Frame and Wheel believes that most consumers will view the Austro-Daimler brand as something classic, nostalgic, European and very much different from the Big Three (Trek, Specialized and Giant). One reason is that the name is hyphenated and has words that are clearly not of Anglo Saxon origin. Meanwhile, the history of the brand is in Austria and Germany and the actual company that used the name is long gone. Meanwhile, the availability of the frame is going to be very limited, relative to the availability of the Big Three brands. This creates the impression of a boutique brand, which suggests premium pricing. The Euroland name also suggests an imported product, something that is not allied with the "buy local" movement, at least at first inspection. The IBS may view the brand as a requisite "Euro" offering for the customers out there who are either from Europe or prefer to embrance the European roots of the sport. Some customers may view the brand sentimentally: it is a name that had its moment in the late 70s and 80s, but has faded from view. The restoration of the brand is very similar to the Mini Cooper restoration by BMW, and some consumers may make the association. After all of these first impressions have been made, the consumer will notice that the company is doing something different: it is using the Internet to innovate how bicycles are sold so that all stakeholders in the industry (the IBS, the rider and the manufacturer) are beneficiaries. It is creating a model where consumers can obtain the selection, price and convenience of the Intenet with the support, service and community of the IBS. This is the mission statement of the company and in simplest terms, it means creating a model that allows the consumer to buy a frame on line and then have their favorite IBS recommend and provide components, assemble it and provide the follow up service. All the stakeholders stand to benefit using this approach, and Frame and Wheel beleives that this is how the consumer will ultimately view the brand relative to the Big Three.
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I like the overall concept of F&W, but have an additional proposal for you to consider: bike leasing (same as auto leasing). Considering how many racers purchase (or aspire to purchase) new racing frames every couple of years, and the undeniable trend toward obsolescence in high-end carbon race frames (i.e., no one buys a race bike for long-term use anymore), I think this is a business model that could work well, especially considering your earlier post about sustainability. This way - you have a regular revenue stream (monthly payments?), you get the frames back for recycling after 2 years, and the customer gets the satisfaction of a new model every couple of years. You could even offer a service to swap components, if you can work out a reimbursement strategy with LBS's.
ReplyDeleteFYI - a friend of mine from OA passed this blog on to me, in case you are wondering who I am and how I found it. Good luck with this concept, I'll be looking for your demo bikes in upcoming seasons.
-J Clevenger (545Velo)