Down,
HDI sells the most expensive product to the group with the largest disposable income. Quality/style/etc. aside, this group has money and are in the prime of their earning years. They are generally going to be a group that has money even in times of economic slowdown. They have less of a propensity to curtail expenses on luxury goods.
The other manufacturers are selling a lower cost product to a group with lower income potentials(relative to HDI customers). When things start to turn down this group will the first to curtail expenses on luxury items.
Therefore, when HDI catches cold it is not likely to be good for the rest of the industry. I understand about market cycles and the possibility that one product can fall out of favor and other will take its place but I don’t think that is the case here(although I personally wouldn’t mind if it was.) HDI is also about as close as a pure play in the motorcycle manufacturers as you can get right now.
Peace.
FYI, sorry to disagree but if the guys riding Harleys is the group with the largest disposable income,,,,,I'm gonna apply to be a tire changer for Discount Tires so I join the "my motorcycle cost more than I make a year" crowd.
I can afford any bike I want....Meaning, according to you, I'm one of HD's target customers......and, well, they lost me! Cause what I'm looking for is performance, dependability with good value......God knows I spend enough time having to screw with my Mercedes and the M dealership, nor am I gonna mention the yearly depreciation of the SOB car takes which equates to the price of a new HD every year .....
No, I just dont' want to be screwed and I consider $3000 over MSRP a screwing. And I believe in THE GOLDEN RULE...HE WITH THE GOLD RULES, and no I'm not gonna drive 1000 miles to save the money either....*** em! Nor do I know or want to learn how to work on a motorcycle.....nor do I want a bike slower than my first car (VW BUG)...........and the main thing I have in difference with most HD owners is, I don't give a damn where it was made...
I don't agree on HDI being a good play................yea, you probably can't loose much, but I don't see much growth there, not with Yamaha producing 145hp touring bikes such as the FJR for $12,000....not to mention I'm sure Honda is gonna respond soon enough with a 160 hp ST.......And then there's BMW 157 HP GT hitting the floors in the Spring.....
But go ahead buy HDI,,,,it's only money.....