"Brompton profits plunge more than 99% amid bike industry turmoil"

[ebikeerwidnes]

From what I can see Brompton became a "Name" like Rolex or Ferrari

and so they could charge a huge premium because a certain type of person who would never ride "a bike" would feel better riding "The Brompton"
Somehow it was acceptable and not like "what poor people do"

They got rather over ambitious and proceeded assuming that they could produce other bikes and maintain the same bubble

which probably succeeded in some ways - but not enough
because they were building on a pretty wobbly base

There was evidence that it could work - after all we have all heard of people who ride on their graphite frame with diamond brakes and saddle made from unicorn horns (I may have made some of that up)

so it could have worked but it doesn;t seem to have done

shame really - we need some way of getting people out of posh cars and onto bike - they are the ones that can persuade the politicians that we need better facilites for bikes so that the masses will use them more often

 

[MidnightRider]

shame really - we need some way of getting people out of posh cars and onto bike - they are the ones that can persuade the politicians that we need better facilites for bikes so that the masses will use them more often

Pricing for the really well off is not the way to do it as there are few really well off people compared to the many not well off, particularly at the moment. With the complexities of electric vehicle manufacture I think car ownership will be priced out for most people within 20 years at most. Plus It does not support the green movement to only target the well off, as they will move to buses or work at home. high pricing reduces access to bikes for children and teenagers and I find most people who bike start young, older starters seem to fear bikes, bike repairing, and roads. Its a bit like religion - start them young to obtain life long devotion. Its getting so a family would be pushed to get an adult bike/s and kids bikes to take the kids out to learn. A minimum of £4000 per family if 2 adults and 2 teenagers just for ordinary bikes?

 

[MidnightRider]

From what I can see Brompton became a "Name" like Rolex or Ferrari

If so, that is something Brompton should be ashamed of rather than proud. The lower end of ranges should be for people, not just the elite. People cant afford heating and food, now they can't even have entry range decent bikes as an alternative to car costs and bus fares.

I am off out now, so end of my rant for today!

 

[Gunk]

If you read WBA’s Brompton book, you can clearly see what the problems at Brompton are, he’s got a massive ego and is far too ambitious, IMO if he had kept his feet on the ground they would still have a very good quality, relatively recession proof business. Yes they may have sold fewer bikes but as they say “turnover is vanity, profit is sanity”

 

[All uphill]

My goodness there's a lot of negativity here!

Brompton have had one year where they break even, and the conversation sounds like they've gone into receivership!

Seems the UK has too many armchair critics and too few entrepreneurs who are willing to build businesses.

 

[Brooks]

i have a Brompton and its an excellent commuter bike, i work as a bike mechanic and its the most popular bike in the workshop. why? its build quality and due to the fact its the perfect urban bike. it costs less than the phones your average 15 year old carries around and replaces every couple of years.

 

[Gunk]

i have a Brompton and its an excellent commuter bike, i work as a bike mechanic and its the most popular bike in the workshop. why? its build quality and due to the fact its the perfect urban bike. it costs less than the phones your average 15 year old carries around and replaces every couple of years.

Completely agree, that’s why I own 2!

 

[Gwylan]

The brand says this is "primarily due to the miss in budgeted sales by the Group, and the delay in being able to respond with a reduction in costs due to the committed and fixed nature of a number of them."

Translation - "we didn't sell enough bikes, and couldn't do a lot about it."

We got screwed by our suppliers.

 

[Gwylan]

i have a Brompton and its an excellent commuter bike, i work as a bike mechanic and its the most popular bike in the workshop. why? its build quality and due to the fact its the perfect urban bike. it costs less than the phones your average 15 year old carries around and replaces every couple of years.

Received wisdom is "don't believe your own publicity"

And "be aware that a niche becomes a ledge you can fall or even be pushed off"

 

[Gwylan]

My monies on them becoming part of Mike Ashley stable within 5 years...

You heard it here first!🤣🤣🤣

The brand, but nothing else.

 

[Gunk]

We got screwed by our suppliers.

I don't think they did, they probably did deals based on volume and then based on those outsourced component prices that partly sets the profit margin per unit. If they went back to their suppliers and tried to reduce the volume the price per unit goes up.

 

[Gunk]

The brand, but nothing else.

I can’t see that happening, but some of their production may have to go over to Asia to survive, plus they have a huge market over there. Triumph motorcycles have done the same and I don’t think it has diluted their Britishness.

 

[Fastpedaller]

I have written on here before of some bike shop experiences I have had in the last year or 2 which included a Giant brand shop telling me there was not point at all in buying any kind of drop bar bike for less than £8000 (not £800!) despite my not being competitive in riding and saying I was looking for something for 30/40 mile local day trips. This sort of idiot sales technique and greed and they expect continued customer loyalty?

Need to shop from Spa Cycles - Despite some customers' disappointment with a 'blunt Yorkshireman' they are a retailer with integrity.

 

[Fastpedaller]

Well as a taxpayer I would not be happy to fund Brompton. I think Brompton got too full of themselves and ambitious. The plan for the huge new showcase factory, self designed and built as a flagship green move always seemed a bit dodgy to me. Plus the expensive of something so specific rather than just renting or buying a standard build warehouse seemed to indicate they had more money/ego than sense. It was not in a similar category to an unusual hotel that people would pay to stay in.

I hasten to add that I'm not trying to start an argument or disagree with your words......... What are your views on how we all funded the banking sector when they made poor decisions in 2008? I certainly wasn't happy to fund them but had no choice. my Neice's Husband (who works for a bank) was very put out that he didn't get a huge bonus that Christmas (the previous bonus had paid for a new kitchen to be installed!)

 

[Fastpedaller]

My goodness there's a lot of negativity here!

Brompton have had one year where they break even, and the conversation sounds like they've gone into receivership!

Seems the UK has too many armchair critics and too few entrepreneurs who are willing to build businesses.

Absolutely - I was just about to say the same. Brompton are not in dire straights - As an example of what's happening in business, take a look at the big players in the auto industry and you'll see that most are losing millions but still buoyant! As an early buyer of a Brompton (mk2 3 speed) which I sold after a few years (bad move) I knew the design and build was good quality. It wasn't until last year I got a 2007 Superlight 2 to replace it . The entry level A-line is IMHO spot on for the price and quality.