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Originally Posted by repechage
(Post 20190515)
Rivendell unfortunately is just a brand. Not a maker. They did well enough to catch the attention of others.
I think there would be no Velo Orange without them, maybe no Compass. I can think of a few others too. The danger for all of this business model is a lack of mfg. cost control. Bikes are dangerous business. Bicycles and the accoutrements are relatively simple and inexpensive to make. The barrier to entry is low. It's one of those businesses that are easy to get into, but hard to make a living at. I think most of us know that. Owning a bike shop, for example, is an example of buying yourself a job. Creating a brand is one's only way to add enough value to make a profitable business, one that you can make a living at, pay for health insurance, raise kids, pay for college, and somehow save enough to retire. Even then, you need some luck. The reason most do it is the promise of being your own boss doing something you actually enjoy. |
Originally Posted by toavii
(Post 20189216)
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Originally Posted by gugie
(Post 20190497)
For those of you who haven't been following Rivendell closely, this ain't the first time they've had money problems. At the very beginning Grant sold stock at $1 a share to friends. I'm not sure what they got out of it.
What's the difference between Grant/Rivendell and George Bailey/Savings and Loan? Lot of people here helping out George, a few Potters have chipped in. Grant's a few years older than me, which means he's probably not very far from a retirement. He's already stated that he's thinking of how to keep Rivendell around when he's gone. They've discussed moving the company to Southern Oregon, which would cut costs. There's also thinking of a "succession" plan. Maybe the new decision maker(s) will start looking at Rivendell more as a business. Something tells me, however, that part of the appeal of Rivendell is the quixotic nature of their business. People want to believe that everything mainstream is a conspiracy to take money out of our pockets without regard to the value of what's returned. Maybe people are right. Many of those that consider themselves part of the Elfdom seem to believe everything that comes out on the Blahg. Doesn't that just replace the believe that bike should be as light as possible, disc brakes are for every day riding, and carbon fiber is the ultimate in frame material? I think many of us just root for a guy who's willing to go against the mainstream. Clothes, axes, soap, and all of that - what does that have to do with bikes? Is rent too high - relocate. Parts inventory is tough; if you don't have it people look elsewhere. Frame inventory even more so; sourced from Asia with long lead times, estimates as to which and how many will sell at full price need to be precise. He has a tough row to hoe. |
Originally Posted by SquidPuppet
(Post 20190549)
Man, that thing hits all the marks. Five out of five stars. It must ride like a dream on the Compass McFatties.
;) |
Originally Posted by gugie
(Post 20190554)
Which Rivendell model is that?
;) I think it's a CraigLapillar. ;) |
Originally Posted by gugie
(Post 20190543)
The question isn't how Rivendell stays in business, it's how anybody in the bike business that isn't Specialized, Trek, Giant, or a handful of others do so.
At my Cinelli factory tour, there is not a lot of workers, and they are drawing butted steel tubing, manufacturing their top-end steel bikes and assembling the full line of bikes there. Antonio Colombo is 68. When he is gone, I suspect the business will be gone too. It is a shame. While low in number, the workers are definitely bike geeks and love what they do. |
You guys are overreacting a little . Grant can't be a complete idiot that needs business advice from random internet posters.
Rivendell's been around since '94 he has to be doing something right... |
Originally Posted by ricebowl
(Post 20190975)
You guys are overreacting a little . Grant can't be a complete idiot that needs business advice from random internet posters.
Rivendell's been around since '94 he has to be doing something right... http://www.bicycleretailer.com/industry-news/2017/11/29/niner-files-bankruptcy-ahead-planned-sale#.WpNXCNGIahA |
Originally Posted by ricebowl
(Post 20190975)
You guys are overreacting a little . Grant can't be a complete idiot that needs business advice from random internet posters.
Rivendell's been around since '94 he has to be doing something right... Right now it's taking a "go fund me" effort to keep the business solvent. Is that a sound business plan? |
Originally Posted by repechage
(Post 20190995)
Current times have been challenging. Ignoring is unwise.
Niner files for bankruptcy ahead of planned sale | Bicycle Retailer and Industry News Economically we live in dangerous times. |
For the price of lunch, seems worth it to me.
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How did I miss that email? I'm buying one. The Grundens bike poncho is my favorite rain gear ever, and I appreciate the Wald baskets with no strut tangs. If I were less chronically broke, I would have gotten the MUSA rain jacket and railroad shirt...
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Originally Posted by gugie
(Post 20191207)
You don't have to be a complete idiot to go bankrupt. You don't even have to be an idiot.
Right now it's taking a "go fund me" effort to keep the business solvent. Is that a sound business plan? I'd imagine the cycle touring industry booms in April to July, slows down in August/September, and goes dormant in November. So February cash flow is likely a big issue for preparing for April again. Yes, 20 or 30 years into the business, this should be expected with winter reserves. I don't interpret this as asking for a handout, rather hoping people will buy gift cards for actual use later. Looking at the website, half the items are listed as sold out, including every $1500+ frame. Consumables like chains and cassettes should be major cash cows. Sell a dozen and it is worth a day's income or half a frame. Yes, he can only build so many frames, but could list an ETA for new frame orders out a few months. Either this sale has been hugely successful, selling everything in sight, or there is something seriously wrong with the business. Still, if he is selling out, he could backorder and list an ETA. |
Originally Posted by CliffordK
(Post 20191538)
Either this sale has been hugely successful, selling everything in sight, or there is something seriously wrong with the business.
Still, if he is selling out, he could backorder and list an ETA. |
Originally Posted by CliffordK
(Post 20191538)
Hard to tell what the issues are as actual info is sparse.
.. So February cash flow is likely a big issue for preparing for April again. Yes, 20 or 30 years into the business, this should be expected with winter reserves. I don't interpret this as asking for a handout, rather hoping people will buy gift cards for actual use later. |
Originally Posted by bikiola
(Post 20191783)
I still don't understand how they are not offering some kind of interest or incentive for this - see Outlier's "Upfront" effort as I mentioned earlier, or hell even kickstarters/indiegogos (many of whom are shady fly-by-night businesses, I'll allow) do some kind of early bird special. Or taylor stitch's whole "prepay" for a discount. I mean there are a million ways to rely on community goodwill for a company that also reward the user.
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Originally Posted by bikiola
(Post 20191783)
I still don't understand how they are not offering some kind of interest or incentive for this - see Outlier's "Upfront" effort as I mentioned earlier, or hell even kickstarters/indiegogos (many of whom are shady fly-by-night businesses, I'll allow) do some kind of early bird special. Or taylor stitch's whole "prepay" for a discount. I mean there are a million ways to rely on community goodwill for a company that also reward the user.
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Originally Posted by himespau
(Post 20191964)
The hard print fancy catalog isn't an incentive for you?
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Originally Posted by bikiola
(Post 20191783)
I still don't understand how they are not offering some kind of interest or incentive for this - see Outlier's "Upfront" effort as I mentioned earlier, or hell even kickstarters/indiegogos (many of whom are shady fly-by-night businesses, I'll allow) do some kind of early bird special. Or taylor stitch's whole "prepay" for a discount. I mean there are a million ways to rely on community goodwill for a company that also reward the user.
The catalog is considered a perk, but, like you, I'd prefer a good online store. |
The Rivvyraffle is up to $80 as of today, with one donor kicking in three Hail Marys. What the heck, it is Lent, after all :)
Originally Posted by CliffordK
(Post 20192082)
Gift cards from other stores never carry interest.
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what is the 'deadline' to enter the raffle?
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Originally Posted by hazetguy
(Post 20193086)
what is the 'deadline' to enter the raffle?
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PM sent for the Rivraffle.
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Originally Posted by Lascauxcaveman
(Post 2019307)
in my state at least, an issuer of gift cards is allowed deduct 10% of their face value for each year that elapses past the date of issue.
But, if a store goes under with a bunch of people holding gift cards, you the gift card holder are last in line to collect what's owed to you. Banks and mortgage holders come before anyone else. |
One thing he's doing is licensing the name Rivendell. Maybe it's cheap, but i'd guess not. A name change would be smart if he's paying anything significant for the use of.
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