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Old 08-11-2011, 02:40 AM   #562
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Joined: May 2006
Location: Melbourne, Australia
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Originally Posted by NC Scott View Post
Found this ten-minute interview with Lee Conn:
Very informative, thanks for posting.

And after watching it, I think we may all be in for a case of sticker shock.

There is no plan at all for mass production. As in, they are planning this as a hand-built bike.

They want it to be the sort of bike where, "you're lucky to get one".

They are hoping to build 200 or 300 bikes next year.

Before getting into designing the bikes, they examined the business case fror building them. And it sounded awfully like they are planning to make money from the few hundred bikes a year that they build and sell.

Add that up and what do we have?

- They are hoping there will be a waiting list of buyers for the few hundred bikes built.

- They will charge whatever they believe they can get away with while maintaining that wait list.

- They will avoid charging so little that the wait list is enormous (because if they did, then the real money would be made by people earlier on the wait list selling at a premium to those further down).

So (and as usual, assuming the bikes turn out to be as good as they hope), what sort of price tag would ensure they get only a few hundred people a year placing deposits?
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