Keep in mind HD counts the revenue/profit when the bike is shipped to the dealer. They did make great profits buy stuffing the channel. Now, there are to many bikes at the dealers so they have to cut to even it back out. They just cant keep shipping bikes to dealers unless the dealers can sell them as fast.

HD has a new policy, they will ship LESS bikes then the dealers can sell.This will help resolve the glut and give dealers pricing power back again...look out!

 

It's just like when they had the waiting list in the 90's, it's called supply and demand, they reduce the supply, we increase the demand, and, that will help to raise the prices, on both new, and used bikes. As well as increase sales on add on parts, because more people will be putting new parts on to make the old bike look better, the indy's will do more business as well, refurbishing older bikes, its a vecious circle.

 

Maybe it has something to do with HD's announcement today that 730 people are being layed off.

The biggest layoff since 1980.

Bike sales are down/bad , they might be forcing liquidation of supply ...

 

Dang....I was seriously considering ordering a new bike. Guess I'll have to do a lot of driving to find something in a showroom that looks good. T

As for all the would-be economists posting....I hope the Nobel committee is reading.

 

Dont count on aliquidation sale. Read this:

The cuts should limit discounts being offered on the bikes, aiding Harley's profit margins.
Shares of Harley-Davidson were down 70 cents on the day’s news, or 1.9%, to close at $36.09.
“Management took a bold step in electing to cut production aggressively,” said Robert W. Baird analyst Craig R. Kennison. Harley’s chief executive, Jim Ziemer, said the company would temporarily shut plants to achieve adjusted production rates. It now plans to ship up to 27,000 fewer motorcycles in 2008 than last year, resulting in up to 307,500 units, 7.0% less than the 330,619 units shipped in 2007.
Production cuts are favorable, Kennison said, and “represent an effort to protect the scarcity value of the Harley-Davidson brand.” He added that it “also provides investors with more realistic guidance, helping to deflate the negative investor sentiments that had been accumulating.”

Kennison explained that in years past, small production runs led dedicated consumers often to purchase the cruisers for prices well above the manufacturer suggested retail price. “By cutting production, Harley reduces the level of dealer inventory, helping the brand regain its scarcity value,” he added, which is “critical for a premium brand like Harley-Davidson.”

 

JackDiesel - that sucks.[:@]

As I mentioned in the other thread, I am picking up a vivid black from my dealer in Stamford, CT. They had a couple of Nightsters when I stopped in yesterday. Another vivid black, 1 in silver/black and 1 in suede blue. Also had just received a used suede blue with less than 100 miles and some nice upgrades.

However, when I put my deposit down they did mention these were the last Nightsters they would receive in 2008. They said they are only allocated 45 Sportsters in total for 2008 - seems like a very small quantity to me.

 

well good news for me! They found a dealer that will trade with them and they're getting my bike in on monday!Sono waiting tilljune likeI was originally going to have to do. Cheers!

 

So Back into the Black, ey?
CONGRATS, JACK!!!

 

Heck yeah! I'm pumped, its finals week too so I can guarantee I'll be riding my Harley to finals!!!!.....

 

Exactly the point I was trying to make. I understand that if you sell more product at slightly less of a price you are going to have more income. But there comes a point where you can't make a profit because you have flooded the market too much. That is the point we are at right now. The market has too many bikes on it. So the MoCo will not be able to make any money in the future so they have to cut jobs and supply. That will drive the cost of bikes back up.