I think it all comes down to cash flow. Yeah $2 million in lost revenue is a lot but as someone who is a retail buyer, having millions of inventory just sitting in warehouses is terrifying for any company. So slashing prices and taking lower margins or overall losses exchange for warehouse space and cash flow which could go back into R&D and even hiring more to grow the company makes sense.
I think the issue was Canyon is that prior to COVID they were a stellar deal, but with pandemic pricing and inflation their pricing started to pickup to the point where I questioned what’s the point of going direct to consumer and now with more and more companies launching much better value “mid range” bikes Canyon will have to pivot to simply giving more bang for your buck if they want to growing or even keep their market share
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I think it all comes down to cash flow. Yeah $2 million in lost revenue is a lot but as someone who is a retail buyer, having millions of inventory just sitting in warehouses is terrifying for any company. So slashing prices and taking lower margins or overall losses exchange for warehouse space and cash flow which could go back into R&D and even hiring more to grow the company makes sense.
I think the issue was Canyon is that prior to COVID they were a stellar deal, but with pandemic pricing and inflation their pricing started to pickup to the point where I questioned what’s the point of going direct to consumer and now with more and more companies launching much better value “mid range” bikes Canyon will have to pivot to simply giving more bang for your buck if they want to growing or even keep their market share