S
Steve In Sc
Guest
BikeE was a high volume, low profit on each bike operation. It failed. Big Ha looks to be a low
volume, high profit on each bike operation. BikeE probably had to commit for thousands of bikes
produced in a Taiwan factory before they actually had payment from their dealers. Ordering thousands
of bikes months in advance for a market infamous for its' wide swings in demand. What a nightmare.
Big Ha will probably stock a limited number of completed bikes on hand. They will build more here in
the US, as needed, when they have accutal orders. By selling direct, they will also reap the dealer
mark up. They will sell just a fraction of BikeE's volume, but they only need to sell a relatively
small number of the higher profit bikes to survive.
With smaller volume, quality control could be closely monitored. Warranty issues could be minimal.
Big Ha could arrange to for any warranty repairs to be made by the owner's trusted LBS. Big Ha is
probably looking for a limited number of well-heeled riders who like comfy bikes with lots of high
tech bells and whistles. I wish them luck. But from what I have seen of the bicycle industry, a much
safer and saner business plan might be to liquidate all the assets of the company, fly to Vegas and
put it all on black.
volume, high profit on each bike operation. BikeE probably had to commit for thousands of bikes
produced in a Taiwan factory before they actually had payment from their dealers. Ordering thousands
of bikes months in advance for a market infamous for its' wide swings in demand. What a nightmare.
Big Ha will probably stock a limited number of completed bikes on hand. They will build more here in
the US, as needed, when they have accutal orders. By selling direct, they will also reap the dealer
mark up. They will sell just a fraction of BikeE's volume, but they only need to sell a relatively
small number of the higher profit bikes to survive.
With smaller volume, quality control could be closely monitored. Warranty issues could be minimal.
Big Ha could arrange to for any warranty repairs to be made by the owner's trusted LBS. Big Ha is
probably looking for a limited number of well-heeled riders who like comfy bikes with lots of high
tech bells and whistles. I wish them luck. But from what I have seen of the bicycle industry, a much
safer and saner business plan might be to liquidate all the assets of the company, fly to Vegas and
put it all on black.