Bicycle making company for almost 40 years. 10 models ranging from
beginner to deluxe models.
Hi-Valu Stores Inc.
Chain of discount department stores in the Northwest.
Sales volume growing to point that house product lines being added.
Pros and Cons of distributing through Hi-Valu
- A contract with Hi-Valu would give it - Never distributed through a
access to many new locations as Hi-Valu department store. Use to toy shops and
has numerous chain locations. bicycle stores.
-Any bicycles not purchased within four - Baldwin Bicycles had image of being
months would be purchased by Hi-Valu “top of the line” but not above average.
-Would have to create a large inventory
of bicycles (unknown demand)
**-however, investment in storage not
-Would have to sell at lower price than Hi-Valu wants to sell the challenger
brand names models. This might help bicycles at lower prices than the name-
gain more marketshare. brand bicycles… i.e. buy bikes at lower
price because of the need to maintain
- Bicycle boom flatted out and current -Hi-Valu requires extensive
operations running at 75%. Could use customization to its bikes. Wants
the extra work maybe! different handlebars, seats fenders, etc.
and the name challenger engraved.