Originally Posted by
Rody
No worries Lane, I'm with ya.
I also agree with Richie as to the state of the industry.
I do feel there is space for a US made product like Hinmaton wants to produce that can exist in the midst of the Surly to Trek/Spec/Giant matrix, offering skilled fabrication with keen attention to detail at less than custom prices. The path to success is much more difficult to navigate but can be had.
Gonna take a special guy to make it happen though long term.
r
Originally Posted by
11.4
That's the heart of the problem. Everyone should read Richard's most recent comment, which addresses the same issue. This is where being successful at frame building is not even about the mechanical or the business skills, but about the ability to be unreservedly self-examining and honest to oneself.
Originally Posted by
e-RICHIE
I think the last company that succeeded in out-building the Euros (or anyone who was at the top of the food chain at a given time) was Trek. Folks forget that they began as a small shop that was, in essence, created to mass-produce handmade frames. Find me another perfect storm of the Burkes (who were in the appliance business) and Dick Nolan (who was among the first through the door there and found ways to mechanize the small details that were the domain of the famous makers from Italy and beyond...) - find me this and I'll agree that it can be done here. Short of farming out your concept to China, study this model from the past and then mirror it in the 21st century.
For those that know me some or have read my Smoked Out, probably already realize this, but just in case:
I have both hands and both feet in the fire, have myself way over-committed, but am still able keep it all in focus and make it all work.
I do not require Stijl Cycles to be my only source of income, I just require it to be profitable and fun to maintain.
I can continue to build custom complete bikes or frames only- maybe 3-4 a year as time permits (time being the defining factor).
Or I can schedule production of 10-50 frames a year in batches of 5-10 as needed. It's a completely scale-able.
And I can still squeeze out a few customs as I have time for.
If the dealers aren't interested or if I can't sell them direct either, I still can build my handful of tailored frames a year.
I have no intention of making a building full of frames in hopes of sales, just enough to establish the line and develop the production system.
It's also possible that I'm too busy filling parts orders that I'll never get a chance to attempt this.
Rody, you had mentioned something that i'm interested in getting clarification on:
Just to clarify, when I state we operated on a 20% margin, it should look like this using arbitrary numbers..
Cost of Goods Sold, inclusive of material, labor, insurance, warranty allotment, marketing, communication/service, utilities, etc for a frame - $600
This is the total investment to get the product out the other end ready for sale, covering all expenses.
Fixed price of finished product - $1000.00
This is the fixed price of the product that becomes income for the shop.
Retail Price of product (20% up) - 1200.00
This is the minimum retail price partner shops will agree to sell at. Some sold higher leveraging on immediate availability to the customer, some sold at the minimum maximizing the profit of the component sales end.
Simply an scaled down example, the numbers obviously need to be modified based on personal business planning. Also note, my experience with this model is now over 20 years old...worked then, may not meet the current climate.
In this example are you suggesting that the Dealer Cost is $1000?
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