Why we're going bankrupt...a warning to others.
Over a year ago we decided the time was ripe to re-introduce these fabulous machines to the people of the UK. Since then we have enjoyed an excellent reaction and turned over upwards of £10,000 in our first 5 months of operation.
Now thats changed.
Since Christmas just gone we have endured a commercial nightmare.
2 motorised bike sales and a small number of parts sales.
But this itself isn't the issue, as we had the foresight to prepare for the winter and the expected slump in sales.
What has put us on the verge of bankruptcy is mainly "buyers remorse".
Let me explain. put simply buyers remorse is when a customer buys, takes his product and thinks, "bugger, i need that money. Maybe i should have waited, oh well i'll cancel"
Now this is all well and good but in the last 4 weeks we have had 4 such transactions! 4 you say? but you said you've only sold two! Thats right, 2 were from before christmas PLUS two after. The first, being too proud to admit his guilt, tried to sue us citing all sorts of reasons for compensation including having to ride the bike to test it was working! He wanted £25 per hour for 6 hours spent unpacking, testing and riding, plus expenses of picking up a bike box to return it! This was all because he'd left it too long to cancel. Eventually we were blackmailed into collecting the bike at our expense and refunding him in full.
The 2nd, again had left it too long to cancel so therefore claimed the bike was terribly damaged in transit and the reason he hadn't contacted us was he was "gathering quotes for repair". We gave him the benefit of the doubt and filed an insurance claim for the damage and eventually the bike was returned - In its original pristine condition! Again, a man who'd had a change of heart and wanted his money back.
Now ladies and gentlemen, these two transactions total around £1000. In order to refund ASAP the bikes went on eBay, this not only entails added fees but also means the price gained is generally £100-200 below the original value. already these low lives have cost us a total of £586 between them. We didn't ask for nor deserve this! By refunding them promptly, we entered into the overdraft. fees for which this year now stand at £510, £210 of charges incurred this month alone.
customer #3 had been calling and visiting for around 6 months with numerous test rides on a demo bike etc and finally coughed up and ordered a bike.
The day before the accessories were fitted he was invited to test ride his bike so we could make any adjustments/changes he required as well as run over its operation and maintenance. All went well and the next day he collected his beautiful shiny new bike.
An hour later we received a garbled phone call. Something about "want to cancel....not what i expected...bit noisy..."
WHAT!!!!!! cancel? - thats absolutely fine (annoying but fine) "not what i expected" what the ****?! "bit noisy" why wasn't it so noisy when you test rode it and said it was fantastic?!
Anyway, we agreed to refund him as he was well within his rights. The trouble was, when the bike was returned, he'd broken the master link, snapped the rear reflector,dented and twisted the chain guard and jammed the petrol cap into the tank .
This is despite being shown more than once it was a twist and lock job, he had obviously smashed his fist down on it and had the cheek to say "quality isn't too good either"!!!!
total owed now around £1500+
Customer #4 - a young rich kid who'd bought a schwinn panther to convert but didn't want to do it himself, so decided to also buy one of our pre-built bike. received his bike and has today changed his mind and thinks he'll give conversion a go after all.
Total now owed to customers - nearly £2000
Total of expenses/losses incurred PURELY through "buyers remorse" = £1745
This enormous loss is no fault of our own but due to the meagre amount of profit we make per bike which is around £50 (after fees deducted for advertising/website/paypal/tax/shipping)
It is therefore with great sadness that for the forseeable future we must wind down and cease the building and selling of motorised bicycles.
We will nonetheless remain active and annoying members of this delightful asylum, i mean forum
For EU and UK Kits/Parts/Fully fitted bikes.
Visit us at www.TigerToothBikes.com
'Engines Ignited By the Finest Cigar'
"Tigertooth built him a jet
When his parts come in he'll be set
The pulse was so cool
It'd make a guy drool
He'll put one on a bike now I bet....................." - Ilikeabikea
Last edited by TigerToothBikes.com; 03-24-2009 at 01:02 PM.