By Nicole Gregory, contributing writer
Cal State Fullerton alumnus Don DiCostanzo, ’79, is in the right business at the right time. Pedego Electric Bikes, a company he co-founded in 2008, has seen multimillion-dollar growth in the last several years.
“It’s a confluence of factors,” he explained. “During the pandemic, people were locked up and they wanted to get out but didn’t necessarily want to pedal hard. And an electric bike is the perfect socially distancing vehicle — it checked a lot of boxes.”
The recent uptick in gas prices has been another contributing factor to his business’s success, he said.
Knack for sales
DiCostanzo is a proud Titan alum, but back in 1975, his father wanted him to go to University of Southern California, where he had also been accepted. After touring both schools, he chose Cal State Fullerton because of its high-quality business school, pristine campus and affordable tuition.
Business school was his destination, but Di Costanza already had a knack for sales. His family owned a chain of car dealerships, and after graduating from Corona Del Mar High School he worked at a Ford dealership in Santa Ana. In just one month he sold 22 cars.
His start at Cal State Fullerton was socially successful but academically bumpy. “I didn’t do so well my first year because I enjoyed partying too much,” he said. But that quickly changed. In his sophomore year, he became treasurer of Phi Kappa Tau, the largest fraternity at the university, then president in his junior year. He achieved a 4.0 GPA in the last two semesters of his senior year.
He graduated in 1979 with bachelor of arts degree in business, with a specialty in marketing and sales management — all while working as a salesman in a car dealership selling Triumphs, Jaguars and MGs.
“My specialty was selling cars to fathers for their daughters,” Di Costanza said.
After he graduated, Di Costanza got a job at Wynns, an auto chemical company that was near the Cal State Fullerton campus. He began as an entry-level salesperson, but in the following years, he moved up through the sales and marketing departments to become president of the global company.
He next purchased Zak, an automotive product company. He sold his interest in 2008, the year Pedego was founded.
Coasting to success
Di Costanza had been studying electric bikes for awhile. “We had a beach house where I had my office, and I would ride my bike down to the beach for lunch,” he said. But pedaling back up to his office was a chore. “I bought an electric bike that got me up the hill.”
He opened an electric vehicle store in Newport Beach and then decided to sell only electric bikes because they were the hottest-selling product.
He educated himself by listening to what e-bike users were saying.
“I learned the electric bike business from my customers,” he said. Frustrated with the quality of available electric bikes, he decided to start manufacturing his own.
Today, Pedego is enjoying tremendous success. “In 2021 we had $67 million in sales, up from $37 million the prior year,” Di Costanzo said. In 2012, he opened three local storefront locations, and today he has more than 200 storefronts throughout the U.S. and Canada.
Empowering riders
The average cost of an electric bike is $2,000 to $3,000, he said. Electric bikes come with a charger, similar to that for a smartphone, and a fully charged bike can go about 40 to 60 miles.
“The two challenges of biking are hills and wind,” he explained. “Hills keep people from riding, and if the wind is blowing it can be unrelenting. On a Pedego, people say it’s fun going uphill because it gives them a feeling of empowerment.”
Pedego has not been immune to supply chain problems since most components of e-bikes are made in Asia. But DiCostanzo maintains a large inventory. “With more than 200 locations, you have to have products when customers want them,” he said.
His oldest daughter also graduated from CSUF with the same degree as Di Costanza, and in recent years he’s been invited as a guest professor at Cal State Fullerton. “I’ve taught at least 16 semesters, mostly to seniors,” he said.
DiCostanzo enjoys interacting with students and has learned from them. “One student was talking to me about the four P’s — product, placement, promotion, and pricing — and he told me there is actually another P: people.”
Reflecting on his career, he said, “I do give a lot of credit to Cal State Fullerton. I wouldn’t have gone anywhere else.”
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