Nashbar logo, a recognizable brand in the cycling world.
For cyclists in pursuit of value, the name Nashbar Bike often rings a bell. Synonymous with discount cycling gear and affordable components, Nashbar has carved a unique niche in the bike industry. If there’s a name that resonates with budget-conscious riders looking for a deal, it’s Nashbar. Sometimes affectionately (or not so affectionately) nicknamed “Trashbar,” this company has a history as intriguing as its pricing.
The story of Nashbar begins in 1974 with Arni Nashbar, an advertising professional from New Middletown, Ohio. Venturing into the world of bicycle retail, Nashbar invested $1,000 to launch a mail-order company specializing in bike parts from his home. His vision was rooted in the belief that direct-to-consumer sales through catalogs could offer greater profitability than traditional retail margins. In an era before widespread internet access, this mail-order model was groundbreaking in the cycling world. While precise details from the early days are scarce, some accounts suggest Nashbar acquired assets from a prior entity named Bike Warehouse, rebranding it under his own name, Nashbar LLP.
Regardless of the exact origin, the business flourished. Within a decade, Nashbar’s mail-order venture had escalated to an impressive $6 million annual gross revenue. This success paved the way for expansion beyond catalogs.
By the late 1980s, Nashbar’s mail-order dominance allowed for strategic brick-and-mortar expansion. The company opened five physical stores, strategically located in Ohio (two stores), near Detroit, Boston, and Washington D.C. These retail locations broadened Nashbar’s reach, offering services like bike repair, maintenance, and, true to their brand, discounted prices. Reports indicate a store even emerged in West Virginia, further extending their physical footprint.
This period also marked Nashbar’s entry into used bike advertising through a tabloid publication called Cycle Seller. The company repositioned brands, ventured into international markets, and recognized the burgeoning potential of e-commerce. This foresight led to the launch of www.nashbar.com, solidifying their presence in the digital marketplace and making Nashbar bike components and accessories accessible nationwide.
Need tires or tubes at a reasonable price? Nashbar. Looking for budget-friendly water bottles? Nashbar. Considering an affordable Nashbar bike or essential tools, lubricants, or even chamois cream for long rides? The answer is often Nashbar.
Virtually any cycling accessory imaginable at a value price point could be found through Nashbar. Their extensive catalog and website became treasure troves for cyclists seeking affordability.
In the late 1990s, Nashbar made a notable foray into sports sponsorship, investing in the U.S. Postal Cycling Team. This sponsorship reportedly generated $1.1 million in business for the team, demonstrating Nashbar’s growing influence and marketing savvy within the cycling community.
Nashbar continued to broaden its product range and distribute catalogs internationally. They became known for offering both private label goods and branded items at significantly lower prices – often 40% or more below independent retailers. Nashbar’s core customer base frequently included dedicated cyclists like racers, touring enthusiasts, and mountain bikers, individuals who regularly placed orders averaging between $50 and $70.
The deep discounts offered by Nashbar have often been a source of amazement. Their marketing strategy heavily relies on frequent sales events. It seems there’s always a “blowout sale” – weekly, monthly, holiday-themed, and even for unique occasions like a “Leap Year Blowout.” These promotions are presented with a sense of urgency, creating the impression of unmissable deals.
An email promotion from Nashbar showcasing a “Leap Year Blowout” sale.
The question naturally arises: how does Nashbar consistently offer such low prices? Several factors likely contribute to their business model.
Bulk purchasing is a key element. By buying in massive quantities, Nashbar secures significantly lower per-unit costs from manufacturers. They also capitalize on manufacturer closeouts, OEM (Original Equipment Manufacturer) products, and slower-selling models from well-known brands, often rebranding imports under the Nashbar name.
To circumvent dealer exclusivity agreements associated with premium bike brands, Nashbar established direct relationships with manufacturers in Taiwan and Japan – often the same factories producing bikes for higher-end brands. John Rossi, Nashbar’s former director of retail development, explained, “We have a buying advantage from sheer volume. As a result, we sell for what dealers buy for.” He acknowledged the initial hurdle of brand perception but emphasized the comparable features of Nashbar bikes: “We have to overcome an initial objection to the name, but we point out to customers that the bikes have the features they are looking for.” This strategy allowed them to offer competitively equipped bikes at disruptive prices. The expansion into retail outlets further boosted sales volume by an estimated 20%. [Source]
Nashbar is also known for its customer-friendly return policy. Returned items, whether due to sizing issues or customer preference, are often resold at even lower margins, contributing to the perception of constant discounts. Fast shipping and handling are additional factors in Nashbar’s appeal. Whether they maintain a large inventory for immediate dispatch or utilize drop-shipping directly from manufacturers remains a question, but their efficient logistics are undeniable. The possibility of managing substantial inventory that they are keen to move also aligns with their sale-driven business model.
Post website establishment, Arni Nashbar expanded his business by offering programming and development expertise to other mail-order companies, including some major players in the industry. These companies became clients of Nashbar’s tech services. Eventually, Arni Nashbar retired, and his son took over, venturing into new markets like baseball and volleyball under the Spike Nashbar brand. His son also briefly considered discontinuing the software division, a decision that reportedly caused concern among their software clients.
Arni Nashbar’s daughter, Molly Nashbar, gained a different kind of public profile, becoming a reality TV personality. Her appearances on a Women’s Entertainment (WE) reality show depicted her move to Los Angeles and lifestyle, adding an unexpected celebrity dimension to the Nashbar family name.
Today, Nashbar operates with multiple locations across the United States and a robust online presence. The brand remains strongly associated with affordability and value. An added advantage for online shoppers is the potential avoidance of sales tax if the store lacks a physical presence in their state, a contrast to local bike shops.
According to Quantcast statistics, Nashbar’s website attracts approximately 154,000 unique visitors monthly. Website analytics suggest their primary audience is male, relatively affluent, and well-educated, falling largely within the $60,000 to $100,000 income bracket, and predominantly Caucasian or international visitors. Interestingly, their typical online customer also reads VeloNews, visits campmor.com, and makes purchases from pcmag.com, indicating a tech-savvy and outdoor-oriented demographic.
The evolution of Nashbar continues. Speculation exists regarding the operational structure of Nashbar, Supergo, and Performance Bike, with some believing they are under the same holding company, possibly Performance Inc. Definitive information remains elusive, highlighting the complexities of retail industry consolidation.
For independent bike shop owners and employees, the competitive landscape shaped by retailers like Nashbar is a constant factor. Their ability to offer deeply discounted Nashbar bikes and accessories impacts the entire cycling retail ecosystem.
