We've Built A $30K/Month E-Bike Business Seeing A Rise In Sustainable Transportation
Hello! Who are you and what business did you start?
I am Marina, originally from Ukraine, and co-founder of GIN e-bikes, a successful electric bike business based in the UK. I am the Head of Marketing and Branding, responsible for creating and executing strategies to promote our products and enhance the image of the brand.
Along with me, Rahul, my second co-founder and originally from India, oversees product development and technology in GIN e-bikes. His extensive knowledge and experience in these areas have been instrumental in driving the growth and success of our company.
GIN X is our flagship product. Itβs a hybrid electric bike, with a 250W Bafang motor, Shimano derailleur, 25 MHP max speed, 75+ miles range, and Zoom hydraulic brakes.
Our customers consist of daily commuters who rely on our products for their daily transportation needs. Additionally, we serve food delivery riders who require a reliable and efficient mode of transportation for their work.
We also cater to off-road riders who are looking for electric bikes that can handle rough terrain and provide a thrilling experience.
Finally, we serve customers who use our bikes for recreational purposes, such as weekend rides and exploring nature. Our diverse range of electric bikes is designed to meet the unique needs of each of these customer segments, ensuring that we can provide the perfect solution for everyone.
Within a few months of launch, we successfully sold a few hundred units of the GIN X electric bike without any paid marketing efforts. The sales have been achieved solely through positive word-of-mouth referrals from satisfied customers, with a customer base spanning across the UK, the US, and Europe.
What's your backstory and how did you come up with the idea?
Rahul and I crossed paths on the Y Combinator startup school platform, which can be described as a "Tinder for businesses".
During this time, I was residing in Bali with a desire to launch a business venture in the UK. Meanwhile, Rahul had recently relocated from India to the UK to establish an e-bike business.
After connecting on the Y Combinator startup school, Rahul and I scheduled an introductory call. During the call, I was impressed with his confidence and vision for the e-bike business. As for myself, I recognized the skills I possessed that could contribute to making this venture a success.
I have a background in marketing and sales, having previously founded and managed a successful cleaning business in Ukraine. On the other hand, Rahul brings expertise in manufacturing with over 12 years of experience, having previously established two companies in the renewable energy sector.
Rahul has a strong passion for promoting green energy and reducing carbon footprints. With this in mind, he aimed to create an advanced and cost-effective micro-energy solution to simplify daily computing, while reducing pressure on city roads. This vision led to the creation of the GIN X e-bike.
During the lockdown period, we formed partnerships with several electric bike manufacturers based in the US and started promoting their products to the US market. Through interacting with our customers and potential customers, we gained a deeper understanding of their needs and preferences for an electric bicycle. Based on this insight, we applied reverse engineering techniques and designed our electric bike, the GIN X.
Rahul's experience in manufacturing technical products, combined with his passion for electric bikes, paved the way for the launch of the GIN X. Meanwhile, my expertise in marketing and low-cost customer acquisition enabled us to achieve successful sales of a few hundred units shortly after the official release, without the need for any paid marketing efforts.
Rahul was always an environmentally conscious entrepreneur and was interested in contributing towards a cleaner and greener future. After analyzing the market, its volume, and competition in the UK, we determined that the e-bike market presented a 'blue ocean' opportunity, which means that there was untapped potential and room for growth. Based on this analysis, we concluded that it was the right time to start building e-bikes.
To validate the concept, the following steps were undertaken:
- A thorough analysis of the monthly search volume within the e-bike industry was conducted, revealing significant growth in the market.
- in-depth market research was carried out to confirm the viability of the proposed e-bike product, taking into account its competitiveness and unique selling points.
- Extensive customer feedback was gathered and analyzed to gain insights into their needs and preferences. Based on this information, the design of the GIN X e-bike was finalized with confidence in its ability to meet the demands of the market.
During this time, Rahul had recently relocated to the UK and was communicating with US customers to gather information about their requirements for electric bikes. Meanwhile, I was residing in Bali and considering establishing a sustainable energy business amidst the outbreak of the Ukraine-Russia war.
Take us through the process of building the first version of your product.
The manufacturing process includes the following stages:
- Product design.
- Mold production.
- Sample testing.
- Large-scale production.
The design process began with initial conversations with US customers to gather data and inform the design. Upon collecting sufficient information, a prototype of the GIN X e-bike was created. The prototype was then tested and after successful results, we proceeded with mass production.
The main factors that were taken into consideration to make GIN e-bikes stand out were the following:
- Weight: Our e-bike weighs only 19 kg, which is considerably lighter than the average weight of 25-30 kg for other e-bikes in this price range.
- Brakes: We have equipped our e-bikes with hydraulic brakes, which is a feature that is not commonly found in e-bikes within this price range, as most have mechanical brakes.
- Battery Life: Our e-bikes have a battery life of over 70 miles on a single charge, which is significantly higher than the maximum of 25-30 miles that most e-bikes in this price range offer.
The initial startup costs included the expenses for product design, sample creation, and testing, which amounted to tens of thousands of pounds. Additionally, a few thousand pounds were incurred for legal support of the business.
Describe the process of launching the business.
One of the best decisions we made while launching was to approach journalists and pitch them our press release, which allowed us to fully launch the brand based on pre-orders.
The brand was officially launched in August 2022, with a launch strategy centered around press releases and outreach to technology journalists. This approach proved highly successful, resulting in over 40 free online publications in top magazines within the first 2-3 months following the launch.
Additionally, within the first month, we saw a daily average of 500-1000 users visiting our website, demonstrating the effectiveness of the launch strategy.
As of March 2023, our current daily user count ranges between 50-100. It is noteworthy that we have not yet initiated any PR activities, and this current traffic is primarily attributed to our brand awareness efforts and search engine optimization (SEO) strategies, which have resulted in organic traffic from Google. We have observed that 77% of our daily users are new visitors to our website, while the remaining 23% comprise returning users.
We chose to build our website using WIX as it is user-friendly and does not require technical expertise. However, the process of creating the website took approximately one month. Upon review, the initial version of the website was deemed unsatisfactory and not customer-friendly, leading us to undertake a complete redesign. The first version of the website was:
The business was funded through personal resources and did not involve the use of credit cards or loans.
Initially, the idea of launching through Kickstarter or other crowdfunding platforms was considered. However, after realizing that a successful launch would require an investment of 20-40,000$ for marketing and pre-order collection, a different launch strategy was developed. This strategy centered on pitching press releases to online magazines, avoiding the need for a large upfront investment.
Some of the key lessons learned from the process of starting the business include:
- The importance of working with two individuals with different backgrounds and experiences.
- The need to continuously evaluate and adjust strategies to achieve success.
- Avoiding analysis paralysis and not considering a setback as a final failure, but instead using it as an opportunity to pivot and find a better approach.
Since launch, what has worked to attract and retain customers?
Concerning our experience during the initial sales phase, I would like to highlight that we were able to secure approximately 2-3 sales within the first day of launching.
This was largely due to our feature in New Atlas, an online magazine where we were published free of cost, as previously mentioned. We were fortunate to discover that the audience of this magazine expressed a keen interest in purchasing high-end GIN X e-bikes at an affordable price point.
Moreover, at the time of our launch, we had already garnered four reviews on YouTube. These reviews proved to be instrumental in building customer confidence and served as a crucial factor in their decision-making process. As a result, the customers were able to promptly place an order and make a purchase, despite our status as a newly launched brand.
Post-sales, customer support has been a key factor in attracting new and retaining old customers since the launch of the business. This support was provided on an individual basis to give each customer the maximum attention possible.
Our customers have been very appreciative of this personalized approach, as evidenced by their positive reviews on Trustpilot, becoming advocates for the quality of our post-sales support.
Based on our experiences, some growth advice for aspiring founders would be:
- Utilizing word-of-mouth marketing through exceptional customer support.
- Prioritizing product quality and constantly seeking customer feedback to make improvements and enhancements to the product.
To increase traffic and sales, we took various steps, including building our brand through activities such as collaborating with YouTube influencers and media journalists to review our GIN X e-bike and share their feedback with their audiences.
Regarding niche influencers, we began by analyzing all our competitors, specifically focusing on e-bike brands that had been reviewed by YouTube influencers. Subsequently, we initiated the outreach process to these influencers. After reaching out, we were able to secure agreements with around 10 influencers who were willing to conduct a review free of charge.
Once we had exhausted our outreach efforts to YouTube influencers who were willing to participate free of charge, we decided to expand our outreach to delivery influencers. These influencers are individuals who work for Uber Eats, Deliveroo, and other similar companies, and have their own YouTube channels where they document their work. We approached these influencers and proposed the idea of filming their work on our GIN X e-bike for their channels.
To bring existing customers back and enhance customer retention, it is necessary to develop and implement effective strategies that address the unique challenges faced by our business. As we currently only offer a single product and do not have any post-sale upsell opportunities, we must explore alternative methods of customer engagement and retention.
Effective communication with customers and suppliers is key, and proper planning and forecasting can help mitigate risks.
In summary, our initial marketing and traffic efforts involved leveraging online magazines to spread information about our company through press releases. Later, we added social media channels such as Instagram, Facebook, and TikTok to post company updates and important events. These channels help in building trust but do not directly impact sales as our followers are not directly converted into paying customers.
This is how our customers engage in our social networks:
In addition, it's worth mentioning that once we reached 500-1000 daily active users on our website, some of them filled out an inquiry form without making a purchase.
We collected these leads and kept them updated through email newsletters and campaigns. Through multiple email touchpoints, we were able to track their engagement with our website.
In November 2022, we made a special Black Friday offer and sent it to these leads, resulting in 25 orders. The cost of acquisition for these customers was zero, as they were already in our customer base and had been warmed up with previous email campaigns showcasing our business activities.
This is a screenshot of the Black Friday deal:
How are you doing today and what does the future look like?
We are a profitable business today. Our launch strategy was based on collecting pre-orders with 100% advance payment from customers, which helped us to minimize our overhead costs. Currently, we don't run any paid ads, which means our cost of advertising (COA) is zero.
Our low bike price, which was kept low to increase affordability and market share, results in a gross margin in the range of 20-25%, excluding fixed costs and shipping expenses. Our distribution is primarily through our online store, with some sales also coming through free test rides.
Our operations are streamlined and efficient, enabling us to maintain profitability. We have plans to expand our product line and reach new audiences in new regions, but we will carefully consider the impact on our costs and margins before making any decisions. Our focus is on sustainable growth and maintaining a healthy bottom line.
Five years from now, GIN e-bikes is envisioned to be a well-established e-bike brand that offers a range of electric vehicle models, such as carbon frame e-bikes, e-scooters, and more.
These products will be available in different variants and will be sold across the EU, UK, and US markets. The company will have a strong presence in the market and will be recognized for its high-quality and innovative products. GIN e-bikes will have a loyal customer base that values its commitment to sustainability and eco-friendliness, and the brand will continue to expand and evolve to meet the changing needs and preferences of its customers.
Through starting the business, have you learned anything particularly helpful or advantageous?
One of the best decisions we made while launching the GIN X e-bike was to approach journalists and pitch them our press release, which allowed us to fully launch the brand based on pre-orders.
However, we made a few mistakes along the way. Firstly, we were not able to accurately forecast demand and sales, which resulted in insufficient supply. Secondly, when we first started, and customers were waiting for their bikes for two months, we didn't update them frequently, which led to confusion and an influx of questions.
Missed opportunities: We could have made more partnerships with influencers and made them our affiliates to increase our distribution network and reach more customers.
Things we got blindsided by: unexpected changes in import regulations that caused delays in the delivery of parts and components.
Things that were hard for us to do: managing and coordinating remote communication with customs efficiently. Things we had to learn: how to effectively manage the supply chain and logistics.
Forces out of our control that helped: the rise in popularity of e-bikes and the increased demand for sustainable transportation options.
Lessons learned: effective communication with customers and suppliers is key, and proper planning and forecasting can help mitigate risks. We applied these lessons by improving our communication processes and regularly reviewing and updating our forecasting models.
Helpful habits/abilities/skills: strong problem-solving skills, ability to work under pressure, and excellent communication skills.
What platform/tools do you use for your business?
We use Google Analytics to track website traffic and user behavior. We also utilize social media platforms such as Facebook and Instagram for reaching out to potential customers and promoting our products.
For payment processing, we use a secure Stripe as a payment gateway. Finally, for customer support, we use a combination of email and live chat to ensure prompt and efficient communication with our customers.
We have also chosen WIX as our website-building platform as it provides a wide range of tools and features that help us run our business efficiently. At our company, we have carefully chosen WIX as our website-building platform for its comprehensive range of tools and features. Beyond its website-building capabilities, WIX also provides us with the means to execute successful email marketing campaigns and automation.
To maximize the potential of this platform, we have set up four email automation tools to ensure a smooth customer experience:
- Firstly, we send a "thank you" message to those who submit an application form on our website.
- Secondly, we send coupons worth 25Β£ to customers whose carts have been abandoned, which has helped us convert 10% of abandoned baskets into paying customers.
- Thirdly, we send recovery emails to visitors who have abandoned their carts.
- Finally, we greet new website visitors with a chat message highlighting the main features of our e-bike.
Along with email marketing campaigns and automation, we use Google Sheets to track orders and monitor the status of each delivery. This allows us to keep a real-time record of our sales and customers, making it easier for us to manage our operations. These tools, along with the ones previously mentioned, help us provide a seamless customer experience and help us run our business smoothly.
What have been the most influential books, podcasts, or other resources?
One of the most influential resources for me has been the book "Think and Grow Rich" by Napoleon Hill. This book has been a source of inspiration and motivation for me, and I believe it has helped me develop a growth mindset and a positive attitude toward success.
Additionally, I also get motivated by short Instagram motivational reels, which provide quick bursts of inspiration and encouragement.
Advice for other entrepreneurs who want to get started or are just starting out?
For entrepreneurs just starting out or those who want to get started, my advice would be to believe in yourself and your idea, and never give up.
Starting a business is a challenging and rewarding journey, but it's important to stay focused on your goals and be persistent. It's also important to be adaptable and willing to pivot when necessary.
Surround yourself with a supportive network of family, friends, and mentors who can offer advice and encouragement along the way. Make sure to also do thorough research and gather as much information as possible before launching your business. This includes understanding your target market, competitors, and the industry as a whole.
Lastly, don't be afraid to ask for help when you need it, whether it's hiring employees, seeking advice from a mentor, or seeking funding from investors.
Are you looking to hire for certain positions right now?
Yes, we are currently looking to hire a Financial Manager/Advisor. The ideal candidate will have experience in fundraising and be able to bring the company to the next level by introducing us to potential investors and helping us secure the funding we need to grow and scale our business.
If you or someone you know is interested in this opportunity, please reach out to us for more information.
Where can we go to learn more?
If you have any questions or comments, drop a comment below!
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