Mike Pryde Talks Chapter2 Bikes: Boutique VS The Big Guys
How the Boutique Brand is Taking on The Big Guys
VIDEO Interview: I talk with Mike Pryde about Chapter2 bikes – the brand he created with his famous dad Neil, about how their direct to consumer sales model makes sense for a growing number of riders around the world who want top-shelf quality, fair pricing, and fast delivery times.
– Click PLAY to see our video interview, and see more at the PEZ Youtube channel here.
– The full interview transcript follows below….
Pez: I am back, and I am talking with Mike Pryde of CHAPTER2 Bikes. Now, I’m sitting here in Vancouver at PEZ HQ and I’m actually talking to Mike sometime in the future because he’s halfway around the world in New Zealand. Mike, exactly where are you right now?
Mike Pryde: So, actually sitting in my living room. Since COVID, I’ve actually started working from home. This is my home office, and I’m here in Auckland, New Zealand.
Pez: Mike, the first question I’ve got for you, is that bike actually a permanent fixture in your living room?
Mike Pryde: Only when I’m not riding it. That’s the Toa. The original color was just Tongariro. And we actually only made a few of those and they sold like hotcakes.
Pez: So, the brand is called CHAPTER2. We’ve seen it here on PEZ a couple of times before because we’ve reviewed some of your bikes. And you’ve been in the cycling business for a number of years now, but before that you were in the sailing business working with your dad, Neil Pryde, the founder of a really famous sailing brand that a lot of my readers will know . How did CHAPTER2 come to exist?
Mike Pryde: We designed everything around being boutique and creating a business model that we can actually scale in an appropriate way. So, one of the first decisions that we took was that we would be a frame set only business. And the great thing about that is that with a frame set only business, we can also ship these products all around the world by DHL really cost effectively. And I guess the other way that we kind of have structured CHAPTER2 is that we’ve designed everything to be much more approachable and much more personal. And that means that any dealer or consumer that’s interested in CHAPTER2, they actually talk to me personally.
Pez: As a boutique brand, what are the benefits that you can offer consumers that the larger brands can’t or just won’t?
Mike Pryde: Being an enthusiast myself, over the years, I’ve never been the kind of guy that goes to a bike shop and buys an entire bike and that ready-to-ride type of experience. So, I kind of wanted to mimic my personal experience as a cyclist and let the consumer choose. So, we’ve actually tried to make accessibility of CHAPTER2 to both dealers and consumers as easy as possible. And I think with modern technology now and logistics, it’s really changed the way we do business.
Pez: So, we’re living in a time right now where prices for everything are rising and the option for some readers to buy a brand-new bike isn’t as close to them as it used to be. So, upgrading the bike traditionally meant something like a new set of wheels or upgrading your cockpit, but the other thing you can absolutely do is upgrade the frame and keep and work with the existing group set and wheels that you’ve got.
Mike Pryde: And that’s a really interesting point that you made because we actually saw through COVID when we were able to continue delivering product throughout COVID, that a lot of the customers who couldn’t find group sets, who couldn’t find wheel sets, they were happy to go through that upgrade process by just changing the frame sets. So, our business actually flourished through COVID and we did very well. And I think this idea that you can actually have a new bike without the full expenditure of all the groups set and the wheels becomes a really kind of appealing prospect for a consumer.
Pez: So, then Mike, how does CHAPTER2 as a boutique brand really benefit consumers?
Mike Pryde: When we designed and developed the CHAPTER2 business, we wanted everything to have that very personal boutique, almost custom made feel to it, but yet it’s at a fair price. When you go on your local group ride, everybody is riding one of the bikes from the Tour de France, from the big four that we all know of, and those customers are jumping off those big brands and buying our bikes because they love it. They get the idea that they can have something very unique and very personal and in our opinion, at least at a very fair price. The great thing about CHAPTER2 is that you really can have everything, right?
You can have the best wheel set that you can afford, the best group set, and there isn’t somebody in the background trying to pick and choose every component. I mean, I know from years and years of cycling, when you buy a new bike, the first thing that people do is they throw the saddle away. I mean, why would you want a saddle that somebody else has picked for you when it’s such a personal thing?
Pez: Carbon bikes now have been around for getting close to around 20 years or so, and the production techniques have evolved to a place where just about anyone has access to the same manufacturing capabilities and even design ideas that everyone else does. So, the bikes have kind of levelled out a little bit in terms of competitive advantage, but that doesn’t stop new brands from getting involved and offering something different. So, what does CHAPTER2 offer for consumers that’s different from the other brands?
Mike Pryde: What we’ve been able to create is a product that not only suits those guys that are looking for performance and speed, but also somebody that looks for something that has a certain amount of prestige and differentiation for those coffee shop rides. So, I think we’ve succeeded in both levels.
Pez: One thing I really like about the bikes is the way you guys have finished them, there’s some really beautiful color choices, some really beautiful artistic designs inspired some of the indigenous artists over in New Zealand. You have access to all of these bikes and you’ve ridden them all. What’s your favorite? Which one do you like the best?
Mike Pryde: We’re trying to design real bikes for real people. And what that really means is that if you look at the marketplace, there’s a lot of big brands, they’re heavily invested in tour teams, racing at the world tour and stuff like that. When you’re designing a bike for an elite athlete, racing at the highest level, and designing something that actually is more applicable and practical for normal people, it’s a very different proposition. And also with that in mind, we’ve designed the Koko, which is our aero road bike. And this is something that I think I’m particularly personally very proud of.
Pez: So, Mike, you’ve traveled all over the world with sailing and riding, you’ve spent a lot of time in the United States. What have you learned particularly about the U.S. market that is different and that you think you guys can really adapt to or offer something fresh to?
Mike Pryde: Actually engaging with not only the consumers, but with our dealers, is actually probably one of the best parts of my job. Whether it’s online through our live chat or whether it’s a face-to-face meeting, meeting people and helping them solve problems is something that I really enjoy doing. And actually as a result of that process, our dealership has been growing steadily in the North American market.
Pez: So, Mike, for viewers who are watching at home and living somewhere here in North America, what are some of the best shops here that viewers can go into and actually find CHAPTER2 bikes?
Mike Pryde: In North America, we’re in Wrench Science in Berkeley, California. We’ve got a really great dealer called Swiftfoot Cycles in Prosper, Texas. In Canada, we have Blacksmith Cycles in Toronto, and in Vancouver where you are, we’ve got Veloholic, and also Salita Cyclery. And they are great dealers and they really build some of the most beautiful CHAPTER2s that you’ll see anywhere. But actually, the other thing that’s really interesting to know about our business is that any consumer can actually walk into any shop in America or in Canada and ask for a CHAPTER2. And the bike shop just needs to contact us, we’ll send them all the details and information about how to become a dealer, and we’re here to help.
Pez: Well, thank you very much for talking to us. Always a pleasure. Looking forward to see more of CHAPTER2 over here in North America, and hopefully I will get to ride another one of those bikes myself pretty soon.
Mike Pryde: Thank you, Pez!
• See more at the Chapter2 website.
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