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BenSerotta
06-09-2009, 06:49 PM
Hold on to your rumor mill please! :)

What happened to the store and other musings of our destiny… A report from the top…..

It’s been brought to my attention that there’s a lot of concerned chatter on the forum at the moment regarding the health of the company so I thought I’d better take a few minutes to address those concerns.

First of all, we’re quite OK, we really are….at the same I have to admit we’re not doing a great job at everything and that really bothers me. The bikes are fantastic as always. Sales, considering the economy, are much improved from winter levels (well above survival levels, thank you) and the new AE model is finally shipping.

We have a number of areas in which I feel we have been underperforming and they are related to web/electronic based features and services and communication. Having identified these and then overlaying a conservative approach to short term (0-8 months) business (as every intelligent organization is doing now) and I could only draw the following conclusion:

Stop attempting to do things that we can not perform at a high level without significant investments in resources and to focus on the "core business" in which we are better than anyone else- from fit to finish, building and delivering the best bicycles through our highly qualified dealerships.

If I am to be honest with myself, and you, we have always done a lousy job at managing soft goods and direct sales (over the internet). From my perspective, we’ve frustrated people more often than not with poor service, product availability or both. We’ve had great product (from time to time) but failed miserably at providing the right infrastructure and support necessary to do a great job.

Investing in frame materials, R&D and machinery has always trumped everything else. That’s what you do when you lead your category in quality and innovation. None of our direct competitors comes close. And now, as the world tries to right the erratic economy, is not the time for us to invest the resources in this important yet non-mission critical aspect of business. So until we can match that performance standard in accessories we’ve suspended the on-line store and the garage. For now, we’re disappointed as you may be…. but I can assure you, before too long we’ll have plenty of cool Serotta accessories and it will be a pleasant experience to purchase them.

As a temporary measure, Castelli has offered to provide fulfillment duties on Owner’s Club jerseys….they’re set up to handle it!

Progress and change go hand in hand. The past year has been challenging for virtually everyone in business, including Serotta but, as 37 years in business has taught me, you have to embrace challenge as a path to stimulate positive change. And most certainly we’ve made many adjustments but always and only with an eye to the future. Survive to thrive we call it….the only thing that will never change is our commitment to delivering the highest standards of performance and quality.

OK….time for me to go out and ride!

Thanks for reading, Ben

Pete Serotta
06-09-2009, 07:05 PM
Also for those who are at the Ride the ROCKIES, Ben should be there the last day or two,, :bike:

PETE

CNY rider
06-09-2009, 07:07 PM
It's always great to hear from you, and even better to know that you and the company are "taking care of business".

gman
06-09-2009, 07:26 PM
Thanks for taking the time to update the loyal and faithful owners on the state of the brand and the business. It's good to hear that you have a focus on the core business and doing what is necessary to keep doing what you do best and work to continuously improve that. It certainly is what keeps me a happy owner and it's what I tell others when I am asked, "why Serotta...what is so special about them?"

gman
06-09-2009, 07:27 PM
Also for those who are at the Ride the ROCKIES, Ben should be there the last day or two,, :bike:

PETE

But I am in the Rockies NOW...

timing is everthing.

Smiley
06-09-2009, 07:27 PM
Man, how do these rumors get started anyway?

Dekonick
06-09-2009, 07:44 PM
Man, how do these rumors get started anyway?

telegraph, telephone, tellafriend, tellafirefighter... - well at least in my business...

Blue Jays
06-09-2009, 07:46 PM
Outstanding news update.
Thanks, Ben. :beer:

Bruce K
06-09-2009, 08:06 PM
The one thing that has always impressed me most and kept me a loyal customer is that Serotta is still Ben's company.

He is more than a name or a figurehead, he is the real deal.

Beyond that, is Ben's commitment to doing something the best way or not at all is what keeps me around and wanting to share my enjoyment of the products and the people behind them with others.

BK

old_school
06-09-2009, 08:22 PM
Ok, both as a customer and a business owner, that just impressed the hell out of me.
Best of all to you, Ben.

dekindy
06-09-2009, 09:31 PM
This is great news about the state of the company.

I regularly talk up the Serotta Garage factory frame deals. I mentioned my deal on the roadbikereview forum yesterday with the caveat that the store was temporarily under renovation. I got some interested replies and I told them to review the website for deals regularly when it comes back online. Will you at least offer the factory frame deals?

Louis
06-09-2009, 11:10 PM
Ben,

Given the state of the rest of the world / economy it's good to hear that things are well at Serotta.

Louis

BumbleBeeDave
06-10-2009, 11:01 AM
Ok, both as a customer and a business owner, that just impressed the hell out of me.
Best of all to you, Ben.

. . . but I am a customer and I'm also impressed. A few lines of candor from the guy at the top is worth more than a dozen press releases. Well done!

BBD

mscott
06-10-2009, 11:11 AM
I mostly lurk here from time to time, but as a Serotta owner I am glad to hear all is well with the financial health of the business. I am a commercial banker and in this wild financial time, can say that isn't the case with a lot of companies right now. Way to go!

kgreene10
06-10-2009, 11:31 AM
Me too, very impressed with the self-conscious assessment, the willingness to make it public, the respect for customers in general and forumites in particular, and the elegant prose. As someone who had a less than stellar soft-goods experience this last year, that open letter completely won me back. (BTW, my experience with the bikes has always been spectacular.)

SoCalSteve
06-10-2009, 12:37 PM
Thanks Ben...

You have always been "transparent". (Your word-spoken to me during a phone conversation we had).

Just sayin'

Steve

bnewt07
06-11-2009, 01:29 AM
Ben

What an impressively honest post. That really elevates customer service to a new level. No obfuscation or management speak.

good luck to you.

mikki
06-14-2009, 12:30 AM
Ben

What an impressively honest post. That really elevates customer service to a new level. No obfuscation or management speak.

good luck to you.

I agree with the above post and echo other's sentiments. My computer has been down for many weeks and I hadn't read the rumors but am impressed nevertheless with Ben's candid post.

As a business owner myself, I know that we now have to cut out things and expenses that don't work, find new avenues of clients and work more for less. It helps tremendously if you love what you do and I think it is apparent that Ben does.

All The Best to Serotta!

Ti Designs
06-14-2009, 06:48 AM
You have always been "transparent". (Your word-spoken to me during a phone conversation we had).

I've been on Ben's wheel on a ride, he's not transparent. He blocks wind, he blocks your view, and talk about a rolling Serotta ad!!!


Seriously, these rumors get started when consumers see cut-backs they don't understand or dealers read things into invoices or dating terms. I've seen both, and I've been watching the buisness dealings of the three custom builders my shop sells for a couple of years now.

Pushing the term "best" and disproportional spending on R&D without an eye on market price is a great way of going out of business in this economy. What has worked in a few shops in the NY/CT area is not a sustainable model going forward - just my opinion... I work in one of the largest shops in the country, I've seen the numbers on what sells and what doesn't. Ultra high end has dropped way off. The AE may be starting to ship, but what was the cost of that first one, and how many are customer orders vs. how many are shop floor bikes? You can be sure the investors have done the math. Companies like Specialized and Trek are raising the bar when it comes to that performance/price ratio, which is what consumers call value.

A few years back I was 100% behind Serotta - I even got one of my own! The definition of "best" seemed a bit different back then. The best bike was a well made frame and a bike that fit, emphasis on the fit part. At one point we were selling a Fierte at almost the same price as a Cannondale with the same components - that's an easy one. Don't fit on anything stock? The CDA was a reasonable custom answer in steel, the La Corsa was the titanium version. Serotta quality, good fit, reasonable price - what the consumer would call value. There will always be the consumer who wants something better - thus the Legend, the Ottrott... but to put all your eggs in the ultra high end market in this economy would be a mistake - again, just my opinion.

Smiley
06-14-2009, 07:17 AM
There will always be the consumer who wants something better - thus the Legend, the Ottrott... but to put all your eggs in the ultra high end market in this economy would be a mistake - again, just my opinion.
I applauded Serotta when they introduced the Classique and have that to go along with the Fierte line of bikes. Additionally I think you can't get a better bike for the money now then the CDA GS. So they are listening to the tone of where the market is and hopefully they riase the ad bar on telling their story about the good stuff they have on the competitive end of the price scale.

CDA GS = $2289
Classique Ti made anyway to order = $2895

Both GREAT bargins with the BEST fork on the market the Serotta S3 fork

I think you can get a SRAM Rival kit for what about $1200 with wheels to finish out the build NOT bad at all.

Ahneida Ride
06-14-2009, 01:00 PM
Keeping an Internet store stocked is not easy ...

Believe me I know ...