Being the First in an Old Industry
We’ve been racing bikes for almost 20 years between the two of is, David Wiswell and Gabe Lloyd. Racing at the elite level in Europe, Australia and America, we’ve seen passion for cycling at its extreme. What really struck us, however, is the technological gap between sponsored riders and amateurs. In 2007, at the age of 23 and 25, we decided to do something about it. We started Echappe Equipment, a bicycle race wheel rental company; the only one in the US for competitive cyclists. We decided to take our passion and knowledge of cycling and apply it towards a niche market that sorely needed attention and bridge the gap between sponsored riders and amateurs.
If you aren’t familiar with cycling, there is one overwhelming aspect to it in America: Its inherently expensive. The “buy in” factor is high, but so is the “upgrade factor”. While elite athletes are assisted with sponsorship, newer athletes or ones that cannot get onto fully sponsored teams face anywhere from a $2000 to $5000 purchase for one upgrade item – their wheels. Wheels on a bike are the most influential upgrade you can make. Reducing the weight of a bike is one thing – making it roll better takes it to a whole new level. We made this essential upgrade attainable for all those bike shop employees to coffee shop baristas who never have more than enough money in their bank account to cover rent, races and gas. The idea sounds simple, no? Buy wheels, rent them out. Well, two years later, we’re seeing just what it takes to run this operation.
Starting off, we thought it would be easy. First, we needed products. We pooled together our entire savings and convinced a few wheel companies that had sponsored us in the past to give us a chance. We faced a huge obstacle getting approval: we were early 20-somethings with no business experience and a big idea. But, we had some cash in hand and they sold us some wheels. We then bought some tires, tubes and cassettes. Then we realized something: no one knew our service existed. We contacted VeloNews and asked about getting some advertising space. They cut us a deal because the ad guys who are also cyclists thought it was such a cool idea. (It was funny to meet them a few months later at the annual Interbike convention and to see them realize we were somewhat younger than everyone else there.) From there, a blue and white logo was created, a website was established and a phone number was hooked up. Should be smooth sailing now, right?
“How much does it cost?”
“A rental?”
“Yeah, a rental.”
“Uhh… $50?”
“Ok.”
That was pretty much how the first few weeks went. You see, no one else in the bike industry is doing this – at all. We had no frame of reference by which to gauge what “profit” was versus “covering our costs”. After a few weeks of looking at receipts, we figured it out. We’ve gone from two guys with wheels in the back of a pick up truck to five representatives across the country, a sponsor for the largest one day race in America, the longest running stage race in America and the country’s largest one day triathlon event. We’ve had wheels win a US National Time Trial championship, wheels raced in two World Championship events in Europe and the continued sponsorship of elite women in the sport. Under a year ago brands that would not answer our calls, call us.
Sounds nice, right? Well, how about we let you in on a secret: we’re still subject to the age old adage that businesses do not see profits within the first two years. We have higher demand and more needs. Most importantly, we now fully understand how our business model needs to function, the volume at which it needs to sustain a living wage for our representatives and us and where we want to be. There is a reason there are still no other companies in the US doing this. Its crazy. But we love it. We’ve figured out how to create something that works, and from our experience with a few other large companies, we work pretty well. We expect as soon as our model takes solid ground a few others will surface, and really, it will be flattering. But we need to get to that point first.
What keeps us going? It’s the HUGE smiles and the “Thanks You for providing this service!” we get after every rental. It’s the guys who get to ride carbon tubular wheels for the first time and can’t stop talking about it. It’s the guys who have had sponsorships in the past and know how valuable the equipment is for them, but know we’re their best option to succeed. It’s the calls from people saying, “Is this for real? It sounds too good to be true!” We love this job. We created a new path in one of the oldest, most traditional industries and we’ve proven ourselves beyond a doubt.
Do what you love. You should also know that its going to be super hard to make it work. Listen to your customers and adjust quickly to meet their needs. Your customers will tell you what your products should be. But if you love it and understand why you’re doing it, you’ll find success.
Comments
Great concept! Doing what you love and making it pay for itself has always been the American way.
Cool guys. You provide a neat, innovative service that gives people a chance to sample the same products the pros use (and then take an early withdrawal penalty on the 401k to buy it!). Keep up the great work.
Great group of guys that are following their passion and working hard to make their business a success. They truly deserve all the rewards that come their way.
It's a simple idea; everyone gets it. People all over the country have heard of these guys. (Well, people who are serious about cycling and racing.) Ask around. They work hard and ride hard. They deserve recognition and support.