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General Information:Octane is the brainchild of a former LifeFitness product manager/engineer and a former LifeFitness salesperson. Their idea was to develop their own elliptical designs, have them manufactured in China/Taiwan, and sell them for a premium price point. They figured they could do this if they offered specialty fitness dealers outrageous markup and made their dealer network adhere to their minimum advertised pricing policy. This brand concept has worked well in the past, with dealers loving the outsized profits that they make off of Octane and pushing the product to unaware consumers. Fortunately for consumers, the power of the internet to push information has dramatically impacted Octane s business model and distribution channel placing this brand in a state of flux.

Manufacturing Philosophy:In keeping with the quality price point, Octane gives the consumer a reliable product with good fit and finish. While the internal quality is not up to the standard of Precor, their fit, finish, and user friendly features are. Octane wants to sell people decent products for a premium price giving their dealer network the benefit.

Company Outlook : Octane was a solid company due to the fanatical following that they have with their dealer network. That is not necessarily the case now, since the network of available specialty dealers has dramatically decreased over the past three years. The weakness of their primary distribution channel has translated into a potential threat to their entire business model. Innovative products like their excellent recumbent elliptical may be able to stem the tide, but only time will tell.