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Thursday, May 17, 2012

Issue #276 Zero DS in Aisle Four, Please

With Costco now in the new bike business, can Baker’s Dozen dualsports be far behind?

“I’ll take 500 rolls of paper towel, 50 pounds of sugar, a pallet of motorcycles ... Huh? What do you mean you don’t take credit cards?”


Costco now has an ongoing promotion with Zero Motorcycles that offers its members a special-value package if they purchase one of the made-in-California electric bikes.


Does that mean a tailpack large enough to strap down those 500 rolls of paper towel? No, but soft luggage might be an option for Zero bikes at some point. In the meantime, what you have is a Compact-Fluorescent Blue Light special, available for a limited time, and just in a select few stores. So don’t stampede the aisles at your local Costco. You won’t find the electric bikes in the appliance aisle next to the blenders and toasters even if you do go.


To be clear, you don’t actually buy the bike from Costco. That you do at one of the official dealers. You’re in luck. Zero recently appointed nine new Canadian dealers spread across four provinces: BC, Alberta, Ontario and Quebec. (See, ‘Circuit,’ pg. 9.)


This cross-marketing model isn’t new for Costco—Ford has had a similar offer for years, so it must work. Let’s face it: when there’s a readily identifiable demographic of fervent warehouse shoppers, having access to said group is what marketing’s all about. At the end of the day, most will need some kind of vehicle to make the trip to Costco effective.
Not owning a Costco membership, I don’t frequent the store. But on the few occasions that I actually am in the vicinity of a Costco outlet, I’ve noticed the parking lot is always jammed, checkout lines are long, and deals as abundant as the super-sized laundry detergent. Oddly, the price of Costco’s gas is never prominently posted. Perhaps this is how they keep us non-members from sneaking in for a bargain fill-up, then claiming ignorance when we’re asked to produce Costco ID cards at the till.


Exactly what Costco will get out of the Zero Motorcycles promotion, I am not sure. Certainly it’s not just to gladden their hearts. Perhaps they get a charge out of it. Maybe Costco finds the potential audience is something to get amped up about. The results may prove shocking! (Alright, alright, I’ll stop now.)


But, all those people who might otherwise never set foot in a motorcycle shop will now have exposure to electric bikes in general, and a leading brand in particular.


Zero must have thought: “If we can’t get them to come to us, we must take ourselves to them.” Ask any door-to-door salesman how that works.


Soccer moms in minivans will now line up for a “greener” way to run errands. Businessmen tired of paying through the nose for downtown parking will now be able to park next to bicycle racks. Kids, tired of riding the bus to school, will have an alternative. Picture this:  Zero motorcycles competing for space with the fleets of electric scooters that already clutter up bicycle trails. You’ve seen them. They look for all the world like gas-powered scooters except their riders wear bicycle helmets, as opposed to proper motorcycle lids.


Whether or not the Costco promotion works, only time will tell. Its success will be based on the numbers of course, and if the program is repeated. Sure, it’s the electric bike segment we’re talking about here—with its own unique audience —but Costco as a benefactor of motorcycle sales would be a great thing. The dealers still win, new consumers get exposure to the product and the segment, and you might even be able to buy a Baker’s Dozen on the right day. The sticker price for a Zero bike—even with the special value package—might be a little steep compared to the fuel sipping Suzuki TU250 we ride this issue (See, “Little Squirt,” pg. 34), but it will start someone, somewhere, thinking about riding ... or at least saving on fuel and parking.

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