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February 18, 2008

Route 12 North: Riding Out Rocky Times

American Harley-Davidson Inc.,
1437 Central St., Leominster

Phil Desmarais.
This past fall, when many were suggesting it would be a rough Christmas season for retail, Leominster Harley-Davidson dealer Phil Desmarais braced for the worst.

But, as it turned out, he says, it may have been his best year since he opened his doors in 1975.

Despite the apparent nationwide drop in luxury consumption, Desmarais said the only area where he's seen a slump is in sales of clothing and accessories.

"Seems like people are watching their little expenditures," he said. "They're still buying the big stuff. They still come up with the $20,000 for a motorcycle."

Desmarais said some people are so dedicated to their Harleys that they'll buy a new one rather than replace a failing car - never mind the fact that a motorcycle won't do you much good in terms of actual transportation during a Massachusetts winter. But the dealership owner said he understands that rather impractical mindset.

"If you don't reward yourself, you don't have an incentive to work," he said. "If you really enjoy having a motorcycle, you should have one."

Over the years, Desmarais said, the dealership's revenues have grown from $300,000 to $12 million, and staff numbers have gone from two to 23.

Full Throttle


Desmarais said the appeal of the Harley brand has gotten a boost in recent years from major corporate changes. Instead of continually ramping up production, the company actually cut it down, something Desmarais said helped bring back the "mystique" that the motorcycles had years ago.

"You used to have to wait a year to get one," he said.

Another boost to sales has come from the widening of the motorcycle-riding demographic. Desmarais said he sees many more women, as well as police, lawyers and entire families, riding Harleys today.

Even bad economic news has a bright side for his business, Desmarais said. He said worries about U.S. industry push people to buy American-made products, and Harley-Davidson is one of the brands that stands out as largely produced in the U.S.

Desmarais expects patriotism and all the other good associations the Harley brand brings with it to continue keeping his store going strong, even in the winter.

"It's something to play with," he said. "Some of these guys put them in the living room."

That's something Desmarais understands, and not just because he's a Harley owner himself. On a recent night, he said, he was up until 11 p.m. working on his boat. In January.      

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