Wednesday, September 8, 2010

The business plan: customer priorities

Frame and Wheel brought the car into the brand  new Toyota dealer for its 35k service and cannot help noticing the increased emphasis the dealer places on the environment. On the floor of the assistant service manager's fishbowl office is a placard proclaiming the dealers committment to proper disposal or recycling of oil, transmission fluid, tires,brake bads, drums and other parts of the car. The placard explains that proper disposal and recycling cost the dealer extra and these fees are thus passed on to me the customer. Tough luck, but better than dumping the stuff in the water table. On the wall in the hallway, there are signs stating environmental improvements: a curtain over the garage door that keeps the heat in during the winter and the cool in during the summer; the use of water efficient machinery and appliances; the green bathrooms. Indeed, the bathroom is a model of environmental enlightenment: water that activates only when your hand passes under the faucet, soap dispensers that push out just enough soap, paper towel dispensers that automatically spit out a shred of recycled paper towel; the strong smell of pine in the bathroom, etc. Clearly, autmobile dealerships have a strong interest in being seen as green: automobiles still create a lot of pollution and dealers trade in the busienss. Anything they can do to improve perception helps.
The point is that Frame and Wheel recognizes that there has to be a sustainability strategy for any bicycle brand. Sustainability is increasingly a priority for many consumers (in addition to the value, quality, safety, support, prestige, etc.) and there is no reason why it cannot be one for a bicycle company. Currently, most manufacturers do not seem to have a strategy especially when it comes to carbon frames and wheels. Where do all those crashed carbon frames and wheels end up? Frame and Wheel learned that this material is recyclable: BMW will soon introduce cars that have carbon bodies, and it points out that carbon can be recycled back into a raw material and used to make a carbon product that requires less strength. Frame and Wheel beleives that a sustainability strategy will become an other reason for the customer to buy the frame. This strategy could take the shape of a deposit policy: the customer pays $2,500 of which $500 is a deposit that gets credited to the customer when they are tired of the frame or when it becomes damaged, obsolete etc. The customer brings the frame to the agent or sends it directly to the manufacturer and the deposit is returned. The company then takes the frame and brings it to its recycling partner and uses it to make other components or simply sells it. Alternatively, it can take the shape of an exchange program through a regional composite organziation or a recycling center: return your old composite frame to these facilities and receive a credit or a discount towards your frame. Frame and Wheel, with control over its brand, could simply establish and OEM arrangement with a local steel framebuilder and have steel biccyles in the market at a lower price point. Steel is not the most competitive material for racing long distances, but for many it is good enough for many.
One last thing:  Ira, the owner of the dealership is raoming aboutout saying hello to everyone, including Frame and Wheel, in the waiting room. He asks if I am being treated well. I mentioned that the mechanic was a bit behind schedule, but other than that, the waiting room is excellent, which it is as far as car dealership waiting rooms go, and I am pleased. He says thank you and moves on. It did make an impression though: Frame and Wheel will send the president of the company to check on its IBS dealers when the time comes, and for that matter, to check on its customers. There is no substitute for recognition from the top, and that too is likey to become a customer priority

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