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Cervelo - actual facts
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Reacting to some of these threads is of the "damned if you do, damned if you don't" variety, but anyway, so much of it makes absolutely no sense that I'll say something here. I know that nowadays actual knowledge is not a prerequisite for posting something, but for those who actually want to learn something, Dan's articles in the news section are a lot more informative than most of these threads.

As you have probably read, the company has just updated its financing, so it has even more stability than before. Nothing unusual, we have regularly updated our financing arrangements to match with our growth plans. Making a statement on the financing is indeed a bit unusual, and normally wouldn't have been done (as we never have in the past when we've changed bank). Unfortunately in this case some incorrect information was spread, so it was best to at least clarify that. On top of that, Cervelo has entered into talks which may - or may not - lead to a sale of the company. If we think the outlook of such a sale is in the best interest of the company and all its stakeholders, we will.

Now for some things that were mentioned:
- Judging Cervelo on data that is 5-10 years old is pretty silly, none of the staff or revenue numbers mentioned in the various threads are anywhere near correct.
- I read about crisis just like everybody else, but I don't see it in business. Cervelo has grown every year of its existence, including the last few "crisis years". In my view, the top end of almost every market is pretty impervious to crisis, you see the same in other industries. It's really the middle that gets hurt.
- "engineers vs managers". People seem to think that Phil and I are still running this whole company and although we'd love to take credit for it, reality is that we have already added professional management so that we could concentrate on where we can make a difference. And exactly that is interesting to potential buyers - professional management and the founders in positions where they excel.
- "Walmart". Cervelo would only sell to somebody who understands what the brand stands for and where it should go. And that's not down-market.
- "Competing against the big boys". Yes, Trek and Specialized are bigger overall, but not in the niche where we operate. For a short period of time, they can divert funds to that niche, but not for long if they want to protect their total market. And big companies tend to be less efficient in some ways. It took Specialized 4 years to develop the Venge, a bike which according to their own people was slightly less aero than the Cervelo S3 it was measured against. And then after 2 months it was rendered obsolete by the S5.
- Similar story in tri. For all the hyperbole of Specialized's Shiv and Trek's Speed Concept, the P4 is still faster according to independent tests by TOUR magazine in Germany. Even the newest Scott was faster than those two, that bike deserves more props. And of course Cervelo continues to grow in the Kona bike count, despite the high level it is at already (At the current level Kona goers need to buy 200 Cervelos just to keep the count level). Much easier to grow your Kona number when you start from a low base.
- I read somewhere that I sold my shares earlier this year. News to me.
- "Loss for Canada". I think it would more likely be a win for Canada. Continued growth from a Toronto company sounds good to me. Who cares if half the shares are owned by a Dutch guy (as is the case now) or all the shares are owned by a Dutch guy.

Happy New Year everybody,

______________
Gerard Vroomen
3T Cycling
OPEN cycle
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Re: Cervelo - actual facts [gerard] [ In reply to ]
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Thanks for the clarification. Probably unnecessary, but always nice to get an inside view.


--
WeBike.us | 2012 IMAZ Race Report
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Re: Cervelo - actual facts [gerard] [ In reply to ]
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Well said Gerard,

I doubt some of those who spoke so vociferously about your demise in the other threads will have much to say here (speedracer, et all), and I personally think we should move the topic to the P5. Do us a favour and give us something on that bike.... a little Xmas treat!?!!?!?!?

Cheers,



"Only those who risk going too far can possibly find out how far one can go." T.S. Elliot | Cycle2Tri.com
Sponsors: SciCon | | Every Man Jack
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Re: Cervelo - actual facts [gerard] [ In reply to ]
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Thanks for setting a few points straight!


_____________________
Don't forget to attack!
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Re: Cervelo - actual facts [gerard] [ In reply to ]
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Thanks for the update. I love my SLC-SL as does my son (we both have one). Looking forward to the P5--will be that or the new Time Machine for me.

Most of us on here take things posted with a grain of salt--I don't even trust most of my own posts! :) But thanks for the clarifications....

Your tone in your post seems a bit rough however...for whatever it's worth...



Randy Christofferson(http://www.rcmioga.blogspot.com

Insert Doubt. Erase Hope. Crush Dreams.
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Re: Cervelo - actual facts [gerard] [ In reply to ]
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Thanks,

and have a GREAT new year.

Just Triing

Triathlete since 9:56:39 AM EST Aug 20, 2006.
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Re: Cervelo - actual facts [gerard] [ In reply to ]
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Great post.
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Re: Cervelo - actual facts [rcmioga] [ In reply to ]
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Hi Randy,

Not intended to be rough!

______________
Gerard Vroomen
3T Cycling
OPEN cycle
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Re: Cervelo - actual facts [rcmioga] [ In reply to ]
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I'd probably be annoyed as well, if half a dozen random internet personas were trashing my company's products and profitability on a widely read message board!
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Re: Cervelo - actual facts [CPT Chaos] [ In reply to ]
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Hi Mr. Chaos!

I was just on the phone with Phil to wish him a Happy New Year and asked him about the P5 on your behalf. I think there will be some more info soon but obviously not too much until January 18. As you may remember, it was the same with the S5, in fact we didn't say anything until the launch date.

______________
Gerard Vroomen
3T Cycling
OPEN cycle
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Re: Cervelo - actual facts [aftereffector] [ In reply to ]
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Thanks for your understanding :-)

______________
Gerard Vroomen
3T Cycling
OPEN cycle
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Re: Cervelo - actual facts [gerard] [ In reply to ]
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Ah, ok, I thought it was worth a shot...considering the unusual things going on at the moment :)

2012 is a year for a new tri bike, and I hope the P5 is a good as the P3 was when it came out (that may be asking a lot).

Kind Regards,



"Only those who risk going too far can possibly find out how far one can go." T.S. Elliot | Cycle2Tri.com
Sponsors: SciCon | | Every Man Jack
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Re: Cervelo - actual facts [gerard] [ In reply to ]
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Thanks Gerard. I guess paraphrasing Mark Twain's famous quote might be appropriate:

"The report of my (company's) death is greatly exaggerated!" ;-)

Unfortunately, it appears that the confluence of the "share the ride" promotion and the PON announcement encouraged some folks (perhaps with an axe to grind?) to pop up and take some pot shots...

BTW, my impression of the sales of Cervelo at our local shop (a relatively small retailer) are that they are fairly healthy, even without any "share the ride" participation. In fact, I was in there yesterday and was told that they'd sold at least 5 to 6 S5's in the last week alone (none of them part of the promotion either).



http://bikeblather.blogspot.com/
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Re: Cervelo - actual facts [gerard] [ In reply to ]
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Well said Gerard. As I mentioned in the other thread, all businesses need to ensure that rumors don't become reality - and rumors among the "20%" clients need to be managed. My professional instinct tells me that you might want to issue a press release if not already done so - to passify the LBS folks who may have the same concerns.


_____________

"Some guys they just give up living, and start dying little by little piece by piece. Some guys come home from work and wash up, then go racin' in the street." Bruce Springsteen
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Re: Cervelo - actual facts [gerard] [ In reply to ]
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Gerard,

Well said.

This, plus Dan's comments, should be mandatory reading for anyone that wants to comment on the situation. Hopefully I struck the right tone with my blog.

Happy New year to you.

Onwards to 2012!


Steve Fleck @stevefleck | Blog
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Re: Cervelo - actual facts [gerard] [ In reply to ]
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Thanks for the info Gerard. I don't think it was necessary to respond, as it was mainly the regular ignorant posters doing thier usual...

I'm a happy owner of a Cervelo eyre road bike (still in use!), soloist team, and an SLC-SL. I'm hoping to add a time trial bike to the stable this year.

Happy New Year

_______________________________________________
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Re: Cervelo - actual facts [gerard] [ In reply to ]
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Oh darn, you went a spoiled it all by saying something sensible.

Here on ST we all know that two guesses added together equal fact.

Two guestimated facts equal truth.

And a "truth" by an anonymous poster must trump a statement by any knowledgeable public owner or operator .
Yourself included.

BTW
I'm just peeved because I bought my P3, 6 months ago.
But then, if I had waited for a deal I didn't know was coming.......... :)

Happy New Year

or should that be

Gelukkig Nieuwjaar
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Re: Cervelo - actual facts [gerard] [ In reply to ]
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gerard wrote:
Hi Randy,

Not intended to be rough!

That's not rough, that's Dutch directness!

Happy new year Gerard!

clm
Nashville, TN
https://twitter.com/ironclm | http://ironclm.typepad.com
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Re: Cervelo - actual facts [gerard] [ In reply to ]
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Re: Cervelo - actual facts [gerard] [ In reply to ]
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One of the bigger issues related to all of the Cervelo buzz over the last couple of days is how the Share the Ride deal affects your dealers. The general consensus is that the deal is great for buyers, perhaps great for Cervelo, but not so good for dealers. Seems several shops are no longer participating in the deal because it is bad for their business. I appreciate your clarification post, but noticed no mention of this issue.

I would be interested in knowing how the LBS can handle the R5VWD frameset that is delivered to dealers as compensation for the 2k off MSRP deal. Can the LBS advertise and sell the frameset as it sees fit or are they required to sell it at MSRP?

I like the deal and think it is a great way to get riders on your bikes and to clear out stock if you decide to sell. I would be interested in knowing why you didn't just reduce the cost to dealers by $1k per bike instead of doing the frameset delayed compensation. Seems like a good way to accomplish your goals without upsetting the shops and possibly customers.
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Re: Cervelo - actual facts [gerard] [ In reply to ]
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gerard wrote:
It took Specialized 4 years to develop the Venge, a bike which according to their own people was slightly less aero than the Cervelo S3 it was measured against. And then after 2 months it was rendered obsolete by the S5.
- Similar story in tri. For all the hyperbole of Specialized's Shiv and Trek's Speed Concept, ....
Happy New Year everybody,

Hi Gerard, just wanted to mention that you shouldn't be too quick to dismiss your competitors (if you are). I love Cervelo and have always considered them, rightfully, the absolute industry leaders, but one of the reasons I'm riding a Felt B12 right now and not a P2C is that you never updated the cable entry to the top-tube position on the P2 and P3 line (even after doing so on the S3). That always bugged me.

But anyway, Happy New Year! I wish continued success for your company.

-------
http://www.y-rocket.blogspot.com/
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Re: Cervelo - actual facts [TriSRV] [ In reply to ]
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Not trying to dismiss the competition, obviously Cervelo has some powerful competitors and bike design across the board has tremendously developed in the last decade. I just wanted to indicate that bigger is not always better, especially if it means you can't focus on just one thing but have a lot of pots on the stove.

______________
Gerard Vroomen
3T Cycling
OPEN cycle
Last edited by: gerard: Dec 30, 11 9:23
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Re: Cervelo - actual facts [cincytri] [ In reply to ]
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Hi Cincytri,

I'm no longer on the operational side so I wouldn't be able to answer that question, but I'm sure the dealer's sales rep can. Having recently ridden the R5vwd I can say that that's a very nice upgrade from the 2011 R5, both in weight and stiffness, so that's a good deal.

______________
Gerard Vroomen
3T Cycling
OPEN cycle
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Re: Cervelo - actual facts [Tom A.] [ In reply to ]
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Tom A. wrote:
Thanks Gerard. I guess paraphrasing Mark Twain's famous quote might be appropriate:

"The report of my (company's) death is greatly exaggerated!" ;-)

Unfortunately, it appears that the confluence of the "share the ride" promotion and the PON announcement encouraged some folks (perhaps with an axe to grind?) to pop up and take some pot shots...

BTW, my impression of the sales of Cervelo at our local shop (a relatively small retailer) are that they are fairly healthy, even without any "share the ride" participation. In fact, I was in there yesterday and was told that they'd sold at least 5 to 6 S5's in the last week alone (none of them part of the promotion either).

It does not impress me that a bike shop "sold 5 to 6" of arguably the hottest road bike on the market right now in the week that includes Christmas. In fact, that seems a little disappointing to me.

It's all about the post count!!!
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Re: Cervelo - actual facts [gerard] [ In reply to ]
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Thanks! (and I really like my P3)
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