Shut Up and Drink the Kool-Aid!

An image the industry should aspire to?

Do we need more of this kind of imagery in our marketing? Discuss.

Via the Sartorialist.

Posted by Phil at 2:30 PM 15 comments

Your social surplus (and what to do with it)

I know what you're thinking, my social surplus? What the heck is that? And what does it have to do with cycling? Well bear with me for a moment as I give you, my fellow humble bicycle retailer, something to think about.

In my private time I'm deeply involved in social media, you probably know these things as MySpace, Facebook and other media like it - I'm involved in none of those, preferring blogs and of late mobile micro blogging services and networks like Twitter and Utterz for my social media creation/interaction kicks.

Now when I try to explain to folks in the bike industry why social media is important and why they should use it in their businesses, they look at me like I'm nuts and always ask "where do I find the time" or alternatively, "I don't have the time" and to be honest I didn't really had a ready answer for them even though I've often thought long and hard about it.

The reason I was always struck dumb by this response is that I didn't stop to look hard enough at my own media creation efforts and what it had replaced, but the answer was always there, I had stopped watching television, preferring the stimulation and interactivity of the web. In that I'm like a lot of people today.

What I have been unwittingly doing over the past five years is finally putting to use the social surplus created by the time saving tools of modern life, dishwashers, microwaves, fast food, the automobile, urbanism, an efficient roads network, good dentistry, etc, to create something, time I'd used in the past numbly watching Gilligans Island or Seinfeld.

Now don't go thinking I thought this up all by myself, it's true that I have been thinking about this, but it took a smart social thinker to contextualise it in terms we can all understand.

Here comes everybody! Or more accurately here is Clay Shirky in a piece that generated a lot of buzz among social thinkers and which put a bit more flesh on the skeleton of that thinking. It's a really clarifying read that makes you realise that you do have the time to create, not only for yourself but for your bicycle business.

If I had to pick the critical technology for the 20th century, the bit of social lubricant without which the wheels would've come off the whole enterprise, I'd say it was the sitcom. Starting with the Second World War a whole series of things happened--rising GDP per capita, rising educational attainment, rising life expectancy and, critically, a rising number of people who were working five-day work weeks. For the first time, society forced onto an enormous number of its citizens the requirement to manage something they had never had to manage before--free time.

And what did we do with that free time? Well, mostly we spent it watching TV.

We did that for decades. We watched I Love Lucy. We watched Gilligan's Island. We watch Malcolm in the Middle. We watch Desperate Housewives. Desperate Housewives essentially functioned as a kind of cognitive heat sink, dissipating thinking that might otherwise have built up and caused society to overheat.

And it's only now, as we're waking up from that collective bender, that we're starting to see the cognitive surplus as an asset rather than as a crisis. We're seeing things being designed to take advantage of that surplus, to deploy it in ways more engaging than just having a TV in everybody's basement.

The best part of the piece is the punchline by the way, because it more than anything else tells you why you should be on the web creating now, your future customers will expect it, in fact I'm betting that you already know this intuitively because you see this behaviour in your kids every day.

Now as Shirky says, this takes a bit of re-training if you're not a Gen Y digital native. It is something that's taken me five years to embed, and something Masi Guy is a natural at, but eventually the process of creating becomes a second skin, something you do naturally and without self consciousness, it's fun and addictive and it will rapidly replace your television viewing once you get into it.

So, what better way is there to spend the time you never thought you had than in helping your business to communicate more directly and creatively with your customers?

And yes, Maryanne was cuter than Ginger, the pony tails always did it for me.

Labels: clay shirky, cycling, industry, social media

Posted by Phil at 12:13 AM 1 comments

A Twitter exchange

An interesting exchange between me and one of the folks I follow on Twitter.

Twitterpeep: "Assembling a new bike for Mr6 - I better make sure everything gets screwed on tight!"

Me: "You have to assemble a kids bike? Isn't that the job of the retailer?"

Twitterpeep: "From a bike shop sure but this was purchased from Toys-R-Us and I trust myself more than I do their staff."

Question? If consumers don't trust big box staff, why do they trust their products?

So what holds folks back from purchasing from an IBD? Is it only price? Is it convenience? Is it just shopping habit? Or is it us?

It can't be convenience, because there are more IBD's than big box retailers, we are usually around the block somewhere. Price? How much is a consumers time worth? Is this a calculation? We deliver the bike to consumers assembled to standard and with a higher quality which saves them both time and sometimes frustrating effort. It can't be habit, consumers show very little brand or retailer loyalty these days....maybe they don't trust us either.

Posted by Phil at 9:25 PM 5 comments

Feeling gassy?

In recent days, weeks and months many conversations have been had about the current state of the US economy (and the global one for that matter) and the pressures put on Joe Consumer by the high (and climbing) prices of gasoline. Here in California, gas has been over $4.00/ gallon for weeks now and some experts believe that $5.00/ gallon gas will be here by the summer driving months. For stressed out wallets and budgets, that might just mean making some serious decisions about driving habits.

Here's the thing though: the current high gas prices are not the answer to the cycling industry's prayers. Not yet anyway.

US consumers are far too used to driving their cars. They practically live in them. We have all kinds of luxuries built into them. Our cars have become our sense of self for many of us. $4.00+/ gallon gas isn't going to change that any time soon. There are too many barriers to getting people out of their cars and onto a bike.

• Lack of infrastructure- this one always raises quite a bit of debate, but in many cases people will not ride their bikes to commute- even for a very short commute- if they do not feel safe. Bike lanes are not the end-all answer, but they sure do help and address the major concerns of most people. This infrastructure applies to public/ mass transit as well- many people live far from their work (I live 40 miles away) and need to combine some form of mass/ public transit with their bike commute. Which means that we also need more commuter stations with lockers, racks, etc.
  
• Lack of support- there are tax incentives for people to carpool or take public transportation, but none for cycling to work. Plus, how many of us have access to showers at our place of work? Not many, according to most studies I've read.
  
• The dreaded retail experience- this one raises a lot of debate as well, but the majority of non-cyclists find the Bike Shop experience to be intimidating or downright unpleasant.
  
• The price of gas isn't "that bad" yet. It is going to take gas prices well over $5.00/ gallon to really make people uncomfortable pumping gas into their cars. It will take gas prices, I believe, nearing $10.00/ gallon for us to reach that critical mass needed to tip the scales in favor of more people commuting.
  
• The Gub-ment. The price of gas is such a sensitive issue and politically charged enough that it is in the daily discourse of the power holders in our capitol. Even John McCain, the presumptive Republican candidate for president, is talking about putting a temporary hold on the federal fuel tax over the summer to keep gas prices down. Driving is such an important part of our nation's economy that the politicians want to protect driving... not discourage it. The US car makers wield amazing power as well- they have successfully lobbied against legislation to improve fuel efficiency of their cars. We'll reduce federal taxes before we force car makers to improve fuel standards? Insanity.
  
• The cycling "stigma". In the US at least, bicycle commuting is still widely viewed as something only poor people, convicted drunks with no driver's licenses or "losers" do.
  

I see plenty new large vehicles like Escalades and Hummers driving on the southern California freeways every day. The economy may be hurting, gas might be expensive and "going green" may be getting more popular... but people sure do love their cars. And our government likes it that way.

Those folks who are already on the fence, already considering bicycle commuting, might now have the needed incentive to begin commuting by bike. Maybe. An increase in gas prices is not going to be enough to drag the masses out of their heated/ air conditioned, rolling office/ entertainment centers. Not nearly.

There is hope though. There are more bicycle commuters now than there have been since the gas crunch of the late 70's. More and more manufacturers are embracing the product category. More communities are getting behind initiatives to get residents onto bikes. More companies are providing incentives to employees to ride their bikes by supplying lockers, showers and bike racks. The lobbying efforts of the industry and advocacy groups are beginning to get the attention of the check writers in DC.

All in all, things are improving. But... this continued talk about higher gas prices saving the industry from the throws of a bad economy (and rising costs) or being the catapult to move it into a post-Lance renaissance is foolish. We still have a lot of work to do and we still need to find new and better ways to reach out and pull in new consumers (non-cyclists). Otherwise, no amount of high priced fuel is going to save us.

Feeling a little gassy? I know I am...

Tim Jackson
Chief Kool-Aid Dispenser

Labels: False Hope, Gas prices, Health of the Bicycle Industry, Reality Check

Posted by Tim Jackson- Masi Guy at 9:46 PM 13 comments

It ain't all doom and gloom...

My post from the other day, on 3/26, may have inadvertently painted an overly pessimistic picture of what I think is happening in the cycling industry. For sure, the industry faces some very real and serious challenges in the coming year (or more). All of the reasons I pointed to in the post- rising costs of goods, extended leadtimes, a shrinking US economy, etc - are very real and are not going away over night. However, I do see hope...

Historically speaking, the cycling industry has ridden out massive changes in the US economy over the years. If the economy dips sharply or even climbs dramatically, the US (and global) cycling industry tends to plug along at roughly the same level of strength (that's both good and bad). We tend to simply float along down river without hitting too many rocks- regardless of the water level.

Here are a couple scenarios;
Good economy- People buy expensive bikes because they have more disposable income. During the dot-com boom, many shops found out that they could actually make some money selling high-end road and mountain bikes. It was a good time for shops that catered to a more affluent crowd. At the same time, many people were beginning to "think green" and the bicycle has always been a favorite of that crowd. More city bikes were beginning to crop up all over the place. Commuters were becoming an important part of the business for many retailers and manufacturers. Then there was that Lance guy who had a penchant for winning 3-week long races in France in July. His first win was in 1999 and it helped to catapult the US road market to new and unheard of heights (even though the mountain bike market didn't do quite as well). The folks at Trek can tell you how good that was for them... and it was good, in case you're wondering. Overall, during a strong economy, the bike industry draws in a few new riders to the fold and the regulars have a little extra coin to spend on a new bike or a few fancy upgrades or accessories. Basically, things plug along nicely and maybe a few folks make a nice little profit, but things don't go up too dramatically.

Not-so-good economy- During a flat, weak or faltering economy, the US bike market doesn't do too much differently than when things are good with the economy. Some of the regulars are no longer in a position to buy an expensive new rig, or maybe make the mega-upgrades so they end up making more conservative upgrades or maybe buy a new pair of $175 bib shorts instead of the $325 bib shorts and a new pair of super-nice carbon-soled wonder shoes. But, in their place walks in the consumer who is maybe giving up on the idea of getting that new Escalade or H2 and still wants to get themselves something unique and special... maybe something like a new full carbon bike with that new SRAM Red group and new Zipp wheels. Still cheaper than a luxury SUV, gets better gas mileage and even feeds the need to lose a few pounds. On that consumer's heels walks in the person who is so mad about gas prices that they have chosen to ride a bike the 5- 10 miles to work. Or maybe they're a starving college student without enough spare money to burn on gas, especially with tuition climbing and books getting more expensive. Essentially, the industry doesn't fall apart and business for a few shops is better than ever while a few others might have a harder time than their competition.

So see, it sounds pretty similar either way. Here's the thing- the industry always gets a few new shops each year and loses a few shops each year. New consumers enter the market, for various reasons, and some of the regulars depart. New strong niches show up all the time and the ones that have become saturated with too much product fade out of popularity. It ultimately stays roughly the same, regardless of the major economic swings.

Our challenge now is to draw in more people from outside of our existing customer bases. We need to embrace more commuters and Average Joe riders- there are far more of them than there are those guys who are going to walk in and spend a ton of money on a high-end bike. We also need to reach out to the aging population of Baby Boomers. We all know that they represent a huge mass of consumers and they want to remain fit and active. Cycling represents a great activity for them- low impact, great aerobic benefits and something that can be done in small or large groups. On top of that, many people are getting more and more concerned about the health of the planet and the impacts of global warming. Cycling is once again an ideal way for people to help the planet while helping themselves by saving money on gas and improving their health at the same time. BUT... and this is critical... we have to help them find safe places to ride. Without safe roads to use for their commuting needs, many folks will give up on cycling the first time a Starbucks-wielding, cell-phone-talking, distracted driver buzzes by inches from their shoulder.

The cycling industry, though faced with numerous challenges, has many ways to grow its health, even while the US economy staggers along like a drunken and penniless frat boy after a night of binge drinking. Sobriety will come in the form of figuring out how to cater to those who still want to buy our products, reaching out to new consumers, embracing the less glamorous commuters/ tree-huggers and working to provide more and safer cycling infrastructure for all. Sure, it won't be easy and it won't even be free, but it will lay the foundation for a stronger industry that can grow even further when the economy does eventually turn around again. "This too shall pass..." But we can do more than simply surviving through the usual status quo- we can grow and create a better future.

Tim Jackson
Chief Kool-Aid Dispenser

Labels: Hard Times Ahead, Health of the Bicycle Industry, Silver Linings

Posted by Tim Jackson- Masi Guy at 9:34 PM 3 comments

Bad news brewing for the bike industry?

(Cross-posted over at my other blog...)

For years now, the bike industry has been riding a wave of popularity not unlike the "bike boom" of the 70's. Not only has this boom been good to the US bike industry, but the entire worldwide bike industry as well. It's been a really good ride, but almost all of us in the idnustry knew it would have to come to an end one day.

The world is not going to come to an end for the bike industry or for cycling enthusiasts and consumer, but there is going to be some noticeable change very soon.

Bicycle sales, especially in the US market, have been doing very well over the past 10 years. In many markets, that can be traced back directly to that Lance Armstrong guy and all those French bike races he managed to win. At least one brand really made out well on that deal, but at the same time many of the rest of us got a boost from their good fortune. Road bike sales climbed to an all-time high during the peak of the boom. Other categories faired pretty well too, in the end, with overall interest in cycling reaching higher levels than ever before. All in all, the past several years have been good to the bike industry.

The very competitive nature of the industry has lead to incredible values for consumers. Many years ago, a $1,000 bike was a pretty good bike. Maybe even a great bike. But now, the amount of product and technology present on a $1,000 bike is amazing. It is still possible to buy a bike that is not worth the money you pay for it- at all ends of the pricing spectrum- but it is pretty hard to. Technology and manufacturing have created a time where consumers typically get a very good product for the money they spend- this is especially true of bikes sold in the IBD/ specialty retail channel (ie- not Wal-Mart, Toys-R-Us, etc).

The down side of all of this pricing competition has meant that many manufacturers (and retailers) have had to operate with incredibly small profit margins- selling at lower than reasonable prices to gain market share. In essence, buying floor space (at the wholesale level) or buying loyalty (at the retail level). Thing is, it's hard to keep a business afloat like that and it is the major reason brands or stores come and go from the bike industry. Worst of all, when you operate on such narrow margins, any kind of increase in costs of goods means an increase in ultimate sell price...

... which brings us to my point...

Over the past few months, the bike industry has seen the "perfect storm" of circumstances hit it (like much of the rest of the economy); a slumping US and global economy, a massive increase in manufacturing costs, a dramatic jump in labor costs in both Taiwan and China, a sharp drop in the value of the US dollar and an increase in value of nearly every other global currency. The Taiwanese dollar, the NT, has gone from a little over $34NT/ $1US to just barely over $30NT/ $1US in just over 3 years. That may not seem like much, but it adds up quickly and doesn't even take into consideration any of the cost increases- that is just a loss in currency value. When you add in the cost increases for the actual products, it can become significant very quickly.

By some estimates, the cost of steel alone is going up as much as 65%! For my brand, which is heavily biased towards steel these days, that spells some pretty serious sleepless nights. Aluminum is going up. Carbon is going up. Anything petroleum-based is going up- like the materials used to make handlebar tapes and saddles. These costs are increasing leadtimes significantly as well, since many vendors are now unwilling or unable to spend the money to stock vast quantities of materials. This means that they need to order more often to meet their demands, but at least they don't have their capital resources tied up in raw materials.

In China, recent laws there are forcing a much needed increase in wages being paid to factory workers- as well as limiting the amount of overtime a worker can work. These are good changes, but they mean an increase in costs just the same. In Taiwan, there is a massive shortage of qualified skilled labor. The bike industry was once one of the best paying in Taiwan, but the rise in power of the tech industries there has drawn in a lot of the once strong work force in the bike industry. So now wages have gone up to compete for and retain good labor. It's a good time to be a factory worker in both China and Taiwan... or at least a better time.

In the past few months, I have seen 3 and 4 price increases from the same vendors. Just in the past 6 months- from some of the biggest names in the industry. Some vendors will not even quote a price any longer until they have a firm PO and then the pricing is only good for that one PO. This makes it impossible to accurately forecast the cost of a product and very difficult to create a selling price- when you have no idea if you will be making money on the product in 6 months. For me and the other brands at Haro, we print one price list per season and we live with that pricing for the duration of that product cycle/ season. This year though, we've had to issue a price increase to compensate for some of the price increases we've seen recently. We do our best to absorb those increases and preserve the pricing we've created, but when you are seeing double-digit increases, it becomes impossible to swallow all of those costs.

What does all this mean? Well, it certainly means there is a lot of nervousness in the bike industry right now. Many of us are very concerned about what the consumer is going to do; will they simply stop buying bikes (partly in thanks to what the economy is doing as well), or will they understand that we (the manufacturers and retailers) simply have no choice if we wish to stay in business? Some of us smaller players even worry if the Big Guys will simply eat the increases in the short term to maintain market strength and wait the situation out/ drive competitors from the market. Most things I have seen and heard indicate that those Big Guys are likely to pass on at least a small increase to their customers too. It would be hard to believe that they can afford such an increase in costs without passing along some of that burden. More to the point, it means that prices for Masi Bicycles are going to increase a little. On some bikes it will seem like nothing, but on others it might be more noticeable- when a bike goes from $700 to $775, it is more noticeable than when a bike goes from $4000 to $4300. Based on percentage, it is much less significant and the typical consumer in that higher price market is not as phased by the increase- generically speaking of course.

Bottom line- as much as it sucks, the bike industry is raising prices to slightly compensate for the rapid and painful increase in costs to produce a quality bicycle. I am seeing anywhere from a simple 5% increase to a massive 15-20% increase in my costs... and that's just the ones I know about so far, but that does not mean the retail price (or dealer price) is going up that sharply. In all likelihood... more increases are coming. And coming fast. Does it mean you are getting any less of a bike for the money? No, not at all. It just means that you'll be paying what is a more realistic price for the bike you get. Sure, there will be a slew of new low-spec bikes showing up on the market to keep the perceived necessary price points met. Some manufacturers will undoubtedly find ways to cut spec to keep a certain price (not our plan though). I'm not saying they are wrong to do it and we might find ways to create new models in those sensitive price ranges- it's just going to be a fact of life.

How long should this last and what does it mean long term? Well, that has yet to be accurately predicted to my knowledge. My guess is that prices are not going to be coming down any time soon. The global economy is still looking pretty volatile and the US$ keeps taking a beating. The Chinese Yuan is getting stronger, as is the Taiwan NT, and the Euro and the British Pound... so it is unlikely the Dollar is going to regain enough strength in the short term to eat up the cost increases. The overall volatility is likely to settle down, but as oil/ gas/ petroleum costs remain high, costs of goods will remain high- as will the costs to transport them. The global demand for raw goods- like steel- isn't going to decrease either. China and India, specifically, are eating up massive amounts of resources of raw goods as their economies expand and their development and growth increase as well. So, yeah... it's not too likely things are going to change any time soon to keep prices where they are now. I do predict that some smaller companies (retail and manufacturing) are going to pay the ultimate price for these increases and will either fade into history or be eaten by healthier competitors.

All of this would seem to point to very dark days for the bicycle industry, but things have actually been coming back up a bit after a mild slump in sales the past two years. Road sales have dropped, but are remaining strong- especially at the higher price points- and MTB and BMX are both seeing nice signs of life across the industry. At first glance it would appear that the industry is getting some support from consumers who are seeing the price of their other purchases going up all over the place. Costs of nearly everything across the board are going up... it's just a fact of life right now.

So even though buying a new bicycle might not feel as fun, due to the sudden increase in price, you're still getting a great deal on great products and the industry you are supporting is showing good signs of health... which hopefully means I get to keep my job a bit longer... I hope.

Tim Jackson
Chief Kool-Aid Dispenser

Labels: Bad News, Cost Increases, Health of the Bicycle Industry, Rant

Posted by Tim Jackson- Masi Guy at 11:00 PM 3 comments

Back from the dead... sorta

Ok, so reports of our untimely death have been grossly inaccurate... mostly.

I know I've been promising more content here and have failed miserably. It is my sincere aim to finally resurrect this little slice of heaven here and will also be trying to create a podcast for the site as the year moves on. My other podcast has been limping along, but I love the medium and will be trying to do a special podcast for this site, or at least piggyback onto my existing one.

All that said, I am stealing a post from my main blog and bringing it over here because it is something that I feel very strongly about.

Please chime in with your thoughts and your feedback on this issue because I believe the industry is at a threshold and has the chance to do great things. Let's hope we all rise to the occasion. (And new content will be coming here soon... I swear... I mean it this time...)

BLC and a plea to my industry friends;

The weekend's BLC conference was amazing. I have never been before and, like my trip to DC last March for the National Bike Summit, I came away energized and wanting to do more for the industry. You can expect to hear more about this from me in the coming months and years. I left DC last year full of ideas and desire to make a difference and to help enact change... but life caught up with me and time vanished. I am sure some of my drive and desire this time will suffer the same fate, but I am going to make more of an effort to help drive the cycling industry forward on the important goal of advocacy and developing more and safer infrastructure for all cyclists. It is clear to me that we, the cycling industry, can and should do more to support advocacy issues and that we need a far greater level of cooperation between all players in the industry. Two very smart women, Nicole DeHoratius and Robbie Kellman Baxter, were hired as outside researchers to evaluate many things about the industry. One of the major things they learned was that there is an insane level of paranoia and distrust among members/ companies in the industry. Of all the industries they have worked in, they have never seen such a level of distrust and unwillingness to either comment on the record or share information/ data about their businesses. That really hit me hard as I thought about the challenges facing my beloved bike industry. Without a greater level of cooperation and a willingness to share and collect some quantifiable data, the industry is doomed to failure and further erosion of sales growth.

I am a very small person within the cycling industry- I just happen to be one of the more loudmouthed. My realm of influence is pretty microscopic, but I can't sit complacently and watch things deteriorate further. I am making a plea to all of my like-minded brothers and sisters in the industry, from retailer to manufacturer, to get involved, share your data with the BPSA and drop the paranoia and let's all work to grow this industry to a higher level of profitability and overall health by applying our efforts to increased advocacy. I am making a pledge to do my part- however small- to meet that goal. I will be offering whatever help I can to John Nedeau and the BPSA. I will be getting my hands dirty with advocacy issues. I will be talking about important issues and will be advocating for change. I'm going to do my best to have my actions support my words. If I don't, I have no reason to hope to have an industry to work in 10, 20, 25 years from now.

I happen to know that many people within the cycling industry read this silly blog and I am hoping that they will read these words and let a few of them sink in. Without better cooperation among brands and a willingness to do the hard work ahead and dedicate resources to building a better future, we can all kiss this business good-bye. Personally, I want to stay in this business for many more years. Hopefully you will too.

Don't hesitate- get involved, volunteer, make a difference.

John Burke, President/ CEO of Trek Bicycle Company gave an incredible presentation and "opened the kimono" on his business to a room full of "competitors" in an effort to provoke change. Do I see eye to eye with John or Trek all the time? Hell no. But he was absolutely correct in his plea to get others in the industry involved in working towards a better cycling industry and a better world at large. It was one of the best presentations I've sat through in years and I'm glad I was at the BLC to see and hear it. Trek has launched a program called One World, Two Wheels. I recommend that you check it out. I am forced to give John and Trek a big round of applause for the work they've begun with this program. It's pretty impressive and very ambitious. But we have to start somewhere and why not aim high?

The bike industry has been my home for the better part of 26 years now. It's all I really know. It's certainly the one thing I have loved the longest in my life and it has, in turn, been pretty good to me. It's my turn (and all of our turns) to give a little something back. So I hope you, my fellow industry members, will join me and get more involved. I know I have a lot to learn from this process and hopefully I can contribute something to the ultimate greater good of the planet, the people who live on it and the bike industry too.

Tim Jackson
Chief Kool-Aid Dispenser

Labels: Bicycle Leadership Conference, BLC, BPSA, John Burke, Trek Bicycle Company

Posted by Tim Jackson- Masi Guy at 8:48 PM 2 comments

We're not dead yet...

Things here have been quite quiet over the past few months- almost totally dead actually. Please don't think that we're gone for good... because we aren't.

As is often the case, things get pretty nuts in the business as we get anywhere near the major tradeshows, with Interbike being the biggest for most of us who play in this sandbox of a blog. The weeks (even months) before Interbike can be an absolute hell and then the following weeks (or even months) can be just as bad as you scramble to follow-up on conversations and promises. Seeing as how a fair chunk of the readers here are from the industry in some way or another, you are already painfully aware of this situation- which probably explains why readership here has not vanished entirely.

As the Chief Kool-Aid Dispenser here, I wanted to announce that this blog ain't dead yet and that more content will be coming in the coming weeks and on. So, thank you for your readership and patience as we all unearth and regain some semblance of sanity. Hopefully we'll be back more often than we have recently. Hopefully.

I'm looking forward to attending the Japanese tradeshow, Cycle Mode, for the first time in a few more weeks. I'm looking forward to having another show to add to the comparisons of Interbike, Eurobike, Taipei's International Cycle Show and Canada's ExpoCycle. I hope to do a comprehensive analysis of the season's shows afterwards... hoping.

Anyway, long story short- please don't write us off and mark us off as dead just yet. We're coming back and we'll be providing more content in the very near future.

Thank you for your continued readership,

Tim Jackson
Chief Kool-Aid Dispenser

Labels: Cycle Mode, Eurobike, ExpoCycle, Interbike, Taipei International Cycle Show, Tradeshows, We're not dead

Posted by Tim Jackson- Masi Guy at 7:51 PM 6 comments

U.S. Pro Team Sponsorships

A lot has been made about the demise of the Discovery Channel Pro Cycling team and the impact that may have (or just signify) on our business sector.

It’s surprising how long Discovery and its’ infrastructure survived in this game, and it seems likely that not only had they made their marketing point, but that winning Tour after Tour (even Lanceless) became boring for the VIPs of all parties.

But have you noticed the developments that are happening?

Three domestic teams are on the rise and maybe even Tour-bound, and for entirely different reasons.

Slipstream Chipotle

I wasn’t sure what to make of these hipsters in February. They bore no resemblance to their TIAA-Cref origins. They were well-designed from their socks and armwarmers through the BMW wagons to the cones their mechanics use in team parking. They had catchphrases, nicknames, the best team website with individual blogs… style. And the anti-doping message was consistent and integrated throughout long before the Tour. They backed up the packaging with both solid results and consummate professionalism. Slipstream topped off their season with results at Univest and 2^nd and 5^th overall at the Tour of Missouri as well as overall Young Riders jersey. They have signed several huge names (Vande Velde, Backstedt, Millar) for 2008 and may even have a surprise up their sleeve.

If they represent squeaky-clean marketing dreams and turn up at schools to talk about safety and fitness, there is another squad that debuted this year with very different motives.

Rock and Republic

This team was not at the Tour of California, but rolled up to the San Dimas and Redlands stage races in menacingly pimped Escalades. Bling encrusted baseball hats, different team kits for different riders, ink and piercings to the fore. All in the name of $300 jeans that few outside of Los Angeles Denim Bars were aware of or aspired to. Results were not stellar to begin with, but then Rashaan Bahati sprinted for the win at the CSC Invitational in Arlington and showed up on the cover of major cycling publications. Next year the team has also expanded and brought in Frankie Andreu as DS. Rumored new signings include Chris Horner and Freddie Rodriguez.

If your UPS guy can’t understand how points work in a stage race, or how a rider that did not win a stage won the overall, how about GOOD v EVIL? European cycling was great for a small number of cyclophiles for years – this is the time for domestic racing to take on its’ own identity. And better yet, both teams have a multi-year plan that sees them racing the Tour de France (Slippies this year).

BMC

Also noteworthy is Gavin Chilcott’s BMC squad. While Phonak kicked the company in one shin and Astana took them out entirely, the US side of the operation continues to grow and will also absorb some star names for 2008. Tony Cruz should be there, as will Nathan O’Neill and Jeff Louder. Other big names are still in play but looking like BMC candidates. The interesting thing about this for US retailers is having a bike company as title sponsor again. Sure, Trek and Disco were inseperable and there have been other close relations, but not since Huffy have we seen a sellable bicycle as top name on a Pro Tour jersey.

Healthnet, who have represented well for a number of years, are riding off into the sunset, and Kodak Gallery is divorcing Sierra Nevada. We should see Kurt Stockton’s Sierra Nevada in the regional sense again, and it remains a possibility that Kodak Corporate will step in where the Gallery stepped out for Robin Zellner.

Navigators, the longest-running domestic pro cycling team, are also closing shop.

All in all, 2008 looks to be the most exciting season ever for U.S. bicycle racing. For retailers and manufacturers, for racers and for spectators. Now, it remains to be seen if Vs is on the program, but with broadband broadcasting taking over that may not even stand in our way.

-Jeff Rowe

Labels: Evil, Good, Rock Racing, Slipstream

Posted by jeff at 4:06 PM 3 comments

The Tour de France is good for cycling

Velo News has done a rough analysis of the very positive numbers coming out of this years Tour de France - fortunately not the positives we usually think about - it was all crowd numbers, television audiences and print media, all of which appear to have experienced solid increases, and in the case of bike sales there is anecdotal evidence that, doping or not, the Tour is good for anything connected to cycling.

I was also very interested in web viewing numbers, knowing that my own blog stats showed some big increases - something I'm sure all cycling blogs experienced.

If the numbers are to be believed, the Tour's worldwide audience on the Web rivals that of television. Versus.com is reported that its unique visitors for of its Tour coverage are up 15 percent to 1.4 million, and total page visits grew 8 percent to 3.9 million.

At VeloNews.com, unique visitors to the site were up 15 percent to some 4.4 million, with page views up 11 percent to 32 million. Online video views on VeloNews TV grew from 1.1 million views a year ago to 1.3 million views this year.

I compared my blog (Spinopsys) stats over the duration of the Tour to a similar period last month (my biggest month ever) and saw raw visits increase 42%, absolute uniques up 47%, page views to 60%, time on site up 11% to over 6 minutes and pages viewed per visit increased 12%. There is more like this when I drill down further.

A simple explanation for the increase in interest could be the quality of the live television coverage of the event combined with the broadcast skills of Phil Liggett and Paul Sherwan.

Cycling is a difficult sport to explain to the ordinary sports fan, and though Phil and Paul may sometimes drive many hard core cycling fans nuts with their commentary, they manage to explain and describe the action in a way that even the most cursory sports fan can understand - they make cycling's complexities accessible and easily digestible.

Cycling is also a difficult sport to broadcast technically and ASO has invested heavily in getting that just right. The closeup of the final sprint down the Champs d'Elysées was an awesome display of this and it brought a whole new dimension to the viewing experience. National networks have obliged and taken this quality coverage to the living rooms of general sports fans who now have a greater understanding of cycling.

Looking broadly at this expanded media attention not only is the Tour de France good for blogs, networks and newspapers it's great for cycling and impacts on anything related to it, ultimately it looks like more is more.

Posted by Phil at 5:49 PM 2 comments