Iron Horse switches to ICT and trades independent dealers for online sales
News: Iron Horse Leads An Online Charge
Chris Dannen
Iron Horse is licensing the Ellworth ICT suspension design for 2010
Take a visit to any freeride spot, and you’ll probably see a bunch of kids abusing Iron Horse rigs. The company has built its recent gravity credibility on building economical, well spec'd DW-Link suspension bikes, but as of March 2009, they won’t be any longer.
In July, Dave Weagle, the inventor of DW-Link, surprised the industry by deciding not to renew IH’s license for the design through 2010. According to Brad Accettella, product manager for Iron Horse, there wasn’t any specific reason the design was rescinded, but the company has done well in finding a replacement. Licensing Ellsworth’s Instant Center Tracking (or ICT) design will bring the company into the four-bar fold, with a fully-active system that is widely received and frequently compared to other industry-leading designs.
But instead of making a subtle transition to a new design, the company has chosen this opportunity to remake itself by taking what may be the biggest sales risk of any mountain bike company in recent memory. Starting this month, Iron Horse is pulling its high-end bikes out of bike shops completely, electing to sell them exclusively online through Randall Scott Cycle Company, which also maintains a showroom in Boulder, CO. If the gamble pays off, the brand could soar as buyers turn increasingly to online outlets to buy bikes and parts cut-rate.
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While IH isn’t the first major company to allow their bikes to be sold online, they are the first to discontinue high-end bike retail through independent bike dealers and rely solely on web sales. Low- and mid-priced Iron Horse bikes will still be sold through big box sporting retailers like Performance, REI, Dick’s and LL Bean.
While leaving the IBDs behind and converting to an entirely new design are two big projects to undertake at once, the company is doing their redesigns from the ground up to make sure they get it right. According to Accettella, the 2010 bikes, which will be the first generation to use ICT, will maintain the same geometry as this year’s line. But that’s about all that will stay the same. "ICT has shaken up the line drastically. We did not just develop new rear triangles, but rather developed entire new frames," taking into consideration new technologies like tapered head tubes and alternative wheel sizes. Accettella says the new designs will sport a firmer pedaling platform and lower stress loads on the frame, as well as low chain growth for minimal pedal kickback.
The company is quick to downplay its new web store--Accettella says that online sales are "just another avenue for distribution in the ever changing retail environment." But as CEO Cliff Weidberg told Bicycle Retailer and Industry News, it’s also an example of a mid-sized company pushing back against big boys like Specialized and Trek, who Weidberg says are "asking their dealers to make these brands the number one or two brands sold in their stores."
"We’re sure other companies are looking to this avenue as well," Accettella says of the online business model. But keeping rider loyalty without bike shop support, and with a totally new design, won’t be easy; as the company has acknowledged, they’ll have to re-focus on bike park promotions and advertising to keep rider loyalty solid. They’ve also got to keep their racers winning.
That could present a new set of challenges. World Cup and World Champion downhiller Sam Hill has been the face of Iron Horse’s gravity line since 2002, but his contract expires in October of 2008. Rumors of Hill visiting Specialized labs have cropped up on the web, as have whispers that Sabrina Jonnier might move on as well. With so much up in the air over Iron Horse HQ in Holbrook, New York, you might think it’d make them nervous. But Accettella doesn’t seem worried. "This transition," he says, is "in our DNA as a company."
As exciting as the new ICT-designed Iron Horses sound, don't expect to see them right away. The bikes being prepped for next week's Interbike trade show are reported to use the DW-Link design. It may be another year before we get a peak at the ICT frames.
2009 will be the final year of the DW-linked Iron Horse models
2010 Iron Horse suspension will probably look more like that found on this Ellsworth Moment
Reader Comments
Posted Sat Sep20, 2008, 1:11 PM — By Dan
Can someone explain what THIS means:
"This transition is in our DNA as a company."
If IH wants loyalty from its riders, it's going to be an uphill battle. Iron Horse customers, new and old, are likely to going to have really swell experience when they wander into their LBS after this change. What (former) dealer is going to give a toss about this new online bike company? So some kid "downloads" his bike then he wants his shop to either put it together or fix the assembly gone wrong or explain what parts weren't included with the bike. Where's a brand rep for guidance and warranty? An email address? Any high-end rig that needs to be assembled at home, outside of a shop environment and without proper tools, is going to make for a dissatisfied rider.
Good luck, Iron (Dollar) Whores. You're the new Pacific.
Posted Sun Sep21, 2008, 1:16 PM — By Nate
Yeah, I don't get it, either. I've bought I don't know how many bikes mail order since about 2002, and "assembly" is pretty much done when the box is opened. But there are a great many riders who are not mechanically minded or short on time, and might need that local retailer for tuning or support or motivation. IH was gaining a real foot hold before this, but Randall Scott web prices have been killing dealer wholesale costs since they appeared on the scene. You ask about the "transition in our DNA"? Try this: The owner of Randall Scott is purportedly the son of IH's CEO / owner Cliff Weidberg, a not so closely guarded secret confirmed by former IH employees. I can only hope the cost IH is saving by switching to ICT doesn't also buy Ellsworth's history of frame breakage, outlandish performance claims, and crappy customer service.
Posted Tue Sep23, 2008, 1:16 PM — By Javi
Well i heard from a close friend who is also a former employee of Randall Scott, that Randall is running a shady ship. Like buying products and selling them way below what the companies suggest, thus pissing alot of people of within suppling company. Also Randall Scott's father owns Iron Horse, so that may lead to some under the table deals. As my friend put it, "He's pissing alot of people off burning alot of bridges." I can't be exactly sure what is going on, but from what I have heard, Karma may catch up with Randy... But what I know I'm just a Brain Surgeon ;)
Posted Wed Sep24, 2008, 8:13 AM — By Ted
If you really think about it, it is not that much different than the way things are now. The bikes that will be mail order only are the higher end bikes, something like $2500 and up. There are not many bike shops that stock full runs of $3,000 bikes. None of the Specialized dealers in my area stock $4,000+ Enduros or Demos, so really you are looking at them in a catalog and ordering them without seeing or riding them. I also think that people looking to buy those types of bikes are expirienced riders who would rather do the maintenance on their bikes themselves rather than trust a 16 year old thats working at a just to pass the time through the summer.
It will be interesting to see how it works out with warentee situations and how they handle customer relation situations like that and what kind of reputation they develope.
It gives people options which is good.
Posted Sat Sep27, 2008, 6:24 PM — By se der gib
Ted-where do you live? my local bike shop ie: RockNRoad Cyclery? they have 2500-7700 price range bikes in multiple sizes and colors and models to try and test ride demo/rental bike that are expert level priced at 3300 retail. consumers need brick and mortar stores with expert staff to build and maintain bikes. not to mention warranty issues that are handled on the same visit to the shop! my opinion is web bike shops are after a quick buck and not interested in providing the very best customer satisfaction. no hard feelings Ted.
Posted Sat Oct11, 2008, 8:42 PM — By Tim Saundberg
Amazon,netflix,zappos, are some of the fastest growing companies. Amazon sells everything from bikes to tv's. Ebay sells cars. Amazon and zappos receive higher satisfaction from customers then local stores. Only in the bike industry do you hear negativity when a manufacturer actually gives the customers more choice and better pricing, through the web. For everyone other than bike industry veterans and local bike shops, this is a good change. Giving customers the ability to purcahse online at a better price, receive warranty assistance and more avialbaility is a good thing. With regard to repairs leave that up to the LBS. They are quickly becomin glorified repair shops for older people. The IBD cant afford to stay in business as they operate. Its an outdated model that T and S has force fed everyone. Before you know it they will own the industry and you will have less choice unless IH and others develop new models of distribtion based on what the CUSTOMER wants NOT the industry. Go IH and RSCYCLE bold but
Posted Mon Oct13, 2008, 3:17 PM — By BikerNiner
Tim, Could't agree more. As a pure customer and having no affiliation with the bike industry I think this is great for me. The LBS's need to figure out how to survive and not stop customers from getting what they want and deserve! I'll use them for repairs and save hundreds on my bike and get more info and service online then from shitty LBS's that run the industry. (to the few good shops no offense)
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