Riding a bike is no longer a nostalgic memory or a recreational activity reserved for the young and able. Rather, it is now an accessible activity also available to less mobile, leisurely or elderly riders through the recent electric bike industry boom that has been amplified by the pandemic. Although it seems this trend is just gaining traction, the electric bike industry started decades ago.
For Pedego Electric Bikes, it all began when Don DiCostanzo created a solution to his own problem that has grown into a $150 million business. In 2006, Don was approaching the age of 50 and the problem he faced was a literal uphill battle between the beach and his house in sunny California.
To ease his exhausted legs after a day spent on the surf and sand, DiCostanzo bought an electric bike to give him the boost he needed to tackle the steep hill home. Great idea in theory, but at the time, electric bikes were clunky, unattractive and not created with the user in mind. So, DiCostanzo took matters into his own hands, or rather, handlebars.
“I was frustrated by the quality, and most importantly, the design of electric bikes that I came across in the market,” said DiCostanzo. “I decided to set out on my own and start a company hyper focused on producing and selling electric bikes, much like Tesla did when they decided to get into the business of only selling electric cars. I wanted to be the brand synonymous with e-bikes.”
Don DiCostanzo, CEO/founder, Pedego Electric Bikes
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In 2007, DiCostanzo opened an electric vehicle store in Newport Beach, California and quickly discovered that consumers loved electric bicycles, but the only models available to sell were ugly and poorly made. That inspired him to start Pedego Electric Bikes in 2008. Target customer? Well, Don was looking in the mirror.
“As an experienced entrepreneur, I knew enough about business, ownership and what it takes to build a successful business model and was ready to shift my wisdom into gear,” said DiCostanzo. “However, like most entrepreneurs, I faced a few uphill battles early on that define how we operate our business today.”
DiCostanzo is a firm believer in the four P’s of marketing — price, product, promotion and placement. “With Pedego, the hardest for us was the fourth one, placement. We could get the product lined up, the pricing in line and activate our promotions, but we really had no place for people to go and buy our product. We tried everything from opening our own direct stores, to home shopping parties, to selling in scooter and bike shops, but those roads could only take us so far.
“It wasn't until 2011 when one of our loyal customers approached us and said he wanted to open a store in Huntington Beach and do nothing but sell Pedego e-bikes. That was when our locally-owned and community-focused dealer model was born.”
DiCostanzo’s non-negotiable with the dealer model was a strategic and thoughtful caveat—they must offer e-bike rentals, too. “Renting is the precursor to buying. I always encourage our customers to try before you buy a Pedego. We intentionally designed 20 different models to choose from because every rider is unique and has their own adventure in mind. They must first be comfortable on the bike in order to truly enjoy their Pedego to the fullest. When possible, this is an opportunity for other industries to create loyal brand ambassadors and a community of satisfied customers, as well.”
Pedego Electric Bikes has since grown to more than 160 locally-owned locations with nearly 50 more in the works by the end of 2021. It is also considered the nation’s leading brand of electric bikes, according to Navigant Research. However, DiCostanzo is now facing yet another problem, but this time, it’s a good problem to have—extreme demand that has been amplified due to the pandemic.
“The pandemic not only spiked the demand for Pedegos, but it also caused an increase in demand for locally-owned stores,” said DiCostanzo. “In most cases, it took the pandemic for corporate refugees and want-to-be entrepreneurs to realize what they wanted to be when they grew up—an entrepreneur of a business they believe in. We had around 100 stores at the beginning of the pandemic, and by the end of 2021 we will have doubled our footprint.
“As a CEO and founder of a business, the best thing you can do for your company is to learn from your mistakes and to capitalize on what works best for your customer and bottom line. I wish we would have established the dealer model from the beginning, but we wouldn’t be where we are today without the small yet mighty community of brand ambassadors we built in 2008 that are now some of our most profitable dealers. Our network of dealers are the foundation and future of Pedego’s success and poised to take on any rough trails ahead.”
The Link LonkApril 24, 2021 at 03:15AM
https://www.forbes.com/sites/robertreiss/2021/04/23/pedego-ceo-on-reinventing-the-wheel/
Pedego CEO On Reinventing The Wheel - Forbes
https://news.google.com/search?q=Wheel&hl=en-US&gl=US&ceid=US:en
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