Tuesday, November 30, 2010

The business plan: consumer concerns with new frames

There are a number of concerns that the consumer might have with Frame and Wheel framesets. 
1) Quality: the consumer wants the frameset to be well made, easy to work on and reliable. A superficial measure of this is the finish of the frameset. The graphics need to be neat and the workmanship has to be perfect. Shoddy paint jobs are the first thing that the consumer notices. Frame and Wheel is ordering sample frames so that it can have a measure of More Choice's work.
2) Support. The consumer wants to be able to return the frame to the manufacturer in case the frame cracks as a result of a defect. This is understandable because the premium price of a carbon frame set reflects its low weight rather than its durability. Recourse to the manufacturer through the IBS is an important consideration for the consumer of carbon frames. Frame and Wheel offers the standard three year limited warranty and a crash replacement program, but believes that there is much room for innovating these programs. Frame and Wheel also recognizes that the IBS is the key part of any support program and that is why Frame and Wheel has sought to include the IBS from the very start.
3) Safety. The consumer clearly wants a frameset that has been tested for safety. Strangely enough, manufacturers do not explicitly show the tests that their frames have been through.  Frame and Wheel is unable to find anything about  safety standards (CPSC 16 CFR Part 1512 or EN 14781) on the website of Trek, Giant, Specialized or  Cervelo. This suggests that the consumer assumes that because the frame is available for sale in the US, it has passed all the requisite tests, or the consumer is assuming that because the frames are ridden by the pros in the big races (or b y others), it is strong enough. The lead paint and tainted milk scandals in China a few years back demonstrate that establishing regulations is one thing and following them is another. Manufacturers instead emphasize their recall programs, which suggests that they expect some of the frames or forks to fail (one IBS told Frame and Wheel that the reason for the increased recalls over the years is that the manufacturers are spitting the frames and forks out as fast as they can, while the ridership is getting progressively heavier, or not lighter; the nexus of the two trends being cracking steerer tubes and frames). Frame and Wheel will be completely transparent about the safety testing of its frames and plans on testing them in the US. There is nothing to hide here, but a lot to gain.
4) Prestige. Consumers think of prestige when it comes to any high priced item. Consumers are signaling information about who they are by what they buy. A premium brand frameset suggests that the rider is among other things knowledgeable and committed to the sport. Consumers do not want to appear to others to have spent a large sum of money on something that is not prestigious in some way. Brand, trademark, name, etc. is the primary barrier to entry in the industry and explains why Frame and Wheel is attempting to revive the Autsro-Daimler trademark. Having a name in place will make things easier, but if it does not work out, it will not be the end of the world.
5) Sustainability. All three of the voters on Frame and Wheel's poll about sustainability prefer some kind of sustainability program, either a credit towards a new frame (2 votes) or a deposit scheme (1 vote). None of the existing manufacturers have any such program, which means that Frame and Wheel will be able to differentiate itself from the competition in that way.
6) Comfort and appearance. The frame sets are clearly a racing geometry, but perhaps not as extreme as some the geometries that are  in the market. This means that the frame will be slightly more comfortable and thus more accessible to a broader and older market. The voters on this blog prefer that the frames be built up with SRAM Red and Zipp Wheels and Frame and Wheel is happy to oblige. The frame will certainly have a strong voice and a fast appearance (as well as a fast ride). 

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