What do you all think about Croudfunding?

Hi everybody, I'm hoping to get some feedback on crowdfunding. I'm ready to take the Electrom project to the next stage of production, but I need about $15,000 to do it. I have several people that are asking me to build them their own Electrom's but I think it makes sense to amortize the jig and mold costs over a larger group of people.

We've seen quite a few "crowdfunded" projects that look like scams, where an outrageously low price is offered for something that sounds too good to be true. There have also been quite a few well-meaning campaigns that take the money, head off to China, and then discover that they can't get their bike made on time or budget. I'm hoping to avoid both of these scenarios.

My plan is to be upfront about what stage my project is at, I'm not going to start taking deposits on bikes that don't exist, instead I'm going to ask people to contribute funds in return for getting on a wait list. The more they contribute, the earlier they can order their bike. if my campaign is successful I will make the production sample, and from there set a final price. Backers will get a chance to see (and ride if they like) the final product before finalizing their orders. I estimate that the base Electrom 1 kit will retail for around $4,000 USD, the deluxe kit with full tailbox and front fairing will be around $6000 USD, and a frame & fork kit should come in at about $2500. All of the above options will be sold without battery. This will allow the end user to select a battery that suites their individual needs, and as one a the big costs of a battery is the Hazardous Materials Shipping Charge, it doesn't make sense to ship a battery to Victoria BC and then on to the final destination.

I'm thinking a funding setup like this:

$1000 - Beta Backers - Electroms #1 to #5 +$1000 off of retail price
$250 - Waitlist Platinum - Electroms #6 to #100 + $500 off of retail price
$100 - Waitlist Gold - Electroms #101 to #300 + $400 off of retail price
$50 - Waitlist Silver - Electroms #301 to #400 + $200 off of retail price
$25 - Waitlist Bronze - Electroms #401 to #500 + $100 off of retail price

Please let me know what you think of the plan.

Tig

What do you all think about Crowdfunding?

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I dont pay much attention to it, just aware of the big ones that grab the news headlines and of course Sondors. Its a great way of raising money. I'd pay particular close attention to what differentiates the different platforms. What rules their are between them all. I've been thinking about doing one myself, but for charity for a worthwhile cause. Riding across Canada or something like that.

The nice thing about crowdfunding with pre-orders is that you don't have to take a big risk on market acceptance. You simply set your goal at the number of units that makes it worth your while, and either you make your goal or everybody's off the hook.

I couldn't guess whether anybody wants to buy a tiny two-wheeled electric car. But with Kickstarter etc. you can easily find out.

My honest opinion, which you may not want to hear.

Ebikes and such, are a niche market. You can take 10,000 random people and youll be lucky if 2 of them own a ebike...thats how small the market is. Ive been building and driving ebikes in my current location for around 7 years now...and Ive never met 1 person who owns a ebike or rides them....plenty of normal bike riders though.

Yes, Sondors was a rare success case , but he did it by focusing on LOW price to beat all competitors. He knew the physcological value of being able to sell a ready to ride ebike, for under $1000 delivered.

Your product looks cool ,but you are talking about trying to get consumers to spend $4000- $8500 on what is basically a electric bike with fairings/ windshield. Once you get into that type of expense, you are gonna price out 99.99% of potential buyers and even the ones that can afford it, are gonna ask " why wouldn't I just buy a Honda moped or motorcycle instead " ?

I think to be successful for crowdfunding in the ebike/ electric transportation world, you gotta get that low physcological price point 1st and foremost. I dont think you have that.

Good luck whatever you decide.

rumme said:

Your product looks cool ,but you are talking about trying to get consumers to spend $4000- $8500 on what is basically a electric bike with fairings/ windshield. Once you get into that type of expense, you are gonna price out 99.99% of potential buyers and even the ones that can afford it, are gonna ask " why wouldn't I just buy a Honda moped or motorcycle instead " ?

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As Chalo said, one of the nice things about Kickstarter projects is that they help you to determine if there is a market for your particular gizmo.

BTW, you can call it what you will, but as a consumer looking at your Kickstarter program a $1000 Beta "donatio"n pretty much looks like a deposit on a non-existent bike to me. A rose by another name... Even the $250 donation has that scent. Mind you, I don't think it is necessarily a bad program. I just personally have a problem with euphemisms and manipulative use of language from people proposing financial dealings. So I suggest just saying what it is in your marketing materials. I wouldn't spend time on saying what it isn't as you did in your post.

I havent seen even a low riding trike, or a velo in a very long time and I am everywhere in my city. Gosh the last time was some aero velo 5 years ago. I have seen a regular sit up trike, with a front motor on it in Okotoks, AB about 15 minutes south of Calgary, AB. He was on the highway so probably picking bottles, older gentleman.


Oops I was wrong, the last low to the ground velo, not aero as last fall, a pair of them.

I dont think your idea is meant for North America. People prefer what they know, and they know the shape of bicycles.

Thanks for the feedback guys.

Just a thought rattling in this old head. What if you tried a design for a driver and 1 or2 passenger transporter. If it could be kept under 100 pounds it would be legal in a lot of this country. 750 Watt motor.

Is it possible?

A good market maybe exists for this. Fair goers, nursing home transportation, sporting events shuttle.

That the vehicle is electric it could even enter buildings without the threat to safely of a Fossil fool machine.