How the $899 Lectric XP went from garage e-bike startup to a $20M+ giant

The Lectric XP fats tire electrical bike from Lectric E-Bikes has developed an enormous fan base with practically 25,000 e-bikes offered. But barely greater than a yr in the past, nobody had ever heard of a Lectric XP.

So the place did the massively widespread e-bike come from?

That is the Lectric XP origin story.

Based by lifelong associates Robby Deziel and Levi Conlow, Lectric E-Bikes first started as a quest to discover a extra inexpensive e-bike for Levi’s dad. He was out there for an electrical bike and had seen plenty of fancy $3,000+ e-bikes, however needed one thing far more budget-friendly for his first experiment with an e-bike.

Robby and Levi noticed the chance out there and determined to mix the previous’s mechanical engineering background with the latter’s enterprise and entrepreneurism training.

They began by designing a easy, cheap commuter e-bike that bought the job performed however didn’t include any fancy bells or whistles. Levi’s dad invested and the pair had a lot of samples constructed to start out testing gross sales. Issues have been trying promising till they realized that they couldn’t discover any prospects. They tried to promote their new design on their web site, craigslist, flea markets, and wherever they might. However nobody purchased it.

In order that they began gathering suggestions from individuals who tried the bike. And the extra they heard, the extra they realized.

Riders responded that they needed one thing that wasn’t as tall as a commuter bike. They needed one thing smaller that might be transported with no need a motorcycle rack on the again of their automotive. They needed one thing extra comfy.

Robby and Levi took that suggestions and returned to the drafting board. And after redesigning the bike, the Lectric XP popped out the opposite facet as that bike we all know as we speak.

The Lectric XP featured a decrease top due to its 20″ wheels, but used fats tires to maintain it comfy even with out suspension. It provided a folding mechanism so riders might transport the bike in a trunk as a substitute of on a automotive rack. It was quick, with a 28 mph (45 km/h) prime velocity. And most significantly, it was priced at a reasonable $899.

The one downside remaining was that they’d burnt by their preliminary mortgage on the primary design. They tried their luck yet one more time, As Levi defined to Electrek, “I had to return and ask, ‘Hey Dad, how would you wish to lose some extra money?’”

Now in the summertime of 2019 and with sufficient cash for 10 pattern bikes, Robby and Levi jumped again into the hearth yet one more time. However this time, they took a unique method. They despatched their 10 samples out to 10 totally different e-bike reviewers (of which I happened to be one of them, barely a year ago this month).

It was an enormous danger, as they have been out of money and virtually out of time. Robby was counting the times earlier than he ran out of lease cash and needed to transfer again house.

It was at that time when the primary evaluations have been posted. And this time the response was large. The gross sales instantly flowed in and rapidly grew to become a torrent as extra evaluations have been revealed. The general public went nuts for a quick, highly effective fat-tire electrical bike for just $899.

In only a few weeks they’d already hit $1 million in pre-orders. At first the pair have been understanding of their residence and storage, however as lots of of thousand of {dollars} in pre-sales started to pour in, it grew to become apparent that they have been going to want to improve.

They quickly moved into an workplace complicated and added a warehouse. Subsequent got here time to construct the workforce.

Robby and Levi had been initially dealing with every part themselves, working 18-hour days and answering the telephones continuous. However quickly they realized how necessary it was to usher in the precise individuals to construct out the workforce. And the primary main objective was to construct up a very good repute for buyer assist.

As Robby defined, “We all know we are able to’t present the best possible e-bike for simply $899. However we are able to present the very best worth. And we are able to present the very best buyer assist.”

And in order that’s what they did. Because the gross sales continued to flood in, Lectric E-Bikes expanded their buyer assist workforce who typically work 12-hour days to reply telephones and emails. They began with 10 buyer assist reps however anticipate that quantity to triple by this time subsequent yr as they proceed to develop. The founders have additionally made certain to place their workers on their very own Lectric XP e-bikes to have firsthand expertise, and hold loaners out there in order that workers can take their associates on rides as effectively.

Robby and Levy have additionally introduced in a brand new director of operations to usher in exterior experience and expertise, who helped additional enhance the corporate within the midst of a massive run on e-bikes across the country.

As Levi defined:

At first it may be laborious to let go of operating issues your self, particularly when you’ve got a easy operation going. However bringing in our new director of operations has been an enormous profit. She obsesses over efficiency and particulars. We first advised her about our opponents and the way they’ll have wait instances of days for emails and wait instances of hours for calls, and the way we thought we have been doing alright since we had telephone wait instances of round 20 minutes and perhaps as much as a day for emails. However she got here in and stated ‘Nope, that’s not effective by me.’ She needed these numbers introduced right down to 97% of telephone calls being answered in below one minute and emails being handled extra like a buyer chat with fast responses. She needed to make us grow to be probably the most out there electrical bike firm. And somebody with that sort of imaginative and prescient, it impressed all of us to get behind it. And now I’m assured in saying we now have among the best if not THE finest buyer assist within the business now.

Whereas letting go of the obligations of their firm has been tough for the founders, these sorts of experiences have proven them why it’s so important to usher in new experience.

As Robby elaborated, “We used to put on about 20 hats every, and now we’re sporting extra like 10.”

Releasing up a few of their time has additionally helped Robby and Levi deal with constructing their group, which the pair defined has been important to their success. Lectric E-Bikes spends virtually nothing on advertising and marketing, as a substitute counting on a group of happy prospects to unfold the phrase in regards to the Lectric XP e-bike.

As Levi continued:

We promote an $899 e-bike, we are able to’t afford to spend a lot on buyer acquistition. As a substitute, we depend on our prospects sharing our story. We’ve created wonderful buyer advocates, and an enormous a part of that’s the good buyer assist that we offer.

The group that we’re constructing is extremely particular and I’d say that one of the vital rewarding issues proper now could be being out in public and seeing our bikes. We’ve near 25,000 bikes out in circulation and it’s simply so rewarding to see individuals on the market driving our bikes and listen to them spreading the phrase.

As Lectric E-Bikes appears towards the long run, they’ve continued to deal with increasing their workforce and their choices.

The corporate lately launched a new step-through version of the Lectric XP that makes the bike extra accessible to riders who’ve hassle swinging their leg over a motorcycle.

As the corporate continues its skyward trajectory, the place will they be a yr from now? We’re as excited as anybody else to search out out!

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