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Old 01-21-10, 01:36 PM
  #1  
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Shop Sponsorship Questions

Hey guys and girls, I've got a few questions about shop sponsorships and what I should expect.

I was picked up by my LBS is 2008 to race cyclocross for the shop. In 2009 they offered to sponsor me to race xc mountain, road, crits and cyclocross as I rendered very good results for my first half season.

At the end of the 2009 cyclocross season, it was brought to my attention that I was not being treated equally on the team even though I was racing hard, showing results, and helping with out-of-shop promo events at rides, races, and festivals.

I was unaware that my treatment was unfair as I am a college student. I was getting race level bikes for a very good price, I now had new friends and a whole team to ride with, a ride to races(no car, I commute via bike as well) and a handful of opportunities offered by the shop. However there were a few minor things I was disappointed with.

Let me say I still feel very privileged for the opportunity and appreciate the shop owner for taking a stinky, beer drinking college student on his team. My question is, what should I expect? Should the shop pay my race entry? Should they pay for kits? Should I get the team discount on components and accessories for race only or for everything? Eventually should they set me up on a team bike?

I am just questioning the unfair treatment allegations as I feel comfortable, I just don't know what to expect. I will feel comfortable until I or one of my teammates is wronged.

Thanks in advance for advice/opinions,

firewood!
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Old 01-21-10, 01:43 PM
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You get what you sign for on the sponsorship contract. What's on that contract is up to the shop.


For example, my shop gives us a great deal on all road and mountain bikes there are a few levels above entry, and then almost all equipment and accessories out there. Since you're in college, you should just start up a collegiate cycling club, get the shop to sponsor you, get a few other companies to sponsor you, and then boom. Race fees will be covered. Jerseys will be partially, if not fully covered. If your college has money, bikes will be covered. Unless the shop has a ridiculous amount of cash flow (which I'm willing to bet it doesn't. Not many bike shops do), you can't expect the shop to do much more than give you a discount.

BTW: this is all personal experience from running a collegiate cycling club. Other people on other teams might have varying results
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Old 01-21-10, 01:56 PM
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I read through your post several times, but I can't quite grasp something that is essential to your dilemma:

Are you being treated better, or worse, than others on your team?

You simply state the benefits you recieve, but make no comparison to those of others, or how you might have been otherwise mistreated. Please clarify, so we can help you.
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Old 01-21-10, 01:59 PM
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Originally Posted by Duke of Kent
I read through your post several times, but I can't quite grasp something that is essential to your dilemma:

Are you being treated better, or worse, than others on your team?

You simply state the benefits you recieve, but make no comparison to those of others, or how you might have been otherwise mistreated. Please clarify, so we can help you.
my questions exactly.
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Old 01-21-10, 01:59 PM
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Roy, thanks for the advice. I am currently at a community college and have tried numerous times prior to my shop sponsorship to start a club/team with no interest of the school or any other cyclist there. In the middle of last season I realized there had been no contract offered or signed so I brought it up to the shop owner as I was growing a little upset that some of the "racers" were not showing up to races but were still receiving their beloved discounts. We are drawing up a contract as we speak which is why I am trying to dig for info. As you expected it is there isn't a huge amount of cash flow for the team from the shop and I don't expect more than a discount, however should there be restrictions, in your opinion, on what is discounted?
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Old 01-21-10, 02:02 PM
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Originally Posted by Duke of Kent
I read through your post several times, but I can't quite grasp something that is essential to your dilemma:

Are you being treated better, or worse, than others on your team?

You simply state the benefits you recieve, but make no comparison to those of others, or how you might have been otherwise mistreated. Please clarify, so we can help you.
I don't know whether or not I am being treated equally, the allegation was brought to my attention and now I am just trying to see what I should expect. It's a very obscure allegation as the whistleblower may or may not have "beef" with the shop. Sorry for the confusion, the internet is not my best subject.
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Old 01-21-10, 02:05 PM
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The shop that is the title sponsor for my team gives the discount on anything I purchase. One just cannot take advantage of it like buying bikes for family members and friends.
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Old 01-21-10, 02:07 PM
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Originally Posted by firewoodcycles
Roy, thanks for the advice. I am currently at a community college and have tried numerous times prior to my shop sponsorship to start a club/team with no interest of the school or any other cyclist there. In the middle of last season I realized there had been no contract offered or signed so I brought it up to the shop owner as I was growing a little upset that some of the "racers" were not showing up to races but were still receiving their beloved discounts. We are drawing up a contract as we speak which is why I am trying to dig for info. As you expected it is there isn't a huge amount of cash flow for the team from the shop and I don't expect more than a discount, however should there be restrictions, in your opinion, on what is discounted?
It varies greatly from shop to shop. Most shops I've worked at give team guys (team guys who actually show up, get results AND promote the shop - that's the whole point of sponsorship, after all.) employee cost on bikes, team gear, and parts. Service on team bikes only is either free or heavily discounted.

I sponsor the DePauw University cycling team. They get their parts at cost +10%. They would get their bikes at that too, except they already had a bike deal for this year before I opened. They do the clothing themselves. Some manufacturers/distributors will make even better deals for teams.
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Old 01-21-10, 02:12 PM
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Without naming names of people or clubs, some people get full rides - all race entries, travel expenses, etc covered. They get bikes and they get coaching. If no free bike, then shops will sometimes sell them a bike below wholesale. This is not the norm, but it does happen.

I know that good racers will often get SOME race entries, maybe some help with cheaper things like kits, tires, bottles, tubes, etc and then product at wholesale.

A tier down would be no race entries covered but maybe kits at cost and maybe shop stuff at cost +10%.

Then there are the crap deals where you get nothing but maybe a 20% or 30% off of retail at the shop.

Anyone else have other experience/knowledge?
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Old 01-21-10, 02:48 PM
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Originally Posted by DrWJODonnell
Without naming names of people or clubs, some people get full rides - all race entries, travel expenses, etc covered. They get bikes and they get coaching. If no free bike, then shops will sometimes sell them a bike below wholesale. This is not the norm, but it does happen.

I know that good racers will often get SOME race entries, maybe some help with cheaper things like kits, tires, bottles, tubes, etc and then product at wholesale.

A tier down would be no race entries covered but maybe kits at cost and maybe shop stuff at cost +10%.

Then there are the crap deals where you get nothing but maybe a 20% or 30% off of retail at the shop.

Anyone else have other experience/knowledge?
the most recent team i was on was a club whose primary sponsor was a bike shop. there were the "written" deals, which basically was 20% off retail for those members who were in the club and helped with our event.

then there were other "perks", such as a group buy night where the shop owner opened up the catalogue and whatever you purchased was cost + 10%, but it was a limited time offer. other things were team buys, where if for instance a bunch of us used the same tire or nutrition product, or tube, or whatever, we would do a purchase at a discount.

there were differences in the deals club members got though. those that were more active or officers in the club got better treatment such as employee pricing on frames or component groups, stuff like that. it was kind of a sliding scale.

other benefits to members of the club came from the club itself, such as race reimbursement, team kits/clothing at a bulk purchase price (no markup, just passed through without shop involvement).

so a little of each of the benefits that Dr. describes.
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Old 01-21-10, 03:41 PM
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Our team pays race entry fees; we get shop discounts, and team kits/clothing at about half retail for comparable gear.

Given the level I race at, I'm happy to get that much.
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Old 01-21-10, 04:12 PM
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Originally Posted by firewoodcycles
I don't know whether or not I am being treated equally, the allegation was brought to my attention and now I am just trying to see what I should expect. It's a very obscure allegation as the whistleblower may or may not have "beef" with the shop. Sorry for the confusion, the internet is not my best subject.
What allegation is this? You've mentioned many times this "allegation" and that you feel treated unfairly despite feeling comfortable in the deal you have now. What exactly were you told that makes you think others are getting better deals than you?
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Old 01-21-10, 04:20 PM
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Sponsoring amateur cycling might as well just be called charity. The shop owes you nothing, you receive what you can negotiate out of them. If there are other shops in town offering better deals, you have some bargaining power. If not, I would take what you can get.

Asking what others get is useless. What I get has nothing to do with what you should get.
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Old 01-22-10, 01:56 PM
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Originally Posted by rob!
What allegation is this? You've mentioned many times this "allegation" and that you feel treated unfairly despite feeling comfortable in the deal you have now. What exactly were you told that makes you think others are getting better deals than you?
The details of the allegation are unnecessary. I was just asking what I should expect, if anything, from a sponsorship from a shop. Sorry for repeatedly bringing it up, I am new at this internet thing. My questions were answered and pretty much solidified what I was thinking. Thanks for the responses and happy racing!
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Old 01-22-10, 02:02 PM
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Originally Posted by firewoodcycles
The details of the allegation are unnecessary. I was just asking what I should expect, if anything, from a sponsorship from a shop. Sorry for repeatedly bringing it up, I am new at this internet thing. My questions were answered and pretty much solidified what I was thinking. Thanks for the responses and happy racing!
It's nothing to do with the internet. It's communication skills, or lack thereof.
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Old 01-22-10, 02:05 PM
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Originally Posted by merlinextraligh
Our team pays race entry fees; we get shop discounts, and team kits/clothing at about half retail for comparable gear.

Given the level I race at, I'm happy to get that much.
That's what I got with the shop team I first raced with. I was well pleased with that level of support. And the nice thing is that I still occasionally get the team discount (depending on who's working the register) even though I haven't raced for that team in awhile.

My current team has a deal with a small shop just getting started and the owner really looks out for us. He's not giving us anything, but on the other hand, I don't think he's making any money on us directly. It's about exposure for him.
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Old 01-22-10, 02:05 PM
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Originally Posted by ZeCanon
Sponsoring amateur cycling might as well just be called charity. The shop owes you nothing, you receive what you can negotiate out of them. If there are other shops in town offering better deals, you have some bargaining power. If not, I would take what you can get.

Asking what others get is useless. What I get has nothing to do with what you should get.
I disagree, the shop does owe me something. I am riding for a shop, not a club or team, and I take quite a bit of time off work to help promote the shop at race and non race events. I don't expect a pay check, free gear, or anything of that matter. I do expect my favors be returned since I am donating my time to the shop and I had been wondering what it was like for others who were sponsored by shops. My questions were answered and I appreciate that.

That said, I am completely satisfied with what I've been given and will be forever gracious with the opportunity presented because I love the shop, it's owner and employees. Thanks for everyone's time! Good luck racing this season!
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Old 01-22-10, 02:21 PM
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everything in the store- 25% discount
food & gels- 15% discount
team kits- for jersey and bibs custom Sugoi it is $125 (dont know the exact discount %)
race fees- I pay, reimbursed at the end of the year (pending on standing)
nice post ride drink- two kegs in the mechanic area


for being only a CAT 5...I get more than I should

Dont be greedy, the shop is helping you more than you are helping them most of the time
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Old 01-22-10, 02:24 PM
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Originally Posted by firewoodcycles
I disagree, the shop does owe me something. I am riding for a shop, not a club or team, and I take quite a bit of time off work to help promote the shop at race and non race events. I don't expect a pay check, free gear, or anything of that matter. I do expect my favors be returned since I am donating my time to the shop and I had been wondering what it was like for others who were sponsored by shops. My questions were answered and I appreciate that.

That said, I am completely satisfied with what I've been given and will be forever gracious with the opportunity presented because I love the shop, it's owner and employees. Thanks for everyone's time! Good luck racing this season!
Most bike shops don't operate on a margin that would allow for too much.
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Old 01-22-10, 02:35 PM
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start a team at school. get any of the racers at your school and apply for some money. even in this age of financial doom, colleges still tend to be pretty good about promoting and financing club sports. my college team paid for all race entries, paid for driving expenses and would supply vans for long trips, paid for jerseys, etc. additionally, you can get other individual sponsors (shops or otherwise) from whom you can get deals on equipment.

also, have some perspective. the shop that sponsors you has little to no gain from your riding. most are owned by former racers themselves who feel like they can give back to the community that they are a part of. even if you are on the short end of the stick on the team, that is better than a lot of teams have right now.

cheers.
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Old 01-22-10, 02:46 PM
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Originally Posted by firewoodcycles
The details of the allegation are unnecessary. I was just asking what I should expect, if anything, from a sponsorship from a shop. Sorry for repeatedly bringing it up, I am new at this internet thing. My questions were answered and pretty much solidified what I was thinking. Thanks for the responses and happy racing!
I think what you should expect is transparency and honesty. I mean, if there's an "agreement" with everybody who rides for the shop, but some people get preferential, wink-and-a-nudge deals, unstated additional discounts, et cetera, I think that you would have reason for dissatisfaction. I would be uncomfortable if a sponsor was vague on, or unwilling to clarify the parameters of sponsorship within a club or team.
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Old 01-22-10, 03:05 PM
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Originally Posted by firewoodcycles
I was unaware that my treatment was unfair as I am a college student.
Which is why I love co-eds.
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Old 01-22-10, 03:17 PM
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Originally Posted by va_esquire
everything in the store- 25% discount
food & gels- 15% discount
team kits- for jersey and bibs custom sugoi it is $125 (dont know the exact discount %)
race fees- i pay, reimbursed at the end of the year (pending on standing)
nice post ride drink- two kegs in the mechanic area


for being only a cat 5...i get more than i should

dont be greedy, the shop is helping you more than you are helping them most of the time
hcc?
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Old 01-22-10, 03:22 PM
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Originally Posted by firewoodcycles
I disagree, the shop does owe me something. I am riding for a shop, not a club or team, and I take quite a bit of time off work to help promote the shop at race and non race events. I don't expect a pay check, free gear, or anything of that matter. I do expect my favors be returned since I am donating my time to the shop and I had been wondering what it was like for others who were sponsored by shops. My questions were answered and I appreciate that.

That said, I am completely satisfied with what I've been given and will be forever gracious with the opportunity presented because I love the shop, it's owner and employees. Thanks for everyone's time! Good luck racing this season!

No, they really owe you nothing. You are not their employee and you are not a professional. Plenty of people volunteer time with nothing in return. If you had a verbal or written contract for something specific, then that much you should expect at least... But if it was "hey, you are pretty good, we will give you a jersey and some discounts if yiu race for us," then you get pretty much whatever they feel like. Some riders may get more or better stuff, and it may not be based on how many races you each do or how well you do.

It is also fairly common for "elite" (usually cat 1/2) riders to get much better deals than the rest of the team, sometimes at the expense of others on the team. We don't have that, but we have at least one ex-pro rider that is paid on the side by one of of our sponsors. I'd say it's also probably not uncommon for new riders to get less than established riders, even if the new riders are currently doing more/better than the new riders.
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Old 01-22-10, 03:28 PM
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This is the deal I get:

1) Kit (jersey, bibs) $110 up front, reimbursed after 5 races.
2) Entry fees reimbursed up to a limit depending on Cat. 1's and 2's get up to $500 off, 3's get up to $200, 4's get $100, 5's get $50.
3) 20% off anything in the shop. Cost + 10% if a special order.
4) Free pizza at monthly team meeting at the pizzeria that is now a team sponsor.
5) Spooky frames at below wholesale.
6) Lots of great guys to train and race with.


(6) is more important than any of the others.
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