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gibbon Liked a reply to forum topic The Bikeconomics (Mega)Thread

3/6/2024 9:27am
Treks buisness model for shops is single brand, either Trek owned or independent (but dictated to). They openly aspire to the Apple of the bike world (or whatever they latest buzzword book Burke has read this week).But being a single brand and not having a comprehensive range of models leaves you open to lost sales to the competition that fills the gaps. Despite what 'we' (as discerning mtbers) think ,the large majority of purchases are made on colour and price and don't really care what is written on the downtube. I like how Trek frame this as 'right sizing' in...
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Pedals Added a reply to The Bikeconomics (Mega)Thread

3/6/2024 7:42am
I'm 100% with you. "Curated" is what I said. Curated to give you the broadest consumer interest and best possible availability and margins is what retailers should be doing. The best retailers, in fact, can do this easily because the product they carry is subservient to the retailer's own brand - it doesn't matter what they sell because the consumer...

Pedals Added a reply to The Bikeconomics (Mega)Thread

3/6/2024 6:46am
You're not wrong but I think there's nuance depending on where you are in the supply chain. If you're a retailer, you want to keep a curated selection of product available for your customers - enough that they don't feel the need to shop online but not so much that you're not getting healthy turns on your inventory. Your only...

DubC Liked a reply to forum topic The Bikeconomics (Mega)Thread

10/19/2023 9:53am
Nukeproof not so nuke proof after all? Too soon?
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Pedals Added a reply to Yeti Cycles Goes Direct

10/13/2023 6:41am
5-10 years down the line and I think a lot of IBD's are going to be happy to not sell (as many) bikes anymore. It'll be a challenge to get used to having less revenue to start but in the end I think they'll be more profitable with less risk this way. The honest to god truth of it is...

anotherbikerguy Liked a reply to forum topic The Bikeconomics (Mega)Thread

10/6/2023 12:27pm
Kona is a zombie brand right now. Their 'pivot' happened without any warning to their dealers, and they also laid off a lot of people at the same time. And prior to that, new models they'd been promising for at least a year were abruptly cancelled. The whole thing reeks of desperation. Not entirely sure who's really steering the ship at this point. Part of me would like to see the brand bounce back (not least because I still own one of their bikes, and enjoy it a lot) but I also would not be surprised if they close up...
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Pedals Added a reply to The Bikeconomics (Mega)Thread

10/6/2023 11:36am
I've had Kona on my watch list. The abrupt pivot away from IBD's to D2C signaled, to me, that they felt they needed the revenue fast. Problem is their pricing still follows IBD levels. The other 'big' brand that I've been concerned about is Marin. Anytime someone does a BOGO you have to wonder. I think the other big players...

DServy Liked a reply to forum topic The Bikeconomics (Mega)Thread

10/6/2023 11:30am
Well that's going to make this wheel set hard to sell. Anyone want some 29" ridefast mainlines? Thanks for the update.
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Pedals Added a reply to The Bikeconomics (Mega)Thread

10/6/2023 4:22am
I think that’s a little over critical. Sure those people are everywhere but bikes are hard to do at all - let alone well. Besides, bikes really don’t pay as well for a given skill set so you don’t stay in bikes unless you love bikes.

Pedals Added a reply to The Bikeconomics (Mega)Thread

10/5/2023 8:15pm
Better to be ahead of the curve when it comes to inventory reductions. That way you can set the tone by picking a margin % you can deal with - anyone who comes after you has to match or exceed. If they go lower, fine, but they’ll be doing it at an unsustainable level. As for Trek - don’t forget...

Pedals Added a reply to The Bikeconomics (Mega)Thread

10/5/2023 8:41am
I'm going to largely agree with you except with regards to Company B's not being at greater risk. If the investors came in with the expectation of continuing to reap Pandemic-level returns they're going to be getting really antsy right about now. With long term projections on (acoustic) bike sales continuing to decline and a crowded e-bike space that's expensive...

whitesq Liked a reply to forum topic The Bikeconomics (Mega)Thread

10/5/2023 8:37am
Since there's a lot of speculation with GG, I'll add some clarity from a pretty reliable source. The GG demise is somewhat different from a lot of the other issues (i.e. overstock) the other brands are facing. The investor came in with a ton of money, some ideas and zero manufacturing experience. He loaded up management with loyalist, then made a left turn with the direction of the company. All the eggs were in that basket and they didn't hatch. I'm not sure if the chance to pivot had pasted or he just lost interest but the cash flow ended...
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matmattmatthew Liked a reply to forum topic The Bikeconomics (Mega)Thread

10/5/2023 6:59am
"Pulling sales out of the future and into the present." I was actually sitting around a campfire on a riding trip this past weekend and said almost the same thing to my riding buddies. The way I see it, on a micro-level with the riders in my local area, a good portion of people I saw getting new bikes during the pandemic were probably going to get bikes or upgrade their bike in the next 1-2 years but working from home and the increased leisure time that came along with it led to people making their purchases 6-12 months earlier...
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eicca Liked a reply to forum topic The Bikeconomics (Mega)Thread

10/5/2023 6:55am
You would think that planning for that bubble burst would be a no-brainer, but I worked for a bike manufacturer during 2021-22 and the talks of growth just didn’t stop. “We’re gonna double our team size.” “We’re gonna double our output.” All the leadership bought fancy trucks in advance. When I left, the shelves were full of inventory that wasn’t moving. The employee turnover was ridiculous. Every one of us actually getting our hands dirty knew that bubble was gonna pop long before it actually did. The leadership just refused to accept it. The idea of increased profits really can...
This forum topic has 5238 replies.

Pedals Added a reply to The Bikeconomics (Mega)Thread

10/5/2023 6:54am
I guess I should've put a caveat in there that Sales and Marketing folks don't count. They live in a different reality. I once visited a friend who worked for a large bike company that starts with 'T'. He invited us to ride their trails and had us meet him at the HQ so we could get a quick tour...

Pedals Added a reply to The Bikeconomics (Mega)Thread

10/5/2023 6:50am
Another part of all this that I feel goes underreported was just how WILD the demand was. If you weren't ordering a shit-ton of product retailers/consumers would all but send you death threats. To some extent it didn't even matter if you thought the Covid-Bike-Boom was real - it was real to everyone else so you had to at least...

Pedals Added a reply to The Bikeconomics (Mega)Thread

10/5/2023 6:19am
Having been on the inside during this time period I can tell you that where I was the prevailing thought was "this isn't going to last - we need to capitalize now while planning for a soft landing". I don't think it was until we were 18 months in that we started to realize that this wasn't even a 'boom'...