Jan 162012
 

Let’s talk about really direct marketing. Sure, I’ve been exercising an unhealthy obsession with guerrilla e-commerce lately, working to convince small shop owners to start using the almighty Internet for something more than just a Google map to your location and (God forbid) printable coupons. It’s possible–or rather, let’s go with “super necessary” for small businesses to dip a toe into online sales, but all that will have to wait.

Why? Because the bike industry is witnessing a masterful education in the fine art of public relations self-destruction and brand anti-marketing that we’d be fools to ignore. Over the weekend, Specialized got their ass handed to them by Volagi, and then things got interesting.

Turns out Specialized spent about $1.5-million on their soul-killing, heavy-handed intimidation tactic/wild goosechase–an absolutely disgusting amount of money to piss away under any circumstances, and even more so right now, when John Q. Public is hyper-sensitive to wasteful, inappropriate behavior of the part of big companies. Almost every word that’s been printed regarding this entire sad episode has done damage to Specialized, and the facts haven’t done them any favors, either. The revelation that this much money was wasted in the service of stifling innovation and intimidating competition won’t do much to reverse the public perception of Specialized as a giant, out-of-touch, monopolistic, evil-doing gaggle of douchebags. Not to worry, though, because, once again, somebody let Specialized founder Mike Sinyard communicate with the public.

This lawsuit was a matter of principle and about protecting our culture of trust and innovation. We respect the ruling of the court in our favor. We are very satisfied with the outcome and the damages set at $1.00. We really want to put all our passion and time into growing the sport of cycling.”

Clearly, Sinyard and Rupert Murdoch have the same “magic touch” when it comes to understanding their public.

Read that quote again, if you think you’re up to it. The first sentence sets a good tone, and then, well . . . it makes you wonder if anyone at Specialized realizes the mic is on. Really, guys? You’re really “very satisfied” to’ve spent a million and a half bucks getting a dollar in return? If you’re trying to tell us you’re glad this didn’t have a destructive effect on Volagi, you’re sure not sounding that way, which means you’re–miraculously–sounding both disingenuous and unconcerned that you just wasted so much cash on a half-assed attempt at evil. And, even if that’s the case–even if you are sort of pissed off and dazed still, you realize, right, that you’re not supposed to let everyone know that’s where you are with this? It begs the question, do these guys have a PR department? Apparently, Specialized can spend $1.5-million on trying to stifle competition, but there’s nobody even making $10 an hour to give the main man’s missives a once-over to ensure they’re not repulsively demeaning and logically adrift.

Turns out I have some free time right now, and sounds like The Big S could use some pro bono help, so here’s my free rewrite of how anyone with even a small amount of respect for his customers would have written that letter:

“This lawsuit was a matter of principle and about protecting our culture of trust and innovation. At Specialized, we really do believe in our products more than anything, and that passion sometimes leads us to protect them at all costs. We’re making bikes because we believe in the positive things that a bicycle can do, and that’s a love we share with Volagi and every other brand. While we feel strongly enough about our reputation and our innovative products to take the steps we took in this matter, we sincerely respect and admire the desire Robert and Barley have shown to distinguish their product, and we hope they, and all those with a desire to make cycling better, continue to share our passion for making great bikes.”

Or some such shit. (I’m available for freelance work, by the way, for press releases, writing wedding invitations, really bitchin’ grocery lists, etc..)

There is a way to communicate to the public while still side-stepping legal landmines, but it involves seeming human and actually relating to your customers, instead of poking rifle barrels out of your ivory tower and doubling down on the draconian bullshit.

But, anyway, this is good for us–good for anyone studying how not to communicate with the public. Pop quiz: guess which company, Specialized or Volagi, better understands how to use social media? Here’s a hint: contrast Sinyard’s statement way above, with this tweet from Volagi:

Best dollar we ever spent.”

The thing some companies still don’t seem to get about social media is that they’re participating in it whether they want to be or not. You’re always marketing directly to your consumers. When you’re announcing a hot new product, or when you’re suing somebody. There’s a level of transparency to today’s businesses that some CEOs just don’t seem to understand.

Some, on the other hand, seem to understand it all too well. Maybe Sinyard should take a cue from “International Grand Confrerie Sommelier,” wine consultant to Costco, and maestro of social media, “Krunch,” who prefers to engage his social critics more directly. Disgruntled by a woman’s bad review of his business on Yelp, “Krunch” apparently took it upon himself to create a fake blog in the woman’s name and use it to describe her as a drug addict and prostitute, emailing her a link to the blog and writing, “Now every time a company for a job or someone searches YOU on google they will read my side of the story.”

Well played, sir. You are, indeed, ready to “serve world leaders, heads of state and Fortune 100 members.” Now, to complete their public relations self-destruction masterpiece, all Specialized has to do is personally attack everyone who thought their lawsuit was a horrible idea. Given how they’ve handled things to this point, nothing would surprise me.

It’s not like they’d have to work very hard to intimidate some members of the cycling press, who fall all over themselves to self-redactedit anything meaningful anyway. In the dying embers of this train wreck, we find this article on Velonews, which features a slightly more intriguing editorial preamble than most:

At the author’s request, the editorial notes at the bottom of this story were rewritten. They did not reflect the opinions of VeloNews.com.”

Is it just me, or does the editorial quote above read a hell of a lot like, “After having a gun barrel pressed to his forehead (no easy task to do to a man who’s, like, 8-feet tall), Mr. Zinn would like to reconsider those things he initially said and meant but might’ve seriously pissed off one of the largest advertisers in our industry.” Say, does anyone have a screen grab of how Lennard Zinn’s original article read? I’d really like to see that, Velonews. Anyone?

Jan 132012
 

Today, a special weekend bonus post in honor of facing down the big guys without flinching.

Top 10 New Year’s Resolutions of Specialized Bicycles:

  1. Stop picking public fights with kids much smaller than you.
  2. Once engaged in fight with kid much smaller than you, stop closing eyes and scratching blindly at opponent while screaming hysterically.
  3. Propose introducing new bottom bracket standard, BBFU78, out of pure spite.
  4. Institute mandatory 30-day waiting period before communicating with Legal Department.
  5. Mid-day company wide massages now mandatory.
  6. Free “hippie dipshit” anger management consultant from company dungeon.
  7. When Mr. Sinyard gives you press release he typed himself, tape original copy to inside of latest Bicycle Retailer and Industry News and tell him everyone thought it was “awesome.” Burn after 10 days.
  8. Finally gain courage necessary to put on favorite Sidi shoes for morning commute to work.
  9. Abandon fruitless patent litigation against Apple regarding “device one touches.”
  10. Erase Volagi Liscio with Photoshopped “S” logo from 2013 catalog.

Do It Yourself

 Bikes, E-commerce  Comments Off on Do It Yourself
Jan 132012
 

If you build it, they will come. Then you can run them over.

So you want to be able to sell stuff on the Internet, eh? There’s eBay and even Amazon, but, if this blog has had a common theme of late, it’s been pushing independent retailers–particularly bike shops–to start thinking about e-commerce, and to take charge of things themselves. Given the huge shift in consumer shopping patterns, I think it’s borderline inexcusable that so few retailers have yet to expand onto the Internet in at least some way. Selling things on eBay is great, and can get you added exposure for your shop, but it won’t build the same kind of following that a blog will, and why send people away from your site, when it’s just as easy to sell them stuff right there in your blog?

My particular angle is that small, aggressive and hard-working but underfunded businesses should be leveraging the Internet as much as possible, because there’s never been a better equalizer in the world of business–or the world, in general–as the Interet. With the right approach, small retailers can compete with much larger companies.

Some entrenched brick-and-mortar retailers–the kind that tend to strangle the smaller and sometimes much more dedicated and knowledgeable retailers–will bitch that nobody should be allowed to sell anything on the Internet and all this needs to stop, these kids with their punk rock music and texting, etc., etc. To these retailers I would only say, don’t worry, guys. This whole Internet things is just a fad. You can go back to sleep now.

While I’ve been offering some general advice about first steps retailers can take, I hold particular disdain for business consulting bullshit-mongers who make big promises to small businesses based on vague concepts and expensive products and services. Having searched for small business resources on-line myself, I know what it’s like to try to find answers to even the most common questions about taking a business on-line. The sheer number of graphics-heavy sites that lack any substance whatsoever, snake-oil salesmen pitching “SEO” ranking systems, and “white papers” about “synergizing the maximization of your ROI” is staggering.

The services industry built to support small business can be a vague and spooky place. I’ve always hated that.

So in thinking about ways small businesses can begin selling products on-line, I wanted to be specific. So far, I’ve stressed the importance of having content. Your shop is a brand. That brand doesn’t just sell products; it sells itself–its customer service, its knowledge, its story. Establishing a brand is the first and most crucial step in integrating e-commerce into your business. Once you’re generating content, though, it’s time to look for really inexpensive ways to start selling stuff.

Again, a personal goal is for my advice to be based on doing instead of talking, so let’s look at one very specific way you make your first Internet sale. This is a work in progress that I’m going through for the first time myself, and we’ll only cover the first part today.

Start Selling On-line, Part 1: WordPress

The first step is to set up a WordPress blog. I should have written “decide on a platform,” but just use WordPress. You may prefer a different method for communicating with your customers, but I recommend WordPress for a few reasons. First, it’s a totally developed “ecosystem,” which is a fancy bullshit term that’s come to mean “an organized place with rules and standards so that lots of people can contribute to it.” That means you can bolt-on all kinds of capabilities. Second, it’s pretty simple and stable. Enough people are using it that lots of resources exist to help you get questions answered, and it lets you do a lot without knowing much, if anything, about writing code or how websites work. My eleven-year-old writes her own book review site for kids using a WordPress blog. If you already have your own basic web site, there are also ways to embed a WordPress blog pretty easily, which is nice.

Another reason to use WordPress is that my detailed instructions are going to pertain to it, though a lot of what I write can be extrapolated out to apply to similar systems.

Step 1: Get Some

You can sign up for a free WordPress blog pretty easily. It’ll have ads and stuff, which sucks, and won’t have as much room to store images and videos, and won’t let you customize that much, but, well, it’s free.

A cheap alternative is get a domain name and to go to an inexpensive host. If you go this route, you’ll want to pick out a domain name–like frankensteinsunicorn.com (that one probably isn’t taken). My goal isn’t to go through how to set up a domain name here, but I can offer help with that, if anyone out there needs it. E-mail me. Usually, you can just contact a host and they’ll help you out from there, but they charge more, so consider going to a place that specializes in domain name registration, like GoDaddy.com, Register.com, or NetworkSolutions.com. Yes, the GoDaddy guy can be a sexist prick who murders elephants and they supported the flaming bag of shit that is SOPA, before caving and fighting it, but they’re cheap, and really all domain name registrars are massive assholes. If you go this route, just close your eyes and pick one.

After you have a domain name, you want to find a host. I use Bluehost, and for something like $6 a month or so, you can host a site–a bunch of sites, actually–on a server there. Most importantly, they make it incredibly easy to install WordPress, and many other things, on your site. I recommend you find a host that offers this easy installation service, as it makes your life so much easier. Bluehost literally has a feature on the dashboard that lets you manage your site called “Simple Scripts.” Click it and you’ll see a bunch of programs you can install right into your site files with one click. Instant WordPress site.

One additional advantage to paying a little for your own domain name and host is that you can have your own swanky e-mail addresses. No more, “awesomeprobikes@gmail.com.” Setting up e-mail accounts is also outside my scope here, but easy to do. Use the form at the right to contact me if you need help. Again, with just a little guidance, this is really easy to set up.

My goal is to make this a really basic–and extremely specific–introduction, so that’s it for now. Anyone interested in taking me up on this, please feel free to comment or use the e-mail box to contact me, and I’ll be happy to help. I would love to help any small bike shops out there.

Next week, we add the ability to sell stuff. I have a Surly Big Dummy frameset I’ve decided not to build up, and that will be our 40lb guinea pig. Before you know it, you’ll be a freakin’ Internet entrepreneur. Or at least able to unload that set of Tioga Farmer John’s tires you still have right from your very own blog.

The Social Graft

 Bikes, E-commerce  Comments Off on The Social Graft
Jan 122012
 

Andy Warhol prophetically said, “Everyone will be famous for fifteen minutes,” which tends to increasingly sum up what passes for life here in the 21st Century, but he also said,

An artist is somebody who produces things that people don’t need to have.”

Maybe a little more prophetic. Imagine how many artists there are on the Internet right now, how many pieces of art we step over in the street or delete from our inboxes. Imagine the scale of some of these works. From credit default swaps to the Kardashians, “Hoarders” to Silicon Valley, we’re crawling with art–though I’m pretty sure today we call it “content.” As the walls close in we become increasingly connected to everything around us, social networks seem like the new Model-T assembly lines of a different kind of industrial revolution. Now we’re all content providers. Now we’re all artists.

Might as well sell that shit.

I’ve been writing about e-commerce and what I see as the increasingly low barrier of entry for businesses not yet selling products on the Internet. For any small business that still feels the task is too daunting, I’d recommend redefining your idea of “e-commerce.” Given all the white noise around us each day, forget “launching an e-commerce storefront” and begin by asking yourself what about your brand has value to people.

You can offer products to people later, but if you’re not already busy selling your own brand to the world, it’s time to start. The popularity of business books claiming to offer the secrets of “delivering great customer service experiences” suggests how you run your business, not what you sell, is what really matters. Products can be added later, but you can be marketing your store to everyone right now.

I think this is what burned me about that letter Specialized’s founder, Mike Sinyard sent to his dealers recently. For all the lip service brands like Specialized pay their dealers about the value of customer service and achieving a great customer experience, it’s completely counter their business strategy for you, Mr. Independent Retailer, to market your own brand above all else.

Some things to think about:

  1. Do you consider a bike company’s “concept store” to be competition? How about a concept store six states away from you?
  2. What defines you aside from the brands you sell? “Service” is a bullshit answer. What about your service is better than every other shop anywhere?
  3. Draw a circle around your market on the map. Now draw a circle around your demographic.
  4. What are the three best things about your store’s web site? Do you own them?

You are a brand. Joe’s Bike Shop is a brand. It has relationships with customers and with vendors, but if we steal the “social graph” concept from Facebook for a second, let’s look at how you’re connected to your life-blood: your customers. Do they shop with you only because of your location? Only because of the brands you offer? Or does something else drive your sales? Put another way, is it you that connects with your customers, or do you connect only by proxy, though something else, something you don’t control?

“Social graft” is a term I like to use to describe the ways big companies are increasingly making direct contact with their end users, bypassing their own traditional dealer networks. Specialized can sell tires directly to your customers now, while you’re still stuck waiting for somebody to walk in your door. That’s bullshit.

If I sound a little militant about this, I am. This is a critical time in a battle too few retailers seem to notice. See, I believe small businesses are the best thing about Capitalism, but, just as the Middle Class is being strangled out of existence in America, so too are independent businesses, stores that really do have something to offer the world, independent of the products they offer. The struggling independent bike dealer is the quintessential example of this.

The irony here is that it’s never been easier to sidestep the limitations of your physical location, and the Powers That Be, those brands that try to control your business. Forget all the marketing bullshit you’ve heard about social media and why it matters to your company. The real reason it matters is simply because direct connections matter. Social media isn’t just about your lead mechanic giving the world constant Twitter updates about his favorite breakfast cereals, or about sending out e-mails to announce sales. Sure, it can be about both of those things–if they offer value to people–but really it’s about understanding the new opportunity you have to speak directly to potential customers anywhere in the world. It’s time to define the value of your own brand and get it out there for people. There are plenty of other companies that want to get between you and your customers, but you have a nearly endless number of tools to keep that from happening.

Parrot Boy

 Bikes, E-commerce  Comments Off on Parrot Boy
Jan 112012
 

There are a lot of moving parts to a successful move from brick-and-mortar to e-commerce, and one of the most important components of a successful transition is adapting to the world of remote customer service and the challenges of dealing with a much wider array of customers who are potentially thousands of miles from your shop. Yesterday, I talked about a hypothetical example and offered some general rules, but it only seems right to share some personal challenges I’ve encountered over my long years in e-commerce. This one, I’ve only ever told to a few friends in the bike business. This is about the one that got away.

About fourteen years ago, I was selling custom built bicycles on the Internet–as in, customers would choose each and every component they wanted on their bike, and my company–which was pretty much just me at the time–would create the bicycle, fine tune everything about it, partially disassemble it, and ship it to them.

Easy.

This was still a pretty volatile time in the world of mountain bikes. Rear suspension systems were still a relatively new concept to a lot of curious, but slightly terrified, people. Intense scrutiny over each pro and con of the various frames on the market was common in a way that it just isn’t any more, probably because the worst full-suspension frames these days tend to be light years better than what we had ten years ago. If you put your money on the wrong horse back then, you risked years of bouncing up and down like an idiot while friends on hardtails pointed and laughed. Suspension forks weren’t much better. Things that seem pretty unusual by today’s standards (like top caps shooting past your head on a descent), were realities to be considered. And of course riders were still in the early process of confronting (often violently) the new technology of hydraulic disc brakes. It was the best of times. It was the worst of times.

I put in very long hours on the phone and at the keyboard, discussing all of the new technologies with people. I compared single-pivots to Horst-links, Horst-links to faux-bars, closed hydraulic systems (remember those?) to open, that sort of thing. Endlessly.

How endlessly? I’ll admit I once fell asleep while talking with a customer. He was a really nice guy, and very smart and educated about all things bike, but also a bit of a self-debater, and my role on the phone was largely psychological. In my defense, this was a period of twelve-hour work days, often six or more days a week. Talk, e-mail, wrench, code website, sleep, repeat, but, in retrospect, I should never have put a couch in the shop, and should’ve known better than to try fielding a phone call on it. When I came back to, he was still talking, though, and hadn’t noticed I was gone, so we picked right back up where we’d left off like nothing had happened.

Unfortunately, there were other times when it probably would’ve been better to nap.

My experience with Parrot Boy began shortly after we’d expanded our building. I remember this because for many of the phone calls I remember sitting at the top of the steps up to the new second floor, looking down at the bikes on the showroom floor for inspiration and something like a will to live. I should point out here that this person had a strong aversion to e-mail, as I’ve come to find most people who frequently change their minds and can never recall the last discussion often do. There is a kind of advantage to e-mail, as it keeps a running journal of sorts of your progress, when you’re discussing various components and prices of components, but Parrot Boy was a talker. He didn’t just prefer we started each conversation over again and again from scratch as opposed to keeping a running record and making progress: he demanded it. He liked talking to me.

Let me clarify that: he liked asking me the same question three days in a row, to see if my response would change. So maybe he was keeping notes, just not the kind that let us work together. His approach was more to test me. Every day. For many days.

He particularly liked to quiz me on which suspension system I found the best. For what he was doing, which, as I recall, seemed to involve primarily well-groomed trails and pavement, but primarily long non-technical climbs–physical endeavors that demonstrated his superior virility. In fact, it wasn’t really sufficient that we only discussed bicycles. He thought it important to the process to ensure I knew certain facts about his life, in order to recommend the optimum parts for his bike. One thing I was supposed to understand was that he wasn’t just living the American Dream*; he was dominating it. (For anyone under the age of 30, “the American Dream” was this weird belief that each of us could make our lives better in our lifetime, and that our children’s lives would be even better still–a weird idea we used to have back when there were drive-ins.) Parrot Boy was what would come to be known many years later as a “player.” It was important that I understood that.

To reinforce this notion, he offered specific facts about himself: his house and car were, of course, spectacular. Not just the results of affluence, but somehow magical, the way you’d imagine Steve Job’s toothbrush was probably something really special. All his shit was like that, and this bike would need to be like that, too, because he would be the owner.

Special. I understood this. I got this a lot, of course.

But pretty early into our discussions “special” began to take some odd turns. The pieces of information he felt compelled to share with me became more and more challenging to interpret. Attempting to explain a nuance about his needs, he once pointed out to me (and I remember this one nearly verbatim):

I only date beautiful Asian women, and I insist on choosing their clothes.”

My hope is that there are customer service professionals or bike shop sales rats reading this who’d like to venture a guess as to its relevance. So many years later, I’m still baffled as to how the specifics there relate to purchasing a bicycle, though it certainly did tell me a lot about him.

But these little glimpses into Parrot Boy’s hierarchy of needs and overall reason for being (and there were many) didn’t break my back. They’re the parsley around the T-bone and potatoes that led to my decision–scary as it was at the time–to recommend this customer not purchase a bike from me. It took more than unsettling personal revelations to make that happen.

What happened was this: after hours of suspension system discussion, I ended up recommending a Santa Cruz Superlight for Parrot Boy. At some point I’d determined that simplicity was something he would value, and somehow something about the swingarm of the Superlight (what’s now a Superlight was called the Heckler back then) made sense. Color, as I recall, was also going to be a factor, and Santa Cruz offered something like eight-hundred combinations. So, after continually circling a final decision for about a week, I suggested we focus on this frame. I reiterated some whys, and Parrot Boy agreed. End of discussion for that day. He’d talk to me again tomorrow. Tomorrow we’d move to components.

Then Parrot Boy did something interested. He called Chris Cocalis, the owner of Titus, and asked him why I’d recommended another company’s bike. Why, Parrot Boy wanted Chris to tell him, had I recommended another brand over his brand’s bike (the Racer-X), and did Chris think the Santa Cruz was better?

Chris gave me a call.

In business, there are difficult phone calls, and then there are difficult phone calls. I consider Chris, now at the helm of Pivot Cycles, a friend. I have a lot of respect for the guy, and I tend to personally ride his bikes because I like them. We’ve worked together in the same industry for a bunch of years, and I’ve sold his bikes to a lot of people. Whenever he thinks I’ve fucked up, he’s let me know, and whenever I think he’s fucked up, I’ve let him know. That doesn’t always happen, and I’m really grateful there are guys like Chris in the bike business. We worked things out on that phone call.

I can still remember the exact way I sat at the top of my stairs, my bike build area behind me, to take Parrot Boy’s next call. He was running at the mouth even more than usual. It’s possible Chris had let him know that he’d be giving me a call, but, for whatever reason, Parrot Boy was talking a blue streak for a good three or four minutes. When he did finally stop, this is what I asked him:

“Are you just evil?”

There was more–I’d let him know I’d spoken with Chris, and that I’d made a recommendation to him, based on my interpretation of his criteria, and that–as I’d mentioned many times previously–there are a lot of frames out there, and what I recommend for one person can be totally different from what I’d suggest for another. It’s all based on the individual’s needs, and I’d thought he matched up best for the Santa Cruz. “Why would you do that, though? Call the company and tell them I recommended somebody else’s bike and ask them why?” I’d asked him. Then the part about being evil.

I’d never called a customer “evil” before, and certainly didn’t after that. The teaching moment here is that I honestly should have cut this guy loose much, much sooner. I realized that now, as I was sitting there, head in hand, eyes closed, talking to him. I did not want to build a bike for this guy. I fucking obsessed about building bikes. I took it very seriously. I put everything I had into every bike. At that moment on the phone with him, I wasn’t thinking the least bit rationally. If I were an artist, would I sell a painting to motherfucking Hitler, even if I were starving? No, I abso-fucking-lutely would not. That sort of thinking.

There was no yelling or anything. I just said what I said, pretty calm, considering. He was a little rattled at first, taken aback. I could hear him over the blood pounding in my own head. He was explaining that he wanted the truth, and I was asking if he honestly believed the owner of Titus would tell him, “Yeah, sure, the Santa Cruz is just a superior product–any other questions?” I was telling him that I could not figure out what he thought would happen. He was just trying to get the most for his money, he’d said, and find out as much as he could.

That wasn’t the last phone call I had with Parrot Boy. In fact, any chance of working with him ended up breaking down entirely once he got to selecting his gearing, which I pointed out was not going to shift particularly well (it was something like a 22-34-46-tooth titanium (no ramps or pins) setup with an Action Tec rear cassette (that lacked machining and came with a roller that replaced your upper pulley and shifted like total ass). I was honest with him and told him what he was thinking of doing was the type of thing you’d think you wanted, until you actually had it, and found out how frustrating it was to try to shift. At lot of places would have loved to sell it all to him, because it all cost a fortune and markup was great, but even then I realized when a customer’s disappointed in the end, what you made on the sale really doesn’t matter. I wanted him to know that, no matter how well I got it to shift, there were other things out there that would shift better. If he didn’t shift a lot, no problem, but I thought he should know. I went into detail, too, explaining how the derailleur would have to be really high with the 46-tooth (I might’ve even been a 48-tooth, come to think of it), and that this would put it really height above the 22-tooth small ring.

He insisted that was what he wanted, and that I would be able to make it work. I told him no.

I told him I didn’t want to build the bike, because I thought he’d be disappointed. I told him I could recommend some other builders that I thought would do the build for him, but that I couldn’t stand behind the finished product, so I unfortunately had to pass.

Parrot Boy freaked the fuck out. He told me, among other things, that he was going to sue me. He was going to sue me for not building him a bicycle. He sued people, he let me know. That was the kind of thing he did, and then, suddenly, we were back in the land of buying clothes for Asian women. He told me he was going to come after me with “Internet lawyers.” Had I ever heard of Internet lawyers, he wanted to know, because I would see what they were like soon enough.

I’d not heard of “Internet lawyers,” no. Maybe they were like werewolves or something. Who the fuck knew? But I still refused to build his bike, confident in at least two things:

1. Parrot Boy was completely batshit crazy.

2. My life would be better if I didn’t.

I was unyielding, and wished him luck. I told him I wished that I could help him, but it was clear that he’d be better served elsewhere. Good day, sir.

Later, I came to find out that he’d sued the company who built the hopeless piece of shit bike.

We’ve really gone long enough without an explanation for the name, though, right? Parrot Boy’s phone calls to me would frequently be interrupted with strange sounds, muffled and not so muffled squeaks and squawks. For a while I thought he had a tick of some kind, a form of Tourette’s (I also had a customer who did, but that turned out not to be the case here), but then I began to notice that he would also seem to talk to himself, saying comforting things, little reassurances. As it turned out, he preferred to call me when his pet parrot was sitting on his shoulder. Once he shared this information, many other things began to make sense, though only now, so many years later, do I find myself questioning the reality of the parrot. I think it’s at least as likely the parrot was a stuffed animal, or entirely imaginary.

Either way, this was one from my case files. One of the few I let get away.

Tough Customers

 Bikes, E-commerce  Comments Off on Tough Customers
Jan 102012
 

By now you may have seen Matilda, a heretofore entirely unknown species of viper just found in East Africa. Word is Matilda is going to shoot right up the charts to a top “ultra-mega endangered” species status. In fact, I believe she’s being officially classified the second most rare and exotic yellow and black thing in the world.

So THAT'S what Stryper was thinking. All makes sense now.

Rare as Matilda may be, though, she’s nowhere near as unique as the people you encounter on the interwebs. You read so much these days about search engine optimization (SEO), search engine marketing (SEM), and all the various tactics and strategies for being found on the Internet, but rarely (if ever) do we find any advice for what to do if you are found. If there’s one thing brick-and-mortar guys most frequently find themselves unprepared for when venturing out into cyberspace, it’s the people.

Step one tends to always be admitting you have a problem, and that’s a good place to begin here as well. Even if you’ve been successfully selling products locally for thirty years, and think you’ve seen it all, until you sell products to people thousands of miles away, trust me, you haven’t even scratched the surface of “unique.” I know this to be fact, because even the most bizarre customer walking into your store is still a human being standing in front of another human being, but the “cloak of anonymity” afforded by sending an e-mail or making a phone call multiplies the confidence of even the most clear-headed and timid of customers, plus adds the barrier of distance to the challenge of clear communication. I have quite literally had employees hiding under desks in “anticipation” of the arrival of a long-term “challenging” customer, only to find that, once physically standing there with us in the store, this customer was an entirely different person–downright easy to get along with. In all my years in retail, I’ve only found one example of the opposite, a case in which the person was more challenging and unpleasant in person than he was on the phone and in e-mails, and even that was an extremely tough one to call. In the end, I give the slight edge in difficulty to his actual in-store presence only because he was a close talker who liked to chew tobacco and spit it in styrofoam cups.

No, remote is almost always far more challenging. When you take someone who’s a little off to begin with, and magnify that by the power of distance and anonymity, you have a serious customer service challenge, and one any retailer venturing on-line should be prepared to tackle.

Here’s an easy one–not even questions, but just responses. Consider these reactions to a simple news article posted about Matilda:

Most of those responses are about what you’d expect, right? But what about that first one? That one’s just a little bit different, isn’t it? Here’s a quick exercise any retailer considering a move on-line can do at home: imagine responses to posts. Not just question posts, but any posts. Literally write them down if that’s how you or your prospective customer service representatives think, but formulate responses to strange shit people write on the Internet. You already have responses down for face-to-face interactions related to your business; what you need to work on is weird. Get used to imagining what you might type or say if you were forced to respond to these things. This helps you to see things from the perspective of the people–sometimes quite unique people–willing to interact with you on the Internet.

Back to the first response up there. OK, so we have a guy whose avatar is wearing big shades and has flames as his background, and he’s not just telling you this snake is a gift from God, he wants you to know it’s “a gift of new year 2012 form god to us,” and that he wants “to give him a another name.” If we had to address this individual as a customer, and formulate a response to his post, we obviously have to recognize that–unlike the other people just posting, “Wow!” and “Pretty snake!”–this particular individual needs a little dose of validation. This might seem a little daunting at first, because you’re picking up that he might have strong feelings about something, but it’s not entirely clear what. Maybe he’s very religious, but just not religious enough to capitalize “god.” Maybe he’s being ironic, fucking with us here. Maybe (and this is probably the most extreme case), he’s actually dead serious and completely sincere and he really wants you to know that he thinks this snake is a gift God gave us as a sort of reward for surviving 2011. We don’t know his intentions, exactly, but we can read his words, and he’s clearly looking, as nearly everyone is, for a little thumbs up here. As with most slightly unique Internet characters out there, he actually makes a customer service person’s job easy: he tells you want you’re supposed to write back: we should all call this the “GIFT HORNED VIPER.” Even though this doesn’t necessarily make any sense (why is this spooky-ass dangerous thing a “Gift” while we have to call a dog “Canis Familiaris”? and wouldn’t we have to name every species of every plant and animal “gift”-something?), the safe bet here is of course to smile and nod. So easy enough to agree, but we’re supposed to be customer service and educating the customer a bit, right? Not really good enough to just type, “Fuckin’ A!” and hit “send.” And yet, our judgment tells us this is not an individual who’ll take constructive criticism well (maybe it’s the flames). We should commiserate, but also educate.

What about:

Seems like they always name a new species after the person who discovered it, or about something that person chooses. I’m not sure why they almost always do that. It’d be interesting if they considered different ways of naming.

If forced–like at gunpoint–to reply to that guy’s post, that’s what I’d type. Selling products on the Internet means being forced to reply to posts like that. It’s a crazy exercise, to be sure, but one that’s pretty good at prepping you for wading into the unknown. You don’t get to choose your customers. If you’re a small business getting ready to get on-line, develop your own familiarity with the personas people use when interacting on-line, be ready for curveballs, and practice up before you jump in. Those first few tentative customers that you find on the Internet should be treated like royalty, not only because they’re supporting your business, but because you can learn so much from them.

While there’s never really anything that can prepare you for interaction with every single scenario, here are a few quick tips for any business considering a transition from a strictly local presence, to the much broader community.

  1. Get Humility
    Whatever sales staff you intend to have interacting remotely with consumers absolutely need training. This doesn’t mean shipping them off to Mrs. Manners, but instead teaching them simple behaviors that help diffuse situations. (This is something we’ll come back to later.) The short version? It isn’t accurate to say the customer is always right, but it is true and necessary that the customer always comes first, and that means before personal issues, hangovers, bad days, exhaustion, and whatever else your representatives may need to wade through. Every exchange is a story, and that story needs to be about the customer–even if you’re imparting wisdom (which pretty much defines good customer service), that wisdom must be solely based on the needs of the customer.
  2. Know Something
    If your representative doesn’t know more than the customer he’s there to help, you have a serious problem. Kindness and a willingness to help will only get you so far. You have to have the goods. It’s also far better to ensure a customer he or she will receive prompt follow-up after you consult a colleague more knowledgeable about that particular product than to try to muddle through. Often, when confronted with a stump the band question on the phone, the best service for the customer involves getting contact information, hanging up, immediately gathering the information, and getting back in touch. Customer don’t expect you to know everything, but they do expect you to know everything necessary to help them. Actual information within the hour beats immediate bullshit any day.
  3. Get Close
    These days, Skype and Google+ Hangouts can do a lot to bring a remote customer into your store. Consider creating a space for employees to really use these capabilities to build a stronger sense of connection with the customers. Nothing beats being in the store, but video chatting is as close at you can get.
  4. Empathize
    So simple sounding, but so nearly impossible to do sometimes. Any representative needs to be able–and willing–to put him or herself into the customer’s shoes. Often–particularly when dealing with the technical nature of mountain bike disc brakes, or road bike geometry–the customer may not even know how to formulate the question he needs to ask. It’s too easy to say this is the customer’s responsibility and leave it at that: it’s not. As customer service, it’s your obligation to work with the customer to figure out what it is he’s trying to articulate and work toward an answer. Rephrase the question. Offer examples of answers that might clarify. Do whatever it takes, but get in that person’s head and help. You will not believe the kind of loyalty this breeds in grateful customers, and, equally important, how good it makes a representative feel to actually help in this way.

It’s both semi-useful and entertaining as hell to focus in on understanding the mind of the on-line consumer–and the consumer in general–so I’d like to devote some time to this, and provide some more specific examples over the next few days. As always, email or comment suggestions for specific customer service scenarios we should look at here, and fresh topics. In keeping with the recent “You’re Better than Amazon” theme, I’m thinking about the customer service assets found in most bike shops, and how those can translate to a web presence, so that’s specifically where I’m going next.

Jan 092012
 

Come get some.

It’s almost time for me to start taking down my Christmas decorations, and that always puts me in the mind of massive historical logistics efforts, like marching war elephants over the Alps to attack Rome, or building a web site.

Interesting historical note: there is no such thing as an actual “war elephant.” Hannibal, the famous general who used elephants to attack Rome, took regular peaceful elephants and made them memorize Bob Parson’s® 16 Rules for Success in Business and Life in General to produce bloodthirsty killing machines. (Rule #4, about visualizing the worst possible scenario, was edited slightly, given that there was a very good chance you were going to be eaten.)

Anyway, I’m pretty sure I was rambling on about e-commerce last week, and how the little guys can compete against the likes of Amazon. This leads us almost directly to a look at how e-commerce sites–particularly those in the bike business–merchandise their products.

However you look at it, digital merchandising sucks. Everything that gets summed up instantly when a customer walks into your store, now has to be analyzed, categorized, broken into attributes that can be compared to similar products, formatted, and displayed. OK, maybe it’s not as hard as I’m making it sound there, except that it is. When it’s done really well, shoppers get the information they need without having to live chat or call or email–or go to another site. But doing it well is more challenging for some businesses than others. If you’re a small retailer, it’s important not to scale yourself into oblivion when it comes to assortment, or your product information is likely to bury you. Better still, only sell a few items and sell them to a clientele that doesn’t give a shit about anything but a product’s color. Consider opening yet another store catering to hipsters.

I found the source of the screen capture above, Atom Bicycles, doing what I sometimes do to torture myself: looking at what Smashing Magazine thinks are the best retail site designs. The cool thing about this is that most “user experience experts” don’t actually know what it means to truly participate in anything, beyond maybe collecting shoes (male) and “productivity enhancing apps” (female). Going to a “sexy geek” for recommendations about site navigation isn’t such a bad idea, but trusting said geek to also know whether a site’s navigation and product pages “work” or not is another story entirely. Smashing does what a lot of designer-centric site “reviews” do, which is punt on content and actual human usability by focusing exclusively on sites that don’t ask a lot from their shoppers (or people writing articles about web sites). This means the list of “35 Beautiful E-commerce Sites” they offered last year consists almost entirely of fashion designer direct sales sites, hipster boutique t-shirt stores, fancy wine sellers, and purveyors of expensive hand-madey looking crap (usually for kids, because polite kids in affluent but green families tend to stay mum, even when given a gift that “sucks wet ass”). No, seriously. That’s all they cover in this article. I think there are like seven t-shirt places alone.

I particularly like the text blurbs they offer about why each site is great. You can read them all, but here are my favorites, in no particular order:

  • “The website combines jQuery and Flash, which slows the loading speed, but given its objective, this is not critical.”

    One wonders what the objective is if it’s not pleasing customers with a site that functions well, but I guess some customers like the kind of good, saucy teasing that only a shittily loading page can offer. This likely explains the popular of mistressursulatellsyoutositandstay.org’s otherwise infuriating “under construction” home page.

  • “The products are not tagged or grouped into categories, but this is hardly an oversight given the store’s small size.”

    The fact that the seat belts don’t work is inconsequential, because the car doesn’t run anyway.

  • “Cellarthief is a beautiful online wine store that sells only three wines at a time. The Apple.com-inspired content blocks against the real-looking wood background shows how the classic spirit of the wine industry is fused with modern design values.”

    By “classic spirit,” I assume they mean “wealthy enough to start a web site without requiring profitability.

  • [blank]

    Yes, about one site, Hokey Croquis, they actually didn’t even bother to write anything, which turned out to be OK, because the retailer seemed to have gone out of business and the site removed anyway. To be fair, the “Not Found” page was clear and concise and had clean but interesting typography.

You get the idea. In fact, no fewer than four of the random sites I tried to click through to check out were now gone. Domain name sold. Out of business. Maybe they were too beautiful to live. Most telling, the word “information” appears nine times on this article’s page–once in the article itself, seven times in the comments people left, and once in the instructions on how to leave a comment. That pretty much tells us everything we need to know.

See, a good e-commerce site is based on solid information–there’s something substantial at its core. It’s that availability of information that led to suggest more brick-and-mortar shops consider getting themselves online and into the game, because they do have something to offer that many other sites don’t: substance.

They have a story to tell, and they have product knowledge. That’s the war elephant in the room: knowledge. It’s what separates a good e-commerce site from a bad one.

War Chihuahuas can appear to be enormous, slick, impossible to compete against, until you see them to scale, held up against the enormous knowledge and authenticity of a genuine store, a quality bike shop. You can dress up a site that lacks those qualities, but something’s always missing. Small retailers might not have the fanciest outfits and shiniest weapons, but that story they have to tell, that authentic core–the heft–can make a big difference.

Are You Specialized?

 Bikes, Swine  Comments Off on Are You Specialized?
Jan 062012
 

Friday, and it seems Specialized has taken a break from dastardly deeds long enough for the world of bicycles and commerce to briefly focus on other things. I, for one, am moving quickly, before they drive a bus of puppies into a lake. So this post isn’t just about Specialized; it’s about actually being specialized.

The point my last few rants have been building up to is this: little guys can compete. Even against corporate giants within the same market. Amazon included. More specifically, brick and mortar bike shops can compete against online retailers. Online.

The elephant in the room for me as I was reading that letter from Mike Sinyard was just how repressed these dealers really were. The impression was that the Internet is this giant shadow that’s slowly passing over all of them, and all they can do is hoot and throw sticks at the darkness. Usually, it’s so fundamentally depressing to see this reaction that I’m hard-pressed to even address it, but this fear of change has been rampant in the bike industry for years now, and I think it’s time independent dealers started using the opposable thumb Darwin gave them and using tools. Instead of taking the isolationist approach that Sinyard advocates in his letter, why don’t more dealers sell products online?

Here’s why this isn’t such a crazy idea.

I’m not talking about dropping a 20,000 item catalog on your site and trying to go head to head with major e-commerce retailers. I’m talking about small steps to drive top line growth and sure up your reputation as a great bike shop. The technology and capability has never been easier to put an e-commerce application in place, and, if you can manage to use Quickbooks, you can safely and securely sell products to people all around the world. Furthermore, you–yes you, little bike shop–can compete against Amazon. Why? Because–if you’re a quality shop–you have one thing they don’t. You’re a real bike shop.

For that exact reason, the Internet needs you as much as you need it.

Here are some steps you can take to make it happen.

Understand It’s All About Communication

All the Internet gives you is a megaphone. If you’re fond of yelling stupid and offensive things–or more often just boring ones–you should find a voice for your business before taking it online. What is your real mission as a business? What do you stand for? In short, what’s your story?

When I started my tiny brick and mortar and e-commerce bike shop from a 1,000 square foot building, I never intended to compete with Amazon. My goal was to connect with a subset of dedicated cyclists based on a mutual love of bikes. The plan succeeded because the objective was first and foremost to communicate. Over the years, I’ve met many conventional brick-and-mortar bike retailers interested in becoming more active in e-commerce, and the most frequent misconception I hear from them involves communication: they incorrectly believe selling online is about things outside their comfort zone–pricing and assortment. Successfully selling online involves those things, in the same way brick-and-mortar selling does, but that isn’t the sum total of the experience for consumers. Communication is. Brands like Amazon incorrectly skew this perspective for small retailers. You’re not going to be Amazon, but you can be a more successful version of you, and that starts, not with asking yourself what products you’d sell and how to price them, but what you stand for. Details, like returns policy and email response turnaround time, work themselves out based on your overall plan for customer service, and the vision you have for taking care of your customers. The same qualities that make a great bike shop valuable to a walk-in customer, make that shop valuable to a site visitor online.

Know Your Strength

You can compete against Amazon because you’re authentic. You’re also an authority. Jeff Bezos doesn’t tell me which hydraulic disc brakes he likes best, and I wouldn’t care if he did, but if you grew up riding bicycles, and tried a bunch of things, and know what it’s like to have a rear brake fail fifteen downhill miles from home, I’m all ears. You, sir, are authentic.

Or at least you should be. Unfortunately, there are bike shops that have nothing to say. Their owners could just as easily be selling microwave ovens or dog food. These shops–regardless of how successful a ground game they may have, don’t transition as well to the digital world. Why? Because they primarily define themselves based on price, not service, and you’re not going to compete on price. Nor are you going to be able to keep up with the service demands of selling online, unless you believe in what you do, and are passionate about doing it well. Good shops are good shops, regardless of channel. Knowing that not everyone makes the cut is all the more motivation for quality shops to take their services to more people.

Focus on Your Core

You attack Amazon by knowing more about your products than they do. You know who has a strong defense against Amazon? Competitive Cyclist. Why? Because they’ve created value for the consumer that is tied directly to their brand, not just the products they sell. The key is content. Amazon, for all their size, absolutely cannot compete with a retailer who feels passionate about the product he or she is offering, and demonstrates in-depth knowledge. Avoid Amazon’s “one-stop shop” and “be everything to everyone” general philosophy and focus on what you know. This does two really great things: starting off, it minimizes the product information you have to manage, and it also lets your create more compelling content about fewer items, instead of phoning it on on many. For the brick and mortar retailer looking to explore e-commerce, focusing on a small subset of your most core products makes you capable of truly presenting those products–including accurate specs, high-quality information, videos and images, all curated by people who know what matters. That, not sticking your head in the sand and conceding e-commerce forever, fights Amazon.

This method is also particularly effective against Amazon because, like all large companies, they’re slow to react. If your shop employs a DH racer, and that’s what the culture of your shop is generally all about, you should be on the cutting edge of DH equipment. By the time Amazon realizes a new product exists, you could have sold three, or thirty, or three-hundred. At better margins than Amazon will ever see. Knowledge really is power.

Give the People Something for Nothing

This concept is the most difficult and is beyond just counter-intuitive to brick-and-mortar retailers: it’s toxic. But consumers are used to getting apps for free, using their G-mail accounts, and sharing information with their friends for free. What should your specific value proposition be for your site visitors? That’s up to you. It need be no more complicated than a weekly review of a product, or a helpful tip about maintenance, riding, or nutrition. Again, focus on what you already know, so that this is less of a chore and more like writing a note to a friend. Though it’s less obvious, brick-and-mortar bike shops are doing this constantly for customers on their showroom floors. Translating it to digital content is a new and unique challenge, but one that’s well worth it if you’d like to succeed.

More bike shops should be selling their products and their expertise online. In painting Amazon as the boogieman, gobbling up IBD sales, Specialized paints a pretty bleak picture of a future huddled around–and even more dependent upon–only a small assortment of products, but this is far from the only option.

The Internet continues to be defined by expansion, not regression. If you want to catch it, you jump where it’s going, not where it’s already been. Look at Etsy and Kickstarter and Facebook, and the common theme is specialization, the ability to communicate with and market to a core group of like-minded individuals who share your interests. So are you “specialized”? If so, you have a place on the Internet. You can choose to ignore that place, hide from it, or even rage against it, or you can find connections within the enormous pool of potential customers who would truly appreciate your shop’s love of bikes, humor, and dedication to service. Both Specialized and Amazon want to come between you and those customers, but companies still profiting from limiting peoples’ choices and building barriers to direct communication are not going to fare well in an economy that increasingly values the free and open exchange of goods and ideas between people. Open communication with your customers is the side to be on in this battle.

Jan 052012
 

Today was supposed to be all about e-commerce, but seems I picked a good week to criticize Specialized. By now, most of you have probably heard that they’ve chosen to sue Volagi, a new company that offers just one bike model, a disc brake road bike focused on big miles in less than ideal conditions. If you haven’t you can catch up with the basic announcement on Bicycle Retailer and Industry News, an interview with Robert Choi, founder of Volagi, on BikeRumor and a hell of a lot of praise for Volagi and venom for Specialized on Facebook.

So far, maybe at the peril of Volagi’s own legal defense, all the news of this has been coming from Volagi founders, Robert Choi and Barley Forsman, while Specialized remains silent, so it’s impossible to know if the big red S really was wronged by Volagi in any way, but one look at the Specialized Facebook page this morning tells us they’ve definitely wronged themselves. Yes, two things have become pretty clear from reading the information Volagi’s put out:

  1. Forsman and Choi, who used to work at Specialized but claim convincingly to have had absolutely no connection to performance bike designs or information and to have begun work on their own bike design only after they’d left the company, are either doing a pretty flamboyant job of lying to everyone, or Specialized has finally played the legal card one too many times to stifle competition.
  2. Regardless of the outcome, somebody in Marketing or PR at Specialized probably should’ve talked with someone in legal before letting this shitbomb go off, because the blowback of attacking a small and nearly defenseless company–and one that may turn out to be completely innocent–is currently not working out very well for Specialized.

Specialized Facebook Page Capture 1/5/2012

Specialized’s own Facebook page suggests this lawsuit might not have been such a good move (word is they’re deleting negative posts, but, to their credit, I’ve not seen proof of that yet), but at least all this bully bullshit goes to illustrate a point today’s post was supposed to cover anyway. I’d planned to write today about how smaller companies can do battle with giants like Amazon, but Specialized has volunteered a glaring example of my first point.

Big Companies Suck at Social Media

Here are five things big companies need to do to fix their social media programs:

  1. Stop Pretending to Be People
    I’m not sure why U.S. Senators and the corporations themselves keep getting so confused about this, but corporations are at their worst when trying to act like people. They tend to do much better when they acknowledge that they include people, and then letting those people communicate with customers–not as pieces of the corporation, but as themselves. Sure, it might not be such a good time to let Bob in Accounting talk about his collection of Nazi memorabilia in a video blog post, but usually there are people within your company who are involved in interesting things. The Specialized Win Counter, that keeps track of race victories, and stuff like the Trail Crew and news about their advocacy and charitable work are nice, but all of those things could belong to any company, which leads us to our second reason.
  2. Let Us In
    Yes, I know your Chinese-made carbon fiber has a special strand orientation that’s top secret and blah, blah, but seriously, we all know interesting shit goes on inside companies, and we’re clearly willing to watch even the most asinine of things related to businesses and what businesses do. The companies making the best use of social media are using it to tear down barriers between themselves and their customers. If you’re not willing to do that, it shows.
  3. Stop Hiding Behind Mirrors
    The “hang a mirror and hope for the best” strategy is used by many companies–you know, let us post pictures on your wall and that should keep us busy so you can get back to running your company. But so what. It’s nice to help establish and support a community of people who use your product, but a bunch of blurry pictures of Stumpjumpers isn’t doing much for anyone. I think people would be much more interested in seeing your bikes, trick advanced release shit we’re not supposed to know about taped over and all. Santa Cruz consistently gets this right. It’s fine to pretend it’s all about the customer, but we can tell when you’re just hiding behind that.
  4. Talk About What Really Matters
    This most recent lawsuit Specialized is pushing exemplifies everything that’s wrong with social media in the hands of big companies, and why it’s so important to small companies. The reason Volagi jumped out early with information about the lawsuit is that it’s all the owners could think about. You sued them, Specialized. You attacked everything they’d worked for, and that’s forced their lives to revolve around this situation, and they can’t help but share the experience–not because doing so is a good “business tactic,” but because it’s genuinely all they can think about right now. Hearing the founders tell that story is profoundly compelling in ways I don’t think Specialized could understand. If Specialized really was this pissed off to have been “wronged” by a company, why is it that a lawsuit is the first we hear of it? Why not an “Imitation Isn’t the Sincerest Form of Flattery” corporate stance, including video features of how Specialized does things differently, and why their designs have been copied? Maybe that exists, but in general, I never see honest content like this from larger companies with dedicated PR and social media staff. Only companies that let the stakeholders speak out are compelling to follow. In social media circles, this lawsuit by Specialized is playing out so horribly partially because it came out of nowhere–we don’t think of Mike Sinyard or anyone else at Specialized as having any design skills or intellectual property to guard, because they never talk to us about those things. When the first we hear about it as a lawsuit against a little company, their anger seems bloodless, disingenuous, making their attack just another sleazy and anti-competitive act of big attacking small. If there’s true passion and defense of intellectual property behind this action, why haven’t we heard about it from the company before? The fact that most carbon road frames look eerily similar and uninspired anyway doesn’t support Specialized’s contention that something was stolen from them. I always follow a simple rule: if the owner of the company can’t tell us why his stuff is better, it’s probably not.
  5. Don’t be Assholes
    No, seriously. If what you do for a living is prey off others and add nothing of quality to the world, you probably don’t want people following you anyway. I honestly think Specialized has done some really great things, but that only makes the events of this week all the more senseless. There should be a Specialized story to tell that’s bigger than the lawsuit attack on Volagi. The fact that there isn’t is what’s really causing the problem here. Volagi is currently winning the hearts and minds of consumers (even owners of Specialized bikes) right now partially because we all know they have a story to tell–they’ve created the first viable disc brake equipped road bike and potentially defined an entirely new category of bikes. In the eyes of the public, Specialized, a company with no story to tell, is attacking Volagi, a company that was in the middle of telling us all a pretty compelling one. In social media terms, butting in without having anything to say is the textbook definition of “asshole,” and, regardless of the legal outcome, Big Red lost this one.

Oh, and I also noticed nobody was using the “specializedbicycle” Blogspot any more, so I’ve taken over that location and posted a copy of this blog there as well. Good times.

Amazon Pain Forest

 Bikes, Swine  Comments Off on Amazon Pain Forest
Jan 042012
 

I took issue yesterday with a peculiar letter Specialized’s Mike Sinyard recently sent to his bicycle dealers, urging them to stop selling all products from Easton, Fizik, Shimano, and other brands, because products from those companies may appear for sale on Amazon. You know, like Specialized products sometimes do.

Somebody needs to get on the phone to somebody.

Yesterday, I was simply struggling to comprehend the demeaning tone of the letter, which treated dealers like children, hiding under their beds, terrified of technology and the boogieman that is the Internet. After re-reading that last part, the not-so-thinly-veiled threat to his own dealers a half dozen times in near shock, I’m finally able to look at the details of Sinyard’s letter, and I’m pretty sure even he doesn’t understand how bad Amazon really is. In his effort to serve only his own purposes, he doesn’t paint a full picture of the situation. If you’re going to attack Amazon, this is how you’re supposed to do it:

Sinyard sounds the alarm against a particular Amazon app that lets people scan bar codes to compare prices and shop with their phones. I’d like to first point out that apps capable of doing this have been available for a long time. Google Goggles can do this, as can Barcode Scanner, and other bar code reading apps, and most will show you shopping results across the whole web, not just Amazon. So I’d like to call on all Specialized dealers to remove themselves from Google maps and anything related to Google and don’t even let your kids use it to help with their homework. Whew! I hope that was in time.

Mobile shopping is a reality that isn’t limited to Amazon, and isn’t going away. To declare it evil and urge your followers to pray to the big red “S” to make it disappear is certainly one strategy for dealing with technology. But if we’re relying on magical thinking, their collective energies are probably better spent hoping Trek headquarters gets attacked by a dragon.

Again, I think I’m particularly pissed off about this because Amazon is a threat to all other retailers, but Amazon is also an opportunity. The reality of the situation is complicated. If you’re not willing to have an intelligent discussion with your business partners (not that anyone at Specialized sees their followers dealers as “partners,” but that’s technically what they should be), then both of you end up in the dark. And the stakes are too great here to let that happen.

See, we really do need a strategy for dealing with Amazon. A real one. In fact, Amazon is so bad that one of my biggest problems with Sinyard’s argument is how dangerous simplistic and self-centered it is. He doesn’t articulate what the real problem is with Amazon, because that wouldn’t serve his more near-sighted purposes. But that’s what the bike industry as a whole could use: more honesty about the Internet. The threat of Amazon is something every retailer needs to recognize and develop a strategy to address, but selling only Specialized products is not a winning strategy, long term. In glossing over them in a rush to paint his own competition as bad guys, Sinyard misrepresents the real issues and facts about Amazon, which are actually worse than he imagines.

OK, so the main premise to any argument against Amazon’s new app is that people will use it to find lower prices at Amazon, then leave your store and buy the thing online. That’s certainly possible, partially because Amazon’s scale lets it live off of virtually no margin. But to combat that, you need to learn how Amazon works, not run and hide.

Much of the bike stuff being offered on Amazon isn’t being sold directly by Amazon. It’s being sold by other small retailers. Sinyard either doesn’t know this, or doesn’t care to mention it, because his primary motivation is kicking guys like Easton in the nuts, which is good theater but does jack shit to help bike dealers. Yes, a lot of the bike stuff on Amazon is being sold by small businesses who are listing their products on Amazon through Amazon’s Seller Central program. These are not large companies. Most are smaller than the larger brick-and-mortar IBDs.

These retailers can sell for less because their overhead is so much lower than an IBD, right? Well, many of them are IBDs, who also have the expenses of trying to manage online sales, so right out of the gate their margins are in trouble. But let’s assume they’re only selling online and have very little overhead–like they don’t pay to heat their buildings or operate out of the trunk of a car or something–and let’s assume they’re also pushing major volume and are getting huge discounts from suppliers, OK? By the way, boogieman-mongers like to pretend this happens more than it does. I’ve seen “off-book” pricing and I’ve had off-book pricing, but it’s far rarer than most anti-online voices would prefer IBDs realize. I ran a single store that was doing more than $3-million in sales almost entirely online, and I was aware of brick-and-mortar only dealers who were getting the same prices I was, sometimes better. The big off-book discounts are always on horrible shit that a good shop shouldn’t be selling anyway. The idea that people are buying current, in-season product for half what you are is a convenient myth, perpetrated by n’er-do-wells who make more money the less retailers know, and the more they fight amongst themselves. But for the sake of argument: even for a best-case scenario dealer with little overhead and great pricing, making any money selling on Amazon is not easy. In fact, it’s nearly impossible.

For one thing, you don’t “sell” things on Amazon. You compete for exposure. Amazon actively pits retailers against one another for their own advantage by making those retailers compete for the coveted Amazon “Buy Box.” This is one of the many secret sauces making Amazon the McDonald’s of processed shit retail that it is, and I’ll try to break it down as simply as possible, because it’s fucking brilliant and evil, all at once. It’s evilliant:

  1. Small retailers decide to sell on Amazon for the massive exposure it gives them
  2. Amazon takes 15% out of your ass just for listing a bike part or bike
  3. There’s also a monthly fee of $39.99, but after the 15%, that feels like a kiss on the cheek
  4. To have your product actually visible to most shoppers, it has to appear in the “Buy Box,” and to get it there, you have to compete with every other retailer–including Amazon–and guess what the main criteria is for “winning the Buy Box”? (Did you guess “lowest price”?)
  5. Because you’re playing on Amazon’s court, and they’re allowed not just to throw the ball at the hoop, but also to move the fucking hoop to where the ball is headed, they can at any time choose to step in and price match that lowest price, stealing the sale from the smaller retailer
  6. Oh, it gets better: do you think Amazon isn’t gathering all of the sell-through and pricing data and making calls to vendors themselves asking for quantity pricing on a zillion cycling computers because–thanks to the retailers–Amazon knows they can sell 200 of them in a week, if the price is right? (Hint: Of course they are. If you sell on Amazon, you’re also a buyer for Amazon, silly. They just don’t pay you.)

So the first thing to understand is that both Amazon and Specialized are oppressive here. The ones losing out are small retailers. Those not selling online at all will soon have missed the entire bus and will eventually be relegated to the Fix-it Shop on Sesame Street, and those relying on Amazon for sales are basically chewing off their own arms and becoming the Fix-it Shop on Sesame Street. Yes, Amazon is a losing proposition for most retailers, and not selling products online is a dead end street. But don’t go spending quality time in the bathtub with a toaster just yet. Plenty of retailers prove there’s an answer to Amazon–I mean besides crawling under the big red Luddite rock and waiting for this whole “Internet” fad to pass.

If I’m not too sleeply, I’ll offer a plan for fighting back tomorrow.