The Conventional Way
Traditionally, in the bicycle world, bikes would be sold through two common channels:
Local Bicycle Shops, and
Big Box Stores (e.g. Target)
However, while these channels work quite well for traditional bikes, electric bicycles’ distribution haven’t been particularly successful through either of them.
There are a number of reasons for this.
For most of the big box stores, electric bikes are not a good fit because of their price and complexity. Their staff can be ill-equipped to handle any service issues down the line and their typical consumer may not be willing to spend $2,000 on this sort of a product.
For traditional shops, we’ve found that a lot of the local bike shops shy away from electrics. Sometimes, it could be cultural – the folks who start bike shops may feel that if it’s not 100% purely human powered, it doesn’t belong there. Sometimes, it can be caused by unfamiliarity with the technology and being concerned about additional liability. Or it could be as simple as that there are not as many inquiries for such e-bikes to justify a shop’s owner to investigate it further.
When we started EVELO, our initial approach was similar – to explore relationships with local shops and establish a distribution network throughout the country. However, about a year, we began to notice that the growth using this method was slow. We’ve had some wonderful dealers onboard, but it would be an uphill battle to recruit each one and the volume was just not that high.
Merging Ideas to Come Up with a New Approach
Since the very beginning, we would sell direct to consumer and through a network of dealers.
So, since the dealer strategy wasn’t working, we decided to explore the 2 fundamental issues that customers would have that would prevent them from buying online: where to test-ride the bike prior to purchase and where to service the bike if there are issues down the line.
We’ve addressed each of these issues, although I’ll focus on the 2nd one in a separate blog post.
To enable people to do test-rides before making a decision about their bike, we’ve started and expanded something called the Ambassador Program. Many of our customers would report to us that they occasionally get stopped and asked questions on the street while riding by other people who are interested in an electric bike. So that gave us an idea.
What if we were able to systematically connect potential customers with existing EVELO customers in their area for a test-ride and honest feedback.
From the potential prospect’s perspective, I think that many of us, myself included, are typically curious in other people’s experience with a particular product we’re considering buying. It’s no coincidence that we’ll usually go to Amazon to check reviews before making any product purchase. And although we can read about it or talk to a salesperson, we typically go online to read user reviews to see what actual users think.
From the Ambassador’s perspective – for those folks who are really enthusiastic about electric bike technology – it’s a way to share their enthusiasm with other people in their community, and earn an income along the way.
For us, we facilitate the process and essentially enable any potential user to talk in-person (or over the phone) to an existing EVELO customer, who has signed up to be an Ambassador. When they meet for a test ride, which can typically last anywhere from 20 to 60 minutes, it’s unfiltered dialogue and honest feedback – which only gives us more and more incentive to ensure that our customers are happy with the product and service they receive.
After the meet, if the potential customer decided to move forward with the purchase, they can order directly from us and we’ll ship a 95% assembled bike directly to their door. The Ambassador, in turn, receives a modest “thank you” payment from us for their time.
What have we learned so far – the Pros and Cons:
The Pros:
The Ambassador Program is still fairly new, but we’ve been able to bring over 200 Ambassadors on-board already and growing quickly. If all goes well, by the end of 2015, we should be close to up to 400 or more. That means over 400 locations around the U.S. and Canada where people can demo EVELO bikes in person. This is much faster growth than we’d be able to achieve with dealer distribution only.
Ambassadors are also becoming the core of the EVELO community around the country. These folks join the program not just because they are enthusiastic about the product, but because they also see potential for electric bikes in their community and want to help grow it. We hold monthly Ambassador webinars – for both new and existing ones – and learn a ton every time.
Enables us to keep the product cost lower. When working through a dealer, there is typically a 35% to 40% mark up associated with selling a bike through the store. That is completely understandable, as the dealer does add quite a bit of value – especially if they can show you differ