Frame and Wheel interim report to clients and customers

Dear Frame and Wheel customers,

I am pleased to report that the first half of 2013 went very well for Frame and Wheel. Rated transactions increased about 50% year on year to 664 in June 2013 due to repeat and new business from local and regional sellers and strong demand from domestic and international buyers. California, Washington, Texas, New Jersey and North Carolina continue to represent the key domestic markets and England, Ireland, Australia, Canada, Thailand and Singapore continue to represent the most active international markets. Frame and Wheel’s positive feedback score was unchanged at 100% due to a concentrated effort to provide comprehensive descriptions, compelling images, accurate ratings and fast shipping. Featured transactions during the first half include Zipp wheels (900 Clincher discs, 808s and 404s), HED wheels (H3s), classic wheels (Mavic 3G, Spinergy and Specialized Tri-Spoke), a Quintana Roo CD0.1 with Reynolds wheels, a Cervelo P2C with Zipp 303 wheels, an SRM Power Meter training system, a Parlee TT time trial frame set and a Pashley Tube Rider. There have been misunderstandings, disappointments and mistakes along the way, but I have resolved them amicably and decisively. Unpaid item claims were a problem during the period due to the increased number of auctions and the Frame and Wheel eBay Store’s increased visibility on eBay listings. I recently tightened buyer feedback score requirements in order to attract only serious buyers and thus reduce unpaid item claims. Elsewhere, Ebay increased the final value fee on individual auctions to 10 percent (Previous: 9.0%) on 1 May 2013. Ebay also increased the final value fee structure for ebay stores. Consequently, Frame and Wheel has revised its commission structure (Please see table below). To off set the impact of these revisions, Frame and Wheel eBay Store listing fees and Facebook / Twitter advertising fees have been eliminated and are now provided free of charge.

Revised cost and commission structure: effective 31 May 2013

Category	Revised	Previous
Cost
eBay final value fee (Percent of total transaction value)	10.00%	9.00%
Commission
$0.01 to $50.00	25.00%	20.00%
$50.01 to $1,000	20.00%	15.00%
$1,000.01 or more	15.00%	10.00%
Frame and Wheel eBay Store listing	Free	$2.00
Facebook / Twitter advertising	Free	$5.00

Meanwhile, I have produced numerous images of bicycles, framesets, wheels and components over the past twelve months and have made them available for viewing and purchase on the Frame and Wheel Zenfolio page. A coffee table book that included all the great shots for the year is in the works. I would like to thank all of Frame and Wheel’s clients and customers for their business and I look forward to working with you during the second half of 2013.

Sincerely,

Fred Thomas

President - Frame and Wheel, Inc.