The business plan: perceived benefits

The perceived benefits of the frame include its performance characteristics (light weight, racing geometry, full carbon features, high quality, etc), its brand (recognized in the market), the company's support for the frame (warranty, crash replacement, sustainability program), the use of the auction model on eBay to derive value for consumer, its crossover brand positioning, which means that frame can be found in the IBS as well as on the Internet, and the company's intention of working with the IBS to establish the brand rather than cutting out the IBS. 

Customers will see the benefit of the auction model in purchasing their frames: it means that they will have the opportunity to obtain value if they buy their frames in the off season when everyone else is not thinking about buying frames. It also means that consumers will have the chance to obtain value if market demand for their particular size is not strong. The auction model also gives the consumer the opportunity to choose components or use the components they have at hand; this will be seen as a cost savings, an efficient use of existing resources and materials and as opportunity to customize. Also, using eBay and Pay Pal infrastructure is increasingly easy for many people: the consumer is increasingly Internet literate and eBay accounts and Pay Pal accounts are increasingly common. 

Customers will see the benefit of the brand. It is a high end brand that is recognized with older cyclists. The brand was used by professional racing teams in the 80s and Davis Phinney among others. It taps into the Mini Cooper business model and it makes a statement about the person who rides it: older generation, good taste, etc. Perception is important and with racing bikes as much as it is with cars. Customers will also see the benefit of the company's commitment to providing its customers standard benefits such as warranty, crash replacement and safety certification (EN testing and USPC standards): the brand will not enter the market without all of those features in place. Customers will see the benefits of the sustainability program which will take the form of a deposit arrangement or a return.

Finally, consumers will see the benefit of the brand positioning as a crossover brand, one where it can be obtained directly from the manufacturer through an auction model as well as from the independent bicycle store using an agency model. The consumer will learn that the business model benefits the IBS, which is important for many consumers, and is convenient and good value for the consumer. The real benefit of the brand is that shows that the Internet and the IBS can thrive together.