We reached our pre-order goal for the dojo yesterday so the dojo pre-order is a go. Everyone who pre-ordered will have a shiny new dojo in the spring. Anyone lurking on the sidelines waiting to make sure they weren't wasting their time with the pre-order can now pile on with conviction. Hooray, new bikes for everyone!
When I say we reached our goal I don't mean that we pre-sold 100 dojos. We didn't. But we did sell enough frames with gruppos, build kits and wheels to generate enough cash to cover the frame order. This means we'll have frames in inventory in a few months. Good news for people who want to pay one day and receive a bike the next (though you'll be paying substantially more than the pre-order), but it's not the outcome we were hoping for. Selling out of inventory means raising our prices by quite a bit, moving us into a pretty competitive area with other direct to consumer brands (there are still quite a few out there, despite the dozen or more that have disappeared in the past 18 months), and shop-distributed brands at inevitable clearance prices. Our business model is never to do what everyone else is doing only better or less expensive; rather, it's to deliver something that adds unique value to our customers. I can't say we're not a little disappointed that the pre-order was not bigger, and it's causing us to take a hard look at the frame business moving forward. We're psyched to have new bikes on the way, but it's becoming clear that the market for value is substantially smaller than the market for immediate gratification. To compete, we may need to get all Warby Parker and FedEx customers 3 fully build dojos in different sizes to test ride, and have them just send back the ones that aren't quite right. Good luck doing that on the margins from $1045.
Thanks to everyone who did get in early and made this pre-order happen. You're going to love your new dojo. And I'm going to love mine!