Priority Bicycles building out dealer program

NEW YORK (BRAIN) — Direct-to-consumer brand Priority Bicycles started a retailer program that has 22 shops already with more in the approval process. With the Low Maintenance Partner Program, it is fulfilling customers' requests to see its bikes on showroom floors and to have direct access to customer service, Tom Dunn, the program's leader, told BRAIN.

The dealer network so far includes areas along the East Coast, the Midwest, and in California.

"What we've realized is from the consumer perspective, we want to remove as many hurdles as possible and make their buying experience as simple and as pleasurable as possible," said Dunn, whose background includes co-founding Hilltop Bicycles' seven-store operation in New Jersey and New York City. "That translates to the dealer side as well. We want to give the dealers who are working with us a simple and painless experience. That lends itself to what our ethos has been from the bike perspective: just being low maintenance. We don't make extraordinary demands. We're not looking to fill their stores with a ton of inventory that they can't move. We want the experience to be pleasurable for them."

Dunn said the dealer minimum is 10 bikes. "Shops aren't going to be successful with a brand unless they have some of the bikes on the floor. From my experience, owning seven stores, that number falls in around the six- to 10-bike range. Can't tell a story of a brand without the bikes there. Anything less than that, the bikes sort of get ignored. It doesn't have to be the whole breadth of the brand."

Some dealers are stocking only Priority's kids bikes, while others only stock its cruisers or adventure bikes. "They know their market the best, and we'll help them fill in that void of what their current lineup is." Priority now has 30 models, covering other categories including commuting (including a folding model), cargo, and e-bikes. It also has a lineup of Pinion gearbox bikes. All are manufactured and assembled in Asia.

Margins begin at 28% and it scales rapidly, Dunn said.

"For example, the next tier up is a $20,000 buy-in, $20,000 worth of sales, which is a 14k buy-in. The free shipping scales rapidly. It's designed to help shops win. It's not designed to overload them with inventory, but help them sell bikes. The margins, if you compare our bikes to other brands, they're priced really well. So I think that margin reflects that."

Dunn added a click-and-collect program will be offered eventually.

The emphasis on developing a customer service component was a key factor in launching the brand in 2013. The New York City based service team will be accessible to dealers.

"So now our dealers, if they have an issue, it's handled right away. So I think our low-maintenance approach to our bikes, to the way we work with our consumers, we're going to bring that to the dealer channel."

Priority Bicycles prides itself on offering low-maintenance bikes, starting with all models being spec'd with belt drives and internal gear hubs.

"The biggest thing riders notice is that it's just smooth and quiet," Dunn said of the Gates belt drive. "It's just a whole different pedaling experience, and the belt lasts thousands of miles."

Dave Weiner started Priority Bicycles 13 years ago determined to build a practical bike that looked good, wasn't too technical, was comfortable, and easy to maintain, and priced right. He quit his job as a CEO of a multi-national software company to do so. Now getting his bikes inside shops is the next step.

"Over time, our customers have gone from primarily learning about Priority through our website to walking into their local bike shop wanting to learn more," Weiner wrote in a news release announcing the program. "It's time to make it easier for those riders to experience Priority at a location they already know and trust. With this program, we'll be able to establish partnerships that share the same customer-service-first values we do."

Dunn said Weiner's customer-focused outlook will benefit dealers.

"I'll tell you this: One of our objectives with dealers is we will protect their margins. And that's really important to him. If we run a sale, we make sure that the dealer margin stays whole. And that's always been one of his important things is he's so customer focused, and I think that's why his brand has been so successful."

Retailers interested in the program can contact Dunn at [email protected]. They also can fill out a dealer application on the Priority Bicycles website.