Big, loud and in-your-face – there’s no mistaking a Harley-Davidson bike. And as thousands of aging Canadian baby boomers seek to reclaim their youth, the image of greying 50-something execs bedecked in black leather, straddling 1,200 cc’s of power, is no longer a rare sight.
“Our average customer age is 45, and certainly the bulk of our sales are in that 35-to-60 range,” acknowledges Don James, CEO of Deeley Harley-Davidson Canada (No. 66 on the Top 100), a day after returning from the Harley-Davidson Inc. shareholders meeting, where he was re-elected to the board of the U.S.-based company. “When people have been busy doing their thing for a long, long time and suddenly say, ‘Well, this is something I’ve always wanted to do,’ we’re there to help them do that and fulfill that dream.”
Established in 1973 as the exclusive dealer of Harley-Davidson gear north of the 49th parallel, Deeley Harley-Davidson Canada, which employs a staff of 120, delivers goods to 71 independent retailers across the country. It raked in $340 million in revenue in 2008, an increase of $32 million over 2007. Current economic conditions, however, have put the brakes on the company’s continued expansion.
“In Western Canada, particularly, the sales are slower by about 10 or 12 per cent, year to date,” admits James, the proud 65-year-old owner of a Road Glide model. “But compared to many other industries, that’s pretty good.” So far, he’s avoided having to make any reductions to his staff, but he has been encouraging dealers to “right-size” their businesses, as he terms it.
James is confident that a loyal customer base and efforts to attract younger bikers, and more women, will pay off. “The women part of the business has been very interesting because it’s been growing steadily over the last few years,” he notes. “We’ve gone from six or seven per cent of our total sales to about 13 per cent being women. And we feel there’s a lot more potential.”
And Harley owners don’t just buy the bike, he explains; they buy the lifestyle, which includes clothing, riding accessories and even gear for the dog and baby.
“That’s a big part of the business, and it’s a reason our retailers tend to become the centre of motorcycle activity,” he says. “It’s not uncommon for customers to visit the store several times a month, if not weekly. . . . When you ride into town in a different city, the first thing you do is drop into the Harley dealer and find out what’s going on and pick up a T-shirt and whatever else you want.”
James, a grandfather of two, helped launch the company with its founder, the late Trev Deeley. James says he’s confident he’s got the wherewithal to navigate whatever roadblocks may be ahead.
“It was a lot of hard work,” he reflects, looking back on the more than three decades of business. “But it’s been worth it. Needless to say, it’s been a wild ride.”
