Cameron Newland
Well-Known Member
Fact is most arent' selling them for 30-40% less than "retail" (what is that?) and the sucker/customer is simply FRONTING THE MONEY to a business starting up, with NO GUARANTEE of a product being delivered at the advertised price (seldom to never) to not being delivered. Ever. (not uncommon)
Then there's the lack of service, or even a dealer to help when you do break down! Good luck trying to find someone to work on a no name Chinese clone e bike.
Simply nutzo.
Sonders caught a wave of uninformed Ebike wanna be's with an artificially low price and the only way he survived it is because SO many people gave him money on spec that he could afford to eat the losses on a $600 E bike. (single speed!) IF he hadn't gotten all that money up front and had simply opened a shop selling those bikes at that price, he would be long gone now. (not only my opinion)
Did you buy one?
No, I didn't buy one. ;-)
It seems like you're against crowdfunded ebikes – that much is certain.
I won't try to convince you of the benefits of crowdfunding. I mean, it's not like the auto industry has taken notice of crowdfunding or anything. Would you believe it if I told you that a car manufacturer announced an electric car last week that they crowdfunded to the tune of 234,000 orders and nearly $10 billion in revenue? Is Tesla a fraud? Are consumers just suckers who are fronting the money for Tesla to start up? You're a business-model Luddite, and that's fine. You're absolutely entitled to your own opinion, but you're not entitled to your own facts. Crowdfunding certainly isn't perfect, but know this: it's here to stay, and consumers overwhelming benefit from it. Obviously you won't be participating in any crowdfunding campaigns, and that's your right. Crowdfunding will go on without you.
Regarding what "retail" is, the numbers I gave you were right on. Some brands fudge-up retail pricing and make up ridiculous prices that seemingly have no relation to the cost to manufacture the bike or the cost to market it through the retail channel, however, the majority of brands are forced to maintain some semblance of a relationship between wholesale and retail pricing, with 30-45% of retail sales price going to the dealer, 30-50% of the wholesale price going to the OEM brand, and the remainder is the money spent to build the bike. Why do most brands stick to this tried-and-true formula? Because they have to compete on price with other brands with a similar business model. How much does it cost to manufacture a mid-range mid-drive ebike in China? $550-$900. How much is Flux selling theirs for? $1099. How much does IZIP sell their very similar E3 Vibe for at dealers? $1,799. You've got to admit that if you look for comparable models that sell in LBS/traditional retail, they sell for more money than the crowdfunded bikes like Flux do. Another example is full-suspension bikes. Flux is selling theirs for $1,699. Roshan at Biktrix is selling his for $1,599. Haibike sells its very similar full-suspension SDURO for $3,000. Both Flux and Biktrix are buying the bikes from China for $1,000-$1,250 and they're cutting out the retail channel from the transaction. This is good for consumers. It's bad for ebike dealers. Hell, it may even be bad for traditional OEMs like Haibike that exclusively sell through dealers. Some OEMs are getting with the program and doing their own crowdfunded bikes: brands like Faraday and Tern/Xtracycle (note: Faraday sort of began as a crowdfunding campaign).
http://www.xtracycle.com
https://www.kickstarter.com/projects/faradaybikes/faraday-cortland
Now to what I do agree with you on: maintenance/service. Some of these crowdfunded ebikes will break down and it'll be difficult to find a shop to service it, especially for bikes built with parts that no US-based companies carry. You'd just have to hope that the company that sold it to you is still in business and will honor your parts warranty and send you replacement parts, which you'll pay to have installed at a local shop. That is a downside of this business model – you take that risk when you buy one of these (BTW, ebike companies that sell at retail shops are always at risk of going out of business, too). Some crowdfunded ebike companies won't survive or will be abandoned by their founders, and there will be consumers who will get left out in the cold. At this point, though, we don't have enough information to determine if Flux, Sondors, or any of these companies will do that. If/when it happens, I'll tell you that you were right all along.