Why We Don't Do OEMJan Heine
Wouldn’t it be awesome if you could buy a complete bike that is already equipped with Compass tires? Take a bike like the Masi Speciale Randonneur (above), roll out of the bike shop and into the hills, your tires gently humming as they roll over the rough pavement. When the road turns to gravel, the feel of the bike changes on the loose surface, but its speed and comfort remain the same.
We get a fair number of requests from bike manufacturers who want to install Compass tires as OEM (Original Equipment Manufacturer) parts. It seems like an opportunity for Compass: Once riders have experienced the joys of riding on supple tires, they won’t return to stiffer, harsher, slower tires. So why don’t we do OEM sales?
The answer is simple: Cost. Compass tires use the highest-grade materials, from the fabric for the casing to the rubber for the tread. They are made by hand, which requires skilled, experienced labor. Compass tires are made in Japan, a country with high wages. All these factors increase our production costs.
At the consumer level, we (and other small makers of bicycle components) can compensate for the high cost with our low overhead. Big companies need a lot of money for administration, marketing, shareholder profits, etc. We eliminate most of those, and the final consumer price of a Compass tire isn’t much higher than that of a mass-produced tire.
OEM prices are low because the orders are large, and even big companies can significantly reduce their overhead. For small companies like Compass, there isn’t much overhead, and to compete at the OEM level, we’d have to reduce our production costs. We’d have to downgrade our specifications and move production to a low-wage country. That direction isn’t really where we want to take Compass Cycles.
Others have taken our ideas and made them ‘OEM-comptabile.’ At Compass Cycles, we welcome that bike makers now can spec affordable bikes with wide allroad tires. Bikes like the Surly Midnight Special (above) simply wouldn’t exist if there were no affordable OEM tires to ship them with from the factory. Similarly, Masi’s Kellen LeBlanc explained that their Speciale Randonneur was delayed for years until a lower-priced, wide 650B tire became available.
Now more and more cyclists experience the joys of all-road riding on wide rubber. In the past, we never saw another bike on our favorite routes in the Cascade foothills. Now we meet cyclists on almost every ride. Their smiles tell it all.
And in the future, our Compass tires (and other components) provide great upgrades that will make them fall in love with their bikes all over again.