Scooter maker develops network

Friday, January 31, 2003

GARDEN GROVE, Calif. - Frustrated by the instability of selling scooters direct to the end-user, a seven-year old scooter manufacturer is revamping its distribution model with the development of a dealer network.

The company, No Boundaries, currently sells 80% of its products through direct sales and 20% through dealer channels. In a year, company President Norman Stein expects the retail portion to drop to 60% and in two years to 40% with dealers picking up the additional business.

“It’s really hard to crush a business that has a big dealer network,” said Stein. “But with direct sales, as soon as two or three of your competitors start advertising in the same publication and you have to start splitting sales, there’s really some fine ground you have to walk.”

No Boundaries’ flagship product is the Easy Travel, which it bills as the world’s first folding scooter.

Until recently, Stein was committed to a business plan that put $70,000, one-third page ads in the AARPs Modern Maturity magazine. But when his competition jumped in, sales fell. Stein has also placed ads in Newsweek, where, he says, his competitors have yet to venture. But he figures it’s only a matter of time. Hence, the dealer network play. HME