Harley-Davidson sues Harley-Davidson

Discussion in 'Anything Goes' started by Fazer1Sniper, Nov 12, 2011.

  1. Fazer1Sniper

    Fazer1Sniper New Member

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  2. BWeiss

    BWeiss Johnny Partseed

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    The way I read it, is the dealer is suing HD for its decision to restrict a successful selling strategy that the dealer is using.

    Pretty much HD does not want new parts or bikes sold through thrid party websites such as Ebay, cycletrader, and such even though the dealer in the law suit claims they make nearly $8 million through the use of those websites.

    It'll be interesting to see how long HD can continue to shoot itself in the foot and still remain a profitable business.
     
  3. Badbilly

    Badbilly Official VFRWorld Troll Of The Year!

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    At 105 years and counting, it may be awhile. Never mistake "the company" for a bunch of harleydoods. IMO, they will offer some compromise to this dealer then bend him over a sawhorse drop his drawers and his franchise in that order using that HD special lube.
     
  4. tinkerinWstuff

    tinkerinWstuff Administrator Staff Member

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    Wasn't it some time last year we were going rounds about HD opening up a factory in India or something for overseas sales.

    The manufacturer probably views this as the dealer stepping on their toes when they have a strategy in place to attack the overseas market already.
     
  5. Lgn001

    Lgn001 Member

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    So lemme see... I have a company that makes stuff. I set up a dealership network and ask people to sell stuff for me. One of the dealerships is energetic and creative, and uses the Internet as a very successful sales tool. Do I reward them for the increased profitability to my company and congratulate them on a job well done, or institute a policy that restricts their ability to sell? Oh, wait, there is also the slow economy to consider...

    Nice move, Harley.
     
  6. Keager

    Keager Member

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    Well, if they had more engineers than lawyers, maybe they could build a better bike!
     
  7. Twitchy at times

    Twitchy at times New Member

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    Hey, I'm all about the economy eventually turning for the better and would love to see North American based firms bettering themselves, but, to be candid, I couldn't even be bothered to open the actual article (as it's about HD) so stopped reading at at the first few thread replies.

    Just like the motorcycle...<Big yawn>
     
    Last edited: Nov 12, 2011
  8. duccmann

    duccmann Member

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    Wow , did I go to the wrong web page ? Harley talk WTF
     
  9. Badbilly

    Badbilly Official VFRWorld Troll Of The Year!

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    LOL.. HD ain't the only company that strongarms the dealers.

    Worldwide HD markets? Already in place.. The wierdest one is in Saudi. Owned by a chica and she is forbidden to ride. *****INCOMING******
     
  10. tinkerinWstuff

    tinkerinWstuff Administrator Staff Member

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    this really isn't uncommon in a manufacturer / dealer relationship.

    the manufacturer licenses dealers to sell their product under certain rules. The rules are instituted to allow the whole dealer network to get along and play nice. This dealer in St. Paul might be making good sales numbers, but it's certainly at the expense of another dealer. How does Harley (or any manufacturer) maintain a strong network with good service and representation if other dealers are concerned that they have to compete against their own brand.

    HD has done a good job at protecting the value of the brand. People continue to pay stupid prices 2x what an Asian model of comparable (or better) quality.

    It's an interesting article no doubt but people have no business having an opinion when they know nothing of a manufacturer/dealer network relationship or marketing.
     
  11. Badbilly

    Badbilly Official VFRWorld Troll Of The Year!

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    I agree. Your opinion and my opinion are the only ones that count IMO.
     
  12. tinkerinWstuff

    tinkerinWstuff Administrator Staff Member

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    Glad we can agree

    HD has it's share of shortcomings but this really is a lot of nothing. HD will win as it's the norm in any protected line (as opposed to an open line) manufacturer/dealer network relationship.
     
  13. tinkerinWstuff

    tinkerinWstuff Administrator Staff Member

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    example: Go to ebay and look for Haas CNC machinery. You will not find new machines and new machine parts listed on a 3rd party website by a dealer. Haas has a dealer network with defined territories which are protected by the manufacturer.


    If Harley felt it was good for their brand to do internet sales, they'd just open up the line, have their own internet sales department and take the orders direct. In that situation, it makes no sense to have a dedicated dealer network - fire them all. The model is a huge short term success as all the profit is kept with the mother ship. But eventually the brand suffers because no one will support or service the brand in the customer's neighborhood. Why service something or go through the effort to make sure a customer is happy if you weren't paid in the initial sale?
     
    Last edited: Nov 12, 2011
  14. Badbilly

    Badbilly Official VFRWorld Troll Of The Year!

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    Most folks have no idea how a franchised car/bike dealership works. As a dealer one buys the bikes and all that other shit that can range from tufu forks to stick on mohawks in dayglo green with the official "Logo.'" The dealer then "owns" the bike, car and megafarkles. This ain't gonna happen but if the dealer then wants to sell the bike, car or tofu forks for a dime, he can.

    Other "stuff", by smaller manufacturers can be found at prices much less than "MSRP" from the manufacturers website "store". Much of this is because of volume buying. You buy one wholesale widget from Moe the Widget Dude" and it's gonna cost X number of bucks. If you buy the same widget by the carload the price from Moe is gonna be less/unit. If it ain't, ya go shopping someplace else like Won Fun Guys Celestial Widget Emporium in Beijing.

    HD placed a foothold in Japan in the 1920s by selling them tooling and yes Virginia, there were versions of HDs "Made in Japan" . Wish I had a couple of those puppies mself.
     
  15. malaguchi

    malaguchi New Member

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    If HD was 1/2 as appealing as Giuseppi's avatar I might buy 2.Make that 3.
     
  16. Badbilly

    Badbilly Official VFRWorld Troll Of The Year!

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    Well, she sure ain't a Chaz lookalike, thats for sure.
     
  17. Lgn001

    Lgn001 Member

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    :smile:

    (add text for character count)
     
  18. tinkerinWstuff

    tinkerinWstuff Administrator Staff Member

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    i'm not sure that it's quite that black and white? large ticket inventory items like bikes are normally bought on floor plan I believe

    Special Inventory Types
     
  19. Badbilly

    Badbilly Official VFRWorld Troll Of The Year!

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    You are right. Dealers have a credit line on big ticket stuff and are rated just like you and me as to how much that credit line will be.




    Is any deal with a car or bike dealer "black and white" ? I have yet to see even one, or a Sasquatch either.
     
  20. Badbilly

    Badbilly Official VFRWorld Troll Of The Year!

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    A fiver each and I can probably talk Tink into allowing you an opinion, but keep it short..;)
     
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