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Schwinn wanted to be the first quality. They used better steal and electric
welding. They added 40 patents to their collection during the depression.
The Schwinn brand began to stand for something in an industry where the
manufacturers rarely got to put their own name on the bike. Customers began
asking for Schwinns. And those that couldn't afford the high end models
picked the more affordable Schwinns over competitive offerings because of
the Schwinn name. The Schwinn brand carried weight that the department
stores like Sears and Montgomery Wards could not give to their "toys."
Distributors were forbidden to sell to mass merchant department stores, but
Schwinn never said it wouldn't do so directly. Schwinn had a good
relationship with B.F. Goodrich for many years even though the auto parts
retailer often sold the bikes at a loss in order to drive customer traffic
into their stores.
In the late 1930s Schwinn took virtual control of one of its distributors
who was going through a financial crisis. Schwinn streamlined the operation
and got all of the distributor's bicycle dealers in order. By the time all
of the issues had been worked out, Schwinn was reticent to let go of the
arrangement. Dealing direct with retailers allowed Schwinn to cut prices
while earning them (both) higher margins, but most important, it gave
Schwinn a finger on the pulse of bicycling in America. Schwinn began to
take every retailer that wanted to peddle bikes, even the ones that were
still selling lawn mowers. When there was a problem, Schwinn quickly found
out about it and corrected it. When the market shifted, the retailers
demanded new products and Schwinn got them there first. Schwinn moved that
much closer to the customer and it made all the difference.
Schwinn designed bikes that people would want to ride. There were fast
followers to be sure. Huffman (Huffy) and Columbia were quick to jump on
the balloon tire bandwagon, but the imitators were copying bikes that seemed
to be selling well. Schwinn knew why their innovations were selling well
and consequently Schwinn was better at promoting their bikes. Possibly the
most important demonstration of Schwinn's commitment to customers was the
1939 introduction of the lifetime guarantee (industry standard was a single
year). This move, more than any other, made retailers want to show off the
Schwinn name. A bicycle with a Schwinn head badge sold better than the same
bike with the retailer's own head badge.
In the midst of the 1930s, Frank W., enjoying the impressive success of his
balloon tire bikes for kids, decided that he could get adults back on
bicycles too. He employed famed bicycle racing mechanic Emil Wastyn and his
son Oscar to design the ultimate racing bike. Sparing no expense, the
Wastyns used the best materials and the best components to bring into being
the Schwinn Paramount. Schwinn put the Paramount to work on the racetrack
in 1938 and it quickly rose to the top of the sport. Frank W. released a
number of other lightweights hoping to follow the path of his father, Ignaz,
who had successfully sold bicycles through the promotion of racing.
Schwinn Paramounts won many races. On May 17, 1941, Alfred Letourneur went
108.92 miles per hour on a Schwinn. The bicycles were everything that Frank
W. could have hoped for, but the touring craze was not to be. The Paramount
was never a very profitable product and touring did not catch on the way it
had in the gay 90s of the last century. Just as Schwinn was getting going,
World War II put heavy strains on steel and rubber construction. Also, the
automobile continued to take up more and more space in the garage.
Americans just weren't ready to get back on a two-wheeler.
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