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Monday, January 6, 2014

Neuvation is Closed

Neuvation Cycling is closing.  According to John Neugent's daily missive,


  • 2014
  • Neuvation Cycling has shut its doors.  I am not at liberty to discuss the details but do plan on opening up another wheel business by early spring.  At that time, all the elements willing, I will be able to honor warranties and wheel protection plans from Neuvation Cycling.
  • If you are in need of a Neuvation specific part in the mean time, please feel free to contact me at JohnNeugent@aol.com  and I will do whatever I can to help out.
  • Any orders placed after Friday, Dec ember 20th have not been processed nor the credit cards run.  All attempts have been made to get any warranties completed and I am not aware of any credits due customers
  • It’s been a lot of fun and I expect to be back up to full steam in the early spring.  I will be doing occasional newsletters just to stay in touch.
  • I fully expect to get literally hundreds of e-mails in response to this announcement (I have lots of truly great customers) so please be a little bit patient if it takes a few days to get back to you.  I am personally doing great and really looking forward to 2014 and lots of new opportunities.
  • Thanks very much for all of your support – John Neugent

Not sure yet whether my Christmas carbon fork and bib shorts order made it in in time to be shipped or did not.

I say shucks.  I have been a fan of John's black-label bicycle hardware business, selling gear comparable to high-end branded gear for a fraction of the cost.  After years of buying small things here and there, I finally last year splurged on a fully built semi-custom bike for P__, a beautiful Neuvation FC600 with Ultegra 6800 and blue accents on the bike and wheels.  I have had in the back of my mind the plan to do so for myself but never got around to it.

One wonders what was the final straw.  The missive is ambiguous -- "I'm not at liberty to discuss the details" could refer to the decision to close or could refer to the plans to open a new shop focussing on wheel-building.  My guess, based largely on his own frequent commentary, is that John's business plan, which relied on arbitraging the spread between cost and retail price that branded bikes enjoy, could not keep up with online discounting, and he was unable to convince enough customers that a word like "Cervelo," "Trek," or "Cannondale" printed 17 times on a frameset in bling fonts added precisely zero tangible value.  I don't know how much John actually took home on the $2100 carbon monocoque with Ultegra 11-speed that I bought P__, but it couldn't be much -- and he had rent to cover, two employees to compensate, and the other business expenses that can't be trivial.  For example, insurance expenses for small bike/parts manufacturers must be a bear.  Of those expenses, rent is the only one that scales very well.

Thus, I feel a certain regret that I only shopped Neuvation's fire sales.  We all talk about supporting the LBS, but the same might be said for hidden gems that are in no sense local.  (Neuvation was based in San Luis Obispo, California.  I only once made it to the shop, over Thanksgiving week 2013.)  In my experience most LBSs are annoying; one isn't quite worth their time unless planning to spend at least $5000 on a bike.  I never got that vibe from John, who happily shipped me a gorgeous $250 frameset and even took the time to compliment me on my build job after I sent him a picture.  

On the upside, this will save me a solid 15' daily surfing his website for bargains.

7 comments:

Unknown said...

I never bought anything from Neuvation, but it seems to have been a mainstay for budget-conscious do-it-yourselfers. I think the bike industry is one in which it's hard to make a great living. Local bike shops complain vociferously that people will now come in, try stuff on, get advice, then buy it online from a discount seller, only to bring the item into the shop for help getting it to work correctly. It's tough going.

sam said...

Quite the bummer.

Of course, for purely selfish reasons, I wonder if my $50 full carbon fork made the cut.

sam said...

I get really irked by the LBS mentality. I wonder how many LBS apologists shop for travel at their local travel agent?

My experience mirrors Max'; The only LBS I've derived any value from are Performance and Universal Cycles, and that's just because their shops make a nice front-end to their mail-order business.

skoorbb said...

My friends and I have 3 FC500s and 6 sets of Neuvation wheels. The wheels are the best I've ridden, the FC500 a pure delight, it makes climbing fun. My interaction with John and his employees was always pleasant , and the customer service as good as any, and better than most. Sorry to see Neuvation go, looking forward to John's next venture.

skoorbb said...

My friends and I have 3 FC500s and 6 sets of Neuvation wheels. The wheels are the best I've ridden, the FC500 a pure delight, it makes climbing fun. My interaction with John and his employees was always pleasant , and the customer service as good as any, and better than most. Sorry to see Neuvation go, looking forward to John's next venture.

Max said...

Skoorb: much agreed. Nearly bought an FC500 over Thanksgiving. I wish I had.

Following on Sam's point about LBS value-added, it seems that all service industries have the same problem. Why do I go to Starbucks when I can make better coffee at home? Why do I visit a lawyer when I can figure it out online anymore? Why go to a bike shop when Merlin Cycles sells it all for much less?

The answer has to be what Hemingway said. I go somewhere because it is a "clean, well-lighted place." If a bike shop serves that function it can survive. If it does not it will whither. Bike shops need to sell coffee (and beer?), have couches, show movies, bring in speakers, remain open late into the evening and for heaven's sakes on Sundays -- and so on. They need to employ nice people who are more concerned about selling the service rather than the product. If you are just a warehouse I'd rather find gear elsewhere.

Max said...

Skoorb: much agreed. Nearly bought an FC500 over Thanksgiving. I wish I had.

Following on Sam's point about LBS value-added, it seems that all service industries have the same problem. Why do I go to Starbucks when I can make better coffee at home? Why do I visit a lawyer when I can figure it out online anymore? Why go to a bike shop when Merlin Cycles sells it all for much less?

The answer has to be what Hemingway said. I go somewhere because it is a "clean, well-lighted place." If a bike shop serves that function it can survive. If it does not it will whither. Bike shops need to sell coffee (and beer?), have couches, show movies, bring in speakers, remain open late into the evening and for heaven's sakes on Sundays -- and so on. They need to employ nice people who are more concerned about selling the service rather than the product. If you are just a warehouse I'd rather find gear elsewhere.