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Mobile Bike Shop battles: VeloFix DIRECT picks up Eddy Merckx, Beeline delivers Competitive Cyclist

Written by Zach Overholt
39 Comments
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Photo c. Velofix

The landscape of bicycle retail is changing quickly. That is especially true when you consider the state of mobile bike shops. What started as individuals looking for away to offer their services to more people with less overhead, has been seized upon by companies looking to turn that model into a franchise business. At this point, the most successful would have to be Velofix and Beeline Bikes. Both franchise models were initially based on mobile service and repair, but that is quickly changing as bicycle companies are looking for assembly and delivery options for online sales.

This week it was announced that Velofix would be adding Eddy Merckx cycles to their quickly growing list of brands for Velofix DIRECT. That makes for a total of 15 current brands that are Velofix DIRECT partners including Yeti, BH, Ellsworth, Turner, and Van Dessel. The optional service can be selected when ordering a bike directly from the Eddy Merckx site, at which point the local Velofix franchise will receive the bike, build it, check it for safety, and then deliver it directly to you. All of which, Velofix says is available at no additional charge including a fitting session and 30 day tune up.

Currently, only 2016 models are available for purchase through the site, but 2017 models will soon be available online, or immediately via phone or email through Eddy Merckx…

beeline bikes mobile bicycle repair and delivery
Photo c. Beeline Bikes

In a similar move, it has been announced that Beeline Bikes will have a similar arrangement with Competitive Cyclist and BackCountry.com. Bicycles sold through both websites will have the option of assembly and delivery of the bikes to the end user. Beeline already offers the same service for Raleigh bikes after a deal with Accell North America in September.

Now that the ball is in motion, it certainly looks like this model will continue to have an effect on bicycle retail, and it’s probably something we’ll see a lot more of in the future. Which begs the question, with Canyon set to enter the U.S. market (at some point) soon, will the brand partner up with one of these two franchises for delivery? That could be a big shake up if so…
Zach Overholt
5,729 articles

Zach Overholt is the Editor in Chief of Bikerumor. He has been writing about what’s new in the bicycle world for 12+ years. Prior to that, Zach spent many years in the back of a bicycle shop building and repairing nearly every type of bike, while figuring out how to (occasionally) ride them.

Based in Ohio, Zach is now slowly introducing a new generation to cycling and still trying to figure out how to fit the most rides into a busy schedule as a new dad.

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39 Comments
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Allan
Allan
7 years ago

Uh oh…cranky LBS commenters are gonna descend on this story and lecture us on how this is bad for everyone and shame on you for buying on the internet…

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bearcol
bearcol
7 years ago
Reply to  Allan

It’s a little ironic that in the cycling world you are a luddite if you don’t adopt every new thing, but you are perfectly modern if you cling to brick and mortar retail.

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Dirty Sanchez
Dirty Sanchez
7 years ago
Reply to  bearcol

It is a reason you don’t see all that many high end bikes or accessories in most brick and mortar shops. If you’re relying on the average bikerumor reader for your sales you are most definitely doomed. If you’re focused on the new or average customer getting into the sport, as the store I work at is, you could probably be up 9% like we were this year. For shops with their head out of the sand the 3k ebike with better margin has replaced the “boutique” brands with crappy margins and tail light guarantee warranty programs.

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Mike Bechanic
Mike Bechanic
7 years ago
Reply to  Dirty Sanchez

+1

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Shawn
Shawn
7 years ago
Reply to  bearcol

I noticed you use LUDDITE alot. Get that ‘word of the day’ calendar for xmas?

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bearcol
bearcol
7 years ago

This should ramp up direct sales quite a bit.

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Greg
Greg
7 years ago

Beeline bikes – taking the sting out of buying direct®
Just thought of it, but if they haven’t yet, they should use it

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MikeFranke67
MikeFranke67
7 years ago

I think the best overall solution would be for the forward-thinking brick-and-mortar LBS to add a Velofix or Beeline franchise to their business. A good friend owns a local shop that sells Jamis, Bianchi, and a few others, and he’s planning on doing this for 2017.

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Skip
Skip
7 years ago
Reply to  MikeFranke67

https://www.facebook.com/crossroadbikes/?fref=ts
Boom. Our van shows up early February.
Wish us luck!

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dave
dave
7 years ago
Reply to  Skip

I think it makes a lot of sense for shops to get into this, but why bother with a beeline/velofix franchise? Why not use the shop’s branding?

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Skip
Skip
7 years ago
Reply to  dave

Because we can co brand and get the best of both worlds, rather than compete with them later.

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JasonK
JasonK
7 years ago
Reply to  Skip

This is really, really smart. I wish more bike shops were as agile and clever as yours is. When I see shop owners wagging their fingers at people who buy online, I can only roll my eyes. They’re asking consumers to pay 30-100% extra to “support their LBS.” but really they’re asking for charity so the owners don’t have to adapt to a new business model. I don’t like to use the term “butthurt,” but it really does apply to most of the finger-wagging postings.

If I need a new pair of tires, I can spend $165 at my LBS (if they happen to have the brand, model and width I prefer) or I can spend $98 and have exactly what I want in a day or two.

I turned wrenches for nearly 15 years (off and on) and then went back to school to become a mechanical engineer. I work outside the industry, and I only go to my (outstanding) LBS for occasional maintenance items. Most industry employees would do the same once they leave the field.

Here’s a thought experiment: many bro deals (gear available to industry people at a price below wholesale) are discounted from wholesale by about the same percentage that consumers save on MSRP by buying online. Have you ever known someone who works in the industry to pass up a bro deal on something they need?

It’s both unrealistic and hypocritical to expect consumers to pay extra when industry people leap at equivalent deals.

LBS owners may hope that hordes of people will “support their LBS,” but hope is not a plan. Mobile service, high-margin e-bikes (as mentioned by another poster) and other creative strategies are what will separate the drowned from the saved.

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Ric Liang
Ric Liang
7 years ago
Reply to  MikeFranke67

That’s the model LBSs should get into, before Amazon does or as @Skip says, do it themselves

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spotswood
spotswood
7 years ago

Yeah…No. I would hate to work in a van. Too hot in summer, too cold in winter, unstable work area, parking on non-level surfaces, cramped spaces, no storage, etc, etc. There’s a good reason why most retail businesses are in brick and mortar.

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JasonK
JasonK
7 years ago
Reply to  spotswood

I see your point about discomfort, but isn’t it also uncomfortable to have your head in the sand like that? For 1/4 to 1/3 of the year, you get to turn wrenches outside in the gorgeous spring sunlight or a crisp fall day. When I was stuck in the shop working on bikes on perfect riding days, I would have killed to at least be outside.

Plus, these work vans are typically heated and air-conditioned. And if you’re routinely yanking things hard enough to move a giant van around on its suspension (your “unstable work area”) then maybe a little more finesse would be a good idea.

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dan
dan
7 years ago

I’ve been eyeing Canyon for a few years, but the horror stories of customer service have me looking elsewhere, but if a reputable US-based service like these would be the middle man then definitely I’d be persuaded. On a related note, I have not purchased a bike from brick-n-mortar in decades. Reason: I can change my own flat and don’t like paying retail and/or dealing with LBS attitude. Sorry.

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TheOracle
TheOracle
7 years ago
Reply to  dan

Simply having a van and brand partners does not equate to being professional, experienced, trustworthy or reputable.
Good luck with Canyon. While the bikes may ride well, everyone I’ve seen had numerous issues out of the box; cross threaded der hanger, kinked brake hoses, pivot hardware rounded out, etc.

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Dave
Dave
7 years ago
Reply to  dan

@Dan. So you don’t like paying retail. You do realize that if you order a bike thru Competitive and EM and have it delivered via Beeline or Velofix you are going to pay retail. They are not going to be able to discount the bike for you. You understand that.

So what line of work do you do? I would not like to pay you your asking price either. I would like a discount.

As far as LBS attitude you just might be going to the wrong shop. Lot’s of great shops with no attitude and great customer service.

And if you want a deal you have a better shot at buying from the local shop than thru one of these services.

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JasonK
JasonK
7 years ago
Reply to  Dave

Oh, you’re adorable. I’m a mechanical engineer. You’d like a discount on my services? I’m sure we can work something out.

Do you sincerely think that this sort of negotiation doesn’t happen in business transactions in general?

I’ve worked in shops for years. Some are great and some are absolutely full of attitude. In my experience, about 30% are great and 70% either sneer at customers, are poorly informed or have unrealistic expectations. That two-year-old CX bike with 10-speed shifting and cantilevers is marked down 15%? What a deal!

Think about it: you seem to have no idea how transactions in other industries work. What else might you be missing? Are you confident yours is among the 30% of great shops? Is it because you know you’re a good guy and so your shop is probably good, or are you actually delighting customers?

No local bike shop is good a priori. Running a shop at all (or any small business) is brutal work. Margins are wafer-thin and the hours are very long even before you provide great service. But you don’t deserve a profit just because you worked hard. It’s an inconvenient truth, so to speak, but capitalism is a cruel mistress.

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myke2241
myke2241
7 years ago

Those mobile services actually need contacts and lbs to survive. Their service cost are crazy high. Co-branding makes all the sense and both sides win

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Mike D
Mike D
7 years ago

The brick-and-mortar LBS needs to innovate to keep up with the times, agreed. This mobile crap though? Nah, never. I’ll never use it. I actually *like* my LBS, they have great service, great bikes, and are all awesome people who support the biking community. I know, I know…nowadays it’s always about consumerism and ‘How can *I* get more things?’, forget about the local business owner. Bill who used to own the hardware store? Gone, but you can go to Lowes or Home Depot now. Locally owned coffee and tea shop? Nah, there’s 3 Starbucks within a quarter mile of here, they’re closer.
I shop for bargains like anybody else, but when we make it *only* about the money it’s not a distant future where we’ll all be begging Lord Amazon for a daily allowance. I understand this viewpoint is lost on some, but something to consider all the same.

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Dave
Dave
7 years ago
Reply to  Mike D

@Mike. Could not agree with you more. Everyone wants a deal expect when it comes to their line of work. So when you have guys that are lawyers and doctors coming into your shop and want a deal ask them if you can have their services at a deal as well.

When the small local business go away it rips apart the soul of a community. When down town is just a some chain stores, a few hair salons and nail salons remember is was because of lack of support to the local community that did this.

All because you could maybe save 10%.

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bearcol
bearcol
7 years ago
Reply to  Dave

Save 10%? When I worked at a shop I still bought online sometimes because there were deals at times better than QBP. I just bought a box of ten shift cables for 11 bucks shipped. Every LBS in my area wants 5 bucks a cable. If you think the deals are 10% less you need to learn how to shop online.

The facts are shops will survive because beginners need help. Once those beginners rach a level where they have tools, do their own work, and know exactly what they want they will move to online sales. There’s enough beginners to keep LBS’s going. If you want to be a part of your shop scene and overpay that’s good for you, but don’t shame riders that refuse to pay 400% more just to keep a shop on the corner when in reality it’s not experienced riders that keeps shops going. As for trail work. That’s done by outside groups usually. Most shops I’ve known just do illegal work which I do appreciate! At least until it’s shut down and brings heat on the local MTB community.

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JasonK
JasonK
7 years ago
Reply to  bearcol

Ding ding ding! We have a winner! New riders and experienced ones who are are afraid to do their own maintenance (or don’t want to or don’t have time to learn) are what will keep shops in business going forward. Fewer shops, yes, but those that survive will be stronger.

Most brands’ top models go for over $10,000. It makes little economic sense for a single independent shop to stock one of those…it will be the wrong size for most people and it’s a ton of capital (~$6000-$8000) to sink into something that will just sit there for months. There’s a good chance it will sit there until the next year’s model comes out, at which point it will be discounted so much that it’s sold for minimal or zero profit. Meanwhile, there’s an opportunity cost: that money could have been used to buy stock that *is* profitable.

The industry is changing rapidly, and online sales are only one facet of that change. It’s too bad that the number of independent shops will go down substantially, but no amount of wishful thinking will stop the change. Instead of pining for days gone by, LBSes, why not figure out how to come out on top in an evolving market? It’s terrifying, yes, but it’s much better than the alternative.

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JasonK
JasonK
7 years ago
Reply to  Dave

There’s an odd idea out there that, just because we love it, the bike industry is somehow exceptional and immune to market forces.

Independently-owned video rental stores (remember those?) made many of the same arguments about their unique customer service and how their abscence would contribute to ripping communities apart. They argued that their employees, who loved film and could make great recommendations, made all the difference.

It didn’t matter. Bikes are not VHS tapes and DVDs, but there may be a lesson here about how much consumers really care about the ineffable contribution your shop makes to the community simply by existing. It’s sad and unfortunate, but that doesn’t make it any less true.

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duder
duder
7 years ago
Reply to  Mike D

It’s not like these companies are starting out with huge bank rolls from Wallstreet. They are mostly bootstrapped small business started by people who really love bikes and some of them grow quickly because they put in a lot of hard work to out-invest, out-innovate, and provide a better experience for their customers. These services aren’t “*only* about the money”, they are also about higher levels of convenience and service.

I happen to live in Denver/Boulder metro. We have some of the highest volume LBSs in the country, along with several web shops, and a ton of bike related businesses and start-ups including bikes, components, nutrition, clothing, trails, and media. None of these organizations are evil corporations out to shutdown your LBS. In fact they are mostly run by hard-core cyclists who’ve ridden and raced for years and saw a gap where they thought they could make improvements.

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Bike Dumper
Bike Dumper
7 years ago

Didn’t know many of those brands were still in existence. Funny about ripping on IBDs and bad attitudes and such. Who do you think is in those vans? Working on kids bikes on driveways in the rain sounds ideal. Local independent “down by the river” van guy is booked out and makes ~40k in REVENUE the hard way. Good shops will enter mobile theater for 1/5th of the price after watching franchise money sweat it out for a bit. Brands that choose this route will be IBD pariahs. This is gonna be fun!

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myke2241
myke2241
7 years ago
Reply to  Bike Dumper

I don’t know if they are making $40k the hard way(breaking rocks). These mobile rigs are assigned jobs. You can pick a specific one based on certain criteria but for the most part people will service a family of bikes and never do again. Co-branding is cool because parts options are much greater and not limited by what you have on the truck.

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AndyB11
AndyB11
7 years ago

“including a fitting session” – does that mean they’re planning to offer bike fits now as well?

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Dirty Sanchez
Dirty Sanchez
7 years ago
Reply to  AndyB11

If you mean asking how many spacers you want above the stem……….yes.

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bearcol
bearcol
7 years ago
Reply to  AndyB11

No reason they couldn’t throw in a free basic fitting. Saddle height, cleat adjustment, stem height, maybe stem length with some generic stems to get the customer to spend more money on another stem.

I used to do free basic fittings at the shop I worked at with the purchase of any bike including 500$ hard tails. Anything past the above stuff the customer had to pay out the nose for a “pro fit”.

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That Guy
That Guy
7 years ago

I really feel bad for all of you riders on here who seriously don’t have a good local shop or have ever experienced a great shop retail experience. I love going to my local shop in Jackson Hole, WY and checking out the coolest new gear, rad di2 displays and talking to some of the best riders in the region who build legal trail, host rad events and are great people. I wish I could have the same experience buying parts for my motorcycle or computer but those stores are not great or are gone.. I can empathize with the haters a little bit. We all know 99% of the “I used to work in a shop” are absolute hack mechanics and will never know what a dialed bike set up by a pro really feels like.
The idea of replacing the experience of buying a bike from a great store, full of great people, good beer and community with a mouse click and a cargo van full of sh*tty bikes in my driveway is depressing. I buy stuff online and it lacks a lot.. mainly people and community.

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TH
TH
7 years ago

I think we are all missing the point here: how terrible a photoshop job that VeloFix pic is. Good grief!

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Jon
Jon
7 years ago

In the shop I now work in as retirement fun, a Pro fit is done by one of 2 people whom we have invested thousands of dollars in education to make them knowledgable, one who has been fitting for over 40 years. That same fellow also started our local tri event over 20 years ago, and was the first to kick in money to support the regional Mtbr club. And we have a local mobile service manned by current International level bike mechanic who got his initial training from our shop owner. I would say it’s a pretty reputable shop with a good reputation. Our market is 150,000, and 1/2 million within 25 miles. 5 shops in town, 4 very nice to deal with, the other gets a lot of the Internet purchasers who come to that shop w/attitude and get attitude from that shop. Their a good match for each other. Our area is running 80% good shops who care.
5 cables for 11 bucks sounds like cheap quality cables or a REAL loss leader. I got some of those we got stuck with once you can have for free…you pay the shipping, and then have your eyes opened. I know you don’t care as long as you get yours and be damned the rest.
About 5% of our clients would tackle more than changing pedals out. People who will actually work on their bikes, and I mean even something as basic as changing grips or installing new cables, are just not as plentiful as some would think. Here and on the forums we get the enthusiast, but we are a very small part of the big biking picture.
And first hand knowledge of electric bikes, of which the shop and I are enthusiastic about, my trip to holland and Italy told me it is a race to the bottom in price cutting over there. Nobodies making money on them according to several shop owners we chatted with. And these were on quality, reasonably priced and expensive model bikes you can trust and are reliable. You can get cheap ones too, the wallymart type that when it breaks you cannot get parts for, but hey, I bought it for so little I will just fill up the landfill site with my crapped out one and buy another. We see those guys over here too, and their indignant that we cannot help them in their moment of discount woes.
Oh, and the Belofix guy who came snooping around got a dose of business reality when the local by-law guys asked for his business licence when he tried to set up shop at a local event. He could not drum up enough in his own city of 2 million?

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bearcol
bearcol
7 years ago

Jon, if you think 10 shimano cables for 11 shipped is some kind of unreal deal you need to stop bending over at your LBS and take a look at what’s out there.

I find it insulting that shops jack up wholesale so much for things like cables. It would go a long way to support local riders by not ripping them off! Brake pads, cables, tubes, tires… These are the things most riders buy a lot of. All of which shops jack the price up a silly amount! You can bend over if you want but I choose to spend a fraction of retail and have it dropped at my door. Not sure why it bothers you that I and many others are smart with their money?

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haromania
haromania
7 years ago
Reply to  bearcol

“Profit” is not a dirty word, and it’s necessary to keep the doors open. Try opening a business and keep it going and see for yourself how hard it is. After a shop counts everything that was required to sell you those $20.00 brake pads, they made zero on them, and are just hoping you come back and buy something with a higher profit margin, because I assure you they aren’t selling enough brake pads to keep the lights on.

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bearcol
bearcol
7 years ago
Reply to  haromania

Profit is a dirty word when it means I’m paying more of my hard earned money than I have to. I know shops aren’t being overly greedy by marking up low priced consumables so much, wholesale pricing isn’t great. It’s not my fault the bike industry is set up they way it is. I won’t suffer because of that. If you want to that’s your choice. My choice is to let shops figure out how to profit, and I’ll survive by building my savings so I can retire early. Life isn’t cheap! I believe in the free market, and personal responsibility. I’m not imposing my views on you. It doesn’t bother me that you want to spend more to keep shops in the red. For some reason it bothers you and others like you that I say let the free market do its thing.

I’m guessing I’ve saved well over 10,000 over the past 10 years buying online. That’s a very conservative number. Probably more like 15k. If you had to pay 10k more up front to keep your LBS’s going for the next 10 years would you?

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JasonK
JasonK
7 years ago
Reply to  bearcol

Bearcol, you and I are partly on the same page and we’ve reached the same conclusion, but have you been hitting the Ayn Rand a little hard? You seem to attach some sort of moral purity to buying online just like the finger-waggers attach a pious righteousness to buying from a local shop.

We agree that the traditional bike shop model includes shops charging $5 for cables. If they charged the $1/cable you paid online, they’d lose money on the transaction (just paying the employee to ring you up would eat all the profit).

I don’t feel a moral obligation to keep the local shop in business, but I won’t rub my hands together with glee if/when they go under, either.

I’m no more entitled to a sub-wholesale deal than the LBS is to the massive markup. The market will sort this out, and there will be winners (agile shops and self-sufficient consumers) and losers (shops that can’t/won’t adapt).

But the shops that fail only rarely deserve scorn. The world is changing and adaptation is hard.

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PB
PB
7 years ago

Look, if you don’t value what your LBS offers you and the community, don’t shop there. If you do, give them at least some of your business.

I like having a good local bike shop the same way I like having a good independent book store. They make the community better. Having only big-box or online options would be a loss.

Note the word “good”. I’m not being charitable by supporting them. I’m being selfish.

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