Specialized calls for dealers to drop brands

Questions about bike hire abroad and everything light bike related. No off-topic chat please

Moderator: Moderator Team

User avatar
AGW
Posts: 477
Joined: Sun May 27, 2012 2:11 pm
Location: Tucson, AZ

by AGW

Hmmm

Specialized has sent amended dealer agreements to select retailers asking they stop selling certain competing brands.


http://www.bicycleretailer.com/news/newsDetail/7047.html

User avatar
prendrefeu
Posts: 8583
Joined: Wed Oct 31, 2007 10:32 pm
Location: Los Feliz, Los Angeles, California
Contact:

by prendrefeu

Disappointing.
Exp001 || Other projects in the works.

by Weenie


User avatar
jmilliron
Posts: 2014
Joined: Thu Jun 17, 2010 5:03 pm
Location: San Francisco Peninsula

by jmilliron

The company sent a similar amendment to retailers last fall asking certain dealers to stop purchasing Giro shoes. That situation ended up in the courts when Giro owner Bell Sports sued Specialized for unfair and unlawful business practices. Easton Bell Sports dropped the suit two months later.


That's a bummer to hear.
2013 Wilier Cento1 SR || 2009 Ridley Crossbow || 2011 Yeti AS-R 5 Carbon

User avatar
AGW
Posts: 477
Joined: Sun May 27, 2012 2:11 pm
Location: Tucson, AZ

by AGW

Their mission statement is to get everyone on a bike, but I guess that means only their bikes.

Zitter
Posts: 554
Joined: Fri Jun 03, 2011 9:12 pm
Location: Orange County

by Zitter

This has basically been going on for a while. Specialized doesn't like competing with other brands in store so to become a dealer at all basically means you become a primarily specialized store with a couple boutique brands. They want to dominate the lower end and midrange bike market and accessories in store but leave higher end options open for people who know more what they're looking at which is why they allow the boutique brands since they don't pose as much as a threat because fewer high end bikes are sold. Keeps the high end buyers happy and makes specialized the only option for midrange and lower so they have a monopoly in store so they can make new customers/riders specialized loyalists.

I used to work in a large shop that was big enough to carry cannondale and specialized and the specialized reps always shit talked cannondale and they wanted the shop to drop cannondale but the shop was big enough that they didn't have to bow to specialized's demands.

And yes, I dislike specialized

User avatar
Wingnut
Posts: 1850
Joined: Sat Jun 23, 2007 12:41 am

by Wingnut

Regardless of how good their gear is I now automatically dislike them...it's those type of business practices I detest the most!
"It's not the destination...it's the ride!"

teddysaur
Posts: 119
Joined: Tue Jan 10, 2006 4:28 am

by teddysaur

I have seen dealer open another shop carrying Specialized around the corner just to satisfy them. The original shop just continue to do what customer wants them to do.

jsinclair
Posts: 396
Joined: Sat Aug 27, 2011 3:26 am
Location: Sydney, Australia

by jsinclair

I'm pretty sure this would be against the law in Australia. Certainly if they tried to enforce it in any way.

Illuminate
Posts: 404
Joined: Mon May 24, 2010 4:18 am
Location: Australia

by Illuminate

Yep, they won't let their products be exported across international boundaries also.

S Works Shoes - A$280 from Evans Cycles UK
In Australia, A$450

Turd company making turd-ugly bikes. I hope they go broke.

User avatar
Wingnut
Posts: 1850
Joined: Sat Jun 23, 2007 12:41 am

by Wingnut

I vaguely remember this being tried on my local shop years ago but can't remember the bike brand in particular...
"It's not the destination...it's the ride!"

User avatar
Roobay
Posts: 1958
Joined: Fri Mar 23, 2007 12:19 pm
Location: On Pave

by Roobay

They are doing what happened to the car market
At one point you could go into a car garage and be faced with 2 or 3 brands on the shop floor
Now the likes of BMW aUDi have taken it upon themselves to say well if you walk in here you only going to buy a Audi or a BMW
The concept stores I thought answered that for Specialized but it such a small part of the market
If I were a shop owner selling bikes I would never allow one manufacturer to dictate what I can and cannot stock no matter how important that Specialized was
i like people... i just can't stand assholes

Jersland
Posts: 92
Joined: Thu Feb 11, 2010 6:46 am
Location: Jacksonville FL

by Jersland

Being in sales I can understand the approach from Specialized. Theyre looking for key dealers to give them brand exclusivity. Nothing different from what Trek did with the concept stores. Specialized has done a great deal of marketing and branding to elevate the brand in the last couple years. Theyve pursued some of the top riders and teams in the world to showcase bikes, clothing and helmets. In a sport that we constantly see sponsors abandoning and teams merging is the big S really that bad? They Sponser Saxo Bank Tinkoff, OPQ, Astana, Lampre, Lululemon, Sigma Sports, Giant Strawberry Farms and a number of individual athletes. Other brands are starting to emulate Specialized by extending the products they sell to include more than just bicycles. Brands like Scott are now expanding product lines to include helmets, shoes, etc... Im sure they also have a contract with retailers to carry the entire product line up for certain perks to the shop or ownership. I know for a fact in my local area they pulled out of a store because they didnt see the volume they thought the shop would produce. At the end of the day its a business and its all about turning a profit.

User avatar
Wingnut
Posts: 1850
Joined: Sat Jun 23, 2007 12:41 am

by Wingnut

And at the end of the day, myself the consumer feel negative towards the brand due to their blanket saturation & smothering of the market...but that's the way business goes...;)
"It's not the destination...it's the ride!"

User avatar
AGW
Posts: 477
Joined: Sun May 27, 2012 2:11 pm
Location: Tucson, AZ

by AGW

Jersland wrote:Being in sales I can understand the approach from Specialized. Theyre looking for key dealers to give them brand exclusivity. Nothing different from what Trek did with the concept stores. Specialized has done a great deal of marketing and branding to elevate the brand in the last couple years. Theyve pursued some of the top riders and teams in the world to showcase bikes, clothing and helmets. In a sport that we constantly see sponsors abandoning and teams merging is the big S really that bad? They Sponser Saxo Bank Tinkoff, OPQ, Astana, Lampre, Lululemon, Sigma Sports, Giant Strawberry Farms and a number of individual athletes. Other brands are starting to emulate Specialized by extending the products they sell to include more than just bicycles. Brands like Scott are now expanding product lines to include helmets, shoes, etc... Im sure they also have a contract with retailers to carry the entire product line up for certain perks to the shop or ownership. I know for a fact in my local area they pulled out of a store because they didnt see the volume they thought the shop would produce. At the end of the day its a business and its all about turning a profit.


I completely understand the practice... but it seems like it would/will have the effect of making an LBS feel more like a big-box store. I also don't like Spec's cookie-cutter approach to bike fitting, accessorizing, trim levels, etc. They're pushing awfully hard for market domination. I just hope that people ultimately push back hard enough.

by Weenie


PedalinFool
Posts: 6
Joined: Mon Jun 18, 2012 1:45 pm

by PedalinFool

Pretty much agree with the general consensus. My beef with them is that no matter what you go into a shop looking for they end up shoving a Specialized product down your throat before you even finish telling them what you were looking for in particular. I went in for some Fizik microtex in white specifically so it wouldnt get dirty as easily/often, and the shop guy tried to talk me into black Specialized tape even though i mentioned several times i wanted white, and that i wanted it to match my white saddle. BTW i dont dislike Spedialized products, i ride a Romin carbon saddle and like it a lot, as well as having an Allez for awhile. I just dont agree with the way they push so hard and basically dismiss other brands in my personal experiences :noidea:

Post Reply
  • Similar Topics
    Replies
    Views
    Last post