I checked the Rad Electric Bike return policy just before I wrote this. A bike of comparable quality sold in retail would sell for twice that. It's a great product, and with our direct to consumer business model it's a great deal. On our electric beach cruiser, that price came to just under $1700. Then we see how cost effectively we can produce it and then add a fair markup and the final price is what it is. Not because of a magic price point, but because we just love the product and we think others will too.
It's all about getting the sale.Īt Tower Electric Bikes, we focus on making products that we love and would want to buy ourselves. They're making products they think they can sell, which is an eBike that costs $1499. After tariffs, they went up then right back down to $1499. This is across a pretty varied line of electric bikes. I guess they've determined that's about what they can sell an eBike to someone at, so they go with it and then make a product that works for that. Rad Electric Bikes target a $1499 price point almost religiously like it is some kind of a magic price point. Hit a price point, versus cost based pricing To understand how different they are, just look at their respective pricing and returns policies. Rad Electric Bikes and Tower Electric Bikes are both direct to consumer brands that sell eBikes for between $1000 and $2000 (eBikes that would certainly cost $2000 to $4000 in a retail store), but they are very different companies. Not all direct to consumer brands are the same The latter is focused on how the products benefit those who buy them. The former is focused on how the sale of those products benefits the company. Making eBikes you think you can sell, versus making eBikes people will want to buy, is a big philosophical difference. The approach we are taking in eBikes is identical.
Today, it's one of the most well known and trusted brands in SUP. We created the #1 fastest growing company in San Diego and landed at #239 on the INC 500 list of America's fastest growing companies. Sales started small and grew every month. We simply focused on making products that people wanted to buy. In our sister company, a direct to consumer SUP brand called Tower Paddle Boards, we took a similar product centric approach and didn't advertise for the first 4 years of operation. We're not trying to "move the most units." More importantly, we're not trying to "sell" you anything. We start small and focused, and obsess about the product. Make great products and people will want them, then when they experience them they'll tell all their friends. I've seen transactional companies like this in other industries, and once you buy, it's your problem.Īt Tower Electric Bikes, we focus obsessively on making products that people want to buy. It's not really about the product, it's about the sale. Seems their focus is trying to make products that they think they can sell to people. When brands do things like this, they tend to cut a lot of corners on the product front. I've been in the online business space for 20 years so I have a decent feel for this, and my guess is they spend more on ads trying to sell you a bike then they spend on producing the bike you are ultimately buying itself. They said, and I quote, "Yeah, they're more of a marketing company than an eBike company." The deeper I dig, the more that rings true. When I first asked someone in the eBike industry what they thought of Rad Electric Bikes, their answer was telling. Rad Electric Bikes -vs- Tower Electric Bikes
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