Indeed, Bugaboo, a Dutch-based company, is not targeting fans of mass retailers such as Babies ‘R Us, whose price points max out at the mid US$ 300 range for European brands such as Peg Perego and Maclaren. Instead Bugaboo is appealing to parents who want to be a little different and don’t mind (and perhaps even take pride in) paying $700 to $900 for a stroller. Bugaboo introduced an upgraded Frog, called the Cameleon, last year, which got a pluses and minuses review in BusinessWeek. The company now offers three different models: the Gecko, priced lowest; the Frog, which is the middle option; and the Cameleon, turbo-priced.

At first glance, the original Frog seems to be an urban dweller’s dream. It’s lightweight with an aluminum chassis, has “bump-free” suspension and the ability to accommodate more than just smooth sidewalks and streets. It comes with rain and sun protection and has an optional adapter to fit Graco and Peg Perego infant car seats in place of the regular stroller seat.

There are some warts, though. While the Frog offers an impressive variety of convertible positions for the child, depending on where the tot is at developmentally, a couple of basic design flaws exist. For starters, the Frog joins the Gecko and Cameleon in cumbersomeness. The strollers are difficult to fold down—a great inconvenience if stairs need to be climbed or one is in a hurry. Will it take a fourth model to finally crack the fold-down challenge?

(Another cumbersome “vehicle,” the brand’s website isn’t accessible to all Mac users; half of the brandchannel staff could not view the site at all on Safari version 2.0. For a brand that prides itself on unique design and accessibility, this is a missed opportunity since it would appear that Apple and Bugaboo would appeal to a similar customer base.)

The company won’t reveal sales figures, but it clearly has found success with urbanites. With success comes imitation at much lower prices. Fisher Price offers a $250 version while I’Coo Infinity Stroller is sold for the same price at Babies ‘R Us. Microlite, a popular English stroller brand, also sells a similar product for much less to British parents.

Another competitor closer to Bugaboo’s price range (and also hailing from the Netherlands) is Stokke Xplory, which features an ultra-high tech design and comes in a variety of convertible positions. The adjustable height and feet functions, for example, allow a child to eat at a restaurant table while seated in the stroller. Unlike the Bugaboo, however, the Xplory isn't meant for use on slightly “off road” conditions.

Launched in the US in 2002, the Bugaboo brand has made great strides in a short period. Yet considering the stroller's prohibitive price point, the company should perhaps consider an expanded product line to significantly increase sales. Perina thinks that the company could suffer by not addressing the demand for strollers that accommodate not just twins but children close in age. Nearly every major stroller maker offers at least a double version of a core product, but Bugaboo hasn’t followed suit.

Can Bugaboo continue to roll along with its narrow market or will it be forced to grow up and expand?

Alycia de Mesa is a brand identity consultant and writer with over 10 years experience from Fortune 100 to start-up companies. She is author of Before The Brand, the definitive brand identity handbook, published by McGraw-Hill (under the name Alycia Perry).