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Dan's Comp purchase podcast
Elvis
post Oct 14 2019, 12:01 PM
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http://www.bmxnews.com/2019/10/11/podcast-...mp-acquisition/
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thebondtrader55
post Oct 21 2019, 03:35 PM
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It'll be interesting to see if they can breath new life into this.

I did quite a bit of business with Dans bitd and was always impressed with their model and performance. Not to put too fine a point on it but they could be counted on.

It seems that the decline of Dans largely mirrors the decline of BMX racing as a whole. Dan's didn't bolt and run at the first sign of trouble. They fought to prosper and survive. It's rather hard to think that ANY new firm will come up with a new brainstorm that the brain trust at Dan's hadn't already thought of and tried.

Listening closely to the interview revealed to me the same problem that has afflicted this sport for a long time now. They aren't sure in a macro sense how many people are out there who actually race or are even interested in racing. As things stand I think they may be absolutely shocked at how low that number is.

To me that's what makes this so darn hard. There was nothing wrong with Dan's model -just as their was nothing wrong with Redlines and countless others over the last 5/10 years. Just as there is nothing wrong with the structural form of the ABA.

The racing/tracks evolved to the point that fewer and fewer people could/would even attempt to race.

THAT IS THE PROBLEM. IT REMAINS THE PROBLEM.

We need 3/4/5 times as many riders as we have - and until that happens, none of these models will have enough flow/in to operate in the proper manner.
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MikeCarruth
post Oct 21 2019, 10:55 PM
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QUOTE (thebondtrader55 @ Oct 21 2019, 04:35 PM) *
The racing/tracks evolved to the point that fewer and fewer people could/would even attempt to race.

THAT IS THE PROBLEM. IT REMAINS THE PROBLEM.

We need 3/4/5 times as many riders as we have - and until that happens, none of these models will have enough flow/in to operate in the proper manner.


No question about it. We need at least a 5x boost in participation in order to overcome the age-old issues that haunt this market.

There is not much appetite for evolution--at least at the top of the proverbial funnel, where new riders come in, then trickle-down the funnel--ultimately ending up with the six potential Americans, among the 327 Million of us, who can potentially go to the Olympics.

My take is that the AMain guys are very savvy business people, and they must have some kind of mission in mind for Dan's.

We don't know the overall terms of the deal. They did say, in the interview, that they got forklifts, rack shelving and other fixtures from the Dan's warehouse in Indiana, in order to move it to their new warehouse in North Carolina (which was very-close to opening, and they didn't have it yet).

That stuff is very-expensive if you have to buy it new, and finding it in an auction is a catch-as-catch-can thing, often taking months to find the right stuff. It's entirely possible that the acquisition solved those logistical problems and, more or less, paid for itself, with the IP being the cherry on the sundae. A renewed Dan's is born, and fits-well into their current operation.

That is STRICTLY a guess on my part. I have no information, other that what was in the interview. But I have seen such acquisitions in the past, so it is certainly plausible.

SO glad to be back here on Vintage, spouting the opinions that would otherwise be lost under the silt in 48 hours, on FB.

Best,

M
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thebondtrader55
post Oct 24 2019, 11:15 AM
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QUOTE (MikeCarruth @ Oct 21 2019, 11:55 PM) *
No question about it. We need at least a 5x boost in participation in order to overcome the age-old issues that haunt this market.

There is not much appetite for evolution--at least at the top of the proverbial funnel, where new riders come in, then trickle-down the funnel--ultimately ending up with the six potential Americans, among the 327 Million of us, who can potentially go to the Olympics.

My take is that the AMain guys are very savvy business people, and they must have some kind of mission in mind for Dan's.

We don't know the overall terms of the deal. They did say, in the interview, that they got forklifts, rack shelving and other fixtures from the Dan's warehouse in Indiana, in order to move it to their new warehouse in North Carolina (which was very-close to opening, and they didn't have it yet).

That stuff is very-expensive if you have to buy it new, and finding it in an auction is a catch-as-catch-can thing, often taking months to find the right stuff. It's entirely possible that the acquisition solved those logistical problems and, more or less, paid for itself, with the IP being the cherry on the sundae. A renewed Dan's is born, and fits-well into their current operation.

That is STRICTLY a guess on my part. I have no information, other that what was in the interview. But I have seen such acquisitions in the past, so it is certainly plausible.

SO glad to be back here on Vintage, spouting the opinions that would otherwise be lost under the silt in 48 hours, on FB.

Best,

M

Mike, you're right about the evolution part. The hunger for the very, only thing that can move the needle is a non starter. And I will never understand why. There's simply not enough of the riders capable of competing at the top to make any difference. It's all about the below average/average consumer/participant in every sport on the rock - except for BMX racing. A mystery….

What AMain has done here is a tiny example of what my firm did for a long time. Looking for businesses that can be bought for the whole when the pieces are worth more than the purchase price. What changed my life was the day I read about a company in the Midwest that had over 900 million dollars worth of assets but was only capitalized at 432 million dollars in stock publicly traded. Obviously a whole lot could be controlled with very little.

I think that these guys understand this and acted accordingly. This world is so over manufactured now that there is NO reason to ever pay full retail for anything. Great job on this by them!

Sure would like to see Dans back up and moving forward!
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bnd
post Oct 24 2019, 05:33 PM
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I have not listened to the podcast yet, maybe tonight.
I go waaaaay back with Dans. I first ordered in 1993 then pretty much up until last year or so. I had a great relationship with a guy named Tony who when he first helped me back then was just a telephone flunky. He moved up to top dog & we got to the point of talking about our families & this & that. He moved last time I ordered & was shocked. Anyways, great customer service over the years, I mean GREAT!

Dans had one of the early BMX Forums on the net in 99'ish, I think that's where I met Elvis. I know I met JT there.

I'd imagine I'll still order from them when the time comes.

b.
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