American Motorcycle Dealer AMD 171 October 2013 | Page 11

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surveyed reporting selling bikes below
MSRP. However, this is less than for the
prior period and the year-ago survey.
Reasons given by dealers who took
part in the survey include: “Very heavy
discounting from local dealers. Our
area did not lose any during the
downturn, it’s just too many dealers
competing for a slice of a smaller pie,”
and “Some dealers have adopted
some really bad habits as far as
discounting goes. We are basically
telling the consumers that our
products are not at all worth MSRP.”
et despite these comments there
are dealers who have resisted
discounting citing reasons such as:
“We don't have enough bikes, so we

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don't need to sell below MSRP.”
The increase in sales may not only
be due to the launch of the 2014
models and dealer discounting as
consumer financing remains stable,
and incrementally more dealers
reporting the easing of credit
availability. Yet the credit option offers
by the Motor Company have been
criticized by dealers. “Harley-Davidson
promotions are somewhat limited
with only 2.99 percent financing
currently available for customers, but
the Motor Company's sponsorship of
UFC, Sons of Anarchy, and movies has
been effective in keeping the brand in
the forefront of consumers’ minds.”
“There are no Harley promotions in
our region at this time; we are not

offered the 2.99 percent
HDFS customer rate.”
Dealers are, however, confident of
an improving sales season with
respondents to the survey expecting
retail sales to improve low singledigits percent in 2013, and their
outlook improving to mid-to-high
single-digits percent for 2014. This
confidence is reflected in H-D’s own
figures which show that retail sales
grew 6.6 percent in the US and 5.6
percent internationally in 2012. Baird
executives who have analyzed the
reports and responses from dealers
expect US retail to grow four percent
in 2013 and international retail to
grow five percent for the year.
n the subject of the launch of
2014 year models the response
from surveyed dealers was on the
whole positive, with the positive-tonegative ratio increasing dramatically
to 27:1, compared to responses that
were roughly balanced last year.
Comments from dealers on the bikes’
launch included: “Rushmore bikes are
a game changer. Updated radio and
better cams in the 103 are positive
upgrades. We'll see how the liquid
cooled heads sound and are accepted.

O

I think it'll be a win for Harley,” and
“The new bikes look great. The twincooled is a tremendously exciting
addition. We've already sold the two
we got, but now I have to broom the
‘13s I have left,” and “Best new
product ever! Biggest changes in 25
years! Bikes are selling immediately at
MSRP plus freight and prep. We
received double our usual shipments
the day after the show and it appears
we'll sell all the Touring and Trikes
within the week. Homerun product,
more reasons to trade than any time in
the last 25 years!”
These positive comments on the
new bikes were then echoed when the
surveyed dealer were asked their
thoughts on this year’s dealer meeting.
The positive rating was 87 percent,
which is a significant improvement
from 29 percent last year. Comments
indicate dealers were generally
pleased with the enthusiasm, new
models, information and programs at
this year’s meetings. “Best dealer
show I've attended in a while. The
pride and enthusiasm of the Motor
Company staff was evident as they
unveiled all the improvements made
under Project Rushmore. Great job!”•

AMERICAN MOTORCYCLE DEALER - OCTOBER 2013

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