Dealer Back-up Drives VelectriX Growth

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Necessity isn’t just the mother of invention. It can also be the foundation of some very astute business decisions.

Sunshine Coast bike store owner Daniel Whiting launched his own e-bike brand, VelectriX, in 2013 when he couldn’t find the right stock to fill an important niche in his stores.

“We started the Sunshine Coast’s first dedicated electric bike store in 2013, then expanded to Brisbane, and had a lot of trouble finding a good source of rear hub-drive bikes,” Daniel said.

“We just focused on doing four models really well, with designs we knew from our retail experience would be popular.”

“We were dealing with the big brands and larger distributors in the early days, who generally only catered for the supply of mid-drive motor e-bikes. While they were a valuable part of our store, demand for rear-hub drive models was through the roof and we really struggled to find a stable supplier for that market segment.

“If we could get bikes with rear-hub drives, they were from smaller suppliers that offered poor stock control, little or no after-sale service, poor warranty processes and next to no replacement or spare part availability … so we made the decision to do it ourselves out of necessity

“We just focused on doing four models really well, with designs we knew from our retail experience would be popular.”

It wasn’t long before VelectriX represented the majority of bikes sales at their Electric Bike Centre stores, and other retailers started to take notice.

“99 Bikes reached out to us in 2015 and really liked our product. We only had four models at the time and they wanted to stock two of them in six of their stores as a test case,” he said.

“When we decided to go ahead with VelectriX, we were determined we would have amazing back-up, warranties, training, product … everything we could possibly do to help retailers.”

“That was a big deal for us. It was the first e-bike brand to be taken in by 99 Bikes and it went exceptionally well – to the point where we decided to give up retail and concentrate purely on the wholesale side of things.

“I was spending at least three weeks every eight weeks in China to bed down all the processes.”

During the next two years, VelectriX also started to supply a dozen core IBDs that have all remained with the brand.

“Our offering back then was quite different to everything else that was available. Because of some of our bad experiences dealing with small companies in the early days, when we decided to go ahead with VelectriX, we were determined we would have amazing back-up, warranties, training, product … everything we could possibly do to help retailers.

“Even today, our warranty, back-up and service are phenomenal. I think we’re probably the best in the market. We have warehouses full of spare parts and we can fix and resolve anything, anytime.

“I think a lot of retailers saw that as a point of difference but we had to work hard to prove ourselves.

“Before 2015, if we approached an IBD and said we’re selling electric bikes, we would have been shown the door. It was really difficult to get in and that’s why we decided to focus on those core 12 IBDs, to work very closely with them to break into the market.

“As other brands came along, the stores took on other stuff but always retained their relationships with us.”

Daniel said his initial experience as a retailer was invaluable in learning how to best assist those IBDs.

“If customers bought a different brand at the Electric Bike Centre and we needed to replace a frame, motor or battery, we regularly found the distributor didn’t have the parts on hand,” he said.

“You’re looking at a customer who’d spent $2,500 to $3,000, that was pretty average, and they had to wait for the parts to be sent from wherever they were manufactured.

“We make the investment to have those parts in our warehouse. That’s our point of difference.”

By 2019, demand for VelectriX and the company’s ambitions to grow its retailer network had grown to a stage where Daniel signed Advance Traders as his national distributor.

“We really joined Advance Traders to grow the IBD platform. We’re in an expansion stage and we’ve now got stock in about 60 IBDs,” Daniel said.

“We want to increase that to about 100 IBDs over the next six months. Joining Advance Traders was a real tipping point, it gave dealers more confidence about our brand, especially in regional areas, where we’re doing particularly well.

“We’re introducing new categories and technologies but we definitely know what our price bracket is..”

“There’s never been a better time for IBDs to get involved with VelectriX. We’ve got incentives in place for spring to jump on board, and we’ve got plenty of stock now and to cover the upcoming busy period.”

VelectriX was producing around 2,500 units a year in its early days. This year they will bring in 12,000 bikes.

Signing with Advance Traders also allowed VelectriX to focus on expanding its range considerably. It now has folding compacts, MTB, cruisers and urban bikes in the range, but always fitting within its niche market.

“We’re introducing new categories and technologies but we definitely know what our price bracket is. We don’t want to mess with our established market. We’re trying to create and fill a void we know is there.

“Trek, Specialized, Giant, Focus, Gazelle and other brands have bikes starting at $4,000 and going right the way through to $12,000. Our price point sits at a sweet spot below that, at $2,000 to $4,000.”

“That’s always worked well for us and we’ll stick with it. However, within that price point, we’re looking at features we can incorporate into the bikes.”

The brand is introducing belt-drive models, in-frame control buttons and the use of apps to replace displays on the bike.

Its recently released Brunswick and Newtown urban bikes both feature belt-drive systems, reducing the need for drivetrain maintenance and eliminating the risk of grease marks on clothing. The Newton uses a 250-watt, 36-volt Bafang rear hub motor and retails for $2,399, while the Brunswick has a mid-drive motor, delivering 65nm of torque, and a retail price of $3,499.

“VelectriX’s success had also been underpinned by strong supply levels.”

Its Urban Pulse commuter (RRP $3,299) is another of the company’s biggest sellers, both in step-through and diamond-frame versions. Its 250-watt Bafang mid-drive motor is paired with a down tube-mounted 461Wh lithium-ion battery with a range of up to 70km and quick recharge times of around four hours. It comes fitted with full-length fenders, an integrated rack, front suspension and an eight-speed drivetrain.

Daniel said the cruisers had become flagships for the brand in terms of sales, including its new Pulse step-through alloy bike. It has been fitted with a mid-drive motor, integrated battery, 1.95” wide 27.5 wheels and an eight-speed Microshift drivetrain, for a retail price of $3,199.

He said VelectriX’s success had also been underpinned by strong supply levels and the company’s warranties and training team.

“We’ve always had good levels of stock, even during Covid. It’s reassuring for stores to know whatever they need, they can just go on the Advance Traders webstore and it’s sitting there as an in-stock item,” he said.

“Our stock levels and range will be especially strong over the next 12 months.

“The back-up we provide stores through our warranties team is also a strength of our small crew.

“IBDs that take on our bikes receive a lot of product and technical training, including mechanic training to show them exactly what needs to be done and how it’s done.

“And the product knowledge of our warranty staff, Tony and Tom, is just phenomenal.”

That support for stores also includes sales and marketing.

“Coming from a retail background, we know sales staff get asked the same questions over and over. To assist, we are going to introduce removable QR code stickers on all our bikes,” Daniel said.

“A typical customer wants quick access to the basics about any e-bike they are considering buying, including motor power, how far the battery will take them on a ride, warranty, colour selection, frame sizes etcetera.

“They will be able to scan the QR codes on the bikes and access all the information they need, quickly, and even download the product brochures directly to their phone, while browsing the store.

“It will allow full interaction between customers and information on the bikes, without the need for shop staff to repeatedly answer the same questions … which we hope will help.”

Dealers interested in finding out more about VelectriX can contact Advance Traders on (07) 3861 8900 or check the VelectriX website to browse their range: www.velectrix.com.au