If you are looking for a motorcycle, then you are probably thinking about purchasing a Harley Davidson. I remember when I was younger, I was looking for my first motorcycle.
I was looking at a wide variety of motorcycles but my parents insisted that I go with a Harley-Davidson motorcycle. I quickly pointed out to them that a Harley-Davidson is significantly more expensive than many of the other options on the market.
My parents didn’t care. They knew that a Harley-Davidson carried with it superior manufacturing that will keep me safe. At the same time, is this the real reason why Harley Davidson motorcycles are so expensive? Why is a Harley-Davidson so expensive? There are a few key points to keep in mind.
Branding and Quality Make a Harley Davidson More Expensive
Harley Davidson motorcycles are more expensive due to a combination of branding and quality. Of course, one feeds off of the other. For decades, Harley-Davidson motorcycles have been higher-quality vehicles.
As a result, the branding that has been created by the marketing department, as well as the quality of its motorcycles, makes a Harley-Davidson more expensive. At the same time, it is important to take a closer look at a few of the reasons why Harley-Davidson motorcycles are so expensive yet remain so successful.
There Are Numerous Factors In Play
The reality is that there are a lot of reasons why Harley-Davidson motorcycles are more expensive than some of the alternatives. Some of these reasons include branding, motorcycle quality, market positioning, the image of Harley Davidson motorcycles, and the price strategy.
Looking at the Harley-Davidson Motorcycle Brand
First, it is important to take a closer look at the brand of the Harley-Davidson motorcycle, as this is one of the main reasons why these bikes are so much more expensive.
Above everything else, the Harley Davidson motorcycle company has gone a long way toward creating an iconic brand. For this reason, many people who purchase a Harley-Davidson feel like they are not just buying a bike. They are investing in a particular type of biker.
As a result, people feel like they are joining the Harley-Davidson fraternity or family when they purchase this motorcycle.
At the same time, it is important to note that not every Harley-Davidson motorcycle is more expensive than its alternative. For example, an 883 Sportster is not a particularly expensive motorcycle.
The price point of this bike is very similar to a Triumph Street Twin, for example. On the other hand, it is possible to buy a more practical bike for less than both of these options.
In the end, those people who invest in a Harley Davidson motorcycle view this purchase as exactly that: an investment in a brand. The iconic branding of the Harley Davidson company has contributed to a rapid rise and its popularity.
As a result, supply and demand have driven the price point of most Harley Davidson motorcycles northward. Because the brand is so exceptional, the price is going to be a bit higher.
Analyzing the Quality of Harley Davidson Motorcycles
Next, it is important to take a look at the quality of Harley Davidson motorcycles and the role this plays in its overall price point. Most people understand that the Harley-Davidson brand is known for building reliable and dependable motorcycles.
At the same time, it is important to take a look at why the quality of Harley-Davidson motorcycles is so much better than other options.
For example, one of the first factors that people need to look at when they purchase a motorcycle is how long that motorcycle is going to last. If people are going to be spending a significant amount of money on a motorcycle, they want to know that it is going to run for an extended period of time.
It is not unusual for motorcycles to start to develop problems at around 50,000 miles. Furthermore, sportbikes might start to develop issues at 25,000 miles. On the other hand, it is still not unusual to see a Harley-Davidson motorcycle run for more than 100,000 miles. As long as Harley Davidson motorcycles are properly maintained and taken care of, they are going to set the standard when it comes to motorcycle quality.
Of course, there are other factors to consider when it comes to bike quality as well. When it comes to a Harley, the ride is smooth, the motorcycle is safe, and the handling is superior. For all of these reasons, Harley-Davidson has created exacting standards regarding the quality of its bikes. Because of its dedication to the needs of its customers, Harley-Davidson has set new standards in the industry when it comes to quality.
The Positioning of the Harley Davidson Company in the Market
In addition to building an iconic brand, Harley-Davidson has also positioned itself exceptionally well in the market. In order to take a look at this concept, it is important to compare the Harley-Davidson position in the motorcycle market for some other iconic companies.
For example, many people also wonder why Rolex watches are pricey. The answer to both of these questions at the same. Rolex watches have positioned themselves in a certain way in the market. As a result, Rolex maintains its high prices in an effort to maintain its image in the industry. Harley-Davidson does the same thing.
Without knowing anything else about motorcycles or the Harley-Davidson brand, most people understand that Harley Davidson knows its market exceptionally well.
As a result, they have been uniquely successful in the motorcycle industry because they have been able to position themselves in the market perfectly. They are in the perfect spot in the motorcycle market and they charge the right prices to capture their ideal client.
In this fashion, they are able to maintain their position exceptionally well, which allows them to charge the same high prices over and over again without losing their target market.
Analyzing the Price Strategy of Harley-Davidson
Speaking of the prices, it is important to take a closer look at the price strategy of Harley Davidson. The company has adopted a unique price strategy.
The company understands that many people are willing to pay a significant amount of money in order to get their hands on a Harley Davidson motorcycle. There’s a lot of evidence for this because many potential buyers end up joining a waiting list simply to buy a Harley Davidson. This means that Harley-Davidson is able to manufacture fewer motorcycles while also making more money in the process.
Without running a business, it is easy to understand that if a company has a waitlist for its products, then it is doing particularly well. That is exactly what Harley-Davidson is doing.
They understand that because there is a waitlist for their products, the demand far exceeds supply, which allows them to raise their prices to where they are today. The reality is that the vast majority of people perceive Harley-Davidson as an American icon at this point.
The company manufactures its products in the United States and they tell their riders that there is something special about American iron and steel. In this manner, Harley-Davidson is able to adopt a pricing strategy that leads to higher prices, increase profits, and improved margins.
The Image of Riding a Harley-Davidson Motorcycle
Finally, it is also important to take a look at the unique imaging capabilities of the Harley-Davidson company. When people purchase a Harley-Davidson motorcycle, the company encourages individuals to think that they are paying a bit extra to enjoy the numerous intangibles that come with the bike in addition to riding a superior machine.
Even though the company manufactures a higher quality motorcycle, there is also something special that comes with the Harley-Davidson name. This means that as bikers ride around on a Harley-Davidson, they are going to have an image of themselves in their heads.
They are also going to have access to bragging rights that other motorcycle riders might not have unless they also ride a Harley Davidson.
In this manner, the image that the Harley Davidson motorcycle company has created is so strong that the vast majority of bikers drool over their products. The image becomes a dream for many motorcycle riders who spend years aspiring to own and ride a Harley Davidson motorcycle.
There is also a certain level of respect that comes with riding a Harley Davidson motorcycle. All of this creates increased demand for the bike, driving up prices. The company has created the feeling that people would be insane to want to ride anything else.
In the end, Harley-Davidson is able to charge so much money for their motorcycles purely because there is that much demand. Supply and demand will always be the top rule when it comes to economics. Because of all of these factors, Harley-Davidson is able to not only charge high prices for their motorcycles but remain successful in holding onto its share of the motorcycle market.