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How the A-D Bikes buyback program works

How the A-D Bikes buyback program works

The customer contacts me through email or text and says that he wants to use the program. I ask for the serial number and an image so that I know the model, the previous owner and the general condition of the frameset. I indicate what price I am willing to pay for the frame and fork. If the customer wants to include components, I offer to take the parts on consignment. My cell phone number is all over the internet so customers tend to text or call. Here it is again anyway: 207 415 3746

Let’s deproduce

The program is operated by Frame and wheel, the deproduction and reselling division of Rideable, Inc. I direct the customer to the FedEx Frame and Wheel Inbound Shipping Portal page on the Frame and Wheel website. The customer gets a label from the portal, attaches it to the box they have packed with the frameset (and anything that needs to be sold) and drops the box at the nearest FedEx Office branch. Frame and Wheel pays the inbound shipping. The customer can use any size box that is smaller than the standard bike box (54 x 8 x 28 inches). If the customer fails to read the bold red text that says us a standard bike box, they will not get any cash: just a coupon for a discount on a Frame and Wheel purchase. So far, everyone has been pretty good about reading the bold red text

Paying cash

When the frameset arrives, it is cleaned, inspected for wear and damage; imaged, described and listed. I select a market price that I know is fair based on the model and condition of the frameset and the historical selling prices of similar A-D frames. Soon after it is listed, I send the check for the buy back price to the customer. 

The benefit

The previous owner of the frameset saves a lot of time and receives cash although it is not going to be a big sum. The new owner obtains a clean, used frameset and is eligible for all of the A-D Bikes customer programs and is made aware of the reselling services of Frame and Wheel. I have helped an existing customer get an old A-D out of the garage (or properly recycled), I have extended the product life of an A-D frameset and I have obtained a new customer who may upgrade to a new frameset at some point. That customer may also  refer someone from his or her cycling network to A-D Bikes and the deproduction and reselling services of Frame and Wheel. The A-D Bikes buyback program differentiates A-D Bikes from all the other large and small bicycle companies, it creates value for the customer and it is an actionable way of introducing sustainability into our operations and the cycling lives of our customers.

Sample transaction analysis

A-D Bikes buyback program

Positive net cash

A used A-D frameset that sells for 250 dollars can expect to generate net cash of about 32 dollars. The largest expenses are inbound shipping, outbound shipping and selling fees. Given the market price at which a used carbon frameset usually sells, and the cash expenses related to completing the transaction, a reasonable price paid for the frameset is about fifty dollars. 

Generates cash, new business and its actionable

The largest expense related to the sale of the frameset is the labor required to clean, describe, image, list pack and ship the frameset. However, I have become very efficient at this process and can turn an item into cash very quickly. It is work, but it generates cash and new business, it helps the customer, it differentiates A-D Bikes from all the other large and small bicycle companies and it is sustainability in action, not green talk or green wash. 

 

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