Cycle News - Archive Issues - 1980's

$4795 to buy the 1000, so we cut the price to $3995 for the 883. The only reason we were able to do that is because we were able lO make some progress on the question of COSl. Rather than take the benefits of that work and tum it into prouls, we decided it would be smarter lO try to increase the number of people trying lO get inlO the Harley franchise, and over 80% of SporlSter buyers come orr competitor's bikes lo start with. "I think if they get on the Sponster and ride it for a couple of years and build up their equity, they're really. after a big twin someday anyway, so it's kind of a long-term investmenl. "It seems lo be going according lo script right now. You can't find it in the SlOres, that's for sure. It's getting confusing because there's not enough of them to tell how big the demand really is. We've increased production substantially and the early sales compared to prior products indicates it's selling at twice the rate of our previous best product introduction. So we're very pleased with thal." Beals is also pleased about the loyalty shown to Harley-Davidson produclS by its CUSlOmers, something which the company executives do their best to maintain and encourage by auending as many events and social occasions as possible. "I think people feel a lot closer to the company, they start lo know the people who are running the business and they discover we get a lot of fun out o£ridi ng our mOlOrcycles. 'We're not siuing up in ivory lOwers, we look the same-dress the same, so that helps. But it also helps us because we find out what they like and what they don't like." Beals is convinced he'll be getting the opinions of a whole new generation of Harley owners as soon as he sees further upswings in the company's share of the markel. "We sell lo the baby-boomers of this country and they are at the right age for' Harleys, they're in their 30s now, so that's all in the right direction. "A lot of families now don't have children, which is favorable lo continuing motorcycling in their 30s. A lot of them are couples who both work and have a lot of discretionary income, which is favorable to buying an expensive loy." He expeclS a general market upswing too, once the warehouses have been emptied of their overflow and motorcycle prices and resale values return to some form of normalcy. However, he adds, he does not expect the boom years of the '70s to be repeated. "Whatever boom there is, or trough for that mauer, Harley-Davidson will be there," Beals ass~rlS. "The worst is over. Harley is here to stay," he says. "I think if you step back and look at Harley in a long-term perspective you can see we are still a major faclOr in the heavyweight mOlOrcycle business and have retained that position despite four of the toughest competitors in the world. "They've £looded the market, copied our product, copied our advertising, copied our rnarketingslrategy, and that says something about our CUSlOmer loyalty and OUT stamina. "I think we're through the lOugh part and I think we can build on that and continue the struggle." And what of Vaughn L. Beals, Jr.? Will he continued the struggle? "Oh yeah," he says chuckling. ''I'm more enthusiastic about the business now than I was then, because I would love to see the Novas and the TriHawks and all those other things. "If we don"t find the capital, then we'll earn it, save it up and then invest it." • ft••• The Annual Classic Returns." C'\

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