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HARLEy-DAviDSON & BUELL DEALER PROSPECT HANDBOOK

HARLEy-DAviDSON & BUELL DEALER PROSPECT HANDBOOK

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Harley-DaviDson<br />

<strong>DEALER</strong> <strong>PROSPECT</strong> <strong>HANDBOOK</strong><br />

® & BUell ®


CONTENTS<br />

• Introduction<br />

• The dream<br />

• The mission<br />

• The people<br />

• Our values<br />

• The business<br />

• The organisation<br />

• The figures<br />

• The products<br />

• Harley-Davidson ® Motorcycles<br />

• Buell ® Motorcycles<br />

• Genuine Motor Parts & Motor Accessories<br />

• Motorclothes ® range<br />

• H-D financial services<br />

• Do you think you’ve got what it takes?<br />

• What you can expect from us<br />

• What we expect from you<br />

• The appointment process<br />

• F.A.Q.S<br />

Disclaimer This document is a working handbook for prospective<br />

dealer candidates. Its purpose is to ensure that the Harley-Davidson<br />

and Buell brands are suitably represented within Europe, the Middle<br />

East and Africa. The information provided is intended solely for<br />

the purpose of selecting the right partners for our company. Any<br />

investment and expenditure made by the applicant in anticipation of<br />

Harley-Davidson entering into a Motorcycle Dealer Contract are at the<br />

applicant’s sole risk and do not in any way obligate Harley-Davidson.<br />

Products and services described within this book may vary by market.<br />

<strong>HARLEy</strong>-<strong>DAviDSON</strong> ® & <strong>BUELL</strong> ® <strong>DEALER</strong> <strong>PROSPECT</strong> <strong>HANDBOOK</strong><br />

IntroductIon<br />

Dear Prospect,<br />

Thank you for your interest in joining our<br />

world famous dealer network. Working for<br />

our unique brand is quite an experience.<br />

And that’s what Harley-Davidson is all<br />

about – living an experience. But it also<br />

has a great business story behind it.<br />

Did you know that…<br />

• Harley-Davidson sells more than<br />

300,000+* motorcycles a year,<br />

generating high revenues across<br />

motorcycle and accessory sales?<br />

• Harley-Davidson is the oldest motorcycle<br />

brand in the world with continued<br />

production for over 105 years?<br />

• With over 1 million members, the Harley<br />

Owners Group ® is one of the largest<br />

enthusiast groups in the world?<br />

• Harley-Davidson has more than 1300<br />

authorised dealerships worldwide, of<br />

which around 400 are in Europe, the<br />

Middle East and Africa?<br />

And we’re not stopping there. In the past<br />

several years, we have invested many<br />

millions of dollars in products, services,<br />

marketing and infrastructure for Europe.<br />

But our greatest need is to put our<br />

brands and our products in front of our<br />

current and prospective customers and<br />

connect with them – and to achieve<br />

this, we are looking for exceptional<br />

dealer candidates. Candidates with an<br />

understanding of our products, markets and<br />

customers and with an appetite for success.<br />

We ask a lot from our dealers. But<br />

we also offer a lot in return. A long term<br />

partnership. An opportunity to become<br />

part of the world-wide Harley-Davidson<br />

family. And an opportunity to earn excellent<br />

returns on investment.<br />

The objective of this brochure is to offer<br />

you a specific and focused handbook to<br />

work through the appointment process.<br />

If you like what you see and if you feel<br />

you are the right candidate for opening<br />

or acquiring a Harley-Davidson & Buell<br />

dealership, then we would like to explore<br />

the opportunities with you. Feel free to<br />

contact your local Harley-Davidson & Buell<br />

Dealer Development staff with any queries<br />

you may have.<br />

Happy reading!<br />

The Dealer Development Team<br />

Harley-Davidson Europe,<br />

Middle East and Africa<br />

* Please visit www.harley-davidson.com for the latest figures<br />

3


The Dream<br />

If you know the name, you’re probably famIlIar wIth the experIence<br />

Ask most people what Harley-Davidson<br />

is and they’ll tell you that we’re the most<br />

famous producer of heavyweight American<br />

motorcycles. They may even mention that<br />

we’re one of the most recognisable brands<br />

in the world. But to anyone who has lived<br />

the Harley-Davidson experience, we’re a<br />

lot more than that.<br />

In the words of the Harley-Davidson<br />

Inc. Chairman: “Our company’s brand<br />

is a promise to the consumer. We fulfill<br />

the dreams of our customers and aim to<br />

exceed their expectations.”<br />

Alongside our legendary range of<br />

engineering and lifestyle, the Buell brand<br />

offers a different experience yet maintaining<br />

our core American routes. A motorcycle<br />

with attitude, personality, and exceptional<br />

handling reputation.<br />

* Please visit www.harley-davidson.com for the latest figures<br />

In 2008 Harley-Davidson Motor Company<br />

celebrated its 105th Anniversary, as<br />

well as the 25th anniversary of Buell<br />

Motorcycle Co and Harley Owners Group ® .<br />

In 2007, the company shipped 337,000*<br />

motorcycles. Quite a change from its<br />

humble beginnings in 1903, when just<br />

three motorcycles were produced.<br />

So what makes us different?<br />

We’ve always been and always will<br />

be a company of enthusiasts, building<br />

motorcycles for enthusiasts. We still ride<br />

with our customers and dealers.<br />

From day one, when those first three<br />

motorcycles were hand crafted by William<br />

S. Harley and the Davidson brothers, we’ve<br />

always been dedicated to improvement<br />

and able to put our ever increasing<br />

experience to good use through our<br />

products and our organisation.<br />

Today, Harley-Davidson is at full throttle<br />

and more than ready to face the challenges<br />

of the future whilst still cherishing our great<br />

heritage from the past.<br />

<strong>HARLEy</strong>-<strong>DAviDSON</strong> ® & <strong>BUELL</strong> ® <strong>DEALER</strong> <strong>PROSPECT</strong> <strong>HANDBOOK</strong><br />

THE MiSSiON<br />

WHAT WE MAKE POSSiBLE<br />

By living, breathing, understanding, fine<br />

tuning, building, developing, innovating<br />

(and of course riding) motorcycles we<br />

have encapsulated a century of complex<br />

engineering and a passion for the road into<br />

a simple mission statement:<br />

“Harley-Davidson Inc. is a global leader in fulfilling dreams<br />

and providing extraordinary customer experiences through<br />

mutually beneficial relationships with our stakeholders.”<br />

We know that it takes more than just<br />

building and selling motorcycles to fulfil<br />

the dreams of our customers. It takes<br />

unforgettable experiences. For some, it’s<br />

as simple as Saturday morning coffee and<br />

conversations at the local Dealership. For<br />

others, it’s a weekend ride with the local<br />

Harley Owners Group ® (H.O.G. ® ) members.<br />

It may also be an ambitious road trip<br />

across a continent.<br />

If there’s one secret to our enduring brand<br />

and the passion it ignites in our riders, it’s<br />

that we deliver these experiences, rather<br />

than merely a collection of products and<br />

services. That’s what sets Harley-Davidson<br />

apart from the crowd and why our brand<br />

strength is legendary.<br />

5


The PeoPle<br />

EvEryonE’s on board bEcausE thEy bElong<br />

The Harley-Davidson myth became reality<br />

through the public’s powerful belief in the<br />

brand. Personal levels of loyalty go way<br />

beyond other famous marques. It is this<br />

unparalleled allegiance that makes the<br />

name and the experience so exclusive.<br />

This is epitomised by H.O.G. (Harley<br />

Owners Group ® ), the binding factor<br />

among Harley-Davidson staff, dealers<br />

and customers. The motorcycles, the<br />

open road, the wind in your face, shared<br />

experiences – this is the invisible spirit that<br />

brings us all together.<br />

Established in 1983, H.O.G. is the largest<br />

factory-sponsored motorcycle club in<br />

the world. It boasts over 1 million proud<br />

Harley-Davidson owners as its members,<br />

with over 100,000 of these in Europe.<br />

H.O.G. is all about providing members<br />

with a means to “Ride and Have Fun”. This<br />

is achieved by organizing and supporting<br />

local, national and international events and<br />

riding activities during the year. H.O.G. has<br />

organised or hosted many major events<br />

throughout Europe, including European<br />

Bike Week in Austria; Touring Rides in<br />

France, Spain, Germany and many more<br />

countries; Harley-Davidson Euro Festival<br />

at Grimaud, Golfe de St-Tropez; and the<br />

European H.O.G. Rally at Lago di Garda,<br />

Italy. There are many Chapter Rallies<br />

throughout Europe and most Chapters<br />

have a full calendar of events, ride-outs<br />

and meetings.<br />

Once you join the Harley-Davidson<br />

family, you get involved in the excitement<br />

of everything our brand represents and the<br />

chance to immerse yourself in the passion<br />

of our business.<br />

<strong>HARLEy</strong>-<strong>DAviDSON</strong> ® & <strong>BUELL</strong> ® <strong>DEALER</strong> <strong>PROSPECT</strong> <strong>HANDBOOK</strong><br />

OUR vALUES<br />

WE vALUE THE WAy WE DO BUSiNESS<br />

People, fashion, technology, tastes, governments. A lot of things have changed since<br />

Harley-Davidson began. One of the reasons we’re still here is because there’s something<br />

we’ve never changed. The values by which we do business.<br />

• Tell the truth<br />

• Be fair<br />

• Keep your promises<br />

• Respect the individual<br />

• Encourage intellectual curiosity<br />

These are the five basic concepts that guide<br />

all our decisions in running our business.<br />

Having these thoughts in mind means taking<br />

the right options and maintaining the right<br />

path to our goals. It also gives our dealers<br />

and all those who work with us a firm set of<br />

ethics and principles to follow. It is how we’d<br />

like to be treated if we were the customers.<br />

7


THE BUSiNESS<br />

AMAziNg PAST. ExCiTiNg fUTURE<br />

Since 1903, Harley-Davidson Motor Company has been producing the world’s best<br />

motorcycles. At the heart of our success is the intricate balance between growing value<br />

and strengthening the brand - the twin objectives of Harley-Davidson‘s strategy. High<br />

quality, active participation, energy in productivity, prompt flexibility and attention to cash<br />

flow are the keys to maintaining the success that we’ve worked so hard to build.<br />

<strong>HARLEy</strong>-<strong>DAviDSON</strong> ® & <strong>BUELL</strong> ® <strong>DEALER</strong> <strong>PROSPECT</strong> <strong>HANDBOOK</strong><br />

H-D iNC.<br />

H-D Inc is the owner of H-D Motor<br />

Company, Buell Motor Company,<br />

MV Agusta Group and H-D Financial<br />

Services. H-D Inc holds the rights to all<br />

of the brands, and manages the licensing<br />

agreements with the different suppliers that<br />

offer H-D branded products and services.<br />

Harley-Davidson Motor Company manufactures and sells<br />

the Harley-Davidson motorcycle range, as well as Genuine<br />

Parts, Accessories and General Merchandise.<br />

Buell Motorcycle Company manufactures Buell motorcycles,<br />

sport bikes that offer a genuinely unique proposition, through<br />

the Trilogy of Technology, unique styling and superb handling<br />

in the air and water-cooled ranges of motorcycles.<br />

Harley-Davidson Financial Services Inc. provides<br />

wholesale and retail financing, insurance and credit<br />

card programmes to Harley-Davidson & Buell Dealers<br />

and customers.<br />

THE BUSiNESS 9<br />

MV Agusta Group is the most recent addition to our portfolio<br />

of brands. A line of exclusive, premium, high-performance<br />

sport motorcycles sold under the MV Agusta brand; and a line<br />

of lightweight sport motorcycles sold under the Cagiva brand.<br />

MV Agusta’s F4-R motorcycle, powered by a 1078cc in-line<br />

four-cylinder liquid-cooled engine, is rated at 190 hp.


H-Q WiTH<br />

CENTRALiSED<br />

fUNCTiONS<br />

COMMERCiAL<br />

SUBSiDiARiES<br />

NORTH AMERiCA<br />

(US & CANADA)<br />

THE ORgANiSATiON<br />

OUR gLOBAL STRUCTURE AND WHERE yOU fiT iNTO iT<br />

From humble beginnings, we have grown into a global enterprise. Harley-Davidson Inc.<br />

now employs some 9,500 people world-wide. Based in Milwaukee, USA,<br />

Harley-Davidson has corporate headquarters in various locations in the US and<br />

maintains operations in strategic international markets in Europe, South America,<br />

Australia and Japan, to support its world-wide dealer and distributor network.<br />

EUROPEAN, MiDDLE EAST<br />

& AfRiCA (EMEA)<br />

ASiA PACifiC LATiN AMERiCA<br />

fRANCE gERMANy &<br />

AUSTRiA<br />

UK &<br />

iRELAND<br />

BENELUx iTALy SPAiN EUROPEAN<br />

DRiRECT<br />

SWiTzERLAND MiDDLE EAST<br />

& AfRiCA<br />

MARKETS<br />

(EDM)<br />

(MEA)<br />

<strong>HARLEy</strong>-<strong>DAviDSON</strong> EUROPE:<br />

<strong>HARLEy</strong>-<strong>DAviDSON</strong> ® & <strong>BUELL</strong> ® <strong>DEALER</strong> <strong>PROSPECT</strong> <strong>HANDBOOK</strong><br />

In Europe, Middle East and Africa we have<br />

a team of more than 200 people working<br />

towards making the dreams of thousands<br />

of customers come true, through a network<br />

of nearly 400 dealers that offer the best<br />

experience in the industry. Our European<br />

headquarters are based in Oxford, UK, with<br />

subsidiary offices in the main European<br />

and Middle East markets: France, Germany<br />

(representing Germany and Austria), UK/<br />

Ireland, Benelux, Italy, Switzerland, Spain,<br />

and Middle East/Africa (based in South<br />

Africa). The operations for the remaining<br />

European markets (Russia, Scandinavia,<br />

Baltic countries, Eastern Europe) are<br />

managed through the European Direct<br />

Markets team at our Oxford offices.<br />

WHO iS WHO?<br />

• The District Managers are the<br />

ambassadors of the company with<br />

our Dealer network. They are the main<br />

point of contact for the daily life of our<br />

dealers. They are fully prepared business<br />

consultants that help our dealers to go<br />

the extra mile for their customers.<br />

• The Technical District Managers make<br />

sure that all of our Dealers deliver a first<br />

class experience in After Sales<br />

operations, training and staffing, and<br />

technical support to customers.<br />

THE ORgANiSATiON 11<br />

• The Dealer Development Managers<br />

are in charge of the design and<br />

implementation of dealer programmes<br />

and initiatives with a long-term focus.<br />

• H.O.G. and Marketing ensure the<br />

excitement of the brand stays alive in<br />

the hearts and minds of our existing<br />

customers, as well as bringing new<br />

customers into the Harley-Davidson<br />

and Buell families.


Harley-Davidson and Buell have enjoyed<br />

great success over the past years in<br />

both the domestic (US) and international<br />

markets. This consistent and sustained<br />

growth has been achieved through a<br />

deep understanding of the marketplace,<br />

competitors and our customers, with<br />

landmark products such as the Fat Boy ® ,<br />

the VRSC range, and more recently,<br />

our Dyna ® Street Bob ® and Fat Bob ® , and<br />

our Roadster class-leading motorcycle,<br />

the XR 1200. For Buell, innovations like<br />

the “Trilogy of Technology” have led to the<br />

development of the XB and 1125 product<br />

families, which offer an exhilarating riding<br />

experience for their riders.<br />

Harley-Davidson Motor Company’s<br />

revenue come from Motorcycles (80%<br />

of revenue), Parts and Accessories<br />

(15%), and MotorClothes ® apparel and<br />

collectibles (5%), which uniquely enable the<br />

company to offer the ultimate motorcycling<br />

experience. Harley-Davidson Financial<br />

Services, Inc. completes the experience<br />

by offering financing, insurance and credit<br />

card programmes.<br />

2007 Global Operating Highlights:<br />

• $5.59 Billion Total Revenue<br />

• $655 Million Net Income<br />

• 303,400 H-D units shipped<br />

• $2.79 Annual EPS<br />

In Europe, we’ve had a steady growth in<br />

retail sales in both Harley-Davidson and<br />

Buell from 2003, with a growth of over 50%<br />

combined in both brands, retailing 41000<br />

and 4200 units respectively in 2008.<br />

Worldwide, our plans going forward<br />

are to further strengthen our brands and<br />

keep on offering extraordinary customer<br />

experiences to existing and<br />

new customers.<br />

<strong>HARLEy</strong>-<strong>DAviDSON</strong> ® & <strong>BUELL</strong> ® <strong>DEALER</strong> <strong>PROSPECT</strong> <strong>HANDBOOK</strong><br />

THE figURES<br />

A gOOD iNvESTMENT fOR THE fUTURE THE PRODUCTS<br />

THREE KEy QUALiTiES. ONE iNCREDiBLE MOTORCyCLE ExPERiENCE<br />

Few vehicles are as aspirational and inspiring as a Harley-Davidson ® motorcycle. A<br />

Harley ® motorcycle has a certain unmistakable presence and aura that is engaging and<br />

exciting to behold. The admiring looks, the respect, the ‘wow’ factor when you ride by or<br />

refuel are no accident. For all the science and engineering that goes into it, every<br />

Harley-Davidson model is just as much the product of art and passion. It’s all about<br />

three things. Look, Sound and Feel.<br />

The “Look” relates to the styling of<br />

our bikes. The Styling team at our Product<br />

Development Center in Milwaukee are true<br />

custodians of the Harley-Davidson image<br />

that has stood out through the decades.<br />

Tremendous attention is paid to proportions,<br />

form, finishes, quality, materials and detailing<br />

to ensure that every Harley is true to our<br />

heritage and our brand.<br />

The “Sound” is our unique exhaust<br />

note. There are few things more evocative<br />

than the soulful sound of a Harley pulling<br />

away from a standstill. You may have<br />

heard people refer to the “Potato, Potato,<br />

Potato” sound of a Harley. This relates<br />

to the emotive, signature sound of the<br />

irregular beat of the big, 45° V-Twin engine<br />

at tick-over.<br />

The “Feel” relates to the physical<br />

sensations that combine to create our<br />

unique riding experience. It’s a result of the<br />

riding position and ergonomics, the beat of<br />

the engine, the solidity of the materials and<br />

the architecture of the chassis.<br />

We continue to maintain our edge and keep our secrets. “Look, Sound and Feel” are three<br />

principal qualities that are designed into every Harley-Davidson motorcycle and it’s been<br />

that way through the decades of our long, rich past.<br />

13


ENgiNEERiNg<br />

From the very earliest days, Harley-<br />

Davidson has favoured evolution of its<br />

powerful engines over revolution. The<br />

Knucklehead, Panhead, Shovelhead<br />

and Evolution engines are all deeply<br />

immersed in the heritage of the brand and<br />

the hearts of our enthusiasts. The Twin<br />

Cam 96 ® and Twin Cam 96B engines are<br />

now securing their own place in company<br />

folklore while the powerful Revolution ®<br />

engine in the stunning V-Rod ® motorcycle<br />

is taking Harley-Davidson ® down roads<br />

never travelled before.<br />

<strong>HARLEy</strong>-<strong>DAviDSON</strong> ®<br />

MOTORCyCLES<br />

MODELS<br />

Harley-Davidson produces heavyweight<br />

motorcycles (651cc+) in the custom,<br />

touring, roadster and power cruiser market<br />

segments. The Harley-Davidson range of<br />

motorcycles is divided into five families.<br />

Each family includes a variety of models, so<br />

there’s truly a Harley-Davidson motorcycle<br />

to suit any rider. In addition we offer an<br />

exclusive range of limited production<br />

custom motorcycles lovingly assembled<br />

by our Custom Vehicle Operations (CVO)<br />

team to be the last word in styling, luxury<br />

and performance.<br />

Sportster ® Family<br />

Sportster ® motorcycles are tough, nononsense,<br />

stripped down, ready-for-action<br />

street bikes. First introduced in 1957, they<br />

have remained true to their original raw<br />

styling for more than half a century with<br />

a trademark low seat height, peanut fuel<br />

tank and natural riding position. They are<br />

the most narrow, nimble and agile bikes in<br />

the Harley-Davidson ® family, with the most<br />

responsive handling.<br />

Softail ® Family<br />

Our Softail motorcycles combine the<br />

streamlined, retro look of the old Harley ®<br />

‘Hardtail’ motorcycles but with unique<br />

invisibly mounted rear shocks for increased<br />

rider comfort, and, thanks to the tightly<br />

packed engine and frame, a thoroughly<br />

responsive ride.<br />

<strong>HARLEy</strong>-<strong>DAviDSON</strong> ® & <strong>BUELL</strong> ® <strong>DEALER</strong> <strong>PROSPECT</strong> <strong>HANDBOOK</strong><br />

Dyna ® Family<br />

The Dyna ® models are pure, raw riders’<br />

bikes. With exposed rear shocks and<br />

battery cover, they hark back to the<br />

earliest days of the factory custom<br />

motorcycle. The Dyna ® range offers all<br />

the attitude and one-of-a-kind looks that<br />

caught the original FX Super Glide riders’<br />

imagination back in 1971.<br />

Touring Family<br />

In 1965, the first Electra Glide ® – so-called<br />

because of its then revolutionary new<br />

electric starter – rolled off the production<br />

line. After 43 years of refinement, it’s little<br />

wonder that our Tourers are synonymous<br />

with comfort and luxury, with suspension<br />

and seats designed for comfort plus masses<br />

of storage and large fuel tanks which mean<br />

that fuel stops are few and far between.<br />

VRSC Family<br />

With looks and technology inspired by the<br />

team that won the NHRA Pro Stock Drag<br />

Racing Championship three years running,<br />

the VRSC family is all about delivering<br />

brute straight-line power whilst bringing an<br />

exciting new dimension to Harley-Davidson ®<br />

styling. Along with a slipper clutch for<br />

smooth change downs and ABS brakes,<br />

these were the first production Harley ®<br />

motorcycles with liquid-cooled engines.<br />

For full details of the current range of Harley-Davidson motorcycles, including images,<br />

technical data and pricing, go to www.harley-davidson.com<br />

<strong>HARLEy</strong>-<strong>DAviDSON</strong> ® MOTORCyCLES<br />

15


<strong>BUELL</strong> ®<br />

MOTORCyCLES<br />

Our sport bike brand Buell ® produces motorcycles in the street, sports performance and<br />

adventure touring motorcycle markets. Founded by pioneering engineer Erik Buell, the<br />

Buell Motorcycle Company partnered with Harley-Davidson in 1993, and has been owned<br />

by the Motor Company since 1998.<br />

By RiDERS, fOR RiDERS<br />

Erik Buell’s sole obsession is to build<br />

streetwise bikes that put the rider first.<br />

While other sportbikes employ complex<br />

technology for complexity’s sake, Buell<br />

embraces only those innovations which<br />

enhance the riding experience. Buell ®<br />

motorcycles are born from the belief that<br />

every innovation must be focused on doing<br />

what’s right for the rider. This philosophy<br />

has led to the creation of the Trilogy of<br />

Tech system. It’s our road map. Three<br />

design principles that guide our every<br />

move: Mass Centralisation, Low Unsprung<br />

Weight and Chassis Rigidity. Our unique<br />

approach to design is what sets Buell<br />

motorcycles apart from all the rest.<br />

STREET<br />

The Buell ® Street motorcycles deliver<br />

minimalist styling, precision handling and<br />

aggressive attitude. With the signature<br />

look, thunderous sound and unmistakable<br />

feel of an air-cooled V-Twin engine, our<br />

three Buell ® Lightning ® models continue<br />

to put the fight into Streetfighter. With its<br />

sinister looks and innovative engineering<br />

the café racer-inspired 1125CR<br />

(introduced in 2008) pushes the range<br />

even further.<br />

<strong>HARLEy</strong>-<strong>DAviDSON</strong> ® & <strong>BUELL</strong> ® <strong>DEALER</strong> <strong>PROSPECT</strong> <strong>HANDBOOK</strong><br />

SPORTS PERfORMANCE<br />

Focused on speed, acceleration, and<br />

manoeuvrability, the Buell 1125R puts<br />

power to the ground with a finely tuned<br />

engine supported by a lightweight and<br />

advanced chassis. Premium suspension<br />

components, multi-piston brakes, and<br />

aerodynamic bodywork complete a<br />

design that is engineered for the ultimate<br />

in handling, feedback, and performance,<br />

whether on the street or on the track.<br />

For full details of the current range of Buell motorcycles,<br />

go to www.buell.com<br />

ADvENTURE SPORT<br />

<strong>BUELL</strong> ® MOTORCyCLES 17<br />

Adventure motorcycles with the soul of<br />

a sports bike. Whatever the conditions,<br />

our Ulysses ® motorcycles let you tackle<br />

them with comfort and control, providing<br />

rugged style, limited unsprung weight<br />

and incredible performance on even the<br />

roughest roads.


gENUiNE MOTOR PARTS<br />

& MOTOR ACCESSORiES<br />

PEOPLE WHO LivE THE BRAND, USE THE BRAND We’ve been selling clothing designed for both on-road and off-road use since 1912.<br />

As the majority of Harley-Davidson<br />

enthusiasts like to customise their<br />

motorcycles with performance parts or<br />

functional and decorative accessories,<br />

our dealers are in an excellent position to<br />

forge a long and profitable relationship with<br />

their customers.<br />

Our Harley-Davidson ® and Buell ® parts<br />

and accessories meet the same tough<br />

standards and testing that our motorcycles<br />

meet. When you sell Genuine Harley-<br />

Davidson ® and Buell ® products you’re<br />

selling accessories and replacement parts<br />

that are designed and engineered by us,<br />

always giving you the edge over other aftermarket<br />

products.<br />

<strong>HARLEy</strong>-<strong>DAviDSON</strong> ® & <strong>BUELL</strong> ® <strong>DEALER</strong> <strong>PROSPECT</strong> <strong>HANDBOOK</strong><br />

MOTORCLOTHES ®<br />

RANgE<br />

Today, from our Harley-Davidson ® MotorClothes ® merchandise to our licensed<br />

merchandise, dealers will find a variety of items from which to choose. An extensive line<br />

of stylish Harley-Davidson ® and Buell ® clothing designed by motorcyclists is offered to<br />

our dealers. A broad range of Harley-Davidson ® and Buell collectibles is also part of this<br />

merchandise group. Created to appeal to a variety of tastes, these product offerings will<br />

bring both riders and non-riders to the dealership and can greatly enhance profitability.<br />

H-D fiNANCiAL<br />

SERviCES<br />

Harley-Davidson prides itself on providing<br />

one convenient, hassle-free source for<br />

all of the financing products and services<br />

that a customer needs to get on the road.<br />

So dealers can help customers to live<br />

their dream through our Harley-Davidson<br />

financing packages and credit cards,<br />

giving them multiple ways to purchase<br />

our products. And our H-D insurance<br />

schemes mean customers can protect<br />

their riding experience without even<br />

leaving the dealership.<br />

19


<strong>HARLEy</strong>-<strong>DAviDSON</strong> ® / <strong>BUELL</strong> ® <strong>DEALER</strong> <strong>PROSPECT</strong> <strong>HANDBOOK</strong><br />

DO yOU THiNK yOU’vE gOT<br />

WHAT iT TAKES?<br />

If you are a willing and enthusiastic participant in both the sport and the lifestyle,<br />

sharing the customers love and loyalty for our unique product line, then becoming<br />

a Harley-Davidson & Buell Dealer could be the best career move you ever make.<br />

Harley-Davidson relies primarily on a<br />

network of distributors and dealers for<br />

customer sales and services. They are the<br />

people in the front line of the business who<br />

make our customers’ dreams come true.<br />

Our network of over 1,300 dealerships<br />

in over 50 countries mostly consists<br />

of full-service Harley-Davidson & Buell<br />

dealerships. They are able to offer all<br />

the new motorcycles, parts and<br />

accessories, MotorClothes ® products<br />

and merchandise along with high quality<br />

service and sound advice.<br />

Providing high customer satisfaction<br />

by supplying products and services that<br />

delight customers and offer lasting value is<br />

a very important part of our philosophy.<br />

WHERE ARE NEW <strong>DEALER</strong>S REQUiRED?<br />

DO yOU THiNK yOU’vE gOT WHAT iT TAKES? 21<br />

We are always looking for the next generation guardians of our unique brand.<br />

Opportunities to become a Harley-Davidson & Buell Dealer fall into two main categories:<br />

New Dealership Locations<br />

Harley-Davidson is constantly researching European markets to determine the need for<br />

new dealership locations. Once an opportunity has been determined, we search our<br />

dealer prospect database and also advertise locally to begin the interview process with<br />

potential candidates.<br />

Sellout of Existing Dealership<br />

We have a list of existing dealerships that are for sale. If a potential candidate matches the<br />

criteria required for the purchase of an existing dealership, the potential candidate may be<br />

contacted for an interview.<br />

Please contact your local Harley-Davidson office to find out more, or see our FAQs section<br />

at the back of this guide for further information.


WHAT yOU CAN<br />

ExPECT fROM US<br />

PLENTy Of HELP ON THE ROAD TO SUCCESS<br />

We want our dealers to be able to deal with everything that enables them to profit from<br />

the Harley-Davidson and Buell experience. Through our local, national and international<br />

resource networks, we cover all areas of support and promotion designed to drive<br />

customers into your dealership.<br />

SOLiD BUSiNESS PLANNiNg<br />

DAiLy OPERATiONAL SUPPORT<br />

Our aim is to have a long-term relationships<br />

with our dealers, so we provide the highest<br />

standard of support for daily operations, to<br />

ensure the right balance between short-term<br />

and long-term business goals. Our field staff<br />

are class-leading in training and industry<br />

knowledge, offering the passion and the<br />

business acumen that guides our dealers to<br />

not only sell motorcycles, but make dreams<br />

come true for the customer.<br />

We have various professional programmes in place to continue fostering and improving retail<br />

sales performance for our dealers. It is our goal to deliver an excellent customer experience<br />

and to have solid partners who are motivated and willing to deliver it. Through our extensive<br />

Business Planning Process, which includes a comprehensive Business Planning tool, we<br />

help our Dealers to think about the future, budget for it and ensure they and us have a<br />

common understanding of the business challenges ahead and we are ready to tackle them<br />

together. Our Dealer Performance Consulting programme offers a pool of experts and<br />

business knowledge to help set up the dealership to ensure future profits and customer<br />

satisfaction, with a tailored programme of guidance for new dealers before they open and<br />

then follow up during the first months of business.<br />

<strong>HARLEy</strong>-<strong>DAviDSON</strong> ® / <strong>BUELL</strong> ® <strong>DEALER</strong> <strong>PROSPECT</strong> <strong>HANDBOOK</strong><br />

WORLD-LEADiNg CUSTOMER BASE<br />

As well as joining the national H.O.G. organisation, H.O.G. members also have the option<br />

to join their local H.O.G. Chapter. Each chapter is sponsored by their local Harley-<br />

Davidson dealer, allowing a ‘close to the customer’ approach and the opportunity for<br />

H.O.G. members to meet fellow enthusiasts, as well as to participate in all the numerous<br />

Chapter activities.<br />

On average, an active H.O.G. Chapter member spends 60% more on a visit to their<br />

Harley-Davidson dealer than a non-member (sample: 1771 Harley-Davidson owners).<br />

In addition, H.O.G. members account for 24% of all brand new Harley-Davidson<br />

motorcycles sold worldwide and an equally significant proportion of all after-sales and<br />

service expenditure at dealer level. The value of the link of trust and mutual support<br />

between chapter members and their dealer is, of course, unquantifiable.<br />

MONiTOR THE CUSTOMER ExPERiENCE<br />

WHAT yOU CAN ExPECT fROM US 23<br />

Our customers are at the heart of all we do. As such, they are the dealer’s main asset, and<br />

we want to know how they view our dealers and our products to look for improvements in<br />

the way we do business. We support a comprehensive Customer Satisfaction programme<br />

that enables our dealers to identify areas of improvement, and to plan and structure their<br />

sales and aftersales operations to achieve higher customer loyalty and customer retention.<br />

We also support a Mystery Shopping programme that lets our dealers identify the<br />

effectiveness of delivery of the sales process by the sales team, and as a consequence<br />

focus training efforts for their sales staff accordingly.


ExTRA REvENUE STREAMS<br />

The Rentals & Tours programme is<br />

offered to established dealers who have<br />

demonstrated excellence in their primary<br />

Harley-Davidson and Buell business,<br />

and who are also situated in a viable<br />

location for motorcycle rentals. Today’s<br />

rental and tour customers are tomorrow’s<br />

potential motorcycle owners. In fact, the<br />

Rentals programme can be used as an<br />

opportunity to increase sales for ALL<br />

products, including motorcycles, Parts &<br />

Accessories, finance & insurance, General<br />

Merchandise and service.<br />

The Harley-Davidson Originals used bike<br />

programme directs customers straight to<br />

the showroom through its online search<br />

facility, providing extra revenue for our<br />

dealers and helping to develop customer<br />

relationships further.<br />

Rider’s Edge ® is a unique and Harley-<br />

Davidson inspired training programme<br />

which enables learner riders as well<br />

as existing licence holders to ride our<br />

motorcycles for the first time or further<br />

improve their skills. Whilst available to the<br />

general public, dealers who participate in<br />

this programme are able to offer a series<br />

of professionally run motorcycling courses<br />

catering for a wide range of riding abilities.<br />

WHAT yOU CAN ExPECT fROM US <strong>HARLEy</strong>-<strong>DAviDSON</strong> WHAT yOU CAN ExPECT fROM US 25<br />

® / <strong>BUELL</strong> ® <strong>DEALER</strong> <strong>PROSPECT</strong> <strong>HANDBOOK</strong><br />

WE’LL TEACH yOU NEW SKiLLS<br />

Harley-Davidson University (HDU) offers a<br />

wide range of technical and commercial<br />

workshops and trainings for our dealerships’<br />

most valuable asset: its employees. With a<br />

modern learning approach through online<br />

and classroom courses all dealership<br />

staff have the opportunity to hone their<br />

skills to meet requirements and exceed<br />

customer expectations in a competitive<br />

business environment. On an annual basis<br />

HDU invites dealer principals / owners to<br />

a strategic workshop for benchmarking<br />

and sharing best practise on business<br />

development. Harley-Davidson University<br />

also offers internal employee certification<br />

programmes, to assess and recognise<br />

educational efforts and investment<br />

in people.<br />

fiNE TUNE yOUR<br />

SERviCiNg STANDARDS<br />

One of the most important elements of a<br />

successful Harley-Davidson dealership is<br />

a knowledgeable and professional service<br />

department. When customers book a<br />

service or request information it is critical<br />

that skilled technicians are available to<br />

perform repairs, tune-ups and answer<br />

any questions. Six service schools with<br />

full standard workshop environments are<br />

operated by HDU across Europe, and<br />

Harley-Davidson University Service School<br />

classes, factory Service School sessions,<br />

and in-dealership training programmes<br />

are just a few of the educational<br />

opportunities available.<br />

MAxiMiSE yOUR SELLiNg SPACE<br />

The Harley-Davidson Europe Retail<br />

Environment Group are on hand to<br />

help with all aspects of the design,<br />

refurbishment, expansion or relocation<br />

of the dealership, providing hands-on<br />

assistance, materials and educational<br />

opportunities to attract customers and<br />

drive sales upwards. Their expertise can<br />

help to create highly functional yet unique<br />

floor plans and sales displays which<br />

enhance profitability in keeping with the<br />

look and feel of the brand.<br />

Harley-Davidson has a range of<br />

approved suppliers who all provide<br />

excellent retail environment materials.<br />

Our authorised design agencies make<br />

sure that each dealership has a bespoke<br />

look, whilst representing the Harley-<br />

iNDEPENDENCE<br />

Davidson and Buell brands in a consistent<br />

and approved way. We also offer a<br />

comprehensive Merchandising Training<br />

programme, to help dealers create visually<br />

stunning displays and maximize the selling<br />

potential of the dealership.<br />

HELP gENERATE BUSiNESS fOR yOU<br />

To get the customers in, we utilize national<br />

advertising and marketing programmes<br />

with point-of-purchase displays and other<br />

promotional items for your dealership.<br />

Offering new ideas and tools to drive traffic<br />

into our dealerships, we also participate<br />

in motorcycle shows, rallies and other<br />

high profile events. Our approved Dealer<br />

Marketing Services are also available in<br />

many of our markets to help with dealer<br />

marketing programmes.<br />

All of our dealers are independent businesses. Each dealer operates under a<br />

contract with Harley-Davidson Europe to retail certain Harley-Davidson ® and Buell ®<br />

motorcycles, Finance and Insurance (F&I), Parts & Accessories, and MotorClothes ®<br />

apparel and collectibles.


WHAT WE ExPECT<br />

fROM yOU<br />

WHAT iT TAKES TO BECOME<br />

A <strong>HARLEy</strong>-<strong>DAviDSON</strong> & <strong>BUELL</strong> <strong>DEALER</strong><br />

We at Harley-Davidson are as passionate<br />

as our customers, and you must be too.<br />

In fact, that’s why most of our<br />

dealerships are directly managed by our<br />

owners. They can’t help wanting to be<br />

involved. This will be the foundation of your<br />

success as a dealer, truly understanding<br />

your customer base and why they love<br />

Harley-Davidson.<br />

You must also meet the necessary<br />

financial requirements, have a foundation<br />

of management and retail business<br />

experience, and be knowledgeable about<br />

the sport of motorcycling.<br />

WHAT ARE THE<br />

fiNANCiAL REQUiREMENTS?<br />

Regardless of the investment requirements<br />

for a particular dealership opportunity,<br />

Harley-Davidson has also established clear<br />

target financial expectations for dealer<br />

prospects. These ensure the strength of<br />

the candidate and continued growth of<br />

the business.<br />

Please contact your local Harley-Davidson<br />

office to find out more, or see our FAQs<br />

section at the back of this guide for<br />

further information.<br />

<strong>HARLEy</strong>-<strong>DAviDSON</strong> ® / <strong>BUELL</strong> ® <strong>DEALER</strong> <strong>PROSPECT</strong> <strong>HANDBOOK</strong><br />

THE APPOiNTMENT<br />

PROCESS<br />

MAKiNg SURE THAT EvERyONE HAS MADE THE RigHT CHOiCE<br />

Successful applicants will always be looking to forge a long-term partnership with<br />

Harley-Davidson. And in order for you and the Harley-Davidson Motor Company to make<br />

sure we are both making the right decision, we require each dealer applicant to go through<br />

a rigorous but fair Appointment Process. We must inform you that even if you fill all our<br />

criteria, Harley-Davidson withhold the right to accept or decline any application at any stage.<br />

COMPLETiNg THE APPLiCATiON fORM<br />

In order to optimise the application process, please complete the Dealer Application Form in<br />

its entirety. Failure to provide all requested information will result in your form being rejected.<br />

We must receive completed Dealer Application Forms from all partners, officers, and/<br />

or other individuals who will have any financial or ownership interest in the proposed<br />

dealership. Feel free to make a photocopy of these forms if necessary.<br />

Please keep in mind that in addition to our minimum financial, personal, and business<br />

qualifications, we require a majority owner of greater than 50%, to commit to the full time,<br />

on-site management of the dealership operation. If you currently own a business, please<br />

provide us with your plan to transfer to someone else the full authority for the day-to-day<br />

operating management of your current business.<br />

27


APPLiCANT EvALUATiON<br />

When we receive a Dealer Application Form<br />

and it appears to be financially qualified to<br />

pursue an opportunity, you will be entered<br />

into our prospective database. You will<br />

then be contacted if we wish to pursue<br />

your application.<br />

The submission of your Dealer<br />

Application Form is only the first step in<br />

the application process, and you will not<br />

become a Harley-Davidson & Buell Dealer<br />

until you are officially approved and are<br />

presented with a Dealer Contract. Until<br />

then, you should not rely on any action by<br />

or communication from Harley-Davidson<br />

to the contrary.<br />

THE <strong>HARLEy</strong>-<strong>DAviDSON</strong> & <strong>BUELL</strong> <strong>DEALER</strong> APPOiNTMENT PROCESS<br />

To give you a brief overview of what you can expect, here is a summary of the various<br />

steps involved before we can formally foster a future business relationship with you:<br />

Application Screening<br />

Once your application has been received, we will review your submitted data and may ask<br />

you to provide further basic financial information. We call this “Financial Stage 1 review”.<br />

Your Business Plan & Review<br />

Following screening by our Credit department, we will ask you to submit your full, three<br />

year business plan, encompassing all the relevant aspects of your future dealership.<br />

This is the key opportunity for you to profile and outline your new dealership’s structure,<br />

organisation and facilities. It also allows your team and our own to get a clear picture of<br />

where you want to go. We have a fully dedicated team to assist you in this process.<br />

Financial Review<br />

Once your business plan is received, we will then take you to our “Financial Stage 2<br />

review”, where we will all make sure that we are talking the same language, both in terms<br />

of expectations and the required funding to move forward. At this stage, your original<br />

business plan might need alignment. Once again, our team will be on hand to help you<br />

and can assist you by providing some fundamental ‘know how’ and input.<br />

THE APPOiNTMENT PROCESS <strong>HARLEy</strong>-<strong>DAviDSON</strong> The AppoinTmenT process 29<br />

® / <strong>BUELL</strong> ® <strong>DEALER</strong> <strong>PROSPECT</strong> <strong>HANDBOOK</strong><br />

Letter of Intent<br />

When this stage is passed, we will “sign off” as a team and provide you with an official Letter<br />

of Intent for a Harley-Davidson & Buell distribution agreement, which will cover the basic<br />

requirements agreed that need to be met in order to establish a formal business relationship.<br />

You will undergo a full Retail Environment review with the support of one of our<br />

authorized design agencies and the dealership look and feel will begin to take shape. You<br />

will also have full assistance from our team to make sure you get all the necessary stock,<br />

tooling, supplies and people in place to get the business working!<br />

Distribution Agreement<br />

A final check will be necessary at the end before we actually issue a dealer contract. Only<br />

from this moment on will you be a fully authorized Harley-Davidson and/or Buell dealer.<br />

Appointment<br />

Congratulations. As an authorized Harley-Davidson & Buell Dealer, you’ll have the chance<br />

to not only share the dream and spread the word but also to profit from it.<br />

WE’LL BE HERE TO SUPPORT yOU<br />

ALL THE WAy<br />

We have the professional expertise and<br />

resources to support your application from<br />

‘start to finish’ and will always be happy<br />

to be of assistance. Please see the FAQs<br />

section at the back of this guide for answers<br />

to some common questions about the<br />

dealer appointment process, or feel free<br />

to contact your local Dealer Development<br />

Dealer if you have any further questions.<br />

Thank you for your interest in Harley-Davidson Motor Company.<br />

We look forward to receiving your Dealer Application Form.


fAQS<br />

How much does it cost to be a Harley-Davidson dealer?<br />

The costs associated with becoming a Harley-Davidson dealer depend on the opportunity<br />

available. When a new dealership opportunity is available, the investment requirements will<br />

vary according to the size of the market opportunity. However for an average dealership,<br />

Harley-Davidson expects applicants to have at least £400,000 in net worth and £200,000<br />

in liquid assets. Dealership sellout opportunities vary depending on the asking price<br />

established by the selling dealer, operating capital requirements, and facility expenses.<br />

Does Harley-Davidson<br />

charge a Franchise Fee?<br />

Harley-Davidson does not charge a<br />

franchise fee. Harley-Davidson dealerships<br />

are not franchises - they are independently<br />

owned and operated businesses.<br />

I own some land and a building in<br />

the perfect location and would like<br />

to open a dealership.<br />

Harley-Davidson conducts its own market<br />

studies when considering expansion<br />

of the dealer network. This enables the<br />

company to view many market areas in a<br />

similar manner, optimising consistent and<br />

accurate results. Based on the results of<br />

these studies, Harley-Davidson selects<br />

the markets and locations where new<br />

dealerships will be established.<br />

Is there a set distance on how close a<br />

dealership can be to another dealer?<br />

There is no specific distance on how close<br />

dealerships can be to each other. However,<br />

in some markets each dealership is<br />

assigned a clearly defined and designated<br />

territory which in itself ensures a degree of<br />

distance between dealerships.<br />

Can we commission our own market<br />

study and send it in?<br />

There is no need for you to commission<br />

your own market study. Harley-Davidson<br />

conducts its own market studies utilising<br />

the best resources available. This enables<br />

the Company to view many market areas in<br />

a similar manner optimising consistent and<br />

accurate results.<br />

<strong>HARLEy</strong>-<strong>DAviDSON</strong> ® / <strong>BUELL</strong> ® <strong>DEALER</strong> <strong>PROSPECT</strong> <strong>HANDBOOK</strong><br />

Can I purchase parts, accessories, and clothing directly from Harley-Davidson?<br />

Harley-Davidson Motor Company sells only through its authorised dealer network.<br />

I only want to sell Harley-Davidson<br />

clothing and/or parts and accessories.<br />

Is this possible?<br />

Harley-Davidson products are<br />

distributed exclusively through our<br />

authorised, full-line dealerships. Only<br />

these full-line dealers may own and operate<br />

additional locations that specialise in<br />

MotorClothes ® apparel, collectibles,<br />

and Genuine Motor Accessories.<br />

When can I expect to receive<br />

a response to my application?<br />

Whenever possible you will receive a full<br />

reply to your application within 30 days.<br />

What happens if my application is<br />

accepted and there are no current<br />

opportunities available?<br />

If there are no current opportunities<br />

available, we will retain your<br />

information in our database for one year.<br />

There is a city/town in which I would<br />

like to open a dealership where I<br />

believe the market is under served.<br />

Harley-Davidson conducts its own market<br />

studies when considering expansion<br />

of the dealer network. This enables the<br />

company to view many market areas in a<br />

similar manner, optimising consistent and<br />

accurate results. Based on the results of<br />

these studies, Harley-Davidson selects the<br />

markets and locations where dealerships<br />

will be established.<br />

FAQS 31<br />

How long does the<br />

application process take?<br />

It can take a few months or up to a year<br />

when building development is involved<br />

to complete and go through the above<br />

process. It is in both yours and our interest<br />

to be sure where we go. However, this does<br />

not mean that you will have to wait until you<br />

have received your final contract in order to<br />

get things going well in advance. In parallel<br />

to all of the above, we will assist you in your<br />

approach to move forward in all areas of<br />

developing your business, such as retail<br />

environment planning and management as<br />

well as facility planning etc.


Harley-DaviDson<br />

<strong>DEALER</strong> <strong>PROSPECT</strong> <strong>HANDBOOK</strong><br />

® / BUell ®<br />

© Harley-Davidson Europe 2009.<br />

Harley-Davidson, the Bar & Shield logo, Buell and the Buell logo are among the trademarks of H-D Michigan, Inc.<br />

Harley-Davidson Europe Ltd., Oxford Business Park, 6000 Garsington Road, Oxford, OX4 2DQ, UK.<br />

www.harley-davidson.com

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