Lagging Sales & Huge Inventories = Sales & Service
#1
10-12-2007, 10:05 AM
Lagging Sales & Huge Inventories = Sales & Service
The upshot of HD's lagging sales, inventories piling up and the upcoming Nov.plant layoffs is this....Price Reductions and Better Service. The company has to find a better way to move inventory, meaning sales.Like any other industry, take Real Estate for example prices are reducedwhen inventories are high (less demand). When there is short supply and greater demand...something HD knows all about, then pricesincrease.Service is the other big item. I've read it here on this forum a thousand times....service at my local dealer sucks. The parts guy isa jerk, the sales guys are price gouging, the service dept lied to me about a repair...etc..etc...etc... When sales are off in a big way and there's nohope in sight HD will have to work hard to improve service. When image aloneno longer sells 20-30k bikes, then service and pricemove to the top of the list.
Maybethis"cleansing" let's call it will be a good reminder to the folks back in WI who really matters at HD...it's the customers. All in all, the company will survive that I am sure of. Stay tuned for future advertising campaigns..I bet they try a new direction. Will it be more of the "black sheep" advertising or will it move more in to the mainstream? I think more mainstream. What about the shareholders? Once HD has lost their confidence to grow sales (in a declining market) they will move on to a different investment. The stock price would certainly collapse if investors drop the stock like a bad habit. We'll see what happens...should be interesting.
Maybethis"cleansing" let's call it will be a good reminder to the folks back in WI who really matters at HD...it's the customers. All in all, the company will survive that I am sure of. Stay tuned for future advertising campaigns..I bet they try a new direction. Will it be more of the "black sheep" advertising or will it move more in to the mainstream? I think more mainstream. What about the shareholders? Once HD has lost their confidence to grow sales (in a declining market) they will move on to a different investment. The stock price would certainly collapse if investors drop the stock like a bad habit. We'll see what happens...should be interesting.
#2
10-12-2007, 10:10 AM
Seasoned HDF Member
RE: Lagging Sales & Huge Inventories = Sales & Service
I predicted this several years ago when HD was gouging to the tune of 4 to 5 thousand per bike. It's not going to hurt my feelings a bit to see some of the crooked dealers feel the pinch. Maybe some attitudes will chance.
Bill
Bill
#5
10-12-2007, 10:50 AM
RE: Lagging Sales & Huge Inventories = Sales & Service
Of the three dealers that I dealt with while shopping for my bike, 2 of them told me straight out that they would not come off the sticker price of a new bike.
One even went on to explain that it would be better for me to buy my bike from them because they have a lot of "customer appreciation events". He forgot to mention that the events are always advertised on the radio as free to everyone...
I finally found a dealer that had the mildly used bike that I wanted and was willing to negotiate (just a little bit) and they got my business.
One even went on to explain that it would be better for me to buy my bike from them because they have a lot of "customer appreciation events". He forgot to mention that the events are always advertised on the radio as free to everyone...
I finally found a dealer that had the mildly used bike that I wanted and was willing to negotiate (just a little bit) and they got my business.
#6
10-12-2007, 11:36 AM
Banned
RE: Lagging Sales & Huge Inventories = Sales & Service
ORIGINAL: tda69
The upshot of HD's lagging sales, inventories piling up and the upcoming Nov.plant layoffs is this....Price Reductions and Better Service. The company has to find a better way to move inventory, meaning sales.Like any other industry, take Real Estate for example prices are reducedwhen inventories are high (less demand). When there is short supply and greater demand...something HD knows all about, then pricesincrease.Service is the other big item. I've read it here on this forum a thousand times....service at my local dealer sucks. The parts guy isa jerk, the sales guys are price gouging, the service dept lied to me about a repair...etc..etc...etc... When sales are off in a big way and there's nohope in sight HD will have to work hard to improve service. When image aloneno longer sells 20-30k bikes, then service and pricemove to the top of the list.
Maybethis"cleansing" let's call it will be a good reminder to the folks back in WI who really matters at HD...it's the customers. All in all, the company will survive that I am sure of. Stay tuned for future advertising campaigns..I bet they try a new direction. Will it be more of the "black sheep" advertising or will it move more in to the mainstream? I think more mainstream. What about the shareholders? Once HD has lost their confidence to grow sales (in a declining market) they will move on to a different investment. The stock price would certainly collapse if investors drop the stock like a bad habit. We'll see what happens...should be interesting.
The upshot of HD's lagging sales, inventories piling up and the upcoming Nov.plant layoffs is this....Price Reductions and Better Service. The company has to find a better way to move inventory, meaning sales.Like any other industry, take Real Estate for example prices are reducedwhen inventories are high (less demand). When there is short supply and greater demand...something HD knows all about, then pricesincrease.Service is the other big item. I've read it here on this forum a thousand times....service at my local dealer sucks. The parts guy isa jerk, the sales guys are price gouging, the service dept lied to me about a repair...etc..etc...etc... When sales are off in a big way and there's nohope in sight HD will have to work hard to improve service. When image aloneno longer sells 20-30k bikes, then service and pricemove to the top of the list.
Maybethis"cleansing" let's call it will be a good reminder to the folks back in WI who really matters at HD...it's the customers. All in all, the company will survive that I am sure of. Stay tuned for future advertising campaigns..I bet they try a new direction. Will it be more of the "black sheep" advertising or will it move more in to the mainstream? I think more mainstream. What about the shareholders? Once HD has lost their confidence to grow sales (in a declining market) they will move on to a different investment. The stock price would certainly collapse if investors drop the stock like a bad habit. We'll see what happens...should be interesting.
Now that thats out of the way, why are you using the pic of the village people guy as your avatat? Its very disturbing.
#7
10-12-2007, 12:26 PM
RE: Lagging Sales & Huge Inventories = Sales & Service
I can definitely tell sales are lagging. At the local stealership several years ago you couldn't find new bikes and had to be on a waiting list. The salespeople basically ignored me each time I went in. Now a couple of weeks ago, the salesmen outnumber the customers and I had the hardest time getting away from them. All of a sudden I was there best buddy and they wanted to know everything about my riding, personal life, blah blah blah. They were trying so hard to get me to buy an '07 model; I just smiled and said I just bought mine from a private seller because the price was better than they could offer.
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#8
10-12-2007, 12:38 PM
RE: Lagging Sales & Huge Inventories = Sales & Service
Yeah, you could call it a cleansing but just like the stock market, there is also a term called a 'correction'. However you describe it, the end result is the same. Maybe the union finally sees that the company has to plan for hard times, maybe the employees tryto do things just a little bit better, maybe the management listens to the customers a little more and maybe the dealerships will actually be excited to take care of customers. All in all, pretty good for the consumer IMHO.
#10
10-12-2007, 04:21 PM
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RE: Lagging Sales & Huge Inventories = Sales & Service
ORIGINAL: Dennydp
Blame the dealers-they are the ones trying to sell over msrp
Blame the dealers-they are the ones trying to sell over msrp