Two Wheeled Life Part 10
CycleItalia's 2001 season was great. Happy clients, lots of repeat guests. All great, we even started putting money in the bank. We thought the future was very bright for us. We'd enjoyed clients who knew us from our earlier work with the "other guy" but added plenty more who knew they could only find pedala forte, mangia bene (ride hard, eat well) with us.
Of course others soon decided our idea was a good one, some of 'em even claiming it was their idea. More than once I'd read some copy on a cycling tour website and realize we'd written it! All we could do was think of that "sincerest form of flattery" idea.
The US greenback was strong vs the euro (we'd started when Italians still used lira) so our profit margins were good. Our business model was to charge almost as much as the big operators but still be a better value when direct comparisons were made - for example our group dinners included wine, something that few others did. Most of 'em required guests to contribute cash to a "wine kitty" as well as 5-10% of their tour price as a tip to the company staff at tour's end. Not us!
We kept our advertising costs way down in comparison to the fancy, full-page color spreads and expensive brochures the big boys used along with doing almost 100% of the work ourselves, from tour creation to the actual production/guiding. Our profit margins were much higher as a result with whatever was left each season not needed for future expenses invested for the long term. We knew we'd not be doing this forever and thought more and more about retiring to Italy as soon as we could.
We weren't back in the USA for long before the 9/11/01 attacks. We hoped the US administration would pursue those involved with a kind-of Israeli "MOSSAD" stealth-type response rather than what they did, but we wondered if CycleItalia would survive...if the world would survive?
Just like everyone else' our world was turned upside down. Would anyone want to spend on a cycling tour in Italy in 2002? Enough did, though not all of our tours were viable but there were enough long-term clients to keep us going until the "war on terror" became mostly just a 'fridge magnet "Threat Level Indicator" joke. We went to the Olympic Winter Games in Salt Lake City and were optimistic the world would soon return to normal.
One thing that didn't go back to normal was the flying over to Italy to enjoy your vacation. Airport/airline security seemed mostly theater to us but when it's the law, you stash that great bottle of wine you bought in your checked luggage and hope your bike makes it to Italy in time for your vacation. TSA's telltale tags would show up in your luggage. Did this make anyone feel safer or just that "Big-Brother" was watching?
We had some bubble-wrap wine shippers printed up for the first issue, but what to do about the second - the bicycles? Clients had always brought their own, same with our former employer who refused to consider a rental idea when I brought it up. He had storage space, a lot of clients and probably the clout to get a bike company to supply 'em at little to no cost but he wasn't interested, despite having a few beat-up rental bikes when he first started. Should we rent bicycles?
The answer came while sitting around with a returning client wondering if his bicycle would arrive in time? He'd come a day early but his bicycle hadn't. 9/11 turned flying into such an ordeal, especially with a bicycle. If he could pay around $200 instead of bringing his own (and paying at least that much in baggage fees) would he consider renting a quality steel, made-in-Italy bike with Campagnolo components? These would be good quality bikes though not the pro-quality machines many of our clients owned.
At that moment the obvious answer was an enthusiastic yes, but since he was rather particular about his bike, an Italian steel model with Campagnolo components, I took this as a good indicator for the future. In the off-season I asked a friend and bike importer if he might supply some bicycles since his were Italian-made? This way we could skip all the issues involved for us in getting 'em to Italy. By this time our hotel partners had added-on (again) to their property, including a garage, so we knew we'd have a place to store them.
The tiny plaque in the upper left in this photo of the hotel's new garage reads "Heather and Larry Square" so bike storage and maintenance would be easy. Ten TORELLI "Gran Sasso" bikes were ordered and picked from a Milan-area shop run by a friend of our importer friend. To our surprise they were not painted red but in a lovely tricolor paint scheme. Our clients loved them! We loved them enough to keep some for ourselves when we liquidated CycleItalia's assets two decades later. More and more clients rented bikes from us vs bringing their own. We heard later the guy we used to work for came around to the idea once he'd heard we were doing it.
It was a win-win for me especially. Much less work than trying to make a bike someone brought work properly (I was always bemused by the "It worked perfectly just before I packed it." when it was obvious the issue had nothing to do with packing or shipping) or changing chainrings or cogsets once they found their gearing inadequate, despite the detailed "How to Prepare Your Bike" information they'd been provided months in advance.
CycleItalia rental bikes had very low gears and with the adjustable handlebar stems we installed we were quickly able to dial-in the rider's preferred fit dimensions, screw on their pedals (and install their personal saddle if they'd brought one) and they were ready-to-go. The bikes worked perfectly well and if something went wrong I knew the cause and how to fix it. These proved so popular we almost ran out of bikes in the proper sizes!
Between tours the bikes were washed and serviced, ready-to-go again just like new. This was more work but I'd rather do that instead of the hassles involved with re-packing bikes and hauling them to the airport. I'd just remove the client's pedals and saddle and that was that.
After a few years things were going great again. What could happen next? We got our answer when the US dollar cratered vs the Euro, from more or less even in 2002 to almost $1.50 for each one by July of 2008. We'd raised prices gradually as the dollar slipped but decided to absorb some losses to remain competitive against our rivals, but $1.50 for one euro threatened to wipe-out any profits for the season.
Our former boss used to impose what he called a "dollar surcharge" when exchange rates with the French franc or Italian lira changed from the time he posted his prices to when the tour actually began. He collected these in cash when the clients arrived, eventually figuring he could take advantage of the client's ignorance about foreign exchange and impose one almost every season, putting some untraceable/un taxable cash into his pockets. I'll never forget the nasty looks from a family of four asked to cough up $400 in cash upon arrival in Paris. One of his habitual clients knew a thing or two about foreign exchange, so he told the boss to send him a bill and he'd write a check once he returned home. When the boss called, the client explained that he saw no reason for a surcharge as exchange rates hadn't changed. The jig was up.
I didn't hear this story until years later when this client became our client but I'd suggested the boss just raise the prices enough to cover anything but huge swings in the value of the US greenback. Why start the tour by making people mad? We'd done this ourselves but $1.50 was a huge swing, so we were forced to introduce our own surcharge. But since we knew how much ill will could be created, our proposal was to collect it well in advance rather than cash on arrival and then announce the exchange rate change from the day the client reserved their tour to the day they arrived in Italy.
If it had gotten worse than we'd calculated, we'd eat the difference. If it improved, we'd issue refund checks at the end of the season. We weren't interested in extra profits, just trying to stay in business. We were amazed at the positive response to this proposal! The dollar's strength improved a bit in some cases and when we contacted the clients about their refund a surprising number asked us just to credit the amount towards next season! We managed to turn what could have been a bad situation into one where everyone was happy. Our tour prices were gradually raised to cover future (smaller) swings in exchange rates, making us more profitable in good times, less in others.
What could happen next you wonder? In 2008, not long after we returned to the USA after our tour season the world's financial markets crashed! Our business finances were in good shape despite the exchange rate issues but how many clients would return if their own savings/retirement was wiped-out? We didn't need to do much R & D so we kept our overhead low and crossed our fingers we'd again find enough customers to survive.
Prior to the crash we'd faced some concerns when our rental fleet of 10 bicycles almost wasn't enough to cover everyone who wanted to rent. If someone messed-up the sizing measurements we asked for in advance, we might face some real problems. The answer was more bicycles, bicycles we'd ordered and paid a deposit on before the crash. By this time our importer friend had sold Torelli so we'd instead contacted his Italian contract-builder directly, the same outfit who'd built and assembled our current fleet.
Despite reservations about ever actually needing these bikes, with even more serious doubts about needing 'em in 2009, we didn't want to forfeit our deposit, so we made another payment as the construction continued. This maker should have had TORELLI stickers since they'd produced the previous bikes but it had been so long (the new owner was now buying bikes from China) his supply had dried-up and were useless.
Once painted, the frames needed stickers or delivery would be delayed. We had to drive across Italy to San Marino to get them, so it wasn't just a quick trip when they were finally ready like the first time. A call to our friend got him to convince Torelli's new owner to rush fresh stickers for these bikes so they could be completed on-time for our clients to use them.
We survived 2009 with lower than usual reservations but didn't lose money, finishing the season with happy clients (many happy with the newer, lighter aluminum/carbon bikes) and promises of "see you next year" while the US dollar's value gradually improved against the euro. We looked forward to the future as we still enjoyed the summer break, getting out of steamy Iowa and Heather away from the academic world.
In 2010 we made a first-time move to Italy. Not yet a permanent one but when Heather scored a sabbatical for half of the academic year and a post in Rome working with a colleague, we locked-up the Iowa house and moved to Viterbo, an hour by train north of Rome and the institution she be working with. The first idea was to live in the country house owned by the colleague's family but internet connections were dicey there so instead we took a tiny apartment in the town's historic center.
This saved us from needing a car and was our first experiment living in a historic city center, something we never thought we'd do. We'd always thought of the peaceful countryside, but you need a car for that and you pay for that peace and quiet every time you run out of freshly sliced prosciutto and have to get in that car and drive! We wanted to try this alternative since it was only for a few months, then we'd return north and begin the bicycle tour season.
We liked the idea more than we thought, including getting around on foot or with "shopping" bicycles. Our friends gave me an old one that I locked up in front of the apartment, visible in the tiny piazza. At first the wife of the owner of the clothing store across the street asked me to keep the rusty old thing out of sight, but after a weekend where everyone decorated their homes and businesses with flowers she relented. All it took was some artificial flowers draped over the bike and a potted plant in the front basket!
This same lady cried when we moved out, through her tears reminding us of the "torture" we'd made her suffer - Heather would be cooking our dinner in the evening but the clothing store stayed open until 8 PM. This lady and her husband would smell the great aroma of our dinner on the stove or oven and have to fight off hunger until they closed up their shop on many evenings. She said she was going to miss that.
We really loved life-in-Italy. If we'd had any doubts about retiring and living there permanently they were pretty much erased. When sabbaticals weren't available Heather would take leaves of absence to continue working with colleagues in Italy on various projects, winning her Iowa college's outstanding faculty person of the year award every year she was eligible and publishing some well-received books, including a textbook.
Most of the time the summer tour season was fun and profitable. We expanded our offerings to include a tour in Sardegna in 2011 as well as enjoying a sabbatical period for Heather in Siracusa, Italy, our eventual retirement home. There are too many memorable experiences to recount here, but here's one: We organized a short tour following the 2013 Giro d'Italia with a limit of just 7 clients so everyone could fit in one van and either of us could ride half the day, switching places after lunch.
The Giro has always been more mellow overall than the buttoned-down Tour. While we did ride on the course in France back-in-the-day with the other operation, it grew increasingly difficult with perhaps the final time one where I was driving the "sweep" van. I was responsible for making sure every client on the course made it to the meeting point along the route so we could then watch the race pass by.
Before the race there was the famous publicity caravan, something dreamed-up by the Tour founders to pay the bills when bike factory teams (and their money) were banned in favor of national ones.
The caravan came by one hour ahead of the race. Unless you were really slow or some other issues slowed you down there was plenty of time to make it to the meeting point but one day we were extra slow getting started. The caravan began to close-up on me in the van, meaning I had to drive up to clients still on the road and load them up before they were chased off the course by the police. Many times a rider could just pull over and get going again once the cop's attention was elsewhere, but not when the caravan (or race) was close.
I was able to load up a few clients, then arrived to see a small group along with the guy the boss'd hired as a special guest. The now-retired winner of the 1988 Giro d'Italia, Andy Hampsten was not driving a van but riding with the clients on the course, but they were now stopped. I failed to convince them to get in, they thought somehow Hampsten would get them through while the van was now forced off the course by the police.
Using the same "get going again" idea I drove on a parallel road a block over, then rejoined the course a bit further down the road...but now we were IN the caravan! In a van with bikes on the roof and covered with advertising stickers we were able to continue, at one point a guest started handing out colored pencils he had with him for some reason. Not much of a souvenir but he enjoyed it until we made it to the meeting point.
The riders with Hampsten? "Where are they?" demanded the boss. I had no clue, explaining they'd refused to get in and continued with Hampsten. The boss wasn't happy but I wasn't going to take the blame when his "special guest" was to blame. The group finally came in after the caravan had passed, barely in front of the actual race. Scratched-up and dirty, they recounted climbing over barbed wire in cow pastures to skirt the police controls, but at least they'd made it. I thought then about Hampsten leading his own tours as he'd moved to Tuscany and was working this tour to get some ideas on how to run them.
Back on our small Giro vacation adventure, we'd secured lodging in Cortina, the "Queen of the Dolomites" arriving a day ahead of the race to avoid traffic issues and road closures. Cycling on the Giro route was usually no big deal, riders could even get on the road between groups of racers anywhere but in the last few meters from the finish. Today's was on the snowy Tre Cime di Lavaredo, for us it included a ride up the Tre Croci climb to intersect the race route and ride as far up the steep final climb to Tre Cime as possible.
Heather was going to ride with the clients, my job was to get our support van up near the final climb as shelter and transportation back to the hotel once the race was over. The weather forecast wasn't great though it wasn't rain...it was snow. Despite this, everyone but one woman wanted to ride. They started off while I went to the local market to buy some stuff for lunch, including package of cheese from the Friuli region - not too far away. I also bought a couple of insulated bottles to keep some hot tea the hotel brewed for us in.
The idea was to head out of Cortina the other way, intersecting the route by driving in the race direction. Going against the race route was no big deal on a bicycle, but they wouldn't let cars do it, so this was the only way to get up there. I thought we'd be early enough to easily drive up fairly far on the final climb and find a parking spot to set up shelter and some lunch.
My plan wasn't unique as at the turn onto the route over the Colle San Angelo was already blocked by the police! Each car moved forward to be told to continue down the mountain or turn around, nobody not in an official vehicle or on foot or a bicycle was going any further. I could see this as we rolled-up to get the bad news. Most cars just made U-turns but I saw a small parking lot just ahead to the right. I told the person turning back the traffic I'd just go up there and turn around as the road was narrow. It was OK with them but just like with the cops at LeTour, once they were distracted we just kept going. Slowly at first, not wanting them to hear any sudden acceleration of the van, we just idled along with one eye on the rearview mirror until we were out of sight.
As we drove along at now faster pace I wondered about the next checkpoint, the turn onto the climb of Tre Cime? Once there I tried to get into a parking lot but there was too much snow, so back onto the road to try the "I'll just go up there and stop" trick again. Would it work a second time? Amazingly it did! We drove up until I really worried about being stopped and turned around, this time with no chance to find a parking spot, so when I saw a ristorante parking lot not yet full I turned in and stopped the van next to a large tent. I turned off the engine and told our client to stay inside and be quiet, I didn't want anyone to notice us.
We could see the race course from here, making it easier to find our clients as they made their way up. After a few minutes with nobody bothering us it was time to get out and survey things, starting with the tent. Some race fans from Friuli had set this up for themselves, complete with BBQ grill, plenty of wine and a big pot of polenta. How could we get in on this? That cheese is from Friuli and we brought wine - maybe I can donate that to the program and get invited to join them?
The fans were up for the idea, unwrapping and grilling the cheese in the traditional way. Our cold and shivering riders soon arrived to be ushered in, fed grilled sausage and polenta like they were old friends. Preparation, nerve and some good luck combined (as it has time and again) to make this a memorable and enjoyable day.







No comments:
Post a Comment