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ID#: FFL-1029

Italian Motorcycle Mfg. / Distributor

Business Detail:

The goal of the project is twofold: to restart a famous Italian motorcycle company in Italy and to provide a distribution network for select Italian motorcycle brands in the United States.

The Italian motorcycle company in question has been through a restart cycle in the recent past. A very prominent Italian industrialist restarted the company and produced a motorcycle of superior design and quality. The primary reasons the company failed were corrupt management, high COGS, very low volume of production and a poor distribution network.

While the previous owner is a savy businessman, his love of the product clouded his judgement and as a result he made a number of poor decisions. The operation of the failed effort has been examined and a new business model has been developed to lower production costs significantly. The previous effort did not spend any decernable amount on marketing and promotion of the brand. An Internet-based marketing and sales program has been developed that will address the promotional requirements of the business while keeping costs in check.

A very specific niche of the motorcycle buying public has been targeted as our primary market. Initial sales of motorcycles is expected to be low, but the unit price of each vehicle sold will continue to climb over the next few years. Factory produced custom motorcycles has been given no serious attention by other manufacturers. This market is significant and will permit us to capture a sizeable portion of the higher end motorcycle market world wide.

Initial sales of product will be limited to the EU and North America. Less lucrative markets will be addressed as demand for our product in these regions develops. Sales overhead will be kept at a minimum by selling product directly to motorcycle shops in the EU and by owning the distribution company in the U.S.

The U.S. market alone accounts for roughly 50% of the world sales of this class of motorcycle (sport bike). The production facility will be kept small and flexible to keep startup costs reasonable. Production will expand as market demand increases with preset thresholds set for migration to larger facilities. Relationships will be cultivated with Motorcycle Grand Prix racing teams that will permit our product to remain competitive. Eastern European production sources will be used to lower COGS while maintaining product quality.

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