As I ponder this situation GP finds himself in atm, I think he could look at efficiencies used by Mike Varley at Black Mountain Cycles.

Mike comes up with a winning formula of putting out small batches of framesets that feature versatility in their dna.

He doesn't offer loads of framesets that, at times, resemble bikes we can pick up at garage sales for el-cheapo prices.

He does a nice road frame and a monstercross that are a blast to ride.

They are priced right at about $600 or so.

That's part of the Rivendell problem. He's got loads of overhead with inventory. It simply isn't turning fast enough.

Another thing Mike does well is his small bike shop in Pt. Reyes.

I was thoroughly impressed when my wife and I visited the area last year and stopped by his shop.

There were loads of tourers and mtb'ers hanging outside and Mike was working his tail off repairing a couple of their bikes with issues.

No massive inventory in sight, just the goodies needed to keep folks on the road.

No hatchets, bars of soap and expensive work shirts.

I think GP could focus on a lean line up that features bikes people really want.

I would keep an Atlantis all arounder, a real rando machine modeled on an Ebisu quality level/price point, a practical lower cost city bike, a modern version of the XO-1, a Hunqapillar and perhaps a Quickbeam.

Keep the prices down, stop model name changes that people can't keep up with, keep inventory tight and make sure staffing is kept at a sustainable level in the shop.

Just my 2 cents.....