Seth Jayson said:Quoted message said:Well the same thing was said of the Cannondale bent. Everyone swore up and down that it would
not sell but here it is going on it's third year and they are introducing a Recumbent II at a
lower price.And you think that proves that the 'bent is selling well? I wouldn't bet on that. Cannondale sells
plenty of other bikes and can afford a money-loser like the recumbent, for a while at least. Ditto
Giant's nifty comfort bike. The issue isn't whether the bike is any good, it's whether it will
make the company any money.To assume that the cannondale 'bent is a success because it's still around is to ignore the
precedents they set in their recent bankruptcy.They lost their butts trying to elbow their way into the motocross world. They bled for years on
that division, hoping it would turn around and show a profit. Sure, they sold lots of stuff and it
got great reviews, but it cost way too much to research, produce and market. It didn't turn a
profit, and it almost killed the whole company.Now, the Cdale 'bent doesn't have the capablity to sink C'dale, but I'll bet you dollars to donuts
that it is not a moneymaker for them.BigHa doesn't have any other product to support this 'spensif bike. A little brother, priced at
$1500 wouldn't do it either.Look at the numbers, folks. You need to sell hundreds and hundreds of bikes at that price to stay
afloat. Especially with the kind of overhead they seem to have generated.I get industry reports across my desk all the time breakind down bike sales. The simple fact is
that very very few people buy bikes priced over $500, and those who do are looking for
performance.BigHa would need to change American society to break through that wall, and I don't see that
happening.PS, the Segway analagies are flawed on the face. I don't think they'll be as popular as some
think, but even so, these things provide the locomotion for the rider. American's simply don't
like vehicles that require their own power.
The analogy to the Segway isn't direct, it's more like Segway is to electric scooters as Bigha is to
low performance recumbents. Both are overpriced compared to their nearest competitors, have lots of
fancy electronics and serve more as status symbols then functional transportation. And Segway was
counting on changing American society too. One key difference is that the Segway needs those
electronics to operate and the Bigha has them tacked on as a marketing ploy.
Otherwise I agree with what you say. John Acres has claimed that they spent half a million dollars
on R & D just on the seat! Those full page ads aren't cheap either. How are they going to recoup
costs like that?
Remember the AutoBike? Bigha's marketing reminds me of AutoBike's. The massive ad campaign for the
AutoBike (which unlike the Bigha was a real piece of [censored] but like the Bigha marketed to
non-bicyclists) proved to be not cost effective and they sold one hell of a lot more units than the
Bigha ever will, at that was was probably a much higher markup percentage. It still wasn't enough to
keep them afloat.
I think Bigha's investors have been taken for a ride.
Lorenzo L. Love home.thegrid.net~llloveOpen ↗
"You can fool half of the people all of the time and that's enough to make a good living."
W.C. Fields