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By Tom Demerly for tomdemerly.com

Yesterday someone whose opinion I value told me, “You hate the government.”

I was stunned by this summation.

I don’t hate the government.” I thought to myself. “In fact, I am often a formal, working part of the government.

Where did this broad stroke about my emotions toward the government come from? What caused it to happen? Why do we create these opaque and rigid summations?

It occurred to me that the most interesting, and I’ll suggest threatening thing, about a four-letter summation of any belief set, any person, any group is that it is convenient. And convenience is comforting.

Living with me is anything but comforting, orderly and convenient. I am a weird guy, given to remarkably reasoned insights, absurdly chaotic ones and everything in between. I hate furniture, love open space, and fill it with a clutter of superfluous gear and books. I am kind to animals, believe in some form of gun control and own guns. I believe in peace but work in an industry whose mission is war. I like the government but believe it should be smaller and more efficient. None of who I am is congruent or follows a convenient narrative. I don’t fit into anyone’s tidy little four-word box. Even if you try to suggest, “Tom Demerly is complicated”, it’s not that simple.

We live in an age of accelerating and proliferating media. And, as with nearly every new technology from the first crude stone age weapons to atomic power to social media, we develop the technology before we develop the mutually acceptable and broadly beneficial ways to employ it.

We think shit up and then figure out how to use it later. People driving while texting on cell phones is one example that comes to mind. The guys who invented the atom bomb are another.

As a result, the acceleration and proliferation of media has created a world of chaotic stimulus filled with billions of new voices, some of them skilled in delivery, all of them screaming at once in what feels like escalating volume and urgency.

The influx of stimulus is deafening and disorienting, and creates a kind of social or collective panic that, on an individual level, may make us yearn to make some de facto sense of it all. We want one thing we can hang onto, one set of things to believe, one unimpeachable, unassailable truth to comfort us and still our cognitive waters.

Imagine a world where the distance from one end to the other of a thirty six-inch, three-foot-long yardstick changed arbitrarily. No two peoples’ yardstick reading thirty-six inches was actually the same length. It would be immensely confusing and chaotic.

Quickly, people would gravitate toward a consensus on the physical dimension of the thing we call a “36-inch, three-foot yard”. The consensus may vary from broad region to region, especially those separated by wide geographical obstacles, like oceans and the metric system in Europe and Asia, and the imperial measures still used in the U.S. But broadly we would gravitate toward an emotionally convenient and culturally necessary convention on the physical dimension we referred to as “one yard, three-feet, 36-inches”. We would all get on the same measuring stick.

The need for a common social and cultural yardstick is what drives belief sets like common religions, desires, hatreds and prejudices. We like, and need, to all be on the same page, and in the chaotic world of fast, evolving media, the pages of modern media blow by like a book tossed in a hurricane.

In Gia Fu Feng and Jane English’s landmark translation of the philosophical masterwork by Lao Tzu, The Tao De Ching, it has been translated from Chinese that:

“All the Colors blind the eye.
All the sounds deafen the ear.
All the flavors numb the taste.
Too many thoughts weaken the mind.
Too many desires wither the heart.”

The Tao de Ching was written in about the fourth century B.C. Its origins likely came from even earlier, around the sixth century B.C. and took two centuries to summarize into the cryptic, lyrical haikus that we read today. When you read it, you have to stop and contemplate its meaning and context. It is light in text, heavy on interpretation.

The thesis of this passage from the Tao De Ching is that too much cognitive noise bothers us and may tend to make us gravitate toward the opposite extreme, very defined beliefs that can be distilled into a few words. Simple ideas to make sense of complex stimulus.

The remarkable phenomenon of life has never been as simple as a few words. It is complex. As this complexity is hurled at us in an acceleration and proliferation of media we struggle to make some sense of it. As a result, we summarize and rationalize, trying to cram ideas and people and events into convenient boxes as they come at us faster and faster in a rapidly accelerating and stressful game of cognitive whack-a-mole.

That is impossible. And undesirable. If things were simple, we’d get bored.

I’ll offer that exposure to the “drinking from a fire hose” consumption of social and news media benefits from taking some contrasting time of quiet contemplation, deep research into narrow topics for a more thorough insight and, most of all, strong individual reflection while trying to avoid cramming- and being crammed- into convenient thought boxes.

 

 

 

 

 

 

 

 

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By Tom Demerly for tomdemerly.com

1. Preserve Price.

Tim Brick, owner of Brick Wheels, a successful independent bike retailer in Traverse City, Michigan told me years ago: “Never discount. You will only go out of business slower.”

Price preservation and the perception of what a product is worth has been destroyed by weak-kneed and undercapitalized bike retailers who give discounts too easily.

Sometimes they give discounts in the hopes of attracting more business, but discounted business is bad business, and it only earns the retailer a reputation for being a sucker to customers who drive a hard bargain. And soon they all drive a hard bargain.

Retailers also give discounts just to keep the lights on. Don’t do that. Just close the business, declare bankruptcy and get a job. The entire industry has been dragged down by incestuous and incessant discounting that has destroyed price integrity, brand identity and even alienated customers who don’t want to negotiate.

If there is one malignant cancer that pervades the entire retail bicycle industry, it is rampant discounting. The problem is so bad most retailers who do it are in total denial of it.

Bike industry, take one tip from a guy who has both succeeded and failed for four decades in this business: Stop Discounting.

2. Don’t Play Favorites: No Sponsored Athletes, No Club Discounts. 

When retailers play favorites with some highly visible athletes and groups through “sponsorships” and discounts, they alienate the rank n’ file average customer who subsidizes the cool girl and guy by paying full price. They train the consumership that through performance and visibility they earn special pricing.

This sends a clear message: Some people are more special than others and price is flexible.

Most importantly, there is no consistent, empirical business metric in small bicycle retail that quantifies how many full-margin additional sales are added to the bottom line by sponsoring anyone. And if you can’t accurately measure a sales promotion, you shouldn’t do it.

Sponsorships of athletes and clubs sends a message of favoritism and exclusion, rewarding persistence in driving pricing down.

Even if a sports marketing campaign were run correctly, as it is at the brand level (not by retail stores) it is extremely time consuming and expensive to manage. One beverage industry metric stated that for every $1 spent on sponsorship to automotive racing, the company budgeted $10 talking about the sponsorship in paid media. No bike retailer can afford the money or time for that. And if they could, they should start a beer brand and sponsor a NASCAR driver.

The most recognizable engagement ring brand, Tiffany’s, has never given a free or discounted sparkler to a Kardashian in exchange for publicity. Instead, news media reports, “Kardashian’s Tiffany Sparkler Was $25M!”. That preserves the perception of value and makes the brand aspirational.

3. Don’t Have Too Much Inventory. 

The worst thing about the bike business is bikes, and bike brands ram inventory down retailers’ throats with a vengeance. Bike shops: less is more. It is better to have money in the bank than bikes on the floor.

Bicycle inventory is like fruit, the second it lands it begins to spoil. Something newer, cooler and better is already under development and months away from release. And with the evolution in media the word about upcoming innovations doesn’t spread fast, it spreads instantly. As soon as something new is announced, what is suddenly old (but current only hours before) is suddenly devalued.

Customers will buy new, relevant bikes sight-unseen if the retailer’s sales process is optimized to facilitate that purchase format. That preserves capital, maintains freshness and keeps prices up. It also provides customers with more options and better integrity in the purchase.

Bike shops with a lot of inventory on the floor, and a lot of invoices on their desk, are compelled to “sell what we’ve got” and that leads to an ugly paradigm of putting customers on the wrong size bike with the wrong equipment rather than ordering the right bike and adding another invoice to the pile.

Consumers should be wary of bike shops with too many bikes on the floor, they’re going to try to ram something they have in stock down your throat just to make an invoice due date instead of getting you the bike you should really have.

4. Do Have Lots of Capital.

Nearly every bicycle retailer is undercapitalized and over leveraged financially. The reason is simple: When you have $500K to invest in something, does opening a bike shop provide the highest return on that investment? No, it doesn’t. You could take that $500K to an Edward Jones office and earn a better return on it the next day with no work than if you did the heavy lifting and ditch-digging of opening, promoting and running a bicycle retail store. As a result, most bike retailers try to start a business with about $50-200K and make a go of it.

If they don’t own their own real estate free and clear, have to pay rent or a mortgage, pay at least one employee payroll (and mandatory withholding taxes and health insurance) then the math doesn’t work.

To make bike retail profitable you have to have deep pockets and a deeper work ethic. You have to love hard work and business, not bikes and bike rides.

In its current iteration, the bicycle retail business model is a rotten investment. But, a new, emerging business model long on service and profit margin and short on inventory and overhead is promising and will be the bike shop of tomorrow.

5. Manage Costs.

This doesn’t mean go cheap. If your biggest overhead item is marketing then you are doing it right. If your customers arrive at your store and consistently say, “I thought this place would be a lot bigger”, you’re doing it right.

If you’re biggest overhead item is inventory, you are already in trouble.

Starting and maintaining a bike shop can be done very cheaply. Never buy new fixtures, so many used fixtures from other retailers that have been closed are available they can be had for pennies on the dollar. Never pay for extraneous and non-paying expenses like alarm systems (they won’t prevent or deter theft anyway) and subscriptions to POS software systems. Those don’t add to the bottom line.

Use low-cost, streamlined, highly adaptive and simple systems to combat the asymmetrical retail war the little bike shop has to fight against the big box e-commerce giants. Think of how the Afghan Guerillas used crude weapons to bring the Soviet Union to its knees, and still give the Americans fits in rural Afghanistan. Be a retail guerilla, a retail Taliban. Keep your costs low, adaptable and maintain a large amount of liquid capital.

6. Invest in Star Employees.

The online retailer you compete against is a faceless enemy. You can defeat him with a friendly face. If you have a star employee whom customers consistently ask for, reward them before anything else. Give them raises before you buy more bikes, pay them first and well and craft a set of “golden handcuffs” that makes it tough for them to go anywhere else. They are your brand, and if you lose them, you will have to rebuild your brand around another star employee. Worse yet, if you lose your star employee to another bicycle retailer across town or if your star opens their own shop, guess what happens, their customers follow them.

For a small bicycle retailer, the star employee is the single most important business tool. Develop them, value them, reward them, retain them.

7. Participate in the Sport. 

Instead of sponsoring the local hotshot, be the local hotshot. This doesn’t mean you have to do a nine-hour Ironman (but it helps) it just means you have to be present at events and participate credibly. This is a part of your business. It is work.

Set up the hours of your store so you can train. Close on key race weekends so you can be where the action is, as a part of the action. Ride the nicest bike you sell and show it off everywhere. Be an aspirational figurehead so when people see you on social media and in the store you have become “That Guy who Knows Everything and is Everywhere”.

If you build your hours correctly and manage your staff correctly the time you spend in the sport will directly and measurably bring full-price buyers into your store and keep them offline.

8. Differentiate Yourself. 

Build a voice, a brand and an identity. If your identity is so lifeless and generic that people confuse your business with others, you haven’t done that.

Understand that you will not please everyone. Nor is that the goal. If you talk about a donation to a wounded veteran’s charity in social media an anti-war activist may stop shopping with you. Fine. You can’t be everything to everyone.

Build your brand with clear vision and narrow focus. Don’t be generic. Don’t appeal to the masses. Keep your brand message narrow, unique and focused and be true to who you are.

If you are gay, fly the rainbow flag in front of your store and sponsor “Pride Rides”. If you are a veteran, have benefits for veteran’s organizations. If you are an animal rights activist, broadcast your donations to the local animal shelter and host an adoption day at your store. If you are an environmentalist, show your commitment to renewable energy and talk about how bikes preserve the environment.

Have the courage and identity to stand for something, be someone different and special. Brand yourself visibly and distinctly.

9. Be Highly Adaptive.

 Small bicycle retail is asymmetrical warfare: A small opponent taking on a much larger, better capitalized foe. Take a page from the teachings of Mao Tse Tung, Ho Chi Minh, Fidel Castro, Che Guevara and Osama Bin Laden’s play book: Never fight fair.

Change your floorplan frequently. Bring in small, low-priced, easily purchased new products first. Seek out niche brands the big-box guys don’t have and use the equalizing power of social media to partner with the brand to promote them.

Build a reputation as a brutal buyer who torments sales reps and sales managers with non-adherence to “program” buying. If the biggest brands’ credit manager loves you but the sales manager hates you, you are doing it right.

Within your brand identity continue to change and adapt. Use every social media platform. Embrace new media. Use video. Never stop changing, evolving and promoting. There are two types of businesses on the retail battlefield: the quick and the dead. Improvise, adapt, overcome.

10. Have An Exit Strategy.

One day, this will all end. What will you have to show for it? Did you squirrel away money in an offshore account? Did you buy real estate? Is your brand developed enough to have some sales value? And, if you begin to fail, and chances are overwhelming that you will, do you have a viable safety net?

It’s a pipe dream to sell a small bicycle retail business. Frankly, they aren’t worth anything. The inventory is usually older than six months, the fixtures are stale, the employees may not come with the deal and rest can be reinvented elsewhere better and cheaper. As a result, you have to have a viable exit strategy.

What is yours? What is your end game? When do you cry “Uncle” and walk away? Know those answers in advance and you can sleep more soundly at night as a bike retailer.

By Tom Demerly for tomdemerly.com

Business rewards bastards. And Seton Claggett was never a bastard.

TriSports.com in Tucson, Arizona is closing after 17 years of being one of the largest, and one of the first, online triathlon retailers. TriSports.com helped invent, define, and then sink the triathlon industry.

What happened to TriSports.com is happening to all of the triathlon and high-end bicycle business, and it is worth looking at.

Seton Claggett, TriSports.com founder and President, messaged me early today with insights on why the business is closing:

“We are closing because I was in litigation with the bank that caused me to go into BK11 4+ years ago. We went to trial on breach of contract, breach of the covenant of good faith and fair dealing, and fraud. The judge ruled last week that the bank committed all of these but ultimately did not cause us any damages. I now owe them the original $1.8M (most of this would have been paid off by now) plus millions in attorney fees and costs.”

There will be a rush to judgment about what caused TriSports.com to close. Set against Claggett’s disclosure of bank litigation I’ll suggest it was not any singular reason that TriSports.com is closing, but rather a creeping, gradual, decade-long “death by a thousand cuts” that pervades an industry populated by people who like bikes and triathlons first, and do business second. Even though Claggett was not that man- he is a formally trained and gifted businessman- the rest of the industry weighed on pricing and distribution strategies. The Internet experts will have their say, but it’s unlikely many of them will understand the real reasons TriSports.com is closing and the industry as a whole is suffering.

The people still in the bike and triathlon business will pay no heed as the industry continues to contract and fails to adapt under the ruthless crush of economic reality and accelerating business change. I know because I have been one of those people- a business owner, and I did not change, so I know firsthand.

You can’t tell a small business owner anything. I’ve tried with four businesses I worked for; people tried it with me when I owned my own business before that. We never listen.

Until we lose everything, you can’t tell us anything.

I’ve seen five other bicycle and triathlon retailers ride their businesses into the ground. TriSports.com is just the biggest of us to close. It’s the 9/11, the Black Tuesday, the Automotive Recession, the Chernobyl, the Fukushima and the Three-Mile Island of the triathlon retail industry. Once the fallout clears, the industry will be radioactive for years and will only be habitable by ego-driven mutants of the small business world deformed by their bizarre and nonsensical toxic obsession with a sport and a “business” that eats its young, then consumes itself as their internal voice tells them, “I am the one who can get this right”.

They’re wrong. The triathlon business is no longer viable on any significant scale beyond hobby. There are a lot of reasons for that, enough to fill a book.

If you want a single narrative to the complex issue of triathlon business failings, then call it the same thing triathletes suffer from as a culture: hubris. I will, however, suggest that in the case of Seton Claggett and TriSports.com, he is a rare man largely immune to hubris.

I worked at TriSports.com for over two years in their bicycle, then marketing department. One memory of many defines the experience:

The employees of TriSports.com are high in the Arizona mountains outside the sleepy town of Show Low, Arizona. It’s a town named after a bet two prospectors made over a gold strike in the area. Both of them lost. We’re putting on the annual Deuces Wild Triathlon Festival, a series of endurance races in the high, wooded area surrounding Show Low.

Most of the about-50-person staff from TriSports.com drove from Tucson to Show Low, Arizona to help put on the Show Low Triathlon Festival. It’s a massive annual multisport event with kids’ races, various distance triathlons, an off-road triathlon and an orgy of the triathletes’ favorite endurance activity, getting free stuff. The event concludes with a giant raffle benefitting charity where tons, and I mean tons, of triathlon gear and schwag are given away for a charity donation- about the same volume of stuff sold in a small triathlon store in a year. But this is TriSports.com, and we are the largest. So, we can afford to give away tons of stuff for free people probably would have bought at full price anyway.

After the festivities are over it is time to clean up.

It’s hot out and Seton Claggett is addressing us while standing chest deep in disgusting, reeking garbage inside a trash hauling semi-trailer. Every one of us is exhausted, filthy, smelly, sore, hungry and sleep deprived.

“If we leave this mess here it goes against everything we stand for.” He tells our downtrodden mass of long-faced employee volunteers as the sun sags. It’s like a scene in a book about forced labor camps. This is the triathlon industry gulag, and I am exiled here like a less-intellectual retail Solzhenitsyn banished to the labor camps for my own personal failings in this business. Like Cool Hand Luke, I gotta get my mind right.

A key tenant of TriSports.com is environmental responsibility, and cramming all this garbage into the back of a couple semis to dump in a landfill is against Seton Claggett’s molecular make-up as an environmentalist, former boy scout, parent and business owner. It is against the Little Red Book of TriSports.com doctrine.

Despite the sickening, nose-permeating stench of rotting banana peels under the high Arizona sun, dirty bottles filled with congealing sports drinks, discarded race equipment soaked in athlete urine, changed diapers from spectators’ toddlers and all the other disgusting offal produced by a couple thousand athletes and their closest friends, Seton wants us to sort the garbage by hand into bins for environmentally responsible recycling and processing.

Claggett is clamped onto the ethos of environmental responsibility like the face-hugger in “Alien”. The Claggetts have two kids, and Seton’s life mission is to leave the world a better place than he found it for those kids, and for everyone else. Seton and Debbie Claggett’s unswerving attachment to environmentalism isn’t corporate feel-good window dressing. They own it. Environmental responsibility and a doctrine of leaving things better than you found them is in Claggett’s DNA, and he has cloned it into the corporate DNA of TriSports.com and its culture. Not to sell more stuff, but because Claggett doesn’t just believe it’s the right thing to do, he knows it is the right thing to do.

And now he stands chest deep is piss-smelling filth to prove it. And prove it he does.

One by one employees slowly churn into action, pulling trash bags out of the back of the disgusting mess, opening the garbage bags, pulling out discarded wet wipes with… something brown on them. It’s not just gross, it’s fucking gross. But Claggett somehow walks the walk with enough conviction he inspires the entire staff to wade into the offal and begin sorting the revolting mess into neatly organized recycling barrels.

Claggett somehow inspires a crew of tired, volunteer employees to sort filthy garbage by hand in the dark after consecutive 14-hour workdays. Show me a leader strong enough to inspire that, and I will show you Seton Claggett.

A couple hours later, in the dark, we stink like hell and the world is a slightly better place. Claggett himself is covered in filth, and the last to stop working. I have found a new hero.

The Claggetts defined themselves repeatedly with acts of generosity and kindness both large and small. When Seton saw me riding my bike to an airshow loaded down with camera equipment early one weekend morning he secured a pass for me to the Air Force base and took me with him to a private air show during the Heritage Flight Conference at Davis-Monthan AFB. When my cat Frederick died of old age Debbie had every employee sign a sympathy card for me. I still have that card.

The charity and giving doctrine of the Claggetts was infectious. It spread like a smiley-faced plague through the building. After riding my bike to work one day in a rare Tucson downpour the Human Resource Director, a woman named Susan, found dry clothes for me to put on and a towel. When I obsessively worked 70-hour weeks she counseled me for working too many hours.

But heroes are fallible and complex, and Seton Claggett is no exception. Claggett was oddly fixated on loading the dishwasher in the employee kitchen correctly. He produced a YouTube tutorial video on the correct procedure, lectured employees at meetings on the correct process and even installed a video camera over the dishwasher to verify compliance. Where did that come from? I chalk it up to Claggett’s penchant for clear thinking and process. He is a smart man, a man of organized thought, spreadsheets and analytical problem solving. To him it is incomprehensible that a person could not load a dishwasher correctly, and that detail mattered. It was a teachable moment.

The dishwasher conundrum.

The story of TriSports.com and the rise and fall of the triathlon industry deserves to be told. It’s a complex story not well suited for Internet chat room fodder. It is more complex, both worse, and better. It doesn’t fit in a 1300 word blog.

If Seton Claggett had opened a software company, an app developer, a social media outlet or any other emerging business I’ll suggest we would mention his name alongside Gates, Jobs, Buffett and Zuckerberg. Claggett is a tirelessly hard-working man with a Masters in business and a deep, analytical mindset and strong stomach for risk. Unfortunately for him his first round of entrepreneurship was spent on an industry filled largely by people long on enthusiasm for the sport, too quick to give a discount and short on business acumen.

I wager Seton Claggett’s next round at business will conclude very differently.

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By Tom Demerly for tomdemerly.com

According to a report on social media and later confirmation from a leading industry insider late Wednesday, August 23, 2017, prominent triathlon retailer TriSports.com of Tucson, Arizona, is closing.

The specifics of the business closure have not yet been announced.

TriSports.com was founded in Spring of 2000 according to their website. Seton and Debbie Claggett of Tucson, Arizona founded the predominantly e-commerce triathlon specialty retailer. The business grew quickly as participation in triathlon expanded and local bicycle retailers were slow to adapt to the triathlon market.

During its history TriSports.com grew to become one of the largest triathlon retailers in the industry. They practiced a corporate philosophy of charity and sustainability that included corporate initiatives like paying employees to commute to work on bicycles and converting their corporate campus to entirely sustainable energy through a solar power and water reclamation project. The company and its leadership were also active in event and athlete sponsorship and community philanthropy including frequent projects to benefit Tucson’s large homeless population.

Founders Seton and Debbie Claggett were lauded as leaders in the triathlon industry.

Starting as a home business in early 2000, the company later leased space in an industrial park, continued to grow, then moved to a larger industrial space on the outskirts of Tucson near Davis-Monthan AFB. In summer of 2012 TriSports.com opened an additional, second retail storefront location in Tempe, Arizona. The Tempe store closed soon after opening. Following the closure of the second retail location in Tempe, Arizona, on June 14, 2013, TriSports.com filed for bankruptcy under Chapter 11 of the United States Bankruptcy Code.

TriSports.com emerged from Chapter 11 reorganization later in 2013 and continued operations until news of the business closure was leaked on social media by one of their sponsored athletes today, August 23, 2017.

No official announcements of the closure, the reasons for it or when it will be effective have been released, although industry confirmation of the closure suggests the reports are accurate.

 

 

By Tom Demerly for tomdemerly.com

It’s Saturday at Motor City Powersports in Bloomfield Hills, Michigan. Their large parking lot is blocked off to cars. A half dozen new motorcycle owners negotiate a series of traffic cones and practice skills under the watchful eye of a certified motorcycle instructor who teaches the new riders the skills they need to survive in traffic and to get their Michigan Driver’s License motorcycle endorsement.

It’s Saturday at Motor City SCUBA in Novi, Michigan. Students sit in the dedicated classroom at the SCUBA retailer taking a written test to earn their basic open water diver certification so they can be SCUBA divers. Before they can buy their own regulator or SCUBA tank, before they can rent equipment and before they can go out on a boat to SCUBA dive while on vacation, they must pass this written test and the practical pool examination of underwater skills.

It’s Thursday night at Target Sports in Royal Oak, Michigan. A crowd of people is in a classroom near an indoor shooting range learning basic firearms safety before they are given instruction in practical firearms handling with unloaded weapons. Before any of the people can carry a firearm in public they must past a Concealed Carry License written test and practical firearms safety instruction course.

The motorcycle, SCUBA and shooting sports industries have all taken proactive responsibility for teaching and certifying their customers for competence and safety before they allow them to use their products. Each of these three industries also has some type of state or commercially mandated licensure that tests competence prior to practice and collects revenue to provide for safer end user experiences through advocacy.

Each of these three industries also incurs significant risk to users. Each has proactively managed the user-risk experience. As a result, business in each category is doing well.

And then there is the bike industry. We just sell you a bike and turn you loose. As a result, the road cycling industry is tanking.

The bike industry’s answer to sagging road bike sales has been to introduce more bike categories. That creates more sales and marketing expense within the industry. It also relies heavily on non-paved riding areas to continue to grow when, in fact, gravel roads used for automotive travel are usually destined to be paved when populations and traffic in their region inevitably become large enough. As it is, cyclists are squeezed into a smaller and smaller artificially sustained environment of rails-to-trails and bike path/park settings that cost big money to maintain, require travel to access and, while growing in some regions, aren’t yet reliable enough to sustain the sport and likely never will be without some organized contribution from the bike industry.

Rather than working to sell what we already have and support that end-user experience through responsible instruction, the bike industry just keeps trying to sell a new category every few years. The recent contraction in bicycle sales suggest this approach is not working. But in SCUBA, motorsports and shooting sports, selling what they have through responsible instruction and advocacy has worked.

The bicycle industry has not been proactive in offering even basic cycling instruction to new cyclists buying performance-oriented road and triathlon bikes. Set against the backdrop of a recent influx of brand new cyclists entering the sport mostly as a result of triathlons, the bike industry has done an abysmal job of leveraging rider instruction as a safety benefit and a sales tool.

Motorsports, SCUBA diving and shooting sports have all had success with that marketing script. In fact, in the case of shooting sports, it helped keep that sport alive in the face of a divisive national argument over firearms ownership rights. What if cycling had an industry and user lobby as powerful as the NRA?

The impetus for teaching new cyclists how to use their bike safely has been on cycling clubs and national governing bodies like USA Triathlon and USA Cycling. But in a click-to-own culture it is a big leap to expect a new bike buyer to buy a bike on Saturday and seek out 3rd party instruction and certification before using their new bike.

In fact, most cyclists and triathlete revel in fact that buying a racing bicycle is one of the few things a person can do that is free from licensure, formal instruction or user certification. Think about this: what if you loved airplanes or high performance race cars and could just show up and buy one then use it that afternoon without instruction or certification? That analogy isn’t a stretch since going from a decrepit hybrid in your first triathlon to a narrow-tire, performance oriented bike in your next one is tantamount to transitioning from a passenger car to a NASCAR.

Here Is What The Bike Industry Could Do:

As an industry, cycling needs to organize. As with SCUBA, shooting sports and the motorsports industry, both the retailer and the brand level, need to shoulder the burden- and opportunity- to sustain the sport and take responsibility for the cyclists’ end user competence and experience.

The bike industry, bike brands and bike shops, needs to start teaching cycling, including bike handling skills, safe routes for cyclists, basic maintenance and other skills that build a safe, sustainable, responsible culture of new cyclists. It is likely this single opportunity, simple in proposal but labor-intensive and significant in execution, is cycling’s greatest hope not just from prosperity and growth, but survival.

 

By Tom Demerly for tomdemerly.com

It used to be that triathletes were a blank check to the bicycle retailer. They were affluent, upwardly mobile and ready to spend without asking for a discount.

The bike industry’s bad habits on both the bike brand and the dealer level have brought all that to a screaming halt over the last two years. As a result, the triathlon bike business has taken a massive hit from the days of, “Triathletes are willing to spend anything to go faster and always pay full price.”

The script used to be: hype a new superbike with teasers and white papers, launch it with “preorders”, sell out of the first production run early and try to fill orders through the early season with the bikes being gone entirely by May or June. Those were also the days when Ironman races sold out in minutes. Buyers were ready to spend, often sight unseen, and ready to enter expensive events a year in advance.

Most of that has changed as the demographic of the sport has evolved to decidedly down-market and entry-level. Now, the “superbike” is a super flop.

Triathlon filled from the bottom. While there have been a few impressive age group performances the vast population of triathletes, especially at longer distances, have filled the sport in the back 90% of finishing times. It has become an “every(wo)man” sport. And in the case of the fastest 10% of athletes at big races like Ironman, those people are not paying retail for a bike anyway.

It’s the bottom 90% of the sport where any remaining business may exist.

As that population of citizen-athletes entered the sport they were largely ignored by a bicycle industry locked into a repetitive script of developing new bicycles that spiraled upward in price and complexity. The tired script of, “Tested lowest in drag, developed in the wind tunnel” rings hollow on the only remaining full price consumer, the entry-level triathlon consumer. The market has not followed the sport downward in price while it spiraled upward in hype.

“The greatest failing of the bike industry has been to look at bikes in triathlon, not people in triathlon.”

Perhaps the greatest failing of the triathlon bike industry has been to look at bikes in triathlon, not people in triathlon. As a result the industry has failed to address the single largest market opportunity in the sport, an entry price-point bicycle that does double-duty as a road bike and a triathlon bike, a “multisport bike”, in the sub-$2000 price category.

While bike brands have added new sub-category after sub-category of mountain bikes with different wheel sizes, “gravel grinders”, disc brake road bikes, fat bikes, e-bikes, high head tube comfort road bikes and a host of emerging categories they utterly missed the low-hanging fruit of the entry-level triathlete.

Because the industry missed the entry-level demand from triathletes and wound up filling it by bolting aerobars on road bikes, a poorly conceived workaround, they alienated their consumership with the narrative that triathletes are always up-scale big spenders. Now triathlon bike retailers, and bike brands, are stuck with a lot of expensive bikes. But they have no practical, sub-$2000 bikes to sell at full margin that are specifically intended for entry-level triathletes.

The largest single remaining opportunity for bike retailers is the relatively entry- level, full price, non-discount customer: the new triathlete.

New triathletes need their own bike, a “Volksbike” that is inexpensive, comfortable, safe, looks cool and is easy for triathletes to ride. They don’t need another $15,000.00 superbike that takes hours to sell, feeds the “sponsored athlete” discount narrative and eats up three months of rent from the retailer just to gather dust on the sales floor and eventually die a quiet retail death on an anonymous eBay auction or “sponsorship” deal to the local hotshot that the bottom 90% of triathletes never see.

 

 

 

 

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By Tom Demerly for tomdemerly.com

What will be the eventual outcome of the current perceived brinkmanship between the United States and North Korea?

For students of history in the region the answer is conspicuous. The outcome will rise from the historical template of national evolution in the region. This history is among the most ancient of civilized man. As a result of this deep historical context and precedent, the script is likely already written, but the acts will unfold on a new stage of hyper-fast media that can exert a dangerous influence.

To the laymen and popular media consumer there will continue to be a forward facing game of media sensationalized military brinkmanship played out above a very subtle, quiet and deliberate process of diplomacy. The likely outcome will be an asymmetrical win-win that will benefit all parties in the broad spectrum, but more so North Korea than any other party. Part of this asymmetry in benefit is earned by North Korea’s increased tolerance for risk in this era.

North Korea finally realizes a need to enter the “Functioning Core” of the world community. Unencumbered by a radical religious mantra their only divinity is servitude to state. They are long overdue from becoming a modern nation state in nearly every way.

Author and scholar Thomas P.M. Barnett broadly divided the nations and governing ideologies of the world into two categories; the “Functioning Core” and the “Non-Integrated Gap”. Barnett’s theory was presented into a now-famous Powerpoint delivered at the Pentagon called “The Pentagon’s New Map”. In his thesis Barnett describes how nations and cultures of the Non-Integrated Gap who are not perverted by idealogical distortion eventually realize they could have things better; they could have easy access to clean water, they could have dependable electricity, safe and abundant food and adequate clothing and shelter. In the greater evolution they could have access to the world community via the Internet. Once that social evolution is complete the citizenry can cross borders at the speed of the Internet, unencumbered by national dogma and censorship. This is their express ticket to the world economy.

North Korea realizes the pitfalls of the Arab Spring.  They are smart enough to have learned from the Middle East, where most countries are worse off following the Arab Spring. Russia and the U.S. are mostly the only ones to benefit during the near term in the Middle East and left with the lion’s share of plunder- albeit at great cost. But the countries and people in the Arab Spring are left destitute, trapped in a vacuum that is a breeding ground for messy, infectious radicalism as difficult to kill as a stubborn mold in a dank cellar. Kim Jung Un has been quiet witness to this phenomenon, and seeks to avoid becoming the next Syria, Libya or Iraq.

There is a subtle, brutal genius to Kim Jung Un’s strategy. He has avoided coups, subverted military conflict and expertly wielded nuclear brinkmanship to his advantage. He has everything to gain, and gain he will. When this is over a year or two from now, North Korea will be substantially more integrated into the global economy. The big losers in the near term will be the North Korean people. They have been subject to poverty and oppression on a titanic scale, unprecedented almost anywhere in the world today except North Africa. Their march into the modern world, from the non-integrated gap to the Functioning Core will take a decade at least, and it will be a grinding procession lubricated by more North Korean peasant blood. But war on a pan-Pacific scale will be subverted.

In the media this evolution will look and feel like brinkmanship, but on the back channels of old-world Asian diplomacy it will be business as usual, not far removed from the age of Niccolò Polo and Maffeo Polo as chronicled by their famous son, Marco Polo.

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