Trek going direct with new program

[mattr]

That's absolute bull shit.

Really? I'm happy to read your opinion. However inapplicable and inaccurate it is.

[bearsdidit]

"Suggested".

I know of at least 4 LBSs who have lost their contracts with major US brands due to discounting from MSRP. All of them have it in writing. None of them will pursue it through the courts. (They win, big deal. Nothing changes. They can't get contracts with anyone anymore)

Really? I'm happy to read your opinion. However inapplicable and inaccurate it is.

No one has that in writing because that would be price fixing. Almost all of my competitors sell their bikes and accessories at steep discounts and none of them have issues getting new product.

In a perfect world, manufacturers would cut off people that don't hold MAP/MSRP. However, companies are only worried about shipping as many products possible, this year. The idea of creating long term, sustainable growth is neglected.

The only way to "lose" an account:
- Don't pay your bills.
- Repeatedly advertise lower than MAP (very unlikely)

I have a ton of competitors that regularly advertise below MAP via social media. Without fail, it will get reported and at best they will get a slap on the wrist. If you enough business with a company, they will usually look the other way. I personally HATE that and wish companies would actually enforce MAP.

[tranzformer]

In a perfect world, manufacturers would cut off people that don't hold MAP/MSRP. However, companies are only worried about shipping as many products possible, this year. The idea of creating long term, sustainable growth is neglected.

It is dealers like you that I despise, avoid and send family and friends business elsewhere. Not only is what you mentioned illegal (price fixing) but it goes against everything we stand for in a free market (capitalism) where you let the market operate without artificial influences and limits.

Why in the world do you care why another shop is selling for 10-20% less than you? If they can make it work, something tells me your shop is failing at something. Either your overhead is out of control and needs to be looked at, or you don't have good customer service and why customers are going elsewhere.

This whole thing about shops/shop owners crying that another dealer across town is selling less than them is getting old at this point. Grow up. Recognize the market you are in and adapt. If you need price fixing to survive as a business, something tells me you are doing things all wrong and have some issues.

[HammerTime2]

tranzformer, everyone is in favor of free markets and unfettered competition, except for the products or services they are selling. That's called hypocrisy.

People like to buy at low prices (due to competition) and sell high at high prices (due to lack of competition).

If he gets caught price fixing, maybe ilvwhtgrls will have to change his username to iamlvedsotospeakbygys

[fromtrektocolnago]

tranzformer, everyone is in favor of free markets and unfettered competition, except for the products or services they are selling. That's called hypocrisy.

People like to buy at low prices (due to competition) and sell high at high prices (due to lack of competition).

If he gets caught price fixing, maybe ilvwhtgrls will have to change his username to iamlvedsotospeakbygys

I look for value and not necessarily price. I know full well that I need the help of a competent fitter and local bike shop to ensure the parts are intelligently chosen and built up. Maybe if i was doing a Colnago C60 I could do internet since the geometry is identical to my current bike, but if the geometry and sizing differed I'd welcome the help of good shop to aide in the buying process.

[bearsdidit]

Good luck to all the Trek dealers!

Everyone should give this link a quick read:

http://savethebikebiz.com/executive-summary/

As enthusiast, we have the most to lose in a declining market.

[NealH]

That article reminds me of articles written by unions in support of outdated venues.

[bombertodd]

Good luck to all the Trek dealers!

Everyone should give this link a quick read:

http://savethebikebiz.com/executive-summary/

As enthusiast, we have the most to lose in a declining market.

from the article:

"there has been a significant loss of brick-and-mortar retail shops in parallel with a decline in consumer participation in cycling, and the losses continue annually."





I'll admit I didn't read the whole article. But I have turn off to the whole LBS thing because our local LBS is terrible. Not everyone has a good LBS. LBS need to create value for the customer. I don't need 16 year old BMX kid telling me information he has no clue about. One of the few bike shops I shop at is an hour away but they have a few workers that have amazing knowledge about boutique parts. I think more bike shops should find out why big companies are taking their customers. I think they would find out it's more than just the price.

[2002SaecoReplica]

In a perfect world, manufacturers would cut off people that don't hold MAP/MSRP. However, companies are only worried about shipping as many products possible, this year. The idea of creating long term, sustainable growth is neglected.

It is dealers like you that I despise, avoid and send family and friends business elsewhere. Not only is what you mentioned illegal (price fixing) but it goes against everything we stand for in a free market (capitalism) where you let the market operate without artificial influences and limits.

Why in the world do you care why another shop is selling for 10-20% less than you? If they can make it work, something tells me your shop is failing at something. Either your overhead is out of control and needs to be looked at, or you don't have good customer service and why customers are going elsewhere.

This whole thing about shops/shop owners crying that another dealer across town is selling less than them is getting old at this point. Grow up. Recognize the market you are in and adapt. If you need price fixing to survive as a business, something tells me you are doing things all wrong and have some issues.

I don't post much anymore these days but I have to comment here.

This is such ridiculousness. And, you don't understand what price fixing is.

Price fixing is Delta, American Air, and United all deciding a flight from New York to LA is going to cost X amount of dollars. It is not Apple, or Trek in this case, telling their approved dealers, who all signed dealership contracts and knew what was expected of them going into it, what their product is going to cost. Any manufacturer that's for real has strict price controls on their products in their licensed dealer networks. Apple, BMW, Sony, Samsung, Coke, ect. ect.

Otherwise you get end up in a race to the bottom situation where you've A) devalued the product and B) cut the margins so thin you won't/don't make any money on them. C) dealers stop selling X brand because it's so chopped up no one makes money on it. Now you as a consumer don't give a shit about how much margin is in whatever product you're buying but this argument isn't for you. It's for dealers and people trying to make a living in the bike business.

[2002SaecoReplica]

Good luck to all the Trek dealers!

Everyone should give this link a quick read:

http://savethebikebiz.com/executive-summary/

As enthusiast, we have the most to lose in a declining market.

from the article:

"there has been a significant loss of brick-and-mortar retail shops in parallel with a decline in consumer participation in cycling, and the losses continue annually."





I'll admit I didn't read the whole article. But I have turn off to the whole LBS thing because our local LBS is terrible. Not everyone has a good LBS. LBS need to create value for the customer. I don't need 16 year old BMX kid telling me information he has no clue about. One of the few bike shops I shop at is an hour away but they have a few workers that have amazing knowledge about boutique parts. I think more bike shops should find out why big companies are taking their customers. I think they would find out it's more than just the price.

Here's the thing though. You want years and years of knowledge and experience but want to pay bottom of the barrel pricing on xzy product. That knowledge and experience costs money which the bike industry, as a whole, just doesn't want to pay for. That guy with years and years of product knowledge, hands on experience, and a college degree is a $35 an hour guy. Anything less and he's selling himself short/getting taken advantage of. No bike shop is really going to pay that guy what he's worth because they just can't afford to. It's THE reason I, and all of my friends working in the biz at the time, left the bike industry 5 years ago. So your neighborhood shop is stuck employing that 16 year old BMXer cause they can't afford anyone else.

[bearsdidit]

[kbbpll]

My Trek LBS owner is a millionaire many many times over. He once had a piece of furniture for the upstairs of his house that wouldn't fit up the stairway, so he took the outside wall of his house out and had it hoisted in that way. "They can't afford anyone else" doesn't fly as an argument. They have that 16 year old BMXer because not only do they get away with it, it fits their demographic. The reason you left the bike industry 5 years ago is because you couldn't jump, or no longer had any interest in jumping, from the bottom rung to the top rung.

[2002SaecoReplica]

My Trek LBS owner is a millionaire many many times over. He once had a piece of furniture for the upstairs of his house that wouldn't fit up the stairway, so he took the outside wall of his house out and had it hoisted in that way. "They can't afford anyone else" doesn't fly as an argument. They have that 16 year old BMXer because not only do they get away with it, it fits their demographic. The reason you left the bike industry 5 years ago is because you couldn't jump, or no longer had any interest in jumping, from the bottom rung to the top rung.

Do not mistake your LBS owner's personal wealth as an indication of the revenue generated through the bike shop. Just because the owner has enough money to do ridiculous things in his spare time does not mean the shop is printing money hand over fist. That holds true in any business really.

[NealH]

True, and in fact its all the more reason to do business with his shop. He is investing money, employing people and contributing to the economy via his shop and his own personal lifestyle and exploits. We need more like him.