HARLEy-DAviDSON & BUELL DEALER PROSPECT HANDBOOK
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