Tuesday, February 26, 2008

Consequences of one choice affect many others.

Good story, from "Mountain Bike Like a Champion" by Ned Overend.

A classic epic ride from my hometown of Durango in Colorado is called the Kennebec Pass loop. You head out of town and into La Plata Canyon before climbing to the top of the 13,000-foot pass. From there, you can get on the Colorado Trail. It's a spectacular ride with a ton of climbing. Depending on your pace, it will take you between 6 and 10 hours to get out and back. Or it could take a couple of days. People get lost up there all the time. Several trails intersect, so it gets disorienting. The big mistake is turning away from Du­rango and dropping in on the wrong side of the divide. Once people realize their mis­take, it takes a major effort to ride back up again. There's no way to get home before sundown.
One day, the search-and-rescue guys asked me to help them get two riders out. They wanted me to show them the area where people take the wrong trail. I drove part of the way up the pass, and then got into a helicopter.
It was a super windy day. At that altitude, the helicopter didn't have much power. We climbed toward a notch in the mountain, and everything seemed fine until we hit a downdraft. I could feel the chopper sinking. I could also see the pilot sweating. He fought with the stick as we jerked all over the sky. He couldn't turn around, because we would lose momentum and then really sink. We were so scared. I've never felt that helpless. Just as we were being pushed into the ridge, the downdraft eased and we made it over. When we finally landed, the co-pilot got out and immediately threw up.
Be responsible on epic rides. If you get lost or have a major problem far from the nearest help, you're not only putting your own safety at risk but you're also en­dangering everyone who tries to find you.


Many riders think that they're out for a "short ride", or "I'm in cell phone range" so they skip the basics of safety. When they get nailed by dehydration, or a flat tire in the middle of no-where the problem gets shifted to others. Their choices can affect many others, so let's make sure we spread that understanding.

Wednesday, February 13, 2008

Showcase and Repair Parts Ordering?

Back in early 2005 no one was coordinating our parts orders. Some stores were just ordering whatever they needed. Both situations needed improvement. Each store was doing the work that we already had a buyer doing. Although market specialization is a good thing, it means we had 45+ buyers doing a job inefficiently. We have a corporate buyer, an E3 analyst and our E3 system to keep the stores supplied with essential parts. Rick Stryker volunteered to step in, and coordinate the orders for a few months. He set up a system of ordering that simplified the process to something that’d make sense to all of our distributors and speed invoice processing in our Accounting Dept. That was rolled out to all stores in August 2005.

The process worked well enough that it has continued to this day. It also grew, and Rick was eventually returned to the position of Bicycle Training Coordinator. The coordinator(s) for those orders are now Tom Connell and Aaron Dunn, who are our Fitness and Bicycle Buying Team. However, we still have too many people doing "buying". If you consider it fully, each store is still forming repetitive orders for repair and showcase parts. Those who are doing an excellent job are still only affecting their individual stores, which is a waste of good work and intelligence.

We have three types of orders in the Bike Dept.
1. Repair parts- these are things that are used in the process of normal repairs. Cable housing, tubes, chains, etc. If communicated to the buyers, these items should be coming into your store by way of our E3 system. It is far more efficient to have these items on-hand in our warehouse, and send ‘em out on the next truck.
2. Showcase parts- this category of parts is used to attract customers, and show the range of service that we are doing. These parts may also be “cutting edge” or used to grow a category of bike sales/customers.
3. Special order items- sometimes you have to order something in for a customer. We currently have to dance around some distributor “minimum order” amounts, but those orders are still being processed well.

Here’s the plan for orders in the future:
1. Repair parts- No one goes from zero tune ups a month to 60, so your rate-of-sales on all parts would change over a month, instead of a day. These parts are tracked and reordered thru E3 now. The parts that E3 orders and stocks will need to be increased in their range and depth, but this is something we are likely changing now. Shop Personnel time should not be spent generating orders for basic items that ALL stores are ordering. Future state: Repair parts are automatically ordered by way of E3 and tuned to your store's range of customers by communication with the buyers and E3 analysts.
2. Showcase parts- we demonstrate our expertise by ordering parts that are compatible and interesting to our customers. We can and should be relying on the buyers and E3 system more, by communication of hot new products and customer interest/demand for products that we don’t stock yet. Example: if stores begin consistently sending in organized “Top 10 items to add” and “Bottom 10 items to lose” emails we will manage our inventory across 50+ stores in a very smart way. Instead of ordering "one at a time plus shipping x 50 stores", we put the power of our organization into the ordering process. This will have to be managed by the Buying team if it’s going to work well.
3. Special order items- trying to change this will only reduce our ability to please the customer. If they want something, we order it when pre-paid. “Please the customer”, it’ll never be a bad policy.

When the Bike Trainers first heard this, we were “not happy”. After some discussion, we saw the value. You may be in that stage right now. Think about how much time you spend on basic orders, and how you could be growing your repair volume instead; it just makes sense. As ever, your comments are appreciated.

Monday, February 04, 2008

Dorel buys Cannondale

This story is a little dull, until we realize Dorel owns Pacific Cycle. Pacific moved Schwinn to Target stores and that class of retailers. It wouldn't make sense to do that with Cannondale, but life is full of surprises.

From BicycleRetailer.com today:

Dorel Buys Cannondale


MONTREAL, Quebec (BRAIN)—Dorel Industries has just announced the acquisition of the Cannondale Bicycle Corporation.

The total value of the all-cash transaction will be $190 (U.S) to $200 (U.S) million, subject to Cannondale's earnings results for the year ending June 30, 2008.

The transaction, which will be immediately accretive to Dorel's earnings, is being financed through debt.

Cannondale and Sugoi are being purchased from an affiliate of Pegasus Capital Advisors, which acquired the company in 2003. 2007 sales for Cannondale and Sugoi were approximately $200 million.

Dorel president and chief executive officer Martin Schwartz said that in light of the acquisition the Company's Recreational/Leisure segment is being split into two distinct operating divisions.

A new Dorel Independent Bicycle Dealers (IBD) division, the Cannondale Sports Group, is being created and will focus exclusively on this category with premium-oriented brands.

Backed by Dorel's extensive resources, the Cannondale Sports Group will build on Cannondale's strengths to grow significantly within the IBD channel.

"Our intention is to build a world-class company that dealers will want to buy from," said Schwartz. Pacific Cycle will become a stand-alone division with an exclusive focus on mass merchant customers.

"The Cannondale purchase is consistent with Dorel's plan to concentrate on its core businesses. Since buying Pacific Cycle in 2004 we have learned a great deal about the bicycle industry and have found it to be a true value driver for Dorel. We are committed to pursuing this sector, and this important transaction will position us globally in a most material way. Dorel recognizes the importance and potential of the Independent Bicycle Dealer channel and is purchasing Cannondale as the first step to become the world's number one IBD player. Cannondale will be the crown jewel of this new Dorel division, which will seek additional such growth opportunities," he added.

"We're excited about the future for Cannondale and our retailers. Cannondale's goal is to be the number one supplier to the IBD channel. Dorel's vast resources and experience provide us with long term stability and the ability to accelerate our goals for growth with our retailers," said Matt Mannelly, president and chief executive officer of Cannondale.

Dorel purchased Pacific Cycle (Schwinn, Mongoose and GT Bicycle brands) in 2004.

—Jason Norman

Friday, February 01, 2008

Headset Spacers, how many?

There's been some discussion regarding steer tube material and the number of spacers between the headset and the stem. All of the discussions I've read are focused on racing-quality lightweight stuff. If you have a thin aluminum or carbon fiber steer tube, it makes sense that zero spacers focus the stress right at the focal point of the structure. This is how a Pro racer, like George Hincapie in the recent Paris-Roubaix, can have a catastrophic failure. His steer tube snapped at mile 131.5 of the 161 mile race. This is a very demanding race, and this failure put him in the car with a damaged right shoulder. Big George'll understand it's a risk of racing, your customer will not be understanding about it if you set it up.
In the opposite case-by having a large number of spacers in place, the mechanic adds leverage to the rider handlebar input, which may also quickly fatigue the steer tube.

What do you do?

One industry expert has gone on record:
The number and placement of spacers does have an effect on the fatigue life of an aluminum steerer tube. Running less than 5mm of spacers under the stem can concentrate or "point load" a great deal of stress in one spot on the steerer. Therefore, Bontrager recommends a minimum of 5mm, and a maximum of 40mm of spacers between the stem and the headset to maximize the fatigue life of the steerer.
Scott Daubert Trek Bicycles

This has little to do with a $400 hardtail bike as set up by the manufacturer. But if you are replacing a fork, or even considering using a steer tube extender (BAD!), it is a factor to be aware of. If your customer is asking for a large amount of steer tube spacers, be sure to let them know they probably have the wrong size or type of frame. Do not install a large number of spacers, or get into a physics debate on the leverage difference of a long handlebar and tall stem vs. stem extenders etc. There is no set guideline, as it varies to the quality of the components.

"BE the Expert, do it right!"