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TED-inspired panel yields quick-hit ideas

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Bob Margevicius talked about 'game changers'
Bicycle Leadership Conference

MONTEREY, CA (BRAIN) — With five minutes to present an idea that could make a big impact on the industry, five industry leaders took to the stage Thursday morning during a session moderated by Jenn Dice, vice president of government relations for Bikes Belong, at the Bicycle Leadership Conference. 

Here are some snippets from each presenter:  

• Bobbie Parisi, Yakima’s global vice president of brand, emphasized that suppliers must create emotional connections and elicit emotional triggers with consumers. “Product is king,” she said. “But emotion is queen.” As an industry, many companies focus too much on the competitive spirit of the sport instead of some of the basic emotions most consumers associate with riding such as fear or joy. Parisi said Yakima recently went through a rebranding process. In the rack segment, two companies hold the majority of market share and both were caught talking about the features and benefits of product. Now, Yakima has changed its brand communication with consumers to focus on how they’re using the product and how racks let them bring friends along on a riding adventure. 

• Trek president John Burke said the way for the industry to grow sales is to build more places to ride. He said the bike market grew from $3 billion in 1992 to $6 billion in 2012, and attributed the growth to the road bike boom and investment in infrastructure. The majority of Americans (60 percent) are interested in cycling but have concerns about safety, Burke argued. Most bike companies spend 97 percent of their resources on marketing and 3 percent on advocacy. “We need to shift our resources,” Burke said. He challenged the industry to triple the bike business in 13 years by investing in advocacy. “There are over 200 companies in this industry and only seven are participating in advocacy,” Burke said. “That’s why I’m optimistic that we can get to $18 billion by 2025. We have an opportunity to triple the business in 13 years, but don’t just think only the big companies make a difference.”

• Michael Morrow, CEO of Nutcase Helmets, said companies need to harness the power of creativity and its potential to bring new people into cycling. Morrow, a former Nike executive, stumbled upon the idea for a new helmet brand after fashioning a couple of football fan helmets for a rivalry game between University of Oregon and Oregon State. They got such interest that he thought he could apply that creativity and graphic freedom to bike helmets, that for the most part, all looked the same. One of his company’s top sellers is the watermelon helmet. It’s all about unique graphics and lots of customization, he said, and how cool-looking product can drive industry sales. 

• Dave Edwards, president of Primal Wear, challenged the industry to think differently about how it spends its sponsorship dollars. Primal Wear, for example, sponsors major charity events including the Tour de Cure and Bike MS. The Tour de Cure reaches some 170,000 cyclists with 187 events. It draws participation of 13,590 teams, he said. Through its Primal Gives Back program, teams that buy apparel including jerseys or jackets from Primal get 15 percent back in support of their charity or cause. Edwards said through this program, Primal Wear donated $50,482 to the BP MS 150 in Houston, which draws participation of some 78 teams. 

• Ellen Johnson, vice president of business development for Pacific Cycle, presented her “2=2” philosophy, or two miles equals two wheels. She shared how she’s personally made it a priority to bike to any place that’s within two miles of where she lives. And it’s something she always brings up with her circle of friends and family to spread the message at the local level. “This isn’t a new concept,” she admitted. But it’s something everyone could do to change America’s collective mindset about cycling. 

• Bob Margevicius, executive vice president of Specialized, identified two ideas as “game changers.” First, he said, companies need to make gratitude part of their culture. “There are two things people value more than sex and money: praise and recognition,” he said. A simple gesture such as a personal handwritten note or taking the time to give someone a pat on the back can go a long way. The second game changer are new free trade agreements that are currently in the works. Of particular interest are the Transpacific Partnership (TPP) that includes Australia, Brunei, Chile, Canada, Malaysia, New Zealand, Peru, Singapore, Vietnam, and the U.S, and TAFTA (Transatlantic Free Trade Area), a proposed free trade agreement between the U.S. and the European Union. “Both are designed to shift manufacturing from current sources to others in the world,” Margevicius said. “Watch the developments on these. These bilateral trade agreements can really help us grow this business.”

 

 

 

 


The GRID Mini roller for travel

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The GRID Mini roller

AUSTIN, TX (BRAIN) — Trigger Point Performance has added to its line of personal foam rollers with the launch of the GRID Mini. The roller is 5 inches tall by 5.5 inches in diameter, with the same 3-dimensional surface as the full size original GRID roller. The new size is intended for travel and easy transport to the gym.

The GRID family of products has "Matrix of Distrodensity Zones" that are claimed to allow for blood and oxygen to flow through the muscle to increase circulation and create elasticity to deliver a targeted massage.

The GRID Mini made its public debut last month at the IHRSA Fitness Tradeshow in Las Vegas and became available available online and at select retailers April 12.

MSRP is $24.99. For more information contact sales coordinator Anna Hughes at anna.hughes@tptherapy.com or visit www.tptherapy.com/gridmini.

Sea Otter sampler

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Yeti's ARC Carbon

MONTEREY, CA (BRAIN) — Confession time: We got out to the Otter a bit late, having committed ourselves to the Bicycle Leadership Conference and IBD Summit in Monterey through Thursday night. Still, there was plenty to discover when we roamed the dusty but thankfully sunny lanes of Laguna Seca on Friday. A smattering of what we saw:

Yeti

Even though Yeti spilled the dirt on its two new rigs via email early Thursday before the sun had a chance to shine down on Sea Otter’s second day Friday, the bikes were still something to behold in person.

The SB-95 Carbon 29er trail bike tips the scales a full two pounds lighter than its already well-reviewed aluminum counterpart. It also retains its predecessor’s slack-for-big-hoops 69-degree head angle, stable-pedaling Switch Link suspension that changes direction mid-stroke, and low BB height.

It comes as either a frameset or a complete with three build options.

Yeti also introduced its ARC Carbon cross-country and enduro hardtail. Like most of the company’s bikes, the ARC Carbon is designed to perform in the rocky conditions Yeti’s employees ride near their factory in Golden, Colorado, said spokesman Mark Riedy.

It’s light at far less than 3 pounds, but this is no twitchy race rocket: A120-millimeter fork yields a 69-degree head angle, and the frame has internal routing for dropper posts.

It rolls on 29-inch wheels in all sizes except small and extra-small, which take 650b hoops. Nice nod to short-statured guys and gals.

 

KS Suspension

Building on the success of glowing reviews for its LEV all-mountain and enduro dropper seatpost, KS showed a prototype of its stunningly light LEV Carbon. Like the original LEV, the actuating cable connects at the base of the post, so there’s no cable growth when triggered at the handlebar lever.

The hope is that the 325-gram post—200 grams lighter than its predecessor—will open up the dropper market to cross-country and cyclocross racers, said KS’s Rick Taylor. “You’re really getting down to the weight of a static post at that point,” he said.

That lower weight is achieved by fabricating the outer post, lower seat clamp and coupler housing out of carbon fiber. The internal slider and upper clamp are aluminum. The setup gets a little bling with a carbon lever attached to an aluminum clamp at the handlebar.

Maximum drop is 65 millimeters, compared with up to 150 mil for the regular LEV—just enough to inspire confidence on XC course descents or help cyclocross racers with their on/off the bike. In fact, the prototype post has seen substantial saddle time under pro Brian Lopes on the ’cross circuit, Taylor noted.

The LEV Carbon should be available to dealers around the time of Interbike in September, with MSRP about $600, Taylor said. … Yep, that’s far and away a new high for a company already topping the dropper price range with the $400 standard LEV.

KS is also bringing its internally routed LEV Integra to the aftermarket. With 100 to 150 millimeters of infinitely adjustable drop, the post has fewer setup and maintenance headaches thanks to its cable-pull—rather than hydraulic—design for frames with  internal routing, Taylor said. It fits 30.9- and 31.6-millimeter seat tubes and tips the scales at 500 to 570 grams.

 

Raleigh

Raleigh lightens the load for cyclocross racers both on the course and in the back pocket with its 2014 lineup unveiled in Monterey.

The entry-leval RX 1.0, available in versions including a women’s design down to a size 48, features a lighter 6061 aluminum tube set, tapered headtube and seat tube, new proprietary Raleigh carbon fork, and SRAM Apex build. MSRP for both women’s and men’s versions comes in at $1,550.

The five-bike ’cross range for 2014 maxes out at $5,000—$2,000 less than the top of the 2013 line—for the carbon RXC Pro Disc race bike, kitted out with Ultegra Di2, Shimano CX75 disc brakes, Enve carbon fork and American Classic disc wheelset with custom graphics.

The full lineup should be available to dealers by June.

 

Kali Protectives

Up-and-coming helmet brand Kali let the bike media get their hands on three new developing brain savers.

Kali has its roots in the gravity market with its in-molded designs—a first for full-face helmets—and low-density foam that reduces weight but still disperses impacts to the dome thanks to triangular cones embedded under the shell.

The still-proprietary Shiva lid brings in new composite technology to shave weight down to a target of fewer than 1,000 grams and delivers a slimmer profile around the head—all while still being a DOT-certified bucket for motorcycle duty, too. Target MSRP; $400-plus.

Kali also showed its upcoming Phenom road model, first unveiled at last summer’s PressCamp but ready to hit the market in the next two to three months. It’s Kali’s sleekest road lid yet, and features a low-profile dial retention system and the company’s distinctive Bumper Fit padding.

Kali’s Supervents—PVC-like structures around broad vents to disperse impacts—not only go on the front of the Phenom, but on the back as well to improve air flow as well as protection. MSRP is targeted at around $180.

“Loka” means “everyone” in Sanskrit. So it makes sense that it’s the name of the first sub-$100 helmet to make Kali’s Bumper Fit tech available to a broader customer base. Bumper Fit is a thin layer of cush like Memory Foam that molds to the head to improve fit. The road lid is set to hit market at $99.

 Yeti ARC CarbonYeti SB95 Carbon

Boston stores re-open after arrest

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BOSTON, MA (BRAIN) — Retailers in the Boston area were able to re-open Saturday, after authorities lifted a "shelter in place" order that was in effect during a manhunt for a suspect in Monday's Boston Marathon bombing. The order was lifted late Friday, several hours before the suspect was arrested in Watertown, Massachusetts.

Tom Henry, co-founder of the Boston-area retail chain Landry's, posted a note on the stores' website Saturday:

I know that all of us are feeling relief this morning, and it is with gratitude and joy that I announce that all Landry’s stores will be open today.  As members of the Landry’s community and of the wider Boston and Massachusetts community, as we work through our feelings of relief, joy, and pride as well as our feelings of pain, anger and grief, let’s open wide our doors and our hearts and celebrate, among other gifts today, the gift of better bicycling for a better world!  As we return step by step to some sense of normal life, please let me know what we can do to help.   

With gratitude for peace,

Tom Landry

Artisans’ Custom Bicycle Expo

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Start:August 22, 2013
End:August 23, 2013
Location: Vail Cascade Resort & Spa, Vail, Colorado

Located at the Vail Cascade Report & Spa, the 2013 Artisans’ Custom Bicycle Expo will feature custom bicycle builders showing off their finest work. Whatever the materials, whatever the methods, if the bicycles are designed and built custom to their riders then they will be on display at the Artisans’ Custom Bicycle Expo.Race fans will be happy to know that stage 4 of the USA Pro Cycling Challenge will finish in Beaver Creek just minutes away from the expo, and Stage 5 will feature the pro peloton rolling out of the start gate for the individual time trial just steps away from the expo in Vail Village. Bus and shuttle service covering the entire Vail Valley will be available for convenient, bicycle-friendly travel between the race and expo.Tickets will available on site, or for a discounted price online with pre-registration. 

Snow and flooding slows start of retail season

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Suppliers offer discounts as inventory builds and 2014 models approach

BOULDER, CO (BRAIN) — Snow in the Northeast and the Rockies—even in Phoenix—along with rain and flooding in the Midwest have created late-winter challenges for bike retailers and their suppliers.

Cycling-crazy Boulder has received 48 inches of snow so far in April, breaking a record set in 1957. While the early part of the winter was dry, the late snows have brought sales to a halt, said Brandon Dwight, owner of the two-store Boulder Cycle Sport chain.

"The weather is killing us. Nobody is out riding," Dwight said Tuesday. "We've been lucky the weekends have been fairly mild so people have been getting out, but during the week nobody has been coming in for test rides or to pick up an energy bar and an inner tube, and that hurts."

See related story:"Supplier sales continue decline in Q1"

March was particularly difficult compared with last year, when Colorado riders enjoyed sunshine and 70-degree-plus days, Dwight said.

The Northeast has had a similar pattern, with a warm start to the winter followed by a tough March and April. Charlie McCorkell, owner of New York City's Bicycle Habitat chain, said a few warm and sunny days recently have made him optimistic about the rest of the season.

'We are farmers.'— NBDA's Fred Clements

"I'm very optimistic about it. I think every time the sun has shone, we've done really, really well. We're getting absolutely killed on days of sunshine and over 55 degrees. [Wednesday] is supposed to be 75, and if we get that through the weekend, we'll have a really good end of April," he said.

Besides the weather, retailers have other concerns this year. Major new product introductions are on the way in the high-end road market, with SRAM adding an 11th cog to its Red group and introducing hydraulic disc and rim brake options. Shimano is also widely expected to release an updated Ultegra group soon, along with road disc options.

McCorkell said the expected upcoming changes have contributed to a soft market for high-end road bikes.

"That's gonna knock down everything in the $4,000 range. People are going to watch and wait to see what is coming," he said.

The poor selling conditions in many parts of the country have contributed to high inventory levels at retail and wholesale levels. As a result, some vendors are offering promotions to move inventory before the 2014 model year bikes begin arriving, as early as next month.

Raleigh, Specialized and Trek have all offered promotions on high-end carbon road models. A Specialized promotion, originally set to end Sunday, has been extended through the end of May. And Specialized added a new bike to the promotion: the (10-speed) SRAM-Red equipped Tarmac Pro.

NBDA president Fred Clements said he has heard of retailers who say sales are off 60 percent this year compared with last. That's a problematic comparison because 2012 had an unusually warm first quarter in most U.S. regions.

"When you are off by 60 percent, that is scary. Even though this year may be comparable to previous years, it looks really bad compared to last year," he said. By most accounts, last year's sales were simply shifted earlier in the year and most retailers finished the year off within single digits of 2011, Clements said.

"We are farmers," Clements said, referring to bike retail. "We plant seeds by buying inventory, and then we hope for sun to make it grow. We live or die by the weather."

 

Giant Canada supports Sprockids program

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Doug Detwiller with a new Giant bike

NORTH VANCOUVER, BC (BRAIN) — Giant Bicycle Canada is supporting Sprockids, a youth mountain biking skills and leadership training program.

Doug Detwiller started Sprockids over two decades ago as a club of 50 elementary school children in Gibsons, British Columbia. Since then the program has gained international recognition and involved thousands of young lives in 19 countries. 

“We are thrilled by the opportunity to partner with Doug and his Sprockids program. Now more than ever, it is vital to get youth involved in sport and physical activity,” said Paul Nash, deputy general manager of Giant Bicycles Canada. “We at Giant are passionate about cycling and so is Doug. It’s a perfect fit.” 

Giant Canada will help Detwiller update the entire Sprockids package for today’s youth. 

“I am extremely excited and humbled to be working with a team of incredibly talented, energetic, and creative individuals who are totally dedicated to this project. The Giant/Sprockids Team is going to truly bring mountain biking into the mainstream and bring play back into today’s generation," said Detwiller. 

The collaboration will allow the Sprockids program to gain a larger reach across the country through Giant’s retailers. All Giant dealers will be provided with resources to launch the Sprockids program. The Sprockids brand will be featured on every kid’s bike sold and all Sprockids participants will receive a membership card, which will be valid for a discount at any Giant authorized dealer.

“Even though this is our first time working with Sprockids in an official capacity, we are very familiar with Doug and his vision,” said Nash. “In fact, Giant Canada has even sponsored professional riders that got their start in cycling through Sprockids. That just indicates how relevant this program is. ” 

More information: www.sprockids.com 

 

Supplier sales continue downward trend through Q1

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MONTEREY, CA (BRAIN) — Supplier sales were down double digits through the first quarter as unseasonably cold and snowy weather continued to hammer many parts of the country in March, according to the BPSA Topline for Cycling RetailTRAK from Leisure Trends released Tuesday. 

In March, supplier sell-in to IBDs was down 15.5 percent in dollars and 22 percent in units compared with an unseasonably warm March 2012. That continued the downward trend in sales in the first quarter, with supplier sales down 13 percent in dollars and 19.5 percent in units through March compared with last year.

See related story: "Snow and flooding slows season's start."

All categories were down in March except for dual-suspension 29-inch mountain bikes, which were up 21 percent in dollars and 58 percent in units. 

Preliminary March sell-through data at retail indicated that particularly difficult comparisons with last year and cold weather continued to negatively affect early season sales. Compared with March 2012, IBD dollars fell 23 percent for the month.

But this is not the time to panic, said Michael Forte, director of operations for Felt Bicycles, speaking on an industry statistics panel at the Bicycle Leadership Conference last week.

“Weather is affecting things on a regional basis. There is no reason to suspect we’re going to go backwards,” he said, referencing historic data. “It’s actually the slowest start since 2010. But if you look at full-year sales, 2010 — the year with worst start — was the best year of the past three years. There is a chance to make this up. All is not lost because of a slow January and February.”

“You don’t have to panic because you know we’re going to sell between 2.5 and 2.6 million units,” joked Chris Speyer, chief operating officer of Accell North America, referencing historically consistent industry sales numbers. Last year, suppliers sold just shy of 2.6 million bicycles.

Still, Speyer noted that inventory is a concern. The latest numbers for March show that suppliers are sitting on inventory up 40 percent in dollars and 46 percent in units compared with the same month last year. 

“In 2013 we all know there’s been a few challenging months, and I think we’re into a period of inventory build. One of the stories we’re going to be watching is the inventory number, which will be really crucial in terms of planning,” said Speyer.

Speyer said 85 percent of companies currently participate in the BPSA program, but that is still not enough to get comprehensive data. He urged companies that are not reporting, particularly in the underrepresented cruiser and BMX categories, to get involved.

“With the planning we have to do in this business, how we can not participate to plan our business is a total mystery to me,” Speyer said.


Clif Bar & Co. names Kevin Cleary CEO

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Cleary, center, with owners Gary Erickson and Kit Crawford


EMERYVILLE, CA (BRAIN) — Clif Bar & Company has named Kevin Cleary, currently president and COO, to the position of chief executive officer. In his new role, Cleary will focus on expanding Clif Bar’s growth in the sports nutrition and healthy snacks category while continuing to lead the company’s day-to-day business operations.

Owners Gary Erickson and Kit Crawford will continue as co-chairs of the company’s board of directors.

“Kevin’s talent for leadership and passion for a sustainable business model is evident by our tremendous business growth. To date, Kevin has expanded Clif Bar’s national and international distribution while directing the rapid expansion of the company’s portfolio of on-the-go snacks,” said Erickson.

“With a passion for people engagement and environmental and social responsibility, Kevin has increased the use of organic and certified sustainable ingredients in our products to new levels,” said Crawford.

Cleary, a San Francisco Bay Area native, joined Clif Bar in 2004 as executive vice president of sales. In 2006, he was promoted to COO, and in 2009 he was promoted to president and COO.

Showers Pass opens U.K. sales office

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Showers Pass U.K. managing director Fraser Ranson

PORTLAND, OR (BRAIN) — Portland-based clothing brand Showers Pass is opening a sales office in the United Kingdom next month.

Based in South Shields, Tyne and Wear, the Showers Pass U.K. headquarters will open for business May 16 and will introduce the company's full product line to the U.K.

“We’ve been building a strong, loyal and fast growing following of online customers in Europe for a number of years now,” said Showers Pass CEO Kyle Ranson. “But it’s time to really put the rubber to the road in the U.K. and bring our brand and full range of performance jackets, pants, gloves and other accessories to cyclists and active outdoor enthusiasts who don't like to let the weather stop them.”

Originally from South Shields, Ranson will continue to manage Showers Pass business in the United States, while his brother, Fraser Ranson, joins the company as head of U.K. operations.

The company is also developing retailer support programs, and staff training for U.K. retailers.

“It doesn’t matter whether you live in the North of England or the Pacific Northwest of the United States,” said Fraser Ranson, Managing Director, Showers Pass UK. “Rain, sleet, snow and mud are there to slow you down and get in the way of your ride. We’ve spent years finding the fabrics, technology and treatments to shortcut that and tested them on the roads and mountains of Portland, Oregon. We’re thrilled to launch in the UK and it’s going to be an incredible sales year for Showers Pass.”

De Marchi offers replica jersey series

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The 1951 Wilier replica jersey

SAN VENDEMIANO, Italy (BRAIN) — De Marchi is introducing a line of historical jersey reproductions from cycling's golden age.

The limited edition series features jerseys that were originally manufactured by the Italian clothing brand, which has been designing and manufacturing clothing in Italy since 1946.

The reproductions are made in Italy with a slim fit and feature 100 percent merino wool construction, Cornerly-type embroidery and three back pockets. The jerseys also have e nickel-free YKK vintage zippers and real mother of pearl buttons.

The replica jerseys include the 1967 Mainetti worn by Marino Basso, the 1969 SCIC worn by Vittorio Adorni, the 1972 baby blue Salvararni worn by Felice Gimondi, and the 1975 Filotex worn by Francesco Moser.

Reproductions of older team jerseys include two front pockets. Those include the 1951 Wilier jersey worn by Antonio Bevilacqua and the 1949 Atala worn by Luison Bobet. Also found in the series are the replica jerseys of Belgium, Ireland, France, Italy.

The jerseys retail for $199 each.

DeMarchi products are distributed in the U.S. through Bicycle Technologies International, www.bti-usa.com; (800) 558-8324.

April 1, 2013

April 15, 2013

Serfas Lights: How We Test

From the mag: Power to the people

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From the April 1 issue of BRAIN

BOULDER, CO (BRAIN) — Training with power remains one of the most elite market niches in cycling: so expensive that even some ProTour teams limit their riders’ access to power meters, keeping them under lock and key and lending them out for limited tests. In the retail marketplace, few parts categories, except perhaps carbon wheels, have as high an average price as power meters, which until recently started at roughly $1,000.

Nevertheless, sales of power training equipment—including the various meters and related computer head units and software—have been doubling or tripling in recent years, according to suppliers and industry data. And the trend is set to continue with new, lower-priced hardware and easier-to-use software hitting the market this year.

“This will be a big year, but for us it’s always a big year,” said Jesse Bartholomew, CycleOps category manager for Saris. “We’ve grown every year [we’ve been in the power market], and that won’t change.”

CycleOps’ PowerTap hubs and wheels, which start at about $800 for a hub, have become market mainstays, even as other suppliers promise lower-priced options, some of which have never materialized.

“The power meter market has almost become synonymous with vaporware,” Bartholomew said. “A lot of consumers have been in the position of waiting for things to become available, and that kind of affects the whole category negatively. Luckily we haven’t had to play that game and we’ve been able to focus on delivering our product and making it better and more durable all the time.”

Compared with 2011, sales of power meters at IBDs jumped 166 percent in units and 91 percent in dollars to reach an impressive $5.1 million last year, according to figures from Leisure Trends Group and the Bicycle Product Suppliers Association.

However, last year a combination of previous-generation items being discounted and more lower-priced models being sold contributed to a 28 percent drop in average retail selling prices, Leisure Trends and the BPSA reported.

New hardware and software

This season at least one competitor is delivering perhaps CycleOps’ biggest competitor yet. The Stages Cycling power meter, which is attached to a bike’s left crankarm, hits the lowest price of any power measuring unit, starting at $700 for the meter attached to a Shimano 105 arm. (Other companies offer products that take a stab at calculating power indirectly and sell for less, including CycleOps’ PowerCal chest strap and iBike’s Newton computer.) 

Besides being cheaper than the PowerTap wheels and other options, the Stages meter is the lightest on the market at 30 grams, and allows riders to use their preferred wheels. The Stages meter does limit crank selection to aluminum arms from Cannondale, SRAM and Shimano. 

Besides the Stages unit, other new power meters are promised from Garmin and consumer electronics maker Pioneer, who are each promising pedal-based systems. SRAM’s Quarq division and crankset maker Rotor continue to develop and deliver lower-priced crank-based systems, while Polar and Look continue to market a pedal-based system.

The new players and the competition are sure to drive down the cost of meters. But another factor is set to reduce the barrier to entry for athletes looking to measure their watts: the smartphone. 

Newer models of the iPhone and some Android phones have a new version of the Bluetooth wireless protocol built in, called Bluetooth Smart or Bluetooth 4.0. Newer power meters will soon be able to talk directly to those phones, eliminating the need for a head unit like the Garmin Edge or CycleOps Joule models, and lowering the cost barrier for power training by several hundred dollars.

Soon, cyclists who own compatible phones will be able to use them to display and record power data. If they don’t want to put phones on their handlebars, they can use the Wahoo RFLKT computer, which relays data from phone apps to the bars and sells for considerably less than other head units. 

Where’s the dealer in all this?

The Leisure Trends/BPSA figures cited earlier are for U.S. IBD sales. The market is likely much larger when consumer-direct, online and coaching sales are considered. Power training-related markets for coaching software, apps and even coaching services are generally sold outside the IBD, as well.  

Though potential power meter consumers are a desirable, high-dollar customer, reaching them requires an educated dealer, Batholomew said.

“They need to get smart; for better or worse, the power meter market is complicated and you are dealing with a customer who is extremely passionate and dedicated to his sport and achieving a goal, and who has invested a lot of time and effort and money in achieving that goal,” he said.

“Consumers are doing their homework, and some are walking into shops expecting to have a meaningful conversation about using these things, like they would about buying a bike. And they aren’t finding anyone there to talk to.”

CycleOps is trying to close that gap with dealer education, he said.

The PowerTap opens the door for dealer sales of wheelbuilding, tire, cassette and head-unit sales. And Trek, a PowerTap distributor, has offered PowerTap options as part of its Project One custom bike program. 

Meanwhile, crank-based power meter systems like the Quarq, Rotor and SRM meters require compatibility and installation knowledge that is beyond many consumers’ ability.

Stages sees a big role for the IBD in the selling of its new product. Besides offering “ample” dealer margins and restricting online sales to its own site, the company has a novel crankarm trade-in program that reduces the cost of adding a Stages meter to a new bike.

The program allows pre-authorized dealers to return unused left crankarms to Stages for a credit, which can reduce the cost of adding a Stages unit by $100 or more, depending on the dealer’s discretion. Stages managers also point out the program is good for the environment and prevents the creation of left crankarm stashes in shops around the world.


ECF awards grants to 6 national advocacy groups

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BRUSSELS, Belgium (BRAIN) — The European Cycling Federation’s Cycling Industry Club has announced six grant recipients for 2013 as part of its Leadership Program.

The six organizations selected for grants, in Italy, Austria, Sweden, Ukraine, Ireland and the Czech Republic, are building cycling advocacy programs in their respective countries. 

The Cycling Industry Club is spending about €100,000 ($130,000) this year on the grants, along with other support measures, said Kevin Mayne, the federation’s development director.

The 2013 recipients are FIAB, the Federazione Italiana Amici della Bicicletta, Italy; AVK, Kyiv Cyclists’ Association, Ukraine; Czech Environmental Partnership Foundation (Nadace Partnerství), Czech Republic; Radlobby Österreich, Austria; Cyclists.ie, Ireland; and Cyckelframjandet, The Cycling Promotion, Sweden. 

The ECF underwrote pilot projects last year in Italy and Ukraine with the help of an investment from the SRAM Cycling Fund. The organization has set a goal of fostering the creating of “professional, influential and sustainable cycling organizations” in a majority of EU and neighboring countries by the year 2020.

The Cycling Industry Club was founded at the 2011 Eurobike show with the leaders of several big suppliers, and aims to tap in to billions of euros of government funding for new cycling infrastructure throughout Europe. 

Ukraine’s AVK, for example, is the sole advocacy voice for transport and tourism cycling in a country of 46 million, while the Radlobby Österreich was created from the merger of several separate cyclist groups and are looking to maximize their national impact as a unified group.

For Sweden’s Cycling Promotion project, a small grant leverages “significant funds” from the Dutch Embassy to bring cycling expertise to Sweden. In Ireland, Cyclists.ie is looking to replicate their successful Dublin campaign — where cycling is booming — in other parts of the country.

Nikwax Basefresh

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SEATTLE, WA (BRAIN) — Nikwax's Basefresh is a detergent/conditioner for synethetic activewear. It deodorizes, inhibits the build-up of body odors, accelerates drying and improves the cooloing efficiency of base layers. 

It is designed to be used in conjunction with regular laundry detergent with regular loads of laundry. 

MSRP: $7.50 for a 10-ounce bottle. $17.99 for 33.8 ounces.

More information: www.nikwax-usa.com/en-us/trade/

Strava added to USA Cycling athlete pages

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COLORADO SPRINGS, CO (BRAIN) — USA Cycling athletes can now add information from their Strava account to their member page on the USA Cycling website. Athlete pages on the USAC site already list race results, but now members can add a Strava "widget" that will show their training stats and achievements.

“USA Cycling is at the heart of competitive cycling in the U.S., so the link with Strava is a natural fit," said USA Cycling president and CEO Steve Johnson. “We're very excited about this new partnership, as Strava brings a new dimension to our sport by enabling cyclists across any discipline to track their performance and share accomplishments with friends. Ultimately, bringing USA Cycling members together in the Strava community is a great way to grow bicycle racing.”

USA Cycling members can now log in to their page on the USA Cycling site to link their USAC account with their Strava account. 

From the mag: Standards overload

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From the April 1 issue of BRAIN

By Adam Vincent

MORRISVILLE, PA—There’s a technology race going on in the bicycle industry, and it’s leaving retailers in a scramble to keep up. Frame and component makers have introduced a slew of new axle, bottom bracket and fork interfaces in the past few years as they aim to get a leg up on the competition.  

While the new technology is good PR for bike and component brands, retailers are left wondering how to keep up with servicing and stocking the dozens of different “standards” being shoved down their throats.

The myriad choices have put Ed Preston, owner of Bike King in Morrisville, Pennsylvania, in a grouchy mood. 

“They all want to be at the forefront of the ‘latest and greatest.’ Unfortunately, we the retailers are stuck in the middle in the battle for market share. There are different adapters for Shimano of Campy; that crank has to be used with that bike, or not at all.” 

Preston’s concern is a valid one. Gone are the simple days of picking a group with a thread-in BB to fit either Campy, Shimano or SRAM cranks. Now there are press-fit 86-millimeter bottom brackets, press-fit 92-millimeter bottom brackets, BB30, BB386, BBRight, OSBB and more. 

Mountain frames also have different axle standards—9 x 135-millimeter skewer, 10 x 135-millimeter skewer and 12 x 142-millimeter threaded skewer. 

The biggest problem with all of the competing standards is the seemingly insurmountable challenge when it comes to stocking all the compatible parts and tools to work on them.

“Our lives would be easier if the industry could collectively decide on standards,” said Chris Padavana, owner of Eden Bicycles in Castro Valley, California. “This would help us with inventory control, increasing our bottom line.” 

Preston points out that the increased SKU count adds to his inventory costs. He also has to invest in new tools to install and maintain the parts. 

“With margins thinning every year, it is one more thing you have to juggle,” he said. “You have to figure out where those five points you lost are going to be regained.”

Most retailers don’t stock all the parts necessary to keep up in the technology race and are stuck playing the “we can order that for you” game. The scenario is a common one for retailers. And while they can get the parts quickly, often the sale is lost once the customer walks out the door.

“Most of the bikes we carry have a lot of the same standards,” said Brent Forrer, service manager at Spin Bike Shop in Lakewood, Ohio. “But if we have to order something we can. We order twice a week from QBP, so we can get parts in a day or two.”

Forrer remains upbeat about the diversity of parts, however. 

“It’s up to us as retailers to know about the compatibility issues and advise the customer accordingly. As long as we really know what they need, the customer doesn’t need to worry about those details. As soon as you explain the benefits to the customer, they usually get on board. It goes back to the sales and service teams staying informed.”

Eden Bicycles’ mechanics spend a fair amount of time researching and training on the new components. “They have to spend more time investigating and that is time we can’t factor into our pricing of a repair job. It’s money lost,” Padavana said.

Preston has seen it all with decades on the job. “It is becoming more and more difficult. We have gone through 15 different new BB standards in the last 10 years, all in the name of ‘industry standard.’ The funny part is, we still have no standard. And it is tough to embrace something you know is going to change in the next model year. Sometimes I long for the simple square-taper spindle,” Preston said.

And the speed of technological change only continues to increase. Manufacturers will always look for the latest and greatest to keep their product lines fresh in the minds of consumers. Retailers will continue to adapt, though perhaps begrudgingly.

“The excitement of new and innovative products being introduced is great. I got into this business because I love bikes. But from a business perspective, it’s a challenge to keep everything straight with new products plus the current inventory on hand. It’s getting harder and harder to keep the bottom line positive and keep the brick-and-mortar retailer looking good in the eyes of the consumer,” Padavana said.

Mavic parent Amer Sports posts Q1 results

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HELSINKI, Finland (BRAIN) — Mavic parent Amer Sports reported a 2 percent increase in sales for the first quarter on Thursday, and said it expected full-year sales to rise by at least 5 percent.

For Amer’s Mavic cycling brand, sales rose slightly to $47.6 million (36.6 million euros), with the company reporting that sales of helmets and footwear continued to grow. Cycling accounted for 6 percent of Amer’s total sales last year.

“The first quarter is typically a low quarter for Amer Sports, and we are still seeing a shift from pre-order based sales toward re-orders in several of our categories,” Heikki Takala, president and CEO, said in a statement. “Whilst the external conditions remain challenging we remain well in line with our growth and profitability improvement targets with a positive full year outlook.”

Net sales for the total company reached 493 million euros for the quarter. Strongest performing categories were apparel, up 25 percent; fitness, up 6 percent; and sports equipment, up 4 percent. Net profit was 14.8 million euros, compared with 18.8 million euros for the same quarter of 2012. Earnings per share were 13 euro cents, compared with 15 euro cents for the comparable quarter.

Sales to Russia and China saw double-digit growth. The company said Europe continues to be a challenging market. Amer plans to focus on growing apparel sales and tapping into its “solid innovation pipeline” for future products.

Also today, Amer announced plans to buy back up to 1 million shares during 2013.

Along with Mavic, the Finnish sporting goods conglomerate owns brands in winter sports, footwear, apparel, ball sports and fitness, including Salomon, Atomic, Arc’teryx, Suunto and Precor.

In trading Thursday, Amer shares rose 1.5 percent to 12.94 euros on the Helsinki stock exchange.

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