What i do not understand is why a business panics when their profit is down by xx%. They are still making a profit, just not as much as before. i don't get it. Profit is what you have left after everything is paid for... so laying off people will increase their profit. But what does that matter when no one is employed? One has to have a job to buy the product.

 

Good point.

 

Think you are wrong. After AMF I think HD learned a lesson They will tighten their belt, for sure. For the most part, HD bikes are discretionary income items, especially in the frozen north I haven't ridden since Thanksgiving Will I sell my bikes? No. Will I buy a new one, not hardly But we will all weather this, including HD. Whether we can weather, Obsama/Biden/Pelosi/Clinton / ............. That is another story

 

I know that our local dealer is doing ok, yeah bikes on the floor, but they are trading/selling. I am glad I made my final purchase for a long while. I did not get all that I actually wanted in mods, but wanted to keep some cash back for the storms that are coming. If all these cuts and downsizing start to be a problem HD and dealers are going to be doing what it takes to keep customers happy, I hope.

 

Companies will get leaner to survive, a lot of companies needed to go on a diet anyway. Too much pork isn't good for you. Repeat after me, "We are a frugal company and our employees in production are our most valued asset." This should be the bylaw of the times.

 

I believe that parts and distribution center was in WI which isn't exactly a good place for a single distribution center. With all the parts and accessories coming in from China they most likely land in LA. The southwest is a big market, but they ship it all the way to WI then ship it back. The single best place of a single distribution center is Memphis which is why FedEx and UPS are both there. One on each coast and one in Memphis is better. Volume is key for a distribution center so you can automate with sorters, but they likely lack the volume for three centers. So just from a cost control perspective it's likely best they outsource the distribution.

Many of the problems you would have had in the past with outsourcing distribution just really isn't an issue today with computers and cheap high-speed communications. They can see into the outsources distribution center, track shipments in transit and largely have it look no differant than if they were running their own distribution center. The oversight is largely distributed with dealerships all across the country tracking shipments. A relatively small staff dealing with feedback from dealerships can provide the necessary oversight so that it simply comes down to how good of a contract did they negotiate. Likely they will have a service level aggreement and they will effectively get paid for each failure along the way. That gives the distributor to strong incentive to not make mistakes and HD a strong incentive to catch every mistake.

 

Its not just Harley Davidson. Its the entire economy. How will this affect HARLEY owners? Who cares. I am a Harley owner. I lost my job because the Chevrolet dealership I worked at for the last 30 years decided to close due to economical conditions. If I have to sell my bike, (which I wont do until I absolutely have to) it doesnt really matter to me. I would rather keep my home.
The reality of it is that a motorcycle is not a necessity. I can do without it.
I feel for the workers and dealers, mechanics and employees because that is their job, just like mine was.
I dont NEED a motorcycle.
How will this affect Harley owners? Sorry, but that is just a ridiculous statement. I wish that was my biggest problem.
MikeM

 

It'll bounce back,,, when they offer replica minature leather jackets in a nice black frame, Free ,,with every $20,000 spent!!!

 

It won't. Union workers are accustomed to being laid off in slack times and brought back when things pick up.

 

Time for HD to jump on the paranoia bandwagon.
Got to lay off workers to maximize profits.
Just a big greed party. As more and more lose jobs, less and less product is purchased, meaning compainies are not making money so they can lay off more workers so those workers can discontinue to buy products so more companies can lay off workers so those workers can discontinue to buy products so more companies can lay off workers so those workers can discontinue to buy products so more companies can lay off workers so those workers can discontinue to buy products so more companies can lay off workers so those workers can discontinue to buy products so more companies can lay off workers so those workers can ........
Ah F it man! Hope I don't have to sell my bike .... who could afford it!