First...a Joke
A skeleton walks into a bar. The bartender says, “What’ll you have?” The skeleton says, “Gimme a beer and a mop.”
3 Marketing Lessons from Harley Davidson
Cute girls in your high school and my high school... went for the BAD BOY.
Every country, every culture every language... it’s the same everywhere.
Harley Davidson (HD) was founded in Milwaukee; is 115 years old and is one of the most iconic brands in the world... but it wasn’t always this way.
Between the ten year period of 1973 to 1983 low priced Japanese bikes like Suzuki and Yamaha flooded the market while HD market share sank more than 57%.
The rapid decline nearly sank the entire company and if not for some impressive marketing, willingness to pivot, and some crisis management...
They’d be extinct like so many others.
After a remarkably successful run…. Matthew Levatich recently stepped down as CEO of Harley Davidson… during his tenure, I watched and learned a LOT about coaching, branding, and building a cult-like following.
Here are the 3 BEST Coaching and Marketing lessons I learned from Harley Davidson:
1. Lean manufacturing:
Toyota made Lean or “Just in time” manufacturing famous and you’ve likely heard of the guy that created it, W Edwards Deming.
This isn’t the most exciting part of the brand but it SAVED Harley Davidson from extinction.
HD eliminated more than 1000 production employees using Lean manufacturing. The concern here is that when too many jobs go... employees feel unsafe and morale goes down the tubes.
They don’t want to lose their jobs and don’t want to see their friends lose them either.
But if it’s done correctly and respectfully, the opposite can happen... and did happen. It increased efficiency and created a more stable company, with bonuses for increased profits / efficiency.
Lesson: They say in ten years 40% of the jobs we now have will be gone for good. Many are now pushing for “free community college”... problem is the jobs you’re trained for in community college will totally disappear
shortly.
So it’ll be another government exercise in wasted time and money 20 years too late.
Remember when you used to go to the bank and get frustrated because they wanted you to use the ATM machines to deposit / withdraw money? Now we get pissed off when we need to go into the bank and speak to someone!
Truck drivers will lose their jobs to self-driving trucks.
Taxi drivers are already losing to Uber. Hotels are getting decimated by Airbnb. Local retailers disappearing thanks to Amazon.
Stockbrokers are being shown the door thanks to automation and powerful algorithms.
Get in tune with automation or plan to become extinct like the sabre tooth tiger.
2. Building a cult-like following:
The rider of a Harley is an older, successful cigar smoking type alpha male that likes the ‘bad boy’ image and a loud powerful machine between his legs.
Picture Arnold Schwarznegger.
Some might see this as a disadvantage due to the restricted core audience but it’s the exact opposite.
They’ve worked hard to understand exactly the type of person that appreciates the Harley brand and how best to cater to their wealthy, alpha male pseudo bad boy audience that likes the idea of everyone hearing that they’re
coming.
It’s also not a coincidence alpha males over the age of 50 have plenty of money to spend on something they want.
Possibly midlife crisis???
To the target market, a Harley-Davidson is more than a motorcycle. The brand represents power, mystery, image, freedom, individualism.
A HARLEY REPRESENTS BEING THE BAD BOY ALL THE GIRLS LIKED IN HIGH SCHOOL.
In order to sell your product or service you need to “disrupt” the prospect... not sing Kumbaya and tell them how amazing it’s going to be to work together.
You need to cut their arm before you provide them a band-aid.
**If you need the process for this... just ask me via reply email.
3. Price Elasticity:
For a bunch of reasons, Harley isn’t concerned with the price tag hanging off their bikes.
HD is easily beaten on price (and quality!) by less expensive foreign brands and its ideal client has enough money (ppl afford things they want) to pay high-end prices.
In fact... THEY PREFER IT… because they don’t want just anyone to have one!! They want to sacrifice and know that others sacrificed too.
Harley has always been intelligent using SCARCITY by limiting the supply of their bikes which creates demand and a waiting list.
Walk into a Harley store and try to buy the latest and greatest bike this year... welcome to the waiting list and you must leave a non-refundable deposit to get on that waiting list!
When people experience this it for the first time it blows them away.
Same with Porsche, Ferrari, Lambo, and other similar brands. Therefore, the only people who own a Harley are those totally devoted to the brand (see point 2 above!).
OK, now try to buy a 1915 11F Harley....you might fall off your chair when you see the price tag.
A popular Harley is an appreciating asset.
I had a 1996 Porsche 911 Carrera. The car had an MSRP of $80,000. Today that same car 25 years later sells between $80,000-$110,000!
Lesson: YOU NEED TO LEARN YOUR CRAFT FIRST AND BE “EXCELLENT” at it before doing this or you’ll screw it up for yourself and more importantly for your industry or profession.
Once you hit that elite level, being the least expensive person is ridiculous.
Some customers/clients/patients want to pay more and that will never change, plus they refer at twice the norm.
When I was practicing Chiropractic and Enzyme Nutrition in New York, twenty years ago I charged and got $2000 for my exam (cash only-no insurance). People flew to see from all over the country because I was GREAT at what I did. I literally changed and saved their
lives. I am not saying this to brag. I am telling you this; that when you are great at what you do money is never a factor for your patient/client/or customer.
Need more proof... the new 41MM Rolex Submariner came out a few months ago. Retail price for a two-tone date is $14,400. Try buying one. The waiting list is three years plus long. On the after market that watch is selling for $19,500 and people are flocking to
buy them!
Bottom line... how many brands like HD do you know that are “Tattoo-worthy.”
Talk about successful marketing!!
I’m more of a car guy but I appreciate a KILLER business story. Matthew Levatich and his HD crew most certainly accomplished that.
You heard it here first and I am here to tell you that you can absolutely dominate your market with the right tools and the right marketing. Do you have and are you using the right tools?
Obsessed with your business coaching success,
Paul S. Inselman, DC
Click here to schedule a complimentary business strategy session and zoom screen share. You will be happy that we spoke.
