Decide Our Pricing

Thanks everyone in the Tokyowheel Community for engaging on this forum. I thought I’d pose a tough question to you all.

Pricing is a big deal for a business, especially Tokyowheel. If we price too low, our customers are happy in the short term, but the brand has little resources to grow, improve and give more to the customers in the long run. Price too high and more resources can be available for R&D, Sponsorships, Dealers, Contests, Local Demos, Better Support, UCI certification, Accessory Products & Clothing, Etc, but… customers might not understand that value, and be driven away by the higher price.

In general I think our existing customers would agree that Tokyowheel gives an incredible amount of value for the price. But would you like to see us become a more mature and premium company (More R&D, Sponsorships, Dealers, Contests, Local Demos, UCI certification, Accessory Products & Clothing, Better Support, Etc), if it meant we also raised prices. And if so, how much of a price increase would be too much?

Usually companies never talk about this type of thing with customers, but we’re thankful to have such a good community that I want to involve everyone in our most important topics. Because in the long run, our pricing strategy determines the resources we have available to support the community with awesome stuff.

Thanks for your input!

I feel like your pricing is on point. One hinderance would be that the US dollar is so strong right now. I’m currently in LA from Canada and have talked to a couple traveler an they are tightening their wallets because of the conversion. But I do feel like your prices are pretty good and visually appealing on the site. You made good points on your intro, to low and there isn;t enough fuel for growth and a perception of cheap wheels. People who want wheels and have free time to research will come back and invest in your product.

-Andrew

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I don’t think you are far off for the US market but as stated above the FX issue is significant if you are elsewhere in the world. I like the product and way you present the company but the problem you will have soon is that there is more and more confidence in products from China leading to more domestic wheelbuilders or entreprenuers looking to take advantage of the boom in cycling.

At present a 50mm clincher set is almost £700 from Tokyowheel. There are a few UK start ups hitting £400 or £500 for a very similar product that isnt as slickly presented or marketed but looks ostensibly to be the same product. For that reason I can’t send my cash your way - its too big a differential for little benefit. Take a look at Zuus Wheels in the UK. Website isn’t a patch on yours but local warranty and price offer advantage for UK market.

The market is moving fast and getting more competitive. Some of the deals on built carbon bikes in the UK look unsustainable but its great for the consumer. Equipment levels have gone up and prices down. the £1000 price point is now £900 in the UK. I fear for Tokyowheels ability to sustain but I hope you make a go of it. Hope this helps.

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At this point, I wouldn’t lower prices unless you had oversupply and needed to clear out the warehouse. But then you just have a sale offer here and there to accomplish that.

As for price increase, I’ll let you figure out that one since you know your cost structure better than I do.

In the previous comment, I saw the mention of Zuus Wheels. I’ve never heard of them but then again, I’m not in the UK. I’m in Los Angeles. After looking at their website, one thing is certain…low prices for full carbon wheels. Maybe too low. I have a strong feeling that Zuus is basically buying full wheelsets from China and reselling them with the Zuus decals. Is there any quality control on their behalf? As for the website, it states that all their wheels come with the Novotech hub. It’s actually the Novatec hub. How did they miss that one?

I don’t own any Tokyo wheels but would prefer them over a company like Zuus for a few reasons. First, they have a one year return policy that doesn’t involve defect issues. Second, you have better hub, spoke, and bearing options. Last, better quality control and more information about the wheel and it’s manufacturing process.

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