DUEVILLE, Italy (BRAIN) — Italy's Basso Bikes is changing up its distribution plan for the U.S. market. Instead of using a distributor, the manufacturer will ship straight to dealers from Italy, taking orders through its business-to-business website. The brand also is establishing an independent sales rep force in the U.S.
Since 2011, Basso bikes have been distributed in the U.S. by Minneapolis-based DNA Imports. DNA's owner, John Dyste, is continuing as a sales rep for Basso, but DNA will no longer warehouse the brand's products.
The new approach will allow dealers access to a wider array of Basso bikes — including custom-configured bikes, with options for frame colors, component model and size. Frames will be airfreighted from Italy to the U.S. for $70, with arrival about five days from the time of ordering. The shipping cost for complete bikes is $120, with a delivery time of 8-10 days. The bikes arrive almost completely assembled.
"The problem we were seeing in the U.S. is it's such a competitive market, and we are competing with the U.S. brands on their home soil," said Alessandro Basso, the company's export sales manager. "It was tough to get the right bikes at the right price and right margin to the stores. The toughest thing we encountered was we could not assure enough stock and variety of products to the market."
The B2B website has already been used by Basso's retailers in the Netherlands. It allows retailers to see which frames and parts are in stock and which are due to arrive in the company's warehouse.
Basso is committing to keeping two or three colors available at all times for its more popular bike and frame models. Other colors and models will usually require a three-week production time.
DNA's Dyste said he supports the decision to move to the B2B system.
"They have about 200 SKUs in their line, and our company is not very large, so it was difficult to have everything available to the dealers. This way, they've been able to lower their prices and increase margins and make all the colors and component options available," he said.
Dyste will represent Basso in the Midwest. DNA Imports continues to distribute Dedacciai frames.
The Basso brand dates to the 1970s. The company is based in Northern Italy about 10 kilometers from Campagnolo's Vincenza headquarters. It was founded by Alessandro Basso's father, Alcide, who remains with the company. Alcide's brother Marino Basso was the 1972 world champion in the professional men's road race.
Basso continues to manufacture in Italy in its own factory, which is run in an exclusive partnership with a company that does carbon fiber manufacturing for aerospace and other industries.
Alessandro Basso said the brand currently has about 12 U.S. dealers. His goal is to have 20-25 U.S. dealers in time for this year's Interbike, where Basso will display for the first time in several years.
"It's very import that we don't open too many accounts in the same area," he told BRAIN. "Our MSRP is the price shops are going to sell at. The margins are real good but we want to give shops a decent comfort zone so there is no competitive pressure to discount."
Basso said there is no minimum order size, but the company wants to work with dealers who will keep bikes on the sales floor.
"We pay so much attention to the finish and the appearance of our bikes that we want the final customer to see it in person, not just in a catalog," he said.
