The new Wal*Mart Brand. Options

[yammadog]

haven't surf walmart since the hyper came out. I thought it was a great thing and recommended it to folks and they've been happy with their purchase. So I go looking to see if the DK is listed yet and find a SIDEHACK!!! totally buying one for the kids...also seen a video on bubba harris...so it can't all be bad

[Jason F.]

I don't expect DK to be there long. The name's not even cool-sounding.

?? DK is a very cool name the logo looks cool too, I can think of PLENTY of uncool sounding names that are popular right now.

[bmxundergrounddo...]

Ive never really understood the upside for these companies doing business with Walmart, from everything Ive seen and read they make it almost impossible for the suppliers to make any profit. I cant imagine Hyper is making much if anything on those $100 DR bikes, by the time everybody takes a piece theres no way to be profitable. Some will say it gets their name out there but to me being associated with walmart isnt the way to garner long term loyality, most kids who get hooked will want to drop that Hyper in favor of any of the more tradition race brands. I think DK is making a mistake, in my mind they've worked so hard to be taken seriously and have made some real headway, why take a big step backwards? Why don't these brands work with the LBS to market and sell these $100 bikes, they may not sell as many but at least they'll make something, their reputations will be intact and the bikes won't fall apart before they get to the track. This could be the nail in the coffin for DK at least as a serious brand in the racing and freestyle markets.

Selling numbers in the hundreds for 30% profit, or selling thousands in the 10-20% profit range. Never having to lay your hands on the bikes (distributors, I believe WalMart takes them off the boat for you), very little accountability for warranty/replacements, etc. It works out.

No LBS wants to deal with $200 bikes, let alone $100 bikes. There is a face and a body at the local bike shop, sometimes it's even the owner. The shops I've worked at usually won't even service bikes out of walmart because one of two things happens:

1. The repair costs more than the bike - so the consumer doesn't like the bike shop.

2. The bike still works like garbage - so the consumer doesn't like the bike shop.

It is explained in a diplomatic way of course.

Bottom line is there is a market for $100 bikes and $2,000 bikes. Two different consumers. Not sure that presence of a particular brand of bike in either makes much of a change in the overall success of BMX as a sport.

[Jason F.]

Selling numbers in the hundreds for 30% profit, or selling thousands in the 10-20% profit range. Never having to lay your hands on the bikes (distributors, I believe WalMart takes them off the boat for you), very little accountability for warranty/replacements, etc. It works out.

No LBS wants to deal with $200 bikes, let alone $100 bikes. There is a face and a body at the local bike shop, sometimes it's even the owner. The shops I've worked at usually won't even service bikes out of walmart because one of two things happens:

1. The repair costs more than the bike - so the consumer doesn't like the bike shop.

2. The bike still works like garbage - so the consumer doesn't like the bike shop.

It is explained in a diplomatic way of course.

Bottom line is there is a market for $100 bikes and $2,000 bikes. Two different consumers. Not sure that presence of a particular brand of bike in either makes much of a change in the overall success of BMX as a sport.

Interesting statements about your local bike shops, mine love walmart bikes because of the crappy build quality and poor assembly, they make bank off the labor and always tell the customer up front what its going to run to fix their $79 bike, and sell them upgrades...... sounds like your locals might need some sales training of some sorts. Most bike shops are ran by reasonable people who get stuck in a rut sometimes, never turn away a customer with money who needs work done.

[934g]

I don't understand why the bigwigs at Huffy think that DK will have any more appeal to the uninformed consumer than a new brand name would. What % of WalMarters have heard of DK? Schwinn, yes. GT, not likely. DK, no.

I worked in the bike division of Dorel, before they bought GT/Schwinn/Cannondale. We had product placed at Walmart. It exceeded WalMart's expectations. What did they do to reward our success? They demanded a huge price decrease, which we couldn't do because our product was better, and more expensive to produce. WalMart dropped us for a cheaper, crappier product.

I don't expect DK to be there long. The name's not even cool-sounding.

I know your pain. WalMart, the penny wise, pound foolish company and all those that sell to them...
There will always be the dept store bikes and their riders. Remember good ol' Kmart...
It's a cycle, take a great brand and dilute it for short money. Toss it aside and go for another one. (IMG:style_emoticons/default/diablo.gif)

I don't think that DK in WM will wreck everything.
Dilute the brand, yes.
Kill it, only if the high end stuff doesn't get the R&D dollars to continue...
Hopefully the parents and kids will find our great sport this way and help it grow.

Just like any sport. When we get into it. We go find and support our local shop because that's were the REAL equipment is...
It's up to us to help the new kid on the WM Hyper, Schwinn, Goose, or DK, make the transition to real bikes and real fun. (IMG:style_emoticons/default/smile.gif)

BTW: I started BMX'n on a real LBS Schwinn SX1000 in '79ish...

[Jesse4130]

It’s no secret there have been some changes here at DK. Along with the changes comes a line of bikes at mass retail. The line of bikes being offered there are a higher end line then what is currently available, the retail starts at $150. We see this as an extremely positive jump for BMX. Everyone always comments on why BMX is not as popular as mainstream sports. A kid can start baseball for less than $100, and its available from WalMart to a Sporting Good store to a specialty shop. Same with Skateboarding, $100 gets you top of the line. I wonder how many kids had never seen BMX until one day at WalMart they saw the Hyper dR bike with free membership? That was $99, and they got a full BMX experience, if they fell in love with it and bought a membership, that’s a win. Chances are when they want to upgrade a part or buy a new bike, they went to their local bike shop or track vendor.

We are still focused on IBD’s, coming out with a great like of bike only available there. The Helio is a $379 freestyle bike with Full Chromoly frame, fork, bar, and cranks, no one else offers that, we are still coming out with USA made aftermarket parts. We're not taking anything away from our brand, only adding a smaller separate line for mass retail.

In addition to grabbing kids attention in Walmart, our marketing budget for 2012 is MUCH different than in the past. We'll be reaching over 10 MILLION new viewers completely outside of bmx through various new mainstream print ads, and television spots. We're spending a lot of money to educate kids on our brand, in return- bmx.


Jesse
DK Bicycle Co.

[nickdawghaters]

See told ya if we waited for one of the DK guys to post it would all sound much better. Best of luck boys.

Edit*** For the record, Doyle returning to the DK team will make everything right.

This post has been edited by nickdawghaters: Sep 30 2011, 12:47 PM

[BS]

Doyle

I've got a USA (Brew) made CDL sittin' in the kitchen as we speak. It's a great bicycle motocross. Doyle makes everything right!

Dad 'n Kids!

[BS]

Ive never really understood the upside for these companies doing business with Walmart

It's already been touched on but...

What they get is: VOLUME (numbers, not Brian Castillo's company)

You can cut your margins in exchange for moving loads of units. The downside is that Wal Mart will come back and cut you down in the future becuase they've got the levergage and 100 other brands willing to do it instead of you. The short story: Somebody is going to be takin' those dollars from Wal Mart this year. It might as well be DK (or Huffy). So somebody else gets the contract next year? You've got a big capital infusion to pay for lots of cool stuff and resume doing your primary business (upscale bicycle motocross) with extra radness.

I would never want to put dollars in Catfish's pockets but if somebody is taking dollars from Wal Mart it might as well be people that know what the heck BMX is.

[FNSRACING]

We have replace 70% of the stuff on the HYPER . Gets a new frame this weekend .
from a 100 hyper to a redline .wheels will be the only part left