Toronto E-Bike Maker Adapts Strategy Amid Trade War
Facing a potential trade war that could impact his business of selling electric bicycles to U.S. clients, Ben Taylor prepared himself for the worst.
"All the effort we put into preparing for our U.S. launch, and just when we thought everything was set at 30 days—‘Alright, we're ready to begin sales in the U.S.’—we got hit with tariffs," explained the company's co-founder. Beachman , an electric bicycle manufacturer based in Toronto.
There was certainly a night when the existential threat loomed large: 'Could I end up losing the company I've devoted so much time to?'
In 2016, Taylor shared that he conceived the notion of designing a stylish and retro-themed electric bicycle. It took nearly three years until their serendipitous meeting at a local café with his neighbor, who would become his business partner, Steve Payne. This fortuitous encounter sparked their collaboration on bringing this concept to life.
Taylor, the CEO overseeing sales, marketing, and finance at Beachman, along with Payne, the COO responsible for designing their signature bicycle and managing manufacturing, engineering, and sourcing, began operations in the latter’s garage where he initially did most of the building. motorcycles in his spare time.
It’s quite distinct from typical electric bikes," Taylor stated. "We should create an amazing, enjoyable bicycle that is budget-friendly and suitable for urban life. However, the top priority should be making it visually appealing and ensuring it runs on electricity.
Taylor mentioned that the outcome is an e-bike which evokes memories of the 1960s, yet every aspect of it is entirely fresh.
"We simply believed that bicycles would be well-received, and happily, we were correct," he stated.
Initially, the business venture had to produce its first bicycles abroad because of budget constraints. Over time, as their financial situation improved, they were able to adhere to their initial strategy of importing components and moving the production process to Toronto.
Before relocating to an industrial warehouse further north in The Stockyards, they first leased a coffee shop basement as their storefront in the Junction neighborhood.
Taylor mentioned that although the majority of the company’s bicycles are purchased in Canada, Beachman has started redirecting its attention over the past year towards the U.S. market, particularly targeting states like California, Florida, Texas, and Arizona.
At first, he wasn't sure how things would unfold when Trump threatened 25% tariffs on Canadian products heading into the United States.
"Similar to others in North America, you can’t predict Donald Trump’s thoughts or his impromptu statements since whatever seemed fitting to post on social media was fair game for him," Taylor stated.
When attempting to stay ahead of the early U.S. tariffs introduced by President Trump, the firm shipped four electric bikes to Florida. However, their shipping company ended up with a $3,000 USD invoice because the customs paperwork did not process promptly.
Taylor remembered the shipper asking, "Would you like to cover this cost?" Their immediate reply was, "Absolutely not. Send the charges back to us," he responded firmly.
Taylor mentioned that the firm opted to revoke the order placed by one of their dealers in Florida.
Even with the lost sales, there was positive news. Trump suspended tariffs on goods covered by the Canada-United States-Mexico Agreement until April 2nd.
This will enable the business to increase manufacturing of the 2025 model which reached the storage facility on Tuesday.
"The guys are actually unloading the shipping crate right beneath me," he stated.
He aims to deliver completed items to his retailers in the United States prior to the tariffs being imposed on all Canadian merchandise.
It has truly put our business in a peculiar phase where we're constantly rushing followed by long periods of waiting, which can be quite exasperating.
Taylor mentioned that the economic disruption has compelled his firm to shift aggressively towards the Canadian market. He highlighted that Beachman maintains identical pricing for e-bikes in both Canada and the United States, even though the loonie trades below the greenback.
"It significantly impacts our profit margins, but we're committed to safeguarding Canadians and providing them with an excellent product despite the current weakening of the currency," he stated.
Taylor mentioned that certification of e-bikes has been challenging in both Quebec and British Columbia due to interprovincial trade barriers.
There is absolutely no uniformity at all regarding e-bikes and mopeds. motorcycles Across every province," he stated, noting that British Columbia has the biggest motorcycle market because of its milder weather.
Beachman is expanding sales to include Caribbean nations and Indonesia, and by the following year, the company plans to establish headquarters in France with their e-bikes becoming accessible throughout the European Union.
"The European market appears to be expanding, so we plan to make significant investments in Europe," Taylor stated.
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