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

(Example: Production Builders:Peugeot:PX-10LE)

Date: Wed, 15 Mar 2006 09:02:15 -0800 (PST)
From: "Fred Rafael Rednor" <fred_rednor@yahoo.com>
Subject: Re: [CR]Survey Says: keep KOF prices where they are...:-)
To: Don Wilson <dcwilson3@yahoo.com>, Classic Rendezvous <classicrendezvous@bikelist.org>
In-Reply-To: <20060315164254.46128.qmail@web52507.mail.yahoo.com>


So are you suggesting we start building low-rider and chopper bikes using lightweight frames as a starting point? Actually, I did that for daughter, using a bicycle from Giant with 24-inch wheels. It now has a wonderful Von Dutch "Flying Eyeball" headbadge.
     Fred "Funky" Rednor - Arlington, Virginia (USA)


--- Don Wilson wrote:


> Glad you added this to the discussion. You're
> absolutely right. Probably no chance with out Big
> Brother intervention by Reagan, one of the few things
> I ever agreed with him about.
>
> But of course I was addressing not how they saved
> themselves, but rather how their customs came to be so
> valuable on the market. I skipped the bail out,
> because I didn't see the relevance to the marketing
> strategy. I don't recall HD marketing ever bragging
> about being bailed out. Maybe they did and I missed
> it.
>
> I used to freelance a bit for motorcycle magazines and
> have actually toured the York plant with management,
> written about it, discussed their expansion in KC, and
> discussed their styling and marketing efforts with
> some knowledgeable motojournalists, as well as having
> read about, observed and thought about their marketing
> efforts since at least the early 90s.
>
> Thanks for you comments.
> Don Wilson
> Los Olivos, CA
>
> --- David Patrick <patrick-ajdb@sbcglobal.net> wrote:
>
> > Don,
> >
> > HD was able to survive solely because they sought
> > and received relief thru import tariff hikes on the
> > foreign competition. This is well documented in the
> > business/economic press in articles circa '84 - '86.
> > HD execs themselves admit that the company would
> > have gone bankrupt w/o this tariff hike, which
> > resulted a an extremely unlevel playing field tilted
> > in HD's favor. Everything you rattle off below was
> > made possible only because of this tariff hike. So
> > yes, HD is a success story, but only due to
> > government interference that resulted in trade
> > barriers to fair market competition.
> >
> >
> > Dave Patrick
> > Chelsea, Michigan
> >
> > Don Wilson <dcwilson3@yahoo.com> 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.
> >
> >
> >
> >
> >
> >
> >
> > --- LouDeeter@aol.com wrote:
> >
> > > Don Wilson said:
> > > but $10K to $20K for a bike, if custom bikes were
> > > marketed correctly and
> > > effectively, wouldn't even make today's wealthy
> > > blink.
> > >
> > >
> > > This past week was "Bike Week" in Daytona. The
> > > event has spilled over big
> > > time into Orlando. And, we're not talking about
> > > pedal power bikes. These are
> > > the motorcycle variety. And, Don's right, wealthy
> > > people will drop a ton of
> > > money for the right item. I was talking to a guy
> > in
> > > the office yesterday and he
> > > told me about a bike that was on the market in
> > > Daytona for $137,000, with a
> > > $40,000 paint job. These custom choppers are
> > > extraordinary works or art
> > > (whoops, there I go again). I believe prices are
> > > creeping up for great custom
> > > bicycles and their paint, but if the crowd that
> > > descends on Cirque is any
> > > indication, I doubt we'll see any of them dropping
> > > even $20,000 on a custom model
> > > anytime soon, at least not a new one. Some of the
> > > old, historically significant
> > > bikes might fetch that though. The number of
> > people
> > > chasing the product does
> > > have a BIG thing to do with pricing--I think the
> > > economists call that demand.
> > > Take a look at how many people come to Bike Week
> > in
> > > Daytona, how many attend
> > > and watch Barrett-Jackson Car Auctions, and how
> > many
> > > come to Cirque or
> > > VeloRendezvous. Do you catch the drift here?
> > > Lou Deeter, Orlando FL
> > >
> > >
> > > _______________________________________________
> > > Classicrendezvous mailing list
> > > Classicrendezvous@bikelist.org
> > >
> >
> http://www.bikelist.org/mailman/listinfo/classicrendezvous
> > >
> >
> >
> > D.C. Wilson dcwilson3@yahoo.com
> >
> -----------------------------------------------------------
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> === message truncated ===

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