2016 Trek Madone aero road bike

Looking to find that perfect Trek bicycle? You know, the one that’s not on the local showroom floor but stares you down every time you boot up that browser? Like this team edition of the all new 2016 Madone?

Well, now you can order it up and have it drop shipped directly to your local Trek dealer. There, it’ll be professionally built, tuned and checked over, then you can pick it up. Same with any parts and accessories, except you’ll have the option of having those small bits shipped directly to your own address. Either way, the Trek dealer will get a commission on the sale.

The benefits to the customer are obvious. The benefits to the retailer may seem less so, but we can think of a couple. Namely, less concern about having to stock the higher end (and thus capital intensive) models, less need to stock a huge size and color range, and possibly having to stock less inventory overall. All without losing a cut of the sales.

Full press release about the new program below…

Before we get to the official PR, we spoke with our local Trek Store owner and he was excited about the program. Here’s why:

First off, more people are shopping online, which is an audience that largely escapes our local brick and mortar shop. This new program allows us to capture a much larger chunk of that, especially if someone breaks something on a ride and is doing their product search at midnight and the shop’s closed.

There’ll be a rebooted Dealer Locator system on Trek’s website that’ll not only help riders find a local shop, but help them find ones nearby with the parts they want in stock. It won’t go so far as to show exact inventory levels, but it will at least show if they have that part (and a quick phone call to verify is never a bad idea). So, when that midnight search may just yield a result within driving distance and get you back on your bike quicker.

Trek is also working a certified mechanics program and more programs to improve the customer experience when they do go into the shop. And those dealers that are best certified will likely see better opportunities for integrating into future sales and service programs, online or otherwise.

So, how quickly will you get your new bike or part?

“We’re working on a Wisconsin new distribution center to speed that up,” said Trek’s PR guy Eric Bjorling. “Bikes will ship via standard UPS. We’ll have three distribution centers in the U.S., one in CA, WI and NJ. Probably looking at a week at the most for it to arrive at the shop.”

According to the shop owner, the benefit of having the parts shipped to their shop rather than your house is that you won’t have to pay shipping (we’re verifying that with Trek and will update), and they’ll be able to professionally install it for you as soon as you bring your bike in. And as we all know, building a good relationship with your local shop often results in better service when you do need them to install or repair something. So, them getting a cut of any online sale you make means they won’t be so upset about you bringing your online order in for them to service.

That said, we waiting on confirmation as to whether the customer’s visit to TrekBikes.com store needs to originate through the local shop’s website (basically via an affiliate link) in order to earn a cut, or if it’ll be geographically based and require absolutely nothing of the retailer in order for them to earn a portion of each sale. We’ll update when we hear back.

UPDATES:

  • All orders will generate a commission to the retailer regardless of where they originate.
  • “Click and Pick” orders (those ordered online for pickup at a local retailer) will ship for free, no shipping cost to either the dealer or the customer. Shipping to a customer’s own address will be charged shipping.

Here’s the PR:

FROM TREK BICYCLE – Trek has unveiled a new e-commerce platform designed to make its brick-and-mortar retailers more competitive in an increasingly digital marketplace. Trek Connect E-commerce, unveiled to US retailers at the keynote address of the company’s annual retailer show, Trek World, will enable retailers to instantly have an online retail presence at no added cost to them. Beginning in September in the US, consumers will be able to shop Trek and Trek retailers whenever they wish with every single online sale made on trekbikes.com benefitting a Trek retailer. Every online sale made on trekbikes.com will result in a service commission, a percentage of the overall sale, paid to the retailer of the consumer’s choosing. The company is supporting its retailers’ new omni-channel strategy with Trek Connect Retail Marketing—a suite of digital, direct mail, and seasonal POP assets available exclusively to Trek’s committed retailers.

“This is a massive investment in the long-term success of our brand and our retailers,” Trek President John Burke said. “We believe the most successful companies in the future will all be omni-channel enabled and we are doing everything we can to make sure that future for our retailers is bright.”

Trek Connect E-commerce, available to Trek retailers at no cost, will be supported by Trek Connect Retail Marketing’s programs of seasonal brand campaigns, in-store merchandising, direct mail catalogs, search engine campaigns, automated email, and social media available at a nominal monthly fee. Retailers that participate in Trek Connect Retail Marketing will also have exclusive access to Trek’s design team for assistance with the creation of visual marketing assets. The product of a two-year long pilot program that included over 30 Trek retailers, Trek Connect was built from the direct feedback, experience, and needs of Trek retailers.

“I’ve been thinking a lot about what Trek Connect means to our customers and David’s World Cycle and it’s really pretty simple: Customers not only have more choices than ever but also have less time. Trek Connect addresses both,” said David Sanborn of David’s World Cycle. “We ask three questions at David’s World Cycle whenever we ask ourselves what to do: Is it good for our customers, is it good for our partners, and is it good for David’s World Cycle? Trek Connect is a yes on all three.”

Consumers will have the option to ship their online accessories purchases to their home address or to a retailer for pickup, a process referred to as “click and collect.” All bikes ordered through trekbikes.com will be shipped to the retailer of the consumer’s choosing for build and delivery or pickup. Trek retailers will receive a service commission regardless of the consumer’s chosen delivery method.

Trek Connect will launch in the United States in September. As a test market, the US will serve as a development program and enable the company to evaluate the potential for expansion to other markets globally.

TrekBikes.com

66 COMMENTS

  1. I’m confused about how this is any different than the existing model? When I worked at a Trek retailer, if the customer couldn’t find the bike they wanted on our floor, we could easily check the stock of the distribution warehouses referenced in the press release to see if they had the desired bike in stock. If they did, we ordered it up and received it the next week at the latest.

  2. @Pete. I’d imagine consumers can now purchase bikes directly from the website, which by the way is hands down the worst website by a long stretch of any big brand. It’s like 1998 trying to navigate that POS.

  3. It means now that when I order something I don’t go to the dealer where I ordered it to be picked up at (when it was said to be in stock) only to be told they don’t have the order, I’ll have to buy something out of the stock that doesn’t include what I ordered and then have to wait three weeks for a refund that never happens to the point where i have to include my credit card company.

    Not that that ever happened to me or anything… (Peddler Bicycle Shop, Germantown, TN)

  4. And everything ordered through the website will be at MSRP? I guess there is very little Trek will lose on this project

  5. Trek enforces it’s MSRP/MAP pricing, you buy exactly what you want, confirm that it IS what you want when you check out, you can do it 24 hours a day from your home or cell phone (and BTW I do agree that the Trek website is terrible). You wait +/- what you would have waited when asking the shop to special order the exact size/color/model bike; but you know that it actually happened (think of all the “lost orders” at shops) and you know that it happened correctly (or at least it is YOUR fault if it didn’t). The bike shop makes 25-30% margin instead of 30-35% but they don’t have to commit in advance to those items in their inventory (less risk, no need to discount, frees capital for other stuff) and they do quite literally less “work” in the sale. Bike shop still sells helmets, shoes, pedals, chain lube, etc. Still has you back in the shop again for a free tune up (another chance to buy). How is this not a good thing? Seems like a logical response to the ever growing online focused purchase trend (Amazon, Zappos, etc) and the pressure from true direct brands that 100% cut out the dealer.

  6. I love this as a shop, if a customer orders the wrong thing or wrong size bike, hey call Trek for a pick up, not my problem.

  7. @Sam B: preach brother. The ones up in arms are the shop guys who can’t bring themselves into the age of the internet. Those guys can keep pretending the internet isn’t happening, they can keep fighting it, but they are losing.

    Look, the shop doesn’t have to commit to carrying a ton of stock, creating space for it, worrying if it’ll sell. Instead of a 40 margin they make a 32 margin and have none of the risk. Seems like a slam dunk to me.

  8. Please stop preaching about the advantage to the consumer here.

    The advantage to the consumer on direct sales is supposed to be reduced price to the consumer while the manufacturer makes a higher margin. In this case MSRP will not be affected but Trek will make more… This is step one in obviating the LBS and replacing it with a manufacturer authorized builder with %100 online sales.

    Call me when that happens.

  9. So if you buy from Trek, are you paying full retail price. I guess you would still need to go to your LBS to get the deep discount price. Not sure why anyone would buy full retail through the website.

  10. I am guessing, CX that it only seems like a slam dunk to you because you’re not a dealer or shop owner. There may very well be many shop owners who like the idea, but I doubt even they see it as a slam dunk.

  11. @Matt There doesn’t appear to be any sort of deep discount price… Trek is just making a decent percentage more per unit sold on everything ordered through their website and the LBS doesn’t have to stock it or make as much on it.

    Maaaayyybbe, just maybe, I can see a consumer advantage if project one is only a small up-charge. Then every consumer could have their bike customized a small amount, but i seriously doubt that.

  12. It seems like the only upside is that the consumer can browse the whole Trek inventory, as opposed to what could be a less than consistent shop inventory. Downside is you have to like Bontrager stuff.

  13. For me it makes total sense. You can order specifically what you see on their website, have it sent directly home or to your local dealer:
    (1) the shop (local dealer) can carry less inventory,
    (2) Trek improves its ability to service its end customers with all products offered,
    (3) the end user is not restricted or hampered in their buying to what the local dealers carry,
    (4) the end user can make their purchases 24/7
    (5) Trek can have an easier and smarter logistics setup (which over the long run should ensure competitiveness, which is also good for the end users).
    (6) the shop gets a sales commission / profit sharing on bikes and parts sold with minimal interaction and investment.
    (7) cooperating with the local dealers ensures that Trek stays in good relationship with the traditional bricks-and-mortar retailer structure

    What is there not to like?
    AND if you don’t like it, you still have the “old school” option of going to the shop and buying whatever they are selling over the counter.

    Nice move Trek, I’m sure others will follow. 🙂

  14. This isn’t that good for the shop employees who are comission based. I’ve been with the same shop for seven years,and have seen a huge decrease in the quality of staff. People will come in and pick your brain,then order online. Now the sales guy may or may not get anything from the sale. You’ll end up with a bunch of kids that don’t know a xc bike from a city bike. The long run affect will be the consumer getting bad advice ending up on the wrong bike. Their next bike won’t be a trek. It’ll be something else as they feel like they have wasted their money first time around. If it doesn’t fit the shop will have to repackage the bike. Have you ever built a speed concept out of the box? It takes a good mechanic a couple of hours,taking them away from repairs that would be paying jobs. Thank you trek? Another reason why many prefer the big red “s”

  15. Most good shops have no problem doing a special order if they don’t have your size or model. This is not good for the smaller shops. They play a key role in the bike community.

  16. Consumers buy online for many reasons, chief among them are price and convenience. Through this program the customer pays just as much as before, and still has to go to the dealer. How does this benefit the consumer again? I welcome this move with open arms, but make no mistake all you enthusiastic Trek dealers, when this program fails to generate the forecasted sales (and Canyon, YT, and the rest are knocking at the gates), you what happens next.

  17. As with any change there will be pros and cons, we will wait and see if it benefits the IBD along with Trek and the consumer. An owner might be able to offset profit loss by reducing sales staff, and hiring a part time teenager to deliver bikes. Improving on the service side is always a good thing and Trek’s stance on improving that issue I can agree with.

    Summer is not the best time to have the entire staff adjust to a major operations change, at least the owner/manager has time to start cutting back on 2016 inventory orders.

    Now the consumer has an improved bargain chip when going in the store to buy an in-stock bike.

  18. I’m not a Trek fanboi, but I do look at Trek every time I plan to purchase a bike. I always give them an equal shot. As a potential customer, I see ZERO benefit, and significant downside. What if I’m not sure on size, and I get the wrong size? Why would I take the risk? Why would I buy a bike and not know how it rides for me? How do I test the brakes to make sure I’m satisfied with their performance? What of something is damaged or broken? What about warranty service? I get no price break?

    I see allot of you love this. IMHO, it’s a dumb ideal that poorly thought through. Trek wants to have their cake and eat it too while screwing over the LBS by reducing their margin. Pass!

    Specialized has pulled some BS, but this is as bad or worse.

  19. Let’s keep in mind that Trek is responding to consumer demand and the Canyon consumer direct sales model. Better to be on the offensive rather responding after the fact, when Trek and Trek dealers have lost market share. Smart move!

  20. I still don’t get this. How will the consumer benefit from this? There is no single real advantage here, besides being able to pick up a $2800 wheelset or $400 shoes right at your door. But what happens when you have an issue with the wheels? You will have to go back to your LBS, and probably, will not get a loaner like regular customers might get to reduce downtime and keep them happy and coming back. Heck, I’ve even had a loaner bike from the shop owner for some time while parts come in to repair mine. Buying online is good thing, but only for certain products. Whenever measurements come into place, I always second guess an online purchase. It will be a hassle to change it in case anything happens…

  21. morehardcore you hit the nail on the head. Shop owners can cut sales staff and hire a teenager to deliver bikes. So where does that leave the knowledgeable staff? You’ll have a shop full of kids that don’t know a thing about bikes. Where does the consumer go to get the proper bike advice and sizing?

  22. On the bike end, this can be a help to the LBS (it worked for the QBP brands, at least for our shop), but the P&A stuff is of concern. I understand that Trek will be selling all goods at full MSRP, but taking P&A sales away from the LBS takes away more than a few nickles and dimes. That would seem to create an incentive for shops to sell stuff below MSRP and MAP to get the stuff off the floor, decreasing margin, and also takes a sale away from a shop should the shop not have the desired item in stock at the time. I’ll be curious to see if Trek amends dealer agreements to adjust how much P&A the dealer has to stock, as well as to see what percentage the service fee provides the retailer on those items.

  23. So all of you who think Trek dealers will not have to commit to big pre-seasons to keep their best dealer pricing and margins are out of your mind.

    Trek and the other large companies like Specialized, Giant, etc have maximized the amount that they can put in shops and now are going to find another area to sell more.

    So if you are top dealer doing say $250,000.00 or more in a pre-season to keep your top dealer pricing and margins you now think you can go and say book $100,000.00 in a pre-season with Trek to keep all of the benefits you get as the $250,000.00 commitment? Your are crazy.

    And you think Trek wants (and the other brands) want the shop to have more room to bring in other brands that sell against Trek.

    Are we that naive?

  24. Why does everyone presumably “deserve” “deep” discounts from their dealer. That only hurts the dealer. If you want direct and the benefits of it, look towards Franco, Ritte or KindHuman. Solid bikes, custom build options, no bullsh*t, better value.

  25. Dave, if you think that 250K will get you top margins from Trek, think again. It’s a cool half a million dollar commitment for platinum level pricing, and that’s only if you own one store. The shop I used to work at was bullied with the threat of opening another store in their territory if they didn’t fork over a ONE MILLION dollar preseason to the big S.

    Also Trek has higher prices on their site than MRSP for their dealers, so which price are you going to pay on their website?

    I don’t think that the answer is online sales. I think the way to beat the online retailers is by going FULL service. Does your shop have training facilities? Group rides? Coaching? Fitting? Ours does.

  26. @john tee
    People don’t care about the dealer or supporting small business, and Trek is doing a poor job of making it seem like they do. Bike shops are falling to online sales, and companies can no longer watch from the sidelines. This is more than likely the first few smaller steps in a much larger plan.

    C.R.E.A.M

  27. Here is my issue – you will be buying at full retail if you go online with Trek and there will be no negotiation. Who buys at full retail other than maybe newbies or one time bike buyers. My LBS gives me a deep discount on my bike purchases and probably only makes a few hundred bucks off a top end bike. Why does the LBS do this – well, it helps keep the volume up which helps with the mfg relationship, but most of all, I come in and buy everything else from him which is where he makes his real margins. I think you should have a very good relationship with your LBS and use the internet primarily for research.

  28. F the LBS. I called three in the Bay Area and none of them had Shimano XT brake pads in stock.

    “We can order those for you and have them here in a few days.”

    “Dude, I can order them myself on Universal Cycles and save cash, and they’ll get here tomorrow.”

    If you don’t have Shimano XT brake pads in stock, then what good are you as an LBS?

    Die LBS, die.

  29. @’merika:
    Xt brake pads is a Shimano America problem following their poor handling of downsizing US distributors in the last 2 years, not an LBS problem.

    This is a big experiment on trek’s behalf. It will have good and bad, and none of us will know till it gets implemented. And that friends, is still a little ways off.

    As far as F the LBS: good luck without them. The LBS is not the enemy. And wanting something for nothing is not realistic. Bottom dollar pricing on everything bike related you buy comes at a price, make no mistake. Choose your own way. But online sales will never be able to match the level and types of service the LBS provides.

  30. @Collin. I kinda figured that the commitment was much higher but really had no idea. The other thing that I was made aware of is that if the customer orders the bike and it;s the wrong size, or color, or whatever the Trek dealer cannot return it. They have to keep it and try to sell it.

    Trek also knows that they have their dealers in a rock and a hard place. As a Trek dealer for the most part you are probably at least 70% to 80% of your shop floor being Trek product. If you do not like it you could try to prick up one of the other brands but the problem is I am sure that those other brands are already represented in your local area.

    The way the industry is going is you are either going to have to be a huge retailer like a Mike’s Bikes, Eric’s, Wheel and Sprocket or a small boutique shop that has unique offerings with great customer service and excellent mechanics. And also customers that are willing to pay for that.

    The shop that is too big to be small and too small to be big are going to be non existent in 5 years.

  31. i would have a computer station in my store so the customer can order what i dont have “accessories” and have them shipped to their house. If they want a bike they can browse online and ill order it and make my regular margin.

  32. Re: complaints about pricing. Do any of the other manufacturers that offer direct to consumer pricing offer any “deep discounts” as people are complaining about here? I honestly don’t know. Perhaps I’m just a terrible negotiator, or have chosen the wrong bike shops, but I have never gotten any kind of “deep discount” on any bike or expensive part purchase. I always ask, but I can tell there is no negotiation. If you try to push the envelope, they just don’t care. Maybe if you are trying to get a deal on a leftover bike from a previous year, but if you are interested in anything new or current, forget about it. Frankly, the only reason I buy bikes at the LBS is because (prior to now) you couldn’t buy a brand new big-name brand bike other than at the LBS. Parts and accessories…forget about it. I don’t feel any obligation to buy a new derailleur or saddle at my LBS for a much higher price just to “support the local small business”. Bike parts is something that is made for internet comparison shopping. I feel so much better when I find a part I need from some obscure UK website for darn near half of what I can get local, or even a USA-based website.

    The only thing I can say about having to pay full price is if other manufacturers get into the same game, and start offering discounts, then I’m sure Trek will follow suit. Otherwise, for now, if people don’t like the prices and don’t feel like they are getting the discount “they deserve”, then by all means, support another company and buy a different brand!

  33. if they already took the trip to my store and i dont have it, why drive back…. trek will ship to them. If i can get a report of what people are buying in my area from trek ill start to stock those items.

    this of ideas how to use this people dont just find holes. prevent the hole and patch it.,

  34. @ Dave, re: your comment about “the way the industry is going”, you are spot on. Frankly, most LBS’ I have been into are pretty terrible. Whatever the reasons, I don’t care, if you treat your customers like they are stupid, or don’t exist, or just have a general bad attitude, why should anyone put up with that? Most of these guys don’t seem to know anything anyways. I’ve tried on multiple occasions to have a “bike nerd” discussion about specific bikes or wheels or whatever, and most of them either have no clue, or are completely disinterested.

    I recently found a great shop that has very intelligent people, willing to take time to talk to you on whatever level you are on, and generally treat customers like they are actually valuable. I’m going to be spending time and money at a shop like that. Imagine that…good customer service will go a long ways!

  35. For those that claim the customer has no right to expect a price break, you obviously have never shopped on the internet. You adapt or die. It’s that simple. Trek is trying to keep high margins by screwing over the locals. The direct sale business model is displacing the old business model. The consumer (me) is tried of being screwed over and is now able to cut the supply chain in many instances. Whole bikes from Bikes Direct. Order your drivetrains from the UK for half the price or less. Order your bike clothing from China, for a quarter or less. Order carbon parts from China for 10-20%. All these excellent quality BTW, if you do your due diligence. Now, bike frames are going the same route.

    Soon, it will be big box, a few large chains of bike shops, an isolated small shop here and there, and online only.

  36. Anytime i hear a manufacturer say, “Oh, it’ll help drive customers into to your shop”, what they mean is, “Oh, we’re gonna take more money outta your shop, have a nice day.”

  37. @tim
    Enjoy your “discounted” parts. adapting is fine but when the local service shop crashes because all of your money goes to china instead of the local economy I’ll just laugh.

  38. @Allan, the reason you are not getting best pricing at your LBS is because as you state, you do not feel any obligation to buy anything else at the LBS. For those of us that consistently give our LBS business and see the owners enough to be on a name basis, we get the best pricing on bikes and also discounts an everything else we buy.

  39. I recently bought a Trek Remedy 9.9 from my LBS. It had some initial problems including needing to send both the rear shock and front shock back to the respective manufacturers. My LBS stood behind the bike and did all the work to get it riding as it should without cost to me. I just don’t believe that level of commitment would have happened if I had ordered online and Trek gave the LBS a sliver of money. I guess we will see.

  40. A good bike shop should be an integral part of a cycling community – group rides (hammer fests and leisure pace) maintenance events, race teams, breakfast rides, charity events, trail support, fitting, training, etc.

    When you are this, you become the location people meet, where they meet people, friends, partners, resources. People will support this.

    When you are a place just to get parts ad talk to a snob or old curmudgeon mechanic – your easily forgotten and replaced.

  41. Guys, welcome to competition. Internet sales is still outcompeting the local bike shops for prices, and many time convenience AND technical competence as well.
    I’ve gone many times to local bike shops, and many times (more than what I can remember), they’ve been out of parts, not stock keeping other parts, etc.; everything available to order with a couple of days waiting period. Why should I waste my time going to the LBS and order something through them when I can get it faster and cheaper through the Internet???

    The LBS needs to compete with high service levels, competent staff, convenience, etc. IN COOPERATION with their Internet sales focused suppliers. The LBS that resort to hiring low-competence staff are a day away from turning into tomorrow’s zombies, which is a day or two away from closing the business.

    Fortunately for the LBS people will still go to their local bike shop to buy “normal” sub USD 1k bikes; and this market still needs to be serviced by the LBS because this clientele often needs support and face-to-face dialogue; and this makes up most of the volume of the bike sales.

    Internet sales is here, has been here for several years now, and is only going in one direction for the next couple of years (up and more). Adapt, evolve, evolution-ize, whatever, but the LBS and the old-school needs to get on the bandwagon of change and improvement. Perhaps there are just too many LBS for the new business model and many of them will pass away while others turn more into service-station/showrooms/local flagship-stores? This is happening in many of the retail sectors (furniture, electronics, etc. etc. etc.).

  42. lol@Cassman
    Must have hit a nerve…. You a shop owner? Importer? Work for Trek? Sales rep? Spend too much, and want everyone else to do the same so you you feel better?

    So you think a $100 spent at the LBS stays “local”? Hahahahahaha! NAIVE!!! it doesn’t go to the “local” economy. Most of that money goes elsewhere. It’s almost certainly made in China or similar anyway. I actually keep more money in the local economy by not spending it where most of it goes elsewhere, and having more money to spend LOCALLY. As for the local service shop, it will remain, just like the local small engine repair shops remain. Guess you don’t understand the difference. Then there’s the matter, of not my size, or not having wide shoes, not having the part, or any number of other things. You like being fleeced, fine by me. Not my problem.

    FTR, I do buy from the LBS’s, but when the cost is 10-50% of local, well too damn bad. I have two tires in shipment, that both together plus shipping, cost less than one locally even before the local 10% sales tax, AND the LBS’s didn’t have the size I needed. I looked locally, first, then went home and ordered them online. NO REGRETS! Adapt or die.

  43. hey,Frippolini…just who the (deleted) is going to fit that high end road bought on the net? when all the lbs’s are gone, I guess the consumer is gonna have to figure it out. and God forbid they buy it with DI! this sport is going straight to (deleted) like this from TREK…

  44. @Tim, I agree, as a shop we are adapting, we no longer stock any bikes over $1500 and do not carry goods that those high end customers would want. It is not worth the time spent talking to that customer just to find out it is a race to the bottom for a deal. Rather we focus on family hybrids, cruisers and kids bikes. Most of our income come from fast repair turn arounds. We have adapted our business to not need those customers always wanting a deal or better pricing and we are having our best year yet with a ton more cash flow.

  45. @what
    Glad to hear it. One of the local stores (actually two stores) has gone a similar route. They sale tons off “hybrids”… literally thousands, with free lifetime minor tuneup’s. This builds a great relationship with customers, so that when something is broken, they then sale the real repair, along with bike shorts, helmets etc. They are very friendly and very helpful, with people who love bikes. I often go there first when I need something. Meanwhile the LBS that has been around for decades are known to be “high dollar”, are snobs, and I hate that place. The later had the bikes I wanted, and I ended up driving 1+ hours each way to another dealer just to avoid (deleted). That shop, me and my S.O. have spend thousands (and bought three bikes) in over the last year.

  46. @Patrick: On the contrary, I built a LBS from scratch, opened a second, then sold them both for enough to fund some truly fun projects. So yes, I do not “currently” own a shop, but I am coming from the aspect of a shop owner.

    And again, if I could make a 32 margin instead of 40 without having to stock anything, no risk at all, count me in.

  47. CX,

    It’s hard to imagine a situation where it’s no risk at all. You’ve got to take the returns into your inventory, Web sales don’t move your in-store product and isn’t there a cost to get into the program, at least for some?

    Also, what about the risk that no one sees any value in you being there at all – or not even “no one”, but enough people. And what about the risk of losing one more element of control of your business. Good, maybe. Risk-free, hardly.

    Patrick

  48. Just wondering why there isn’t a valve shown on the picture. No offense off course, the bike looks incredible and probably rides the same.

  49. Like the average consumer knows what bike models they need and the right size? I forsee lots of returns and giving the local dealers the run around. Not to mention what about the perks from buying at local shops? Free fit, service plans, Etc.

  50. Hi Everyone,

    Trek is taking the inventory risk, so they’re taking money back from the bike dealers to cover this inventory risk.

    Not sure why this is so hard to understand. Trek is not shipping bikes direct to customers (yet). They have to pick up in-store. Good shops will sell more accessories and parts hopefully.

  51. Trek is NOT reducing the inventory requirement for dealers. Trek is reducing the margin to a below needed profit margin level and not paying the dealer for the service for 4-18 weeks. Who is holding the bag on it doesn’t fit and I want to return it tranactions? The dealer.

    Who pushed dealers to invest heavily in there stores appearance and size and now is telling them they were suckers? Trek.

  52. Trek dealers: read the fine print here. I have seen it and it is gruesome and it heavily favors trek. You won’t survive with this program. This is a agreement that specialized would be proud of. Share it with your lawyer or advisors before you sign it.

  53. @Patrick: Do you know that you have to take the inventory back into your stock or is that speculation? Is there a cost to get into the program?

    Also, as part of the program, the bike currently HAS to be shipped to a dealer. So even if the customer sees no value in you being there, they still have to walk in, at which point, you get your 32 margin.

    Regarding losing an element of control, there you have a point. But as was pointed out, you can opt out of the program. You can get different lines in your store. It’s hardly a McDonalds franchise situation.

  54. I’ve been a bicycle and kayak shop for almost 30 years . The kayak industry did what Trek is doing . Most small independent kayak shops are gone . And 32% margin is a joke .

What do you think?

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