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BIG X / EXCELSIOR HENDERSON
The Super X will run around $18,000. Harley's are about $16,000. Harley Davidson also has a 2 year waiting list for new bikes. So far, Excelsior-Henderson has a waiting list of around 3,000, and the first bike won't roll off the assembly line until mid 1998! Harley's are becoming a commodity and Excelsior-Henderson will never let that happen to their beloved bikes. They manufacture 10-15% less than demand to keep it this way. They will make 4,000 bikes the first year and 20,000 in the fifth year, at full production. They will capture about 5% of the heavyweight cruiser market which will make them a $250 million company. Net profit is about 5% for motorcycle manufacturers. Dan said they will break even in around two years, but would not say how many bikes it will take.
S.W.O.T. Analysis
Strength: "We don't know we can't do this," said the Hanlon's. That
combined with their mission, focus, tenacity and vision.
Weakness: Finding the best people. "People are our greatest asset,"Dan.
Opportunity: Bringing a great company back to life. Combining old / new.
Threat: Competition. Bikers are fiercely loyal to their chosen brand!
The bikes will be sold through a dedicated network of dealers throughout the country and Europe. Dealers will extensively screened and will need to meet many qualifications to be considered. Dan Hanlon compared buying an Excelsior-Henderson to buying a suit. You can either go to Sears and buy one off the rack without much help, or you can go to the
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Men's Wearhouse and be walked through the entire process with a focus on customer service. Also, after the sale, Men's Wearhouse offers you continuing support if you need it. They offer free pressing and alterations while you own your suit. Buying an Excelsior-Henderson will be like buying from Men's Wearhouse. They will focus on customer service / details and offer continuing customer service long [next page]