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MoCo The Good, The Bad, and The Ugly.

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  #16  
Old 12-02-2011, 07:16 AM
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I wzz woncering where the restraint of trade lawsuit was.

And I saw a rumour that MoCo was going into online sales itself. Which would bring up anti trust issues if no one else could do it.

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  #17  
Old 12-03-2011, 06:20 AM
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Here's what I don't understand...

What's the gain for HD to restrict internet sales by dealers? Those sales don't affect the prices HD charges the dealers, do they? If HD gets $10 for a bolt, what do they care whether the dealer retails it for $11 or for $20?

The only benefit thats obvious to me is to the dealers... HD helping them protect thrir 'turf'.

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  #18  
Old 12-03-2011, 07:17 AM
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Here's what I don't understand...

What's the gain for HD to restrict internet sales by dealers? Those sales don't affect the prices HD charges the dealers, do they? If HD gets $10 for a bolt, what do they care whether the dealer retails it for $11 or for $20?

The only benefit thats obvious to me is to the dealers... HD helping them protect thrir 'turf'.

joe
maybe, more likely the moco sells a lot of parts themselves online at no discount, they want more, seems like they have the most to gain.
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  #19  
Old 12-03-2011, 07:33 AM
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I figger it like this... The MOCO wants dealers to make money off of bike sales mark-ups so that the MOCO can make the profits directly through online accessory sales. It would make the dealers have to hustle bikes, while the MOCO makes the easy money getting the piece of the action the dealers once had...
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  #20  
Old 12-03-2011, 10:04 AM
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Here's what we need to keep in mind....


Harley has positioned itself as a premium brand, like Ducati or BMW. As such, they keep a very tight reign on their dealers regarding pricing. Reason being, they don't want to get into the cycle of rebates and discounting from MSRP. That happens, the brand is devalued. And that ends up hurting both sales and the customer. No one wants to find out that their buddy paid $2000 less for the exact same bike they did. Not only that, but we enjoy very high resale values (still) because there really isn't much in the way of discounts available from MSRP.

Harley parts, on the other hand, have become an Arabian market. Once again, look at genuine BMW parts; there's no advertised discounts anywhere off of MSRP (same can be said about Bob Woods Cams). It's the way the company protects the perceived value of their products.

While is seems like a pain in the ass to the buyer, they benefit through much higher resale values, as a 2 year old GS in good shape will sell for no more than $1,500 less than a new one.

I see what Harley's trying to do (at least, I think it's what they're trying to do), and I don't necessarily disagree with it. It's just hard to clamp down on something like discounted parts sales since it's been going on so long.
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  #21  
Old 12-03-2011, 05:33 PM
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  #22  
Old 12-03-2011, 08:47 PM
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So define "premium"? That word has a mind all of it's own that makes you feel good spending more money than you should. The dealer purchases the part from the manufacturer at the manufacturer's price (the cost of the part isn't disclosed to the dealer, or anyone else). Now the purchase part it is the property of the dealer. If the dealer want's to mark it up 40%, he can do that. If he wants to discount it 20%, that is his business. I don't see how H-D is going to make the no sales over the Internet stick. Harley has to support their manufacturing base by selling bikes, or they lay off. The parts they sell to the dealer are soft products (hard parts and clothing) that are cash flow and keep Harley the icon it is, slow that down, and you will see a new CEO.
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  #23  
Old 12-03-2011, 09:02 PM
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My point is that there are no discounted OEM BMW parts advertised anywhere. Like it or not, Harley's trying to play that same game.
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  #24  
Old 12-03-2011, 09:03 PM
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Who would buy ugly bmw parts?

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  #25  
Old 12-04-2011, 06:05 AM
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I suppose if the Mothership wants their market share to skyrocket** from the 28% they currently enjoy to BMW's palrty 1% in order to achieve snooty minority status, more power to 'em.
They'll have to make, like, twelve million dollars a bike for it to work for them, though...








**The use of the work "skyrocket" is sarcasm.
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Old 12-04-2011, 06:23 AM
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Ever since nobody got the thing about the Judas Pez dispenser's head wobbling, I've really lost faith in you guys.
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Old 12-04-2011, 08:21 AM
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Ever since nobody got the thing about the Judas Pez dispenser's head wobbling, I've really lost faith in you guys.
Like I told you on the phone yesterday, you have to remember who you're posting to...

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  #28  
Old 12-04-2011, 08:27 AM
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Old 12-04-2011, 10:45 AM
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  #30  
Old 12-04-2011, 11:04 AM
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Quote:
Originally Posted by MegaGlide View Post
I suppose if the Mothership wants their market share to skyrocket** from the 28% they currently enjoy to BMW's palrty 1% in order to achieve snooty minority status, more power to 'em.
They'll have to make, like, twelve million dollars a bike for it to work for them, though...
I think you're missing the point.

I'm not saying that Harley's making a smart move, just that I see what they're doing. By limiting online sales to MSRP, they're going to be able to have a central Mo-Co owned site that sells parts. This will cut the dealers out of the picture and let them keep more of our accessory dollars (since current MSRP is based on dealer's overhead and markup).

The BMW model works with BMW (and Lordy you should hear the faithful defend that policy), but it would be all but impossible for it to work on Harley's scale, or in Harley's circumstances.

If Harley cut off the 20%-off advertising, and had their own site selling stuff out of the P&A catalog for 10% off (for example), then that wouldn't be (necessarily) a bad thing.

But as it sits now, Harley's poised to piss off both the dealer network and the customer base. That's a really bad move in my opinion.
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