The business plan: persuading the IBS and customer

Frame and Wheel recognizes that it will be difficult to persuade an IBS owner to take on yet another brand. Most IBS have at least four brands already and they are hard pressed for additional space and capital to accomodate another set of bicycles. Additionally, with too many brands on site, the customer gets confused and the IBS becomes tempted to push the brands that are in favor with the market at the expense of other brands. This becomes a loss making proposition for the IBS and it reflects badly on the IBS eventually. Too much choice or selection undermines the IBS marketing efforts, confuses the customer and creates additional expense for the IBS. Having too many bicycles on the floor also makes the IBS appear like a dumping ground for bicycles and creates the risk of inventory obsolecense. Some manufacturers are aware of this and perhaps do not permit their dealers to carry their competitor's brands.  The only reason an IBS will take on yet another brand is if the manufacturer allows the IBS to fill a market niche and requires no additional financial or inventory risk. The only models that can deliver this to the IBS is the pull model or just in time model, where inventory is delivered as an when there is demand, and the agency model, where the IBS orders a frame on behalf of a customer and receives a commission on the order.

This model does not require an upfront payment by the IBS in order to buy "slots" to become an authorized dealer. Trying to convince an IBS to carry a new brand where they have to pay up in order to be an aauthorized dealer is a very hard sell in a weak economy. Frame and Wheel beleives that the greater difficulty will be persuading the IBS that the company can stand behind the brand. This means that the IBS has to see that the company has all the support features offered by other brands: warranty program, safety certification, crash replacement, immediate access to the company. The IBS does not want to be associated with a bad brand.

Frame and Wheel understands that a big part of the marketing effort for a brand comes from the dealer. A good word from the dealer on the floor can make all the difference to the customer. This is why Frame and Wheel believes that the IBS is still part of the future of the bicycle industry. Beyond this, the product has to be safe, good quality and good value, exactly what the customer wants and distinctive from other brands, such that the customer wants to be seen on the bicycle . It also has to have a sustainability strategy: the customer cannot help but wonder where all that crashed carbon goes and where it all comes from.