Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 SEGMENTS: INDIVIDUAL CUSTOMER SEGMENT / OTHER TYPES OF INDIVIDUAL CUSTOMER
CHOICE 3 COMPONENT: EXTEND A PAYMENT TERM
| No. | SIC | Year | Notes |
| 1 | 3751 | 2008 | In a pattern eerily similar to the housing bust, the $5.7 billion Milwaukee Harley Davidson used its in-house finance unit to chase after subprime borrowers, making it easy for them to buy $20,000 hogs with no money down. The risky lending—which forced Harley Davidson to take a $6.3 million write-down amid rising default rates and decreasing interest among buyers for its securitized loans—could foreshadow problems in other industries. Harley Davidson Financial Services offers loans both to retail customers and Harley dealers, who finance the bikes that sit in their showrooms. While HDFS made 38% of all retail loans for Harley five years ago, that proportion now exceeds half. |
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