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Sturgis Looks to Host Motorcycle Parts Company

by Steve
Tuesday, April 15, 2008

The Associated Press reports that a California company making aftermarket parts for motorcycles is working on moving its operations to Sturgis, SD so that it can use that famous name for marketing purposes.

The company hasn't been identified because some of its California workers will be losing their jobs.

David Boone, the Sturgis City Manager, says about 50 people initially would be employed at the Sturgis plant, which could be built and operating within two years, making parts for Harley-Davidson, Kawasaki, and other brands.

Source: Sioux Falls Argus Leader

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Harley-Davidson Myths Debunked

by Steve
Thursday, May 10, 2007

I noticed a couple of other biker bloggers picking up on this article written by Rick Barrett of the Milwaukee Journal Sentinel, but failing to come up with any decent comments. The article explained that Harley-Davidson is losing its customer-base due to the aging of baby boomers and the price disparity with metric bikes...

http://new.savannahnow.com/node/280591

So, I read the article and decided to comment. For example...

But now the demographic challenges are substantial. Executives must bridge a generation gap between boomers, who turned the brand into an icon, and younger riders, who may have no brand loyalty at all. Harley also must continue its efforts to attract women and minority customers.
This is a fallacy. It's not that baby-boomers tended to ride Harleys, it's that older riders tend to slow down, and take it easy. These baby-boomers were once riding dirt bikes, cafe racers, and sportsters, and then opted for Harleys to slow down and take it easy. There's an entirely new crop of middle-aged riders coming in to buy Harleys, year-after-year.

The writer also falls for another fallacy, that price is the reason why younger riders opt for metric bikes...
Yet some analysts worry that the price of a Harley - about $7,000 for a Sportster and up to $30,000 for a deluxe touring bike - could send younger riders to the smaller, less expensive motorcycles offered by Japanese manufacturers.
Not true. Younger riders opt for motorcycles offered by Japanese manufacturers because of the styling and performance, not because of the price. Those youngsters with extra money on hand will often buy Ducatis and BMWs, proof that price isn't what's driving the market.

The author also has completely misunderstood the concept of static design, instead believing that Harley cannot develop new bikes because of stubborn old riders...
But the need to attract a younger crowd presents a dilemma, because Harley can't afford to offend customers who have been faithful to the brand for decades and who won't necessarily embrace new types of bikes.
Harley riders aren't offended by "new types of bikes", on the contrary they want new types of Harleys. What they demand however, is access to a vast array of customization choices.

The reason why Harley has the largest aftermarket support is because they retain the same designs and parts year-after-year, decade-after-decade. On the flip-side, take a look at Honda, the largest manufacturer of motorcycles in America. Their aftermarket support sucks because they keep changing everything. That makes it difficult for the aftermarket industry to gain a footing.

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