As some of you will have heard, we canceled the dojo pre-order. We'd achieved the level of sales we needed both financially and to convince ourselves that the market was, indeed, hot for dojo enough for us to move forward with it. Unfortunately, a series of progressively more impactful announcements from the manufacturer compromised our ability to deliver the product as we'd tested and sold it, so we had to bail.
All the money's been returned, and while people are understandably bummed, all the ones who've written back to us in response to the news have been supportive and offered some version of "I'm sure you made the right call." And like a huge percentage of people who ordered wrote. Obviously we appreciate the support, but we didn't expect the concern, with nearly all also offering some version of "I hope you guys can pull through this and keep selling wheels." So we also appreciate the concern. Fortunately, it's superfluous.
We're pretty darn conservative with how we run things. The pre-order money was sitting all by itself in an account, sufficient to cover any eventuality around the dojo order. Needing to do what we did is an eventuality that's very much within the realm of eventualities we plan around.
With wheels, we've minimized supplier risk. We've got a strong relationship with the supplier, we buy a ton of stuff from them, we have our own molds there - we're not just some schmucks off the street, and they in turn provide us with awesome rims. This isn't to say we're complacent in the relationship, you have to stay alert in this world, but it's a good relationship. We have a standing order with them.
With the frames, we had a situation that's happened to a lot of people, some combination/variation on a bait and switch and a soft kiss-off. Our strong suspicion is that someone acted more quickly than we did (not that hard to do), placed an order big enough to make us an afterthought at best and a hindrance at worst, and when we placed an order that didn't bowl them over, they wanted rid of us.
So, yeah, it sucked to have to cancel the frame order, but far more from the perspective that we'd told the people who got into the pre-order that it was on, and then had to go back and tell them it wasn't. From a cash flow perspective for us, we would only really have made money as frames sold from stock. It's a punch that's super easy for us to roll with, we just focus on other things (like the 34, which now that I've got them on my bike I've actually caught myself just sort of staring at them, which if you know me like few do you'll know isn't something I'm at all prone to doing; they're just that dead sexy) and play judo.
The 34 is a going concern, the pre-order is nearly 0% about finance and nearly 100% about managing the order. If we opened the 34s for sale outright, we'd never be able to get them and build them fast enough. Only so many can come out of the mold, and we can only build so many per day. More or less, we're handing out numbers like at the deli counter, only we're paying people a discount for their patience.
So what's the story on frames going forward? We don't know. We're trying to figure it out. This game with being able to buy only at the manufacturer's whim is BS and we're done with it. We're only interested in products that we can control, like Rails, where we're in control of our ability to deliver to you what we say we will. And, of course, we have to be able to offer a unique value to the market. Without those two factors, we're not doing anything. It's a slightly pressing concern for me, as after 4 winters of sweating my caustic mank on the thing while riding rollers, and about 25,000 miles on the road, my bike is starting to get that "not so fresh" look. Runs great, looks a little rough. Oh well, same with my car. It's long since paid for.
Oh yeah, the picture. That's Mt Lemmon, taken from the front door of the house where I stayed in Tucson. It was an unbelievable experience and I could not possibly recommend The Cycling House enough. It was far more than just one of the best weeks of riding that I've ever had. Go.
Of course I understand why you wouldn't do it, but I would love to know the name of the manufacturer that gave you this situation on the frames. I certainly would think you would never do business with them, so why not let your little blog audience know who this entity was that behaved so poorly?
Steve – There's no benefit we can give to the public in saying who the manufacturer was, in that you'd almost certainly never know it if your bike was built by them, and there's zero chance you'd be buying directly from them so it's not something we can help you avoid if you choose to. We know that our test bike was great so it's not that they don't build good stuff. On the other hand, raising a public ruckus could definitely make life harder for us and our agent in future supplier relationships. Brian – Ummm, no. Paragraph #8 above.
Ok, now that we've buried the dojo, got any news on a new cx bike? I want to feel alive again with new bike news from November.
I hear ya, but even being somewhat in the loop of the industry I'm curious though as I said certainly understand not wanting to name names.
Steve -Yes, they are indeed dead to us, but they aren't a supplier you;re ever going to run across. They didn't want to sell us 100 frames, I don't think they wanted to sell us 200 frames. They certainly pose no risk for a one-off buyer. They want to take an order for 1000 of the frame they want to sell, build and deliver those frames, and be done with it. The buyer at 1000 frames has a bit more leverage than we have, as they should. ThanksDave