On Jul 3, 10:19 pm, charlie <cl_v...@hotmail.com> wrote: > It probably takes a year to produce because Grant doesn't have $20,000,000 > in the bank.........actually there are probably quite a few reasons why a > company takes time to get something into production.....everything from > financing, parts vendors, production availability, company debt (back > to financing) etc. plus.... I'm sure they want to hit the mark and insure > its a good seller.
Ah, I don't think it would take $20,000,000 to bring a bike to market. I suspect that manufacturers in Taiwan are much more nimble than that, and I suspect that parts manufacturers will be happy to make sales. Let's say Riv is shooting for a 35% margin, which would be very solid in the bike world. That's a cost of $910 each. How many would they do in a first run? A hundred? Two hundred? I have no idea how many units Rivendell can sell of a new, entry-level model, but let's say two hundred, which might be enough to realize some production efficiencies. That represents a cost of $182,000. Not an insignificant amount of money, but not anywhere near $20,000,000. As far as ensuring that it's a "good seller" -- that might mean appealing to a somewhat mainstream audience, which would be a bit of a switch in posture and in marketing strategy. Riv has had historic alliances with Merry Sales (if I recall correctly -- weren't they the folks who distributed the Bleriot? Or was it QBP?), as well as with Soma. Any of those could be very helpful in lining up suppliers and supplies. -- You received this message because you are subscribed to the Google Groups "RBW Owners Bunch" group. To post to this group, send email to rbw-owners-bunch@googlegroups.com. To unsubscribe from this group, send email to rbw-owners-bunch+unsubscr...@googlegroups.com. For more options, visit this group at http://groups.google.com/group/rbw-owners-bunch?hl=en.
