Bulk buying frames + groupsets

[timbono5]

I'm looking at starting a little company building low volume bikes. It'll basically be just me assembling bicycles in my spare time so nothing major and not doing it for profit but I'd look to buy frames 10-20 at a time. Looking on alibaba you can get some cheap frames but with the p&p its not massively cost effective plus the fact the frames may be poor quality and/or damaged in transport I don't really want to take that risk. Anyone got experience of importing from China?
The other option would be to buy some frames from a low volume British manufacturer but most of the frames are really expensive bespoke ones. Anyone know of anyone knocking out something a bit more resonable?
In terms of groupsets I've got Sora groupsets for £130 from Merlin and can get 105 groupsets for £290 from various online sites, which I can't imagine being much above retail price? Anyone know of any cheaper options when bulk buying groupsets?
Thanks in advance!

 

[Citius]

There's a reason why lots of people have this idea, but nobody ever does it...

 

[winjim]

I think the budget end of the market is pretty well catered for. I can't help thinking that to make it work you'd need to try and something a little more special which would mean the expensive bespoke option.

Or how about restoring and upgrading second hand frames? You could do them vintage eroica style or modernise them. @biggs682 might be your man for that.

 

[Andy_R]

There's a reason why lots of people have this idea, but nobody ever does it...

as helpful as usual.....

 

[Citius]

as helpful as usual.....

At least my post was on topic. Yours is just a pointless ad hominem.

 

[Rickshaw Phil]

I'm torn with this one. I like the idea but to do it properly you'd have to devote more time and effort than just working in your spare time. Who is going to be buying? What will you do about marketing, sales admin and backup/warranty? Have you thought about product liability insurance?

Low volume production can work: I can think of a small shop in the Lake District who build up touring bikes under their own name based on quality frames they get from Taiwan with components specified by the customer. Obviously I'm not privy to their accounts but think it's very likely they are buying the frames in batches of ten or twenty as proposed.

My understanding from a casual chat with them is that they buy direct from the manufacturer (sorry, can't help with links, you'd need to research that). For components you may be able to get them at source but they'd likely want you to order real bulk - IE a few hundred units plus. For the volumes you suggest, a trade account with the UK importer (Madison for example: http://www.madison.co.uk/) would probably be best but from what I understand these are quite hard to get as they only want to deal with legitimate trade, not someone building up a few bikes for a hobby. You'd have to come up with a good business plan to convince them.

On the other side of the coin: A friend, knowing I'm into bikes, recently presented me with the business plan for a small cycle company they were thinking of investing in and asked what I thought. On the surface it looked great - professional and slick presentation, but looking deeper the enthusiasm didn't match the proposed figures, the target market is niche and already well served and most worryingly they'd already broken two of the first batch of ten frames in testing but didn't seem to think it was an issue as "the customers won't ride the bikes as hard as we do" I'd really like the business to succeed but looking beyond the glossy plan they were making a lot of overenthusiastic assumptions about how many they'd sell and how much for, meaning I couldn't advise my friend to invest.

 

[timbono5]

Thanks guys, it's not going to be easy, I'm aware of that. I have ideas for niche bikes and ideas how I would sell them, just need some reliable, cheap unpainted frames. Group sets aren't really a problem as I doubt Madison sell their group sets for much below what you can get online anyway.

 

[Citius]

Group sets aren't really a problem as I doubt Madison sell their group sets for much below what you can get online anyway.

Why do you think that? And where do you think the 'online' gropsets come from?

 

[JMAG]

Wiggle etc will no doubt be buying large quantities and getting keen prices. Likewise, it would seem Planet X get very favourable pricing on SRAM groupsets in particular. Your average LBS probably doesn't get anywhere near this pricing level and a start up one man band with low requirements won't either. I wouldn't be surprised if buying small quantities through distribution saves much compared to online prices, but you won't know until you ask.

I do remember an old friend who has a bike shop telling me that he pays more for GT85 than you can buy it for from Amazon or Asda much of the time.

 

[Gravity Aided]

Look at CFG Cycle Force frames on Amazon.

 

[Mobytek]

West London guy had the same idea. He was classed as a cycle manufacturer (as they were under his name) so the product being sold.

Sold a couple, one got to a LBS who pulled up a problem, anyway, Trading Standards got involved, investigation nto parts, quality of parts, ability of the assembler ya de ya.

Ended with the company facing a large fine and going bust before he could sell any more.

Got to remember - if you are buying frames, buying groupsets, assembling and selling as an asembled bike, you are doing what the big boys and girls do, but small scale.
what groupsets you tinking of? shimano? would shimano want their parts on your bike? same for your saddles etc.

Good luck, go get em, but dont remotgage for it.

 

[biggs682]

@timbono5 i looked into this a while back with a friend who had his own firm making frames in Italy who also had a choice of 200+ frames that had been made under the firms previous owners for sale and unless i bought 10+ at a time from him the cost of transporting them to the uk was very expensive .

i had a few frames from him and sold them all with a profit no problem , but decided to stick to the 2nd hand market as less agro and i could have more control over what i bought and at what cost .

After doing the above for nearly 10 years know i have learnt its not easy some bikes sell far easier than others for no real reason , all frame upwards build always cost more than budget allowed no matter what .

Refinishing costs are stupid and not worth considering normally unless you can do it all yourself

I am lucky as my local bike shop do some repairs cheaper than i can do them plus it saves me time .

Getting the right bike at the right cost is getting harder but then you get a few on the trot cheap and away you go again , feel free to pm if you want for advice and good luck if you go ahead

 

[jonny jeez]

I suspect you need to invest In a return flight to Tokyo or taiwan...crack a deal with a local manufacturer and away you go.

I see a few guys making exotic single speeds and selling them on ebay this way.

Pretty sure this is the same business model as foffa bikes too.

Could be fun.

I can think of much worse pastimes.

Good luck

 

[vickster]

How would you offer warranty on the bike given you'll get none on the frames? People will expect one if you are selling these bikes as new (even if you aren't making a profit). Decathlon will sell you a road bike for £300 with a lifetime warranty, can't see how you'd compete. Perhaps spend your time getting involved with a charity that restores bikes or get involved with Dr Bike or similar?

 

[Andrew_P]

Also once you start importing from outside the EU you are effectively the manufacturer of the Frame and as such you will need insurance to cover public liability if something happens to the frame whilst being ridden you will be the first and last port of call for any claims.