Quote:
Originally Posted by unterhausen
I feel like selling bikes 2 for 1 might have been a clue, but I dunno, I'm not a bike industry genius.
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Obviously a Hail Mary to turn inventory on hand into cash, as you know. If this had the response they were praying for, presumably they would at least have cash to keep the lights on and materials coming in. But you're then still left with the damage to your brand, the damage to your dealer relationships, etc, all of which leads to the next round of hard things to deal with.
It was incredibly scary in April 2021 to realize that the flow of available inbound materials could not result in us meeting revenue needs. Fortunately our consequences for this didn't include laying a bunch of people off, stiffing suppliers, leaving a bunch of unsupported customers, etc. Also fortunately, the shim business was growing enough to make up some of the shortfall and we that supply never faltered, we still had vibrant demand for wheels, and the affected people (just 2 of us) could easily adapt and survive. But there weren't very many good choices available then, and since then a slew of industries have shown us just how easy it's been to make bad decisions since.
My guess is that this won't be the last of these.