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| Friday, October 17, 2003 |
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Las Vegas firm makes big toysA local manufacturer of high-precision medical equipment has branched off into marketing high-powered exotic vehicles to develop a hybrid three-wheeled motorcycle called a trike that the company believes will rocket to success in more ways than one. Called Las Vegas Trikes, the company has spent the last year and a half on the ground at its Summerlin factory creating three models of the vehicle, with a fourth in development. With a base sticker price of $42,000 for the least expensive Thunder Trike model, the vehicles have hit high-end of the market in the past six months. Customizing each vehicle to the buyer's specifications, the company has sold six vehicles to date. Targeting a niche market of adventuresome clients with discretionary income, Las Vegas Trikes is expecting sales to accelerate by linking its marketing efforts with consumer exposure to the product. This will build a brand awareness intertwined with the product itself.
Las Vegas Trikes was founded in 2002 when Kloehn LTD acquired Iron Horse Trikes, which was located in Arizona. The company made the acquisition believing the market was ripe for the unique three-wheel vehicle once it had been refined and marketed. "We took a diamond in the rough," says LaFontaine. "It looked how it looks, but [Iron Horse's] financial capabilities didn't allow high-end components...That's why it took so long to produce." Kloehn moved its latest division to unused space in its 54,000 square-foot factory in Summerlin and invested about $500,000 in new equipment to produce the trikes. Founded by brothers Mike and Garth Kloehn, Kloehn LTD was founded in California in 1970 but moved to Las Vegas in 1994. Las Vegas Trikes uses local suppliers for many of its components, including Universal Engine for its 330 to 525 horsepower Chevrolet engines and Dan's Driveline for the drive shaft. "We wanted it so that if there is any issue, we can go back to [the supplier] and he can support his work," says LaFontaine. "We did not want it where it's built in Texas and if it leaks oil, there's nothing to do." Las Vegas Trikes itself has four employees who stitch the parts together and then custom build each Trike according the the customer's choices from a list of options. Because of the intimate relationship between the customer and each Trike produced the company has expanded its features with customers' suggestions, adding a bench for a second seat when one customer wanted to seat more than one. "We have top notch people who are making it happen," says LaFontaine. "Anything on this thing is not something you find in a junkyard but it is built by specialists in the field." The company's current capacity is about four per month, according to the general manager, who says that could double "if we added a second shift." The result is a two-seater, three-wheeled vehicle that stretches 135 inches long and 78 inches wide at the wheel base with automatic transmission. Although intimidating to some on initial contact, operating the trike is easily learned in five minutes, according to LaFontaine. In fact, with its numerous options, such as multiple lights and strobes that can run while the vehicle is parked and locked, the trike can be downright appealing. "When I first looked at it, it looked like it might be difficult to steer," says Phillip Karpinski, co-owner of Evergreen Counseling and full owner of a Cyclone Trike. "But it handles 100 percent differently than it looks. You've got to test drive it. It makes a world of difference." "When customers see how stable and fun it is, it changes their mind," LaFontaine says. "There are three-wheeled trikes but nothing like this. It's like a car and a truck. They both serve the same purpose, but they're different vehicles. There are a lot of guys building trikes in the back-of-the-garage type of thing. They don't do it to our level of safety and performance." With the fourth model series called the Widowmaker due in two months and tentatively priced in the low $80,000s for the standard model, Las Vegas Trikes is definitely targeting affluent consumers. However, the company believes the easy handling and sturdy design of the trike will make it attractive to all ages, even senior citizens unable to ride motorcycles anymore but still longing for the experience. "It expands across a lot of generations," LaFontaine says. "Once you get the bug, it's hard to get rid of." The primary challenge for Las Vegas Trikes is rolling the message out and hitting the sales. Presently, the company has been offering the product direct to consumers, subcontracting its sales to an outside sales team. Although the company has authorized one licensed dealer in Lake Havasu, Arizona, LaFontaine says the company has just entered that stage of development. Like the production of the trikes themselves, he noted that the process of licensing dealerships will be deliberate to assure that only reputable firms are chosen. "We've looked at dealers but we're selective," he says. "Used car dealers would not fit. We're looking at people with storefronts that can properly display [our product]. We want to establish long term relationships with qualified dealers." Although Las Vegas Trikes will be trying to add their product line to dealers selling similar high-end vehicles, such as Ferrari and Lamborghini automobiles, LaFontaine says the trikes face regulatory obstacles in obtaining dealerships in some jurisdictions, such as California, because it is classified as an exotic vehicle. Nonetheless, Las Vegas Trikes will be initially aiming for dealers in California and other sunbelt states. Perhaps more pressing than getting dealers is the need to generate consumer interest in trikes. With Las Vegas Trikes focusing on the product, the company hired local marketing firm Sutton Watkins Advertising and Design at the beginning of the month to raise awareness. "It's a challenge because it's an expensive toy," says the firm's partner, Kathy Watkins. "It's not a typical car you drive every day. We have to make sure it's the right market." According to Watkins, the main focus has been exposing the vehicle to the market. While advertisements have been placed in a smattering of specialty publications, the biggest impression continues to be the physical one. "Just driving it down the road gets exposure," she says. "When I was riding it, people couldn't take their eyes off of it." With product exposure driving the marketing campaign, the trikes have already turned up at a number of shows and expositions in its infancy, from the annual Motorcycle Rally in Sturgis, South Dakota to the Kentucky Derby. According to LaFontaine, the trike drew immense attention in August during an exhibition held at Caesar's Palace and the company has since tried to place the three-wheeler in other shows and casinos in the city. He added that one adult entertainment venue recently ordered a trike in order to promote the club. "They can put it in a nightclub as a display," LaFontaine says. "Basically, they can draw people in just by the way it looks. When done as a hook, it appeals to a lot of people...We're concentrating on shows. We can't sell it from the inside of an office saying 'We think you'll like it.' We've got to get it out there and have people test ride it and say 'Wow!'. The key is persistence. Show them what we've got and let them test drive it. Word of mouth is going to carry it. Once you ride, you're going to like it." By growing the profile of trikes, Las Vegas Trikes believes the entire market, including conversions of two-wheel motorcycles, will expand. Although competitors like Ecstasy Trikes in Indiana could benefit as well, LaFontaine is confident that Las Vegas Trikes could find a secure niche in an underdeveloped market that will only grow when comparisons are made. "I can't tell you 100 percent that this [particular] market will be a success or it won't be," he says."We see trike manufacturers or motorcycle conversion [experts] and they're doing well. There's no boundary on the market. There are enough people interested in this market that there's room enough for conversion and for us. We're going to get a good share of the market because of what we do." |
