Recap of Live IG Session
First, I personally want to thank you for believing in our brand and product, and most importantly your support and patience over the last few months. I also want to apologize for the audio issues in our live stream last Saturday. Apparently audio was not available for some people as non-licensed music was playing in the background and the content was removed. Because of this I want to share the content of that session for you now.
While the entire world has been disrupted and most companies are facing delays, I had hoped everything would get back to normal and we could push through and avoid a backlog and shipping delays, but unfortunately we have failed.
I want to share what we are dealing with at the moment in hopes it will buy us a little more patience and grace.
Supply Chain is still disrupted - Manufactures that we rely on around the US and the globe are all still struggling with lack of staff, facility closures and issues getting driver to deliver parts. What once took 2-3 weeks to arrive is now taking 14-18 weeks.
Shortages - The US market is currently experiencing metal, aluminum, foam, rubber and micro-chip shortages, etc…delaying production of everything from automobiles to electronics and furniture. Due to this shortage, metal prices alone are up 3x the norm. Making it extremely difficult to buy in larger quantities to keep up with demand.
Port Closures - In August China experienced a surge in Covid which drove the closure of the 3 main ports out of the country. Product we had on the way has been delayed and sitting at the port with no know date of shipment. We’ve recently been able to pull that product out and onto air freight, and are hopeful the needed batteries, motors and controllers will arrive in the next 3-4 weeks.
Shipping Delays - While we agree Haul Bikes could do better, they are also faced with issues based on not only the pandemic, but the ever growing shortage of truck drivers in the market.
Popular Kid - This seems like a dumb thing to note, but it is the reality of a start-up trying to simply stay alive during a pandemic, but Huck has been more popular than we ever expected from the very beginning. We set out to sell and build an expected 10 bikes per month. That quickly grew to 4-5 times our expectations. What would normally be a positive became a hurdle as the pandemic continued through 2020 into 2021.
Made in America- Because we made the decision to fabricate and build our bikes in the USA we are faced with more costs and more delays than the majority, if not all, of our competition. This has made it a bit more difficult to maintain normal operations as the demand for our products continued to increase.
So, enough of the issues, now on to the positives. Huck is taking a big step forward and we are currently exploring partnerships and investments in order to support the needs of our current and future customers. When we come through this process, and we will come through this, we will expand our customer service, operations and build teams. We will leverage these new relationships to increase our buying capability - putting more components in our shop and reducing the impact market delays have on our bike completion capabilities. This is a huge step for our brand and a significant win for our customers.
We have also signed a partnership with third party warranty service Extend. Through this warranty eligible Huck owners will have access to the Velotooler network of service technicians. Should you have any issues with your bike during your warranty you can set up a service call for a technician to come to you and remedy the situation. If they are not able to solve the problem, Extend will replace your bike for you free of charge.
In addition, Huck is taking some time to rework our model. During the next few months we are going to leverage our new partnerships and leadership to expand our service network, enhance our product offering, ensure we have larger quantities on parts in house, move more production in house to eliminate 3rd party and supplier delays, and grow our customer service function to be able to support all customer service needs within 24hrs.
We are focused on the long term success of our brand and the ongoing support of our customers. Made in America will continue to be our focus and the service our customers receive will set an example for the the market to follow.
Thank you for understanding. Thank you for believing. Thank you for standing by us during this funky time.
Until we talk again,