Sunday, October 6, 2013

What e-bike kit sellers need to do to attract more customers

Most electric bike kit sellers start out with great customer service. After a few years and several customers later, their service will start to decrease as customer demands increase. I know this from experience and it seems that others experienced this too.

Perhaps, sellers need to anticipate if they can really handle the needs of their customers before promising anything, for example: can they really attend to customer after-sale issues until these are resolved? Sellers are of course required by law to support their product with a warranty so to promise this is simply just saying what they are required to do anyway.

The following are some of the issues I encountered from experience that prospective kit buyers might find useful to consider. I write this for the purpose of sharing information. As a customer, I could use the experience of others about a product before I invest my hard earned money in buying an e-bike kit.

#1 Be accurate, but make amends when mistakes are committed


I have already mentioned some of the following in my previous posts.

I bought an electric bike conversion kit from Clean Republic (CR) back in 2010. CR started out as a small company so I enjoyed dealing with them back then. The CEO himself attends to customer communications back then and he replies immediately. However, the one in charge of shipping tends to make mistakes. I paid for such shipping mistakes three times. I hope it was just me. 

Shipping cost mistake #1: The first time CR made a mistake was in sending my very first order (May 2010) using a cheaper shipping mode than what I actually paid for (I paid 265 USD for USPS Global Express Guaranteed but my order was shipped through USPS Express Mail International costing only 153.25 USD, so I actually paid 111.75 USD more than what I got). I notified the CEO about this and CR refunded the overcharge of 111.75 USD. But this was after I alerted them about the mistake. The CEO apologised for the mistake but I already paid more for the 25 % VAT plus duties (almost 50% of the total cost including shipping) of the overcharged cost (not the net after the mistake refund). The almost 50% taxes and duties (about 50 USD) that I overpaid due to the mistake cannot be refunded because it was already taken by customs. 

Shipping cost mistake #2: The second mistake happened in January 2013 when I paid online for a more expensive USPS shipping but my order was sent via the cheaper UPS shipping. Again CR apologized for this mistake and refunded accordingly. 

Shipping cost mistake #3: The third mistake was when I paid 91.30 USD in February 2013 for shipping of my Sprinter upgrade to Norway but when I got the invoice that came with the package it showed that only 59.95 USD was actually paid for the USPS shipping. This shipping mistake costed me 31.35 USD extra. I emailed the CEO about this in March 5, 20103 but never got a reply until now (October 2013, 7 months later). I also followed up on this with their new guy which I hope will reply this time.  

Given these 3 successive mistakes, there seems to be a pattern here. I wonder if other customers check their invoices as I do. CR needs to fix their shipping or online charging system to avoid overcharging customers.


#2 Respond to customer questions, if not, you will lose your customers


Another emerging pattern is declining communication. If you check the CR Forum you will see how their Forum for customers no longer gets attended by CR staff as it used to be. In fact, one of my postings there never got a reply: see here. I think CR should just advice customers that the Forum is no longer active (see CR Forum).  They should just direct all forum visitors to their more active Facebook page. But even if they do, they should respond to questions and comments that customers post and not only the ones that they like. Customers also can't help but wonder why they only post positive reviews on their website even though they say there that they will also post negative ones:
"Negative posts are allowed, but please do not use offensive or abusive language."
I tried to post a review there with no abusive language, just facts, but that review never got posted. Given this, their review portal seems to be not very reliable because only positive reviews are selected for posting. You can check this out for yourself hereSee? Not a single negative review! Negative comments can only be seen on their Forum and their FB page. 


Where will customers go?


There are many cheaper kits from China that are accessible to new re-sellers. If sellers want to keep their customers for more years, then it is more sustainable for them to keep their customers happy. Happy customers will bring more customers. Disappointed customers will keep new customers away and you will lose potential sources of future income. Your customers happiness will only lead to your own happiness in the long run. It will cost you so little not to ignore their complaints. 

New Sellers 

There is a new company selling electric bike conversion kits similar to CR's. The name of the company is LEED and they seem to sell cheaper and better kits, especially batteries. I was told by the LEED president that their batteries are compatible with CR's kits. If this is true then CR customers have to option to replace their used-up CR batteries with LEED batteries which could save them some money while getting ones with more recharge cycles. If the advertised LEED specs are accurate their lithium ion batteries are rated 1500 recharge cycles while the advertised CR batteries are rated only 500 recharge cycles.

It is just natural if those not satisfied with CR's service and product turn to LEED for upgrades and replacements. I wonder if the market for e-bike kits has been saturated already. Customer migration from CR to LEED could put a strain on CR's operation. Well, CR has other products and LEED sells e-bike kits and accessories only. Besides, CR can still revive their customer service back to the level when they started.

What remains to be seen is if LEED's customer service can keep up to the demand especially when they get more customers because of their more attractive price and product specs. Will customers get help when they encounter problems with LEED kits? We will see but I hope they will do a better job and keep their customers happy. Such is the best and most effective advertising ever. They will earn more money and customers will get the product they will enjoy. 

NOTE: More posts on e-bike conversion projects are available here

Thursday, September 26, 2013

Chargers


Here the different kind of chargers used with 3 different electric bicycle conversion kits.
This is the charger for Clean Republic´s Samsung 10-mile Sprinter lithium ion battery.
You can see from the picture that it has a different connector compared to the old chrome plated ones for the SLA battery.
The charger is GVE model GM602-292200 and has an output rated 29.2V  2.0 A. 
LEED uses a different charger for its battery packs with a higher output rating of 29.4V as you can see from the picture below. It is a model XVE-2940300 Li-ion charger from China. Its connector plug is exactly the same as the one on Clean Republic's lithium ion charger but its output rating is a bit higher DC29.4V=3.0A versus Clean Republic's much lower rating of 29.2V=2.0A.
Clean Republic's SLA 8-mile kit uses a 24V=1.6A charger from Hengguang Power Model HG6S240160 (see below)
A quick comparison of the power output of the three chargers shows that LEED's Lith-ion charger has the highest rating 29.4V=3.0A followed by CR's Lith-ion 29.2V=3.0A then CR's SLA 24V=1.6A. All of these 3 kits power the same 24V 8Fun brushless motor for e-bike (see below).

NOTE: More posts on e-bike conversion projects are available here

Saturday, September 21, 2013

Cost Comparison of Electric Bicycle Conversion Options

Here is an electric bike conversion comparison for riders out there.

I upgraded my Clean Republic Hill Topper electric bike kit battery from SLA to Lithium-ion (Sprinter) last winter (February 28, 2013). I have been using an SLA battery since I got my kit it in May 2010 and I believe I have exhausted its 400 recharge cycles after using it for 2 years (not everyday, though). The SLA still works but it now gives me only 20% distance of what it used to give back in May 2010.


I have used my new Sprinter Lithium-ion battery since February 28, 2013 and have only recharged it 25 times (so I should have 475 recharge cycles left). Unfortunately, my Sprinter stopped working last August 2013 so I sent it back to Clean Republic in North Dakota for inspection (it arrived September 12, I think). Upon inspection they saw that the regulator burned out (I got an email from Anthony on September 12). Clean Republic has repaired it as part of the 1-year warranty (I only had it for 6 months) and it has now been shipped back to me (it is on its way but I may wait for a week or so to actually get the shipment). It took me a week to get a response so I had to wait and follow-up in several channels (Google chat, Facebook, etc). You may look at the details of my communication with Clean Republic on this issue by visiting this link: http://www.electric-bike-kit-forum.com/extending-battery-life-t201.html#p2055. I will write a separate blog on my experience and observation of their customer service.

For this post, my topic is product comparison.

Another 5-minute conversion kit?

There are other electric bike conversion kits in the market but they are not as affordable as what Clean Republic offers. I recently discovered that a similar but apparently cheaper 5-minute electric bike conversion kit just hit the U.S. market. I do not know if this kit is better (no experience to base claims yet) but I tried to compare their specs below just to get some idea. The Utah-based company is called Love Energy Efficient Designs (LEED). It is a funny coincidence that while the name of the CEO of Clean Republic is Mike (Michael Shoppe) the one who started LEED is also named Mike (Merrell). LEED started selling their kits just this July 2013. You may check out their Facebook.

LEED offers a 10-mile 1500 recharge-cycle Samsung Lithium-ion kit complete with an 8Fun front motor with complete wheel with quick release axle, controller, wires, and battery pack for only 449 USD plus shipping of 135 USD making the total cost 594 USD. If we add the expected Norway import duties of of about 150 - 200 USD a Norway importer would expect to shell out a total of 734 - 794 USD (or 4 352 -  4 705 NOK).

In comparison, Clean Republic sells a similar 10-mile 500 recharge-cycle Samsung Lithium-ion kit with an 8Fun front motor with complete wheel (without quick release axle), controller, wires, and battery pack for 499 USD plus shipping of 150 USD (based on what it costs in 2010) making the total cost 649 USD. If we add the expected Norway import duties of of about 150 - 200 USD a Norway importer would expect to shell out a total of 799 - 849 USD (or 4 730 -  5 438 NOK).

Based on the advertised specs and price, LEED seems to be on the lead but only time and customer experience would tell if LEED can deliver the promise.

Here is LEED's installation video. (Note: I think the tire should be recycled or kept for future use and not thrown away in the yard as shown on the video!)


How much is the cheapest electric bicycle in the local Norwegian market?

In Norway, a company called Biltema sells a full 28" electric bicycle for 1,182 USD (6 999 NOK).


In comparison, the total cost for putting together a complete electric bicycle with a basic SLA Clean Republic Hill Topper electric bicycle conversion kit is 1,197 USD. The kit includes an 8Fun front motor attached to a complete 26" wheel, a controller, a on/off switch, attachment cables, and SLA battery. It costs 399 USD. In addition, shipping it to Norway from the US costs 150 USD plus import duties of 225 USD. That's 775 USD total for the conversion kit. If I add the cost of my existing bike (422 USD) then the total cost of the electric bicycle is 1,197 USD. That is 15 USD more expensive than the Biltema electric bicycle.

Since my May 2010 SLA battery exceeded it 400 recharge cycles after two years, I opted to get the Sprinter lithium upgrade which costs 300 USD plus 125 USD importation taxes and customs fees. That is 425 USD total. But since I had to send back the Sprinter to Clean Republic when it broke in August, I had to shell out an additional 50 USD for return shipping, making the total cost for my lithium battery upgrade to 475 USD. Add that to 1,197 USD will give us 1,672 USD. That makes my electric bicycle 490 USD more expensive than the cheapest Biltema electric bicycle.

By just looking at the numbers it may seem that the Biltema e-bike is cheaper. Well, not necessarily. The Biltema bicycle is known to be not top of the line so paying for less on the bike itself is not the way to go if you want something more durable. That is also the conclusion of one review of this electric bike (in Norwegian).

Another affordable alternative is the Northern Lights electric bicycle sold by elsykkel.no. Their 26" electric bicycle costs 1,629 USD (9650 NOK including shipping). The included battery gives 700 recharge cycles and costs 43 USD less than what I have paid in total for my electric bike. But one has to shell out the 1,629 USD immediately compared to investing in installments in 3 years as I did.

Still another cheaper full electric bike is the Alprace folding bicycle sold by Coop Obs (similar to the one pictured below).

This one costs 844 USD (4999 NOK), so far the cheapest I have seen in Norway. It uses a 8Fun rear motor and a frog type Lithium ion battery attached to the rear. The included lithium ion battery is good for 600 recharge cycles.

Even if the 3 other alternatives might cost less, I would still go with Clean Republic Hill Topper kits (or perhaps the equivalent LEED kit that I have not yet tested) for the reason that I will explain in what follows.


Advantages versus disadvantages

The advantage of getting an 8Fun motor driven conversion kits like Clean Republic's Hill Topper and LEED's 5-minute kits is its portability. You can attach it to any existing (durable) bike that has steel forks (not aluminum). You also don't have to shell out a large amount of money immediately. In my case my initial investment is decent BikeForce 26-inch bike which costs 422 USD to which I added a basic 8Fun motor-driven electric conversion kit (775 USD including importation costs) then finally the lithium battery upgrade (475 USD). If we divide the total cost of 1,672 USD to 38 months, I have spent 44 USD per month as of September 2013 from May 2010. The computed monthly investment will go down as long as the battery lasts. If I use it everyday to go to work (5 days a week) and assuming it will last the 475 recharge cycles remaining since I used it, then I should be able to use it until December 13, 2015, that is 27 months more for a total of 65 months spreading my monthly investment to 26 USD per month.


Assemble your own

The cheapest way to get an e-bike is to assemble your own kit. If you have a 24V 8Fun brushless motor, a battery pack w/controller & matching charger, and a cable switch then you can put together your own e-bike conversion kit to use or to sell (if you develop it through Kickstarter). Here is a recipe for assembling your own 8-mile SLA battery pack for your 24V 8Fun motor-driven conversion kit.

1. You need to buy 2 SLA 12V batteries



2. You then need to buy a controller from Clean Republic. They sell it for 49 USD each.



3. You also need a 3-pin on/off switch with LED indicator. You can get one from Biltema.

4. Some tape and soldering iron is needed to assemble these parts.

5. A waterproof nylon bag can be recycled from old bag thrown away or get one from FRETEX.

You need to get a HENGGUANG POWER Model HG6S240160 charger with output rating 24V=1.6A to charge your battery pack.

A cable set to attach your battery pack to the brushless motor is needed. You can buy one from LEED or Clean Republic.

And lastly, you need a front wheel 24V 8Fun brushless motor. You can buy just the motor and assemble your own wheel or you can buy a complete wheel with motor either from Clean Republic or LEED.

Conversion kit sellers' customer service: what might happen

The downside of buying a complete conversion kit, perhaps, is the added cost of importing from the U.S. (25 % VAT and customs fees) and getting less (if not long distance) customer support. Clean Republic started out as a small company so I enjoyed dealing with them in 2010. The CEO himself attends to customer communications back then and he replies immediately. But the one in charge of shipping tends to make mistakes, though. Three times in my case. Maybe it was just me but the first time they made a mistake was sending my order using a cheaper shipping mode than what I paid for back in 2010 (I paid 265 USD for USPS Global Express Guaranteed but my order was shipped through USPS Express Mail International costing only 150 USD). They refunded the mistaken overcharge of 111.75 USD after I alerted them on this and they apologised for the mistake but I had to pay more for the 25 % VAT plus duties (almost 50% of the total cost including shipping) of the overcharged cost (not the net after the mistake refund). The second mistake happened when I paid online for a more expensive USPS shipping but my order was sent via the cheaper UPS shipping. Again they apologised for this mistake and refunded accordingly. The third mistake was when I paid 90 USD for shipping of my Sprinter upgrade to Norway but when I got the invoice that came with the package it showed that only 59.95 USD was actually paid for the USPS shipping. There seems to be a pattern here and I wonder if other customers check their invoices as I do. I emailed Mike Shoppe about the third mistake on March 5, 2013 but this time, unfortunately, I never got a reply until now, almost 7 months have passed. This is just 30 USD but I think it is unwise to risk customer satisfaction for just that amount. Some improvements must be made to their online order and shipping procedure to make sure that the shipping that customers pay for is what they get when orders are shipped. Recently, I have observed that some customers (including myself), at least had to wait longer (one week in my case) and will have to be persistent (and should have the extra time) in trying to get a response from them, if one gets any response at all! My March 5 email query, for example, remain unanswered up to this day and I only follow up the most important, like 'when should I expect to get my repaired battery back?'. To be fair, customer support seems to be improving again with a new guy (Beau Morton) helping out. Beau answers all my email promptly and has somehow got the shipping of my repaired Sprinter going! But they should do something out their Forum which has now become inactive. My suggestion is to direct all forum visitors to their more active Facebook page. I will write a separate review about Clean Republic's customer service later.

I hope you find this electric bike conversion comparison useful.

NOTE: More posts on e-bike conversion projects are available here