Distribution: the showroom model

There are two types of consumers: the consumer who wants to buy and ride "right now" and the consumer who is willing to wait, to check out choices, shop around months in advance of delivery. A consumer who wants the bike "right now" is prepared to have choices made for him by the manufacturer; the consumer who waits wants to make the choices (about components, wheels, color etc) for himself. The consumer is living in two worlds these days: he wants the choice and the pricing and convenience of the Internet, but he also wants the community and the support of the bricks and mortar shop. It is hard to have both: the physical store will always have higher overhead costs (rent and labor).

Perhaps the best way forward is to guide the consumer towards a model where he can have the choice and pricing of the Internet and the tangible and physical support of the local store. The showroom model is becoming more commonplace with big box retailers who realize that having a huge building filled with inventory is not the most efficient use of physical and financial resources. Best Buy for example now has showrooms where consumer can fiddle with the electronics in a comfortable environment; the consumer can try out the item and decide if he likes it. The key point is that Best Buy stocks less inventory on site; if the consumer wants to buy the item and it is not in stock, he orders the item from a computer in the showroom and the item is shipped to his house the next day.

Applying this model to bicycles would be something like this: the consumer goes to a local bike store where he can inspect and test ride a demonstration bike; he identifies the frame model he wants and its size; the bike shop, which acts as an agent, orders the frame from the manufacturer's website for the customer; the frame is sent to the bike shop; the consumer asks the bike shop to order the components and wheels, or the consumer does that on his own and has these items sent to the bike shop; the bike shop receives the materials and assembles the bike. 

The consumer obtains the pricing and the selection he wants and the bike store gets business from ordering components, the frame, the wheels and build up charges. The trouble is that the consumer has to be organized because the ordering process takes a while and so does the build up process. However, if the manufacturer has stock in its warehouse in the local market and the bike store is organized, the wait time is not all that long. The wait might be longer if the manufacturer has no stock "on shore" and is awaiting and new shipment from the factories in Asia. This would have to managed through an order book arrangement or "pre-order" list. To avoid this problem requires having factories that can fill orders quickly throughout the course of the entire year: if suddenly the market wants 50 frames, the manufacturer has to have the networks and the resources to deliver on time.

The bike store meanwhile does not have to tie up resources in bikes that it is not sure it can sell; it does not have to pay high rent for large facilities that can store the bikes. The model is more driven by the pull model (where the market determines demand) than the push model where resources are invested in inventory, mechanics and space and then salesmen are hired to "push" the products into the market. The pull model favors the Internet and the consumer who will wait and order in advance; the push model favors the " want it now consumer".

Austro-Daimler Superleicht Catalogue

The original Superleicht was built up with Campagnolo Record components and Clement Strada 66 tubular rims. Here is a link to a catalogue.  Handle bars were Cinelli. Tubing was Reynolds 531. Chain ring was 42/53, but I think mine had 42/54 for some reason. Interestingly, they sold the bike with pedals. That is not done today.

The Ultima was the Superleicht frame but with Campagnolo Super Record components (this group retails for $3,000 with basic wheels). The Superleicht had Campagnolo Record components ($2,650 with basic wheels). The Ultima targeted that segment of the market that demanded the lightest and the finest regardless of cost. Since Austro-Daimler was unable to do anything with the frame to reduce the weight (to make it an SL for example), they just offered lighter components. In the end, the difference in weight between the Superleicht and the Ultima clearly could not have been that much. But in the mind of the rider, there was a difference and that was what the rider paid for.

This marketing tactic still exists today: The Cervelo S3 frameset retails for $4,000 and weighs 1050 grams; the Cervelo S2 frameset which is identical except for a beefier rear triangle retails for $3,100 and weighs 1150 grams (In other words, for every one gram reduction in weight, the price increases $9.00). Both frames are pretty much the same; the S3 is offered for the riders who are trying to obtain a very low weight or have the budget and want to be seen on a premium version of the brand. The S2 is for the rider who has a smaller budget, less concern about brand image and the knowledge that weight can be lowered in other ways (no road computer, lighter wheels, saddles etc.) There are more S2s on the road than S3s, but the S3 is probably a much more profitable frame for Cervelo. This was probably true for the Austro-Daimler Ultima.

Original Austro-Daimler Superliecht Frameset

These are images of my old Austro-Daimler Superleicht (Serial No. 6163975). It was built up with Campagnolo Record components and tubular wheels. The bicycle was light at the time.  Not anymore: the frame alone must weigh about five pounds. This frame or the Ultima (which is the same frame but with Super Record components and a different finish) was used by the Seven-Eleven pro cycling team in the 80s. The cream paint is known as champagne. Austro-Daimler was targeting the high end of the market in the United States with this model. It was a high end racing frame and the market probably remembers it that way. Here's some more information on Austro-Daimler Bicycles. This link has more background on Austro-Daimler.

Branding: Resurrecting an old brand

The other way to enter the market is to resurrect an old brand. A good example of this is  Motobecane USA (pronounced Moto-becan and rhymes with pecan). Motobecane was a French manufacturer of bikes and motorbikes for many years before they went bankrupt in the 80s. The brand was resurrected as Motobecane USA very recently and now the company imports bikes from Kinesis Industry Co. in Taiwan (a big contract manufacturer of bike frames and equipment). Motobecane USA provides marketing, warranty support, a website and a range of models and a MSRP. It appears that the bikes are only available through Bikes Direct which is an online retailer of bikes; there does not appear to be any availability through independent bikes stores. Indeed, comments about quality on bike forums and from mechanics I have talked to is not positive. The company is targeting the low end of the market, competing on price and using almost only on-line distribution.  

An example of a successful brand make-over is the Mini Cooper. This brand was restored by BMW into a premium marque in the 90s, well after most Mini Coopers had disappeared from the road. They introduced among other things a bigger engine, more luxurious interior and a high level of customization. The point is that an old brand can be revived, even if it is defunct and associated with a different era,  and is nevertheless recognized by more consumers than one that is new. A brand such as FWT or Ritte is recognized by no one (or fewer people) and thus requires many dollars of advertising or many hours of racing and riding with other people before it takes hold with consumers.

Branding: Part I

The bike industry is characterized by low barriers to entry. Ritte Van Van Vlaanderen Bicycles is a great example. This company shows that anyone can purchase an open mold frame from a trading house or from a factory in Asia and brand it as their own. It shows that to enter the bicycle market all that is needed is a brand.

Additionally, component  manufacturers (Shimano, Campagnolo, SRAM) are happy to sell their components (brakes, drive trains, wheels, etc) to any frame manufacturer; there is no exclusivity. Ritte offers to build up the frame either with SRAM or Shimano. Neither  component company is complaining.

The only way a bicycle company can obtain exclusivity over a frame is by designing it and owning the mold from the frame is made. This explains why it is not possible to buy a generic frame that looks like a Cannondale Super Six or Cervelo S2 from a trading house.  Cannondale and Cervelo own those molds and they are the only ones who can make frames from them.  They will likely use them until they wear out or have generated enough of a return on them to invest in a new mold (a very costly investment).

More Choice frame in the market

Ritte Van Vlaanderen is one example of a company that uses the More Choice-01 for its frame. The Ritte Van Vlaanderen bike is a good example of what the bike could look like when it is built up. They are selling it for $1,650 ($1,760 in June when I checked again) for the frameset and a starting price of $3500 ($3,600 in June) for a complete bike with SRAM. They have the frame weighing at around 14 pounds. There is some good technical information about the frame. They have the model with the integrated seat post. The interesting thing about this company is how they sell the frame: its all through the Internet and most of its seems to be pre order. They also are in the business of building up entire bikes. They have an interesting blog and they are placing ads in Road Magazine to promote the bike. Reynolds markets a set of wheels named Attack as well. The advertising campaign is also viral.

Geometry compared to 2010 Fuji SST

Brand	F&W	Fuji
Model	MCR-01	SST
Size	47	XS
Seat tube	47.0	68.1
Top tube (effective)	51.5	51.7
Head tube length	10.5	11.0
Chain stay length	41.0	41.0
Wheelbase	97.3	94.2
Head tube angle ⁰	71.0	72.0
Seat tube angle ⁰	74.5	73.5
Bottom bracket drop	68.0	68.0
Stack	42.5	49.6
Reach	36.0	38.9
Stand over	na	75.2
Trail	na	5.9
Bottom bracket height	na	na
Fork rake	4.5	4.3

Frame and Wheel has seen a few Fuji SST bikes on the road and had a chance to inspect one closely. Frame and Wheel noticed that the down tube on the Fuji SST is a similar size to the MCR-01. Frame and Wheel was unable to close my thumb and forefinger around the down tube and is unable to do the same with the MCR-01 (The down tube of the MCR-01 is 5.4 cm). The rider of the Fuji frame said it was very stiff and he is pleased with it. Frame and Wheel has posted the geometry of the Fuji SST for comparison. Also, the top tube on the Fuji SST has triangular shape to it that is similar to the MCR-01. Frame and Wheel reads in the Fuji specs that the front triangle is monocoque and the rear triangle is attached to it using tube-to-tube technology. This is the same method used with the MCR-01. All of this suggests that the manufacturers in Asia are using similar molds and designs. 

Headset bearings

The headset is FSA. This image includes the chain guard. Bearings are sealed cartridge bearings. 

Front fork

The front fork is full carbon and fits a conical head tube. The diameter of the tube at the top is 1 1/8 inches and the diameter of the tube at the bottom is 1 1/4 inches. The drop outs are carbon. There is about 30 cm of steerer tube which is more than enough for any adjustments.

Seat post

The seat post is carbon. Its diameter is 31.6mm and its length up to the seat post clamp is about 34 cm. Weight is about 180 grams.

Geometry of available sizes

Geometry of available sizes

Cm	47	50	53	56	59	62
Seat tube	47.0	50.0	53.0	56.0	59.0	62.0
Top tube	51.5	53.0	54.0	56.5	57.5	59.0
Head tube	10.5	11.5	14.0	15.5	18.5	21.0
Head tube angle ⁰	71.0	71.5	72.0	73.5	73.5	73.5
Seat tube angle ⁰	74.5	74.0	74.0	73.5	73.5	73.5
Rear center	41.0	41.0	41.0	41.0	41.0	41.0
Front center	57.2	58.0	58.7	59.6	60.3	61.2

More geometry comparisons

Geometry (cm)

Brand	FWT	BH	Scott	Jamis	Cannondale
Model	MCR-01	G Series	Addict	Zenith	Super Six
Size	47	XS	XXS	48	48
Seat tube	47.0	55.0	47.0	48.0	48.0
Top tube (effective)	51.5	52.0	51.0	51.5	51.5
Head tube length	10.5	11.0	10.0	10.0	11.0
Chain stay length	41.0	40.2	40.5	40.5	40.5
Wheelbase	97.3	95.9	n/a	94.2	95.9
Head tube angle ⁰	71.0	72.0	70.5	72.5	72.0
Seat tube angle ⁰	74.5	74.0	74.5	73.0	74.5
BB drop	68.0	n/a	67.0	n/a	74.0
Stack	49.0	n/a	n/a	n/a	51.7
Reach	36.0	n/a	n/a	n/a	36.8
Stand over	n//a	n/a	71.8	71.1	74.0
Trail	n//a	n/a	n/a	n/a	6.2
BB height	n//a	n/a	n/a	26.8	26.5
Fork rake	4.5	n/a	n/a	4.3	4.5

The MCR-01 has the longest wheelbase (97.3 cm) compared to similarly sized frames above. Head tube length and top tube length are similar. Chain stay length is one centimeter longer and head tube angle is roughly one degree steeper.

Seat post

The seat post is carbon and 31.6 mm in diameter. The post length is 34 cm measured from the bottom to the base of the clamp. The seat post clamp is made out of aluminum and has two bolts. There is an adjustable washer below the forward bolt.

Down tube and chain stays

The down tube diameter is 5.4 cm. The chain stays are approximately 2 x 6 cm where they meet the bottom bracket shell and about 2 x 2 cm by the drop outs.  The seat tube diameter is 2.7cm.