This article ran in the June issue of Bicycle Retailer & Industry News
WINTER PARK, Colo. — San Util Design, a company that handcrafts bags and gear for backcountry travel, bikepacking, and mountain biking, is moving operations from Colorado to Bellingham, Washington. The move, which was planned for the end of June, coincides with changes to San Util’s business model.
“Kona, Transition, and Evil Bikes all have their headquarters in the Bellingham area. It’s close to some insane Pacific North mountain bike riding, too,” said Adam Nicholson, San Util’s founder and head designer, of the choice to move to Washington. “As far as business, our emphasis has been on custom products, which has been the perfect way to grow a business like this. But we’ve slowly been moving towards a line of beautifully designed, stocked products.”
Big moves to keep up with demand
After studying outdoor leadership business, Nicholson worked at a mountaineering shop in Golden, Colorado. In 2021, he started San Util on the side, designing and sewing bags as a solution to gear problems he faced while bikepacking and riding in the backcountry.
“I started with custom frame bags. Friends would bring their bikes by my garage and I would build a template, walk through fabric options, and design the bag with them. Over the next week, I would sew it up. Eventually, I had to quit the shop job because I had so much business,” Nicholson said. 
That fall, Nicholson launched a Kickstarter campaign for San Util. Through the campaign and website, he raised $25,000 to purchase two new sewing machines, as well as move from the garage into a dedicated production space. By November 2021, Nicholson hired his first employee and moved San Util into a workshop in Winter Park. After outgrowing that space, San Util was moved to a bigger shop in 2023 and had its first run of bags through another production facility two years later.
“We cut all the fabric off our bolts in shop, counted all the buckles, measured all the webbing needed, and sent a couple boxes of material off to Portland, Oregon. A few weeks later, we had a box of completed Whirlpool Hip Packs,” Nicholson said. After realizing that it would have proved impossible to keep up with demand without the run of bags through another facility, Nicholson decided to move a significant amount of production to several facilities.
“I’m in the middle of moving some production to U.S. facilities. The most complicated bags, however, will now be made in Vietnam. It’s too expensive to make those in the U.S, so we’ll order the material and ship it to a factory there,” said Nicholson. “Prototyping, custom frame bags, and design will still be done in-house or by friends in the industry.”
Increasing profit margins through stocked product
“For the past five years, we’ve been working in custom bags and we’ve seen consistent annual growth, trending toward a sustainable business,” said Nicholson, adding that in 2025, San Util saw $400,000 in sales, primarily from online orders. Although San Util’s new focus is on stocked products, Nicholson said that for the time being, he will continue making custom frame bags in-house. He will, however, close all custom color options on the rest of San Util products.
“I spend about 50% of my time on a sewing machine and build all of the San Util frame bags. For a bike shop, that personal touch adds up to a pretty big value,” Nicholson said. San Util products are currently carried by C3 Bike Shop in Golden and Icebox Mountain Sports in Fraser but Nicholson hopes to expand the brand’s presence in retail locations.
“We’re working to build a wholesale program and get San Util into more bike shops that fit our vibe. With more stocked products, there’s potential for higher profit margins,” said Nicholson. After applying to become a partner, retailers will be able to log in to the online portal and see MAP pricing and their margin. “I’m not planning a big first buy-in. Instead, if a shop hits a certain amount, they’ll get free shipping and access to credit. And we’ll offer industry discounts for shop employees.”
Nicholson is in the process of closing the Winter Park location, moving the workshop and showroom to a commercial spot in Bellingham, and hiring staff, since San Util’s employees won’t be moving to Washington.
“Until then, we are sewing every day and have recently put 100 Roly Poly handlebar bags, Whirlpool Hip Packs, and a huge run of Tool Rolls online. We also have some fun projects en route to us, including around 300 panniers. With an external stretch pocket for wet layers, gloves, maps, snacks, or trash, they’re our best-selling stocked product,” Nicholson said. Also en route are new hip packs that will be released in mid-July and 17-inch toptube bags.
“My goal was to build a bag that lasts a lifetime but interestingly, somewhere around 50-55% of orders are from recurring customers. Maybe they bought a new bike, so they want a new bag to go with it. Or maybe the new bag justifies purchasing a new bike,” said Nicholson. “Either way, it’s the N+1 maxim at play and we’re definitely going to see more of that as we start partnering with more bike shops.”
-
Adam Nicholson, San Util’s founder and head designer.
