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Product Proposal
Design Organization: Robust Decisions
Date: June 2004
Proposed Product Name: COMFORT BICYCLE PRODUCT LINE
Summary It is proposed that Bowflex produce and market a line of comfort bicycles.
There is an extensive nascent market, Bowflex/Nautilus has manufacturing
technologies in place, and the proposers have extensive experience in the
development and sales of this type of product.
Background of the product: The proposers were active in the development and running of
BikeE Corp, 1991-2002. The company was, during the late 1990s, the leader in sales of semi-
recumbent bicycles. A semi-recumbent bicycle has the rider in seated position. This type of
product is now categorized as a “comfort bicycle”
• Prior to 1992 recumbent bicycle sales less than 2000/yr world wide
• 1992 BikeE founded by David G. Ullman, Richard Rau and Paul Atwood. BikeE’s
goal was to popularize “seated cycling” with the rider sitting in a comfortable position
as in an office chair.
• Steady growth from 1992-2001
o Over 25,000 bicycles sold
o Over 6,000 bikes sold in 2001
o $5.2M sales in 2001
o Designs win national awards and large following
• BikeE products
o Weight of single rider products 28-31 lbs
o Basic product, CT (no suspension)
Manufactured by Giant in Taiwan
List price $750
Landed cost $280
Giant estimated landed cost of $150 if
made in China
o Most popular, AT with rear suspension
Manufactured by Giant in Taiwan
List price $1000
Landed cost $320
Giant estimated landed cost if made in
China, $200