Jump to content
IGNORED

And here I thought they'd call it Bentonville...


Recommended Posts

7 hours ago, Teamsloan said:

Right, only slightly lower or in line with...

If the Walton's can't bring the prices down on high performance bikes, no one can.

I know a bit about how they do business. 

They can only bring the price down in one of three ways:

1. Better supply chain. That can shave ~3-10% off the price

2. Labor reductions (by offshoring) 

3. Material reductions (i.e. cheaper grade materials)

I'm not complaining, that is their business model. If they cannot maintain a sizable advantage through those 3, they will not get into the business. For instance, they could go after the PC business except that has a better supply chain (no on #1), all of the labor is already offshore and materials are not commodities in their eyes, so they would not be able to shrink the costs and still make money. Things like BBQ grills are prime candidates because there is a labor and materials reduction that they can grab, then use their supply chain to drive the extra profit off the top.

They will be very hard pressed to bring down the cost on high end bikes because those demand quality components (ie. Shimano, SRAM, DT Swiss), labor is not a sizable part of the BOM and the sales channel is not big box retail, buyers dropping $3K+ need a higher touch.

The sweet spot for Walmart is a manufactured commodity product with little brand recognition. Think grills, camp chairs, plastic bins, etc.

Link to comment
Share on other sites

If Walmart did not think they can make money, they wouldn’t be doing it. As long as they don’t try and assemble it or service it for you, they can be a pass through seller of components attached to their frame. That frame is made in the same place and probably by the same people that make most of the frames out there so all they need to figure out is a good design.


Sent from my iPhone using Tapatalk

Link to comment
Share on other sites

I think there is a different play at work here considering they purchased Rapha clothing a few years back.  And Rapha is nice TOP SHELF stuff.  I think they are trying to operate in a different space (with their bike vertical).

-CJB

 

 

Walmart did not buy Rapha. The Waltons bought Rapha.

 

If bill gates buys something, it doesn’t mean Microsoft owns it. :)

 

 

Sent from my iPhone using Tapatalk

 

Oh and what a terrible terrible name. They had an opportunity to tie this to their roots. With mode names and everything. A rebrand is in order if these sell at all. They could have done it in the first place.

 

Ozark bikes?

 

 

  • Like 2
Link to comment
Share on other sites

4 hours ago, FJsnoozer said:

 

 

Walmart did not buy Rapha. The Waltons bought Rapha.

 

If bill gates buys something, it doesn’t mean Microsoft owns it. 🙂

 

 

Sent from my iPhone using Tapatalk

 

Oh and what a terrible terrible name. They had an opportunity to tie this to their roots. With mode names and everything. A rebrand is in order if these sell at all. They could have done it in the first place.

 

Ozark bikes?

 

 

 

Fair enough, you are correct, I was pretty much lumping it all together.  I just have to suspect that since the Walton grand-sons are so seriously into MTB (which is the main reason all the development is going on in B'ville) that it also has a halo effect on what is occurring with the Viathon and Rapha stuff.  Hence, I was just covering it all with the same brush stroke.  But in all likelihood its much more calculated and strategized than that.

And I agree 100% with the poor choice of bike name.  There could be many more options to be chosen than Viathon.  I reminds me strongly of Triathlon and yet there's not tie-in...nor should there be.  

The bikes do hit a sort of price point that competes with the other online retailers, but I'm not so sure the bikes stand out enough to garner real interest.  YT invested heavily in Aaron Gwen to give them the hardcore racer/performance image and Canyon has done the same with road racing over in Europe to much success.  Viathon will need to do something to lose the (unnecessary but real) "walmart' association stigma for a bike brand.  However, I do think they could have more latitude in the gravel, road endurance, bike packing segment.  Those riders, and those bikes, tend to be more open to new (and thoughtful) offerings.  Not to mention that many a gravel bike is an N+1 which could very well be something more obscure and price-pointy.

Later,
CJB

Link to comment
Share on other sites

Canyon and YT have done a fantastic job with Branding. Canyon made very smart moves in the support of women’s pro teams as well and the fact that they have eye catching paint job/logos.

Fezzari on the other hand... although they just came out with a hell of an Instagram campaign. But still, who wants to own a fezzari or try to resale one?


The biggest problem with this bike is a complete brand identity crisis and because of that NO RESALE.

I would not worry about Warranty when dealing with one of the most reliable companies in the world for returns and warranty.


Sent from my iPhone using Tapatalk

Link to comment
Share on other sites

They certainly are't pushing anything in the warranty department. 2 years with as many limitations as they could think of. I kind of doubt I'll ever buy a less than lifetime warranty frame again.
 
https://www.viathonbicycles.com/pages/warranty
 

2 years is one of the worst ones available these days.

More than the time frame, it depends upon what they do within that frame. TREK refused to warranty a defect in my frame in its first year of ownership :)




Sent from my iPhone using Tapatalk
Link to comment
Share on other sites

Walmart actually has a huge asset that other bike manufacturers don't...

They are in like Flynn with beginners.

That's their niche and they should build on it.

Walmart should develop a marketing effort that is designed to retain and build on these customers... How great would it be to hear a mature, good mtb rider say "I've been a Walmart MTBer since I was a kid."

And there is an existing sub-culture like that right at this moment.

But what it seems that Walmart has done is made the all too common marketing mistake of trying to come in at the top... And do so in a manner that is against their established brand.

Nothing wrong with coming in to the market at a particular point... But do so on the merits of your product/branding as a new, unrelated entity.

Procter and Gamble is a master at this... So many products that all seem to be from different companies. Yet all belong to P&G.

But Walmart has the $$$s to push through their initial error, and if they are commited, should figure things out in the long run.

Link to comment
Share on other sites

Walmart is big with beginners.

Walmart is selling $2-6K carbon bikes.

As always, you are disconnected to reality. Do you have any idea how long it takes to nurture a buyer from the $150 Walmart bike to a $3K carbon bike. 

They have neither the time nor the patience - the circles of the Venn diagram do not cross.

Link to comment
Share on other sites

27 minutes ago, AustinBike said:

Walmart is big with beginners.

Walmart is selling $2-6K carbon bikes.

As always, you are disconnected to reality. Do you have any idea how long it takes to nurture a buyer from the $150 Walmart bike to a $3K carbon bike. 

They have neither the time nor the patience - the circles of the Venn diagram do not cross.

 



For someone who seems successful at business, you sure have a hard time grasping simple thoughts, AustinBike.

Maybe your head's just too high up in the clouds.

Let me see if I can help dumb it down for you.

First...

Get out of here with your straw man argument... I said nothing about trying to sell $3K carbon bikes to nurtured buyers.

See that... Error #1 on your part.

Notice I said... "Walmart should develop a marketing effort that is designed to retain and build on these customers..."

See... "...develop a marketing effort..." includes everything between — meaning, bike cost — a first cheap bike purchase and a... possible... $3k bike purchase.


It really isn't rocket science. Perhaps before jumping to some wrong conclusion you could ask for clarification. It tends to work well.

Second...

Historically... Walmart has absolutely shown that they have no problem utilizing time and patience. In fact, successfully operating a business the size of Walmart requires the exercising of time and patience. On the other hand, small businesses tend to be the opposite.

As for your "...Venn diagram..."... Perhaps you need to step out of your little Venn diagram influencer's box.

Walmart builds community...

Why?

Because it's good for business.

https://corporate.walmart.com/global-responsibility/community


 

Link to comment
Share on other sites

1 hour ago, AustinBike said:

Thanks, now I remember why I had you on ignore. This is not Walmart's business model.


LOL...

I guess you understand how silly you sounded... Or maybe you think that you alone understand how business works.

As for Walmart's business model...

Here we go...

https://fourweekmba.com/walmart-business-model/

And...

https://fourweekmba.com/walmart-business-model/

Let me know if you'd like to discuss what's being said in the above linked articles.

 

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...