>
Subject: Re: [CR]Survey Says: keep KOF prices where they are...:-)
Date: Wed, 15 Mar 2006 03:56:19 -0800
reply-type=original

I think there's a bit of a divide between trendy, spendy status symbols and what is primarily (at least at the higher end) considered sports equipment. When I think of how one could market cycles, and what kind could be marketed like Mini-Coopers or Harley Davidsons, one could do a whole lot worse than sell, well, Harley Davidsons. This seems to be what has evolved in the high end of the greater cycle market. The number of people who have the fitness and motivation to get good use out of, and appreciate a really good bicycle is, sadly, relatively small compared to aging baby boomers who can afford payments on a motorcycle.

The clothing that bicycle riders wear also doesn't fit in so well with socializing within festive masses of people celebrating life and each others customized status purchases, even if it's just a small gathering at the local Starbucks. The macho image projected by the Harleys is also absent from bicycles, meaning fewer people beyond the owner will admire a special bicycle. When I see a Calfee bamboo bicycle, it reminds me of the first time I saw my Pedersen, and only such wild creations really attract public attention like that enough to justify their modest extra cost, if we're talking about the cost of the "cool" factor that appeals to folks beyond the owners or other serious riders.

Looking back to the turn of the century, there were many elaborate and expensive pedaled vehicles, including bicycles, which were marketed and used as status symbols. These really stood out, even without any sporting pretensions, in the day of horse-drawn carriages, and their use as luxury cruisers probably fit in well in the geographically compact and upscale urban areas where they were successfully marketed. When I ride my tall, bright yellow Pedersen up to the local biker hangout (the coffee shop) it turns heads better than almost any motorcycle, but how many coud someone sell before the novelty wears off. Maybe we just need a second rennaissance of wild pedaled creations to get some expensive iron sold, but how many Pedersens has David Ductor been able to sell?

To market the way Harley has been doing for the last 22 years, I think we first need a whole bunch more willing-to-pedal riders out there within the well-to-do demographic. A good start might be attracting more women into the "sport", then bringing in some new ideas on stylish, more casual-looking cyclewear. I think there were at least some folks marketing this way 100 years ago.

I just noticed Kim's posting in my in-box, so I hope this isn't going further OT. I already wrote it tho so here it is.

David Snyder Auburn, CA

Don Wilson 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.