Compsci523

I did buy the bike with the 1000$ off deal. But what now? Are they going to lower the prices even more?

StanSeven

I really doubt it. The forum on Cervelo's site says demand for S5s are so high, the company can't keep up. People that ordered the high end VWD model in October haven't even received even an anticipated ship date.

Compsci523

I'm not sure why, I saw a video on youtube showing the horrible craftsmanship of the S5. Might be a fake but I doubt it. How about the S2, R series and the P series? Why are the prices going down? What was the point of the "share the ride" deal?

StanSeven

I remember that video. I think it was done by someone who got a bad S5 and wanted to make a big deal out of it.

I think Cervelo wanted to get some quick revenue until the new financing went through is part of it. The other aprt is they want more of their bikes out there for people to see, especially at the lower end. S2s, R3S, and P2s get people to lust after and buy S5s, R5s and P5s.

Compsci523

Yeah I couldn't believe it, at the end of the video I check out mine to see if it had any flaws . More advertising I guess right? Haha. I thought it was a fire sale, but I bought it anyway. Amazing bike for 1800$. I guess it's worth 2800+ tax now? Kinda too good to be true.

bbattle

I imagine they held this fake sale to get all you suckers to bite; now they'll hold the REAL sale of 99% off. Those wacky Canadians, they sure got you, Compsci523. And they didn't even have to bring out the Leroy Nieman's.

Compsci523

Haha oh man would that suck. I live in Toronto, Canada so I don't mind riding a Canadian brand .

pelotonracer

You laugh if you got the deal and cry if you didn't.

ColinL

I wrote this in another thread regarding the Cervelo purchase by PON, but I think the promotion was about clearing inventory. Inventory is debt. Debt can affect the ability to get financing. There was also some comments by PON that they wanted to improve Cervelo's distribution, which probably means adding/changing distributors.

Compsci523

It's sad how true that is.

Compsci523

That makes sense. My lbs sold over 40 bikes that I know of. I wonder if they plan to discontinue any of the models.

bianchi10

my LBS told me cervelo sucks all around right now. orders that have been taken months ago still haven't received their bikes. The guy who came up with this cervelo deal was canned.

Compsci523

Wow really? I got my bike in 4 days, I was one of the lucky few though. What do you mean they suck? As in their bikes or...?

Bacciagalupe

Actually, inventory is listed as assets, not debt.

I'd assume they just wanted to push the stores to clear out stock. I can see how that could be linked to switching distributors.

rangerdavid

get a Cannondale. The EVO with RED is just around $5000 and is an effin crotch rocket.




just sayin...........

bianchi10

No, not the bikes. Just the business, service and follow through. I guess there is a lack of communication within the company or something. Order a bike and they say X amount of time. Then they change it, then change it again...etc. I'm sure there are several people who have had great experience. This is just what I was told. I have no personal experience with buying or buying from cervelo

Compsci523

Oh maybe it depends on the LBS you buy from. Mine was fantastic in dealing with, oh god the questions I asked haha.

Compsci523

5000 is out of my budget as a student :S. Maybe when I graduate I can get that RXRS I drool about.

Mike F

+1. Wish it would have hung around until after taxes..

Garfield Cat

Your statement makes it sound like the canning is because of the deal. There might not be a direct correlation.

Garfield Cat

You have to take the "debt" statement for what it is. What might be said was that inventory starts to become a "liability" because its not turning over like it should to convert it to much needed cash.

jrobe

The problem with these Cervelo's is that they last forever. I am close to 40,000 miles on my R3 and it still looks like new. Can't justify a new one yet.

bianchi10

From what o was told, it was directly related. It was unorganized and not communicated well to many of the cervelo retailers. Again if I understand it right, cervelo had the discount deal, but there was no discount or kick back to the bike shop. This means the bike shop automatically loses profit since there margin just went way down.

njkayaker

I talked to a few shops and it appears this deal was bad for the retailers.

If retailers had stock, they bought much of it at prices higher than Cervelo was forcing them to sell at.

While the LBS's I talked to were polite to customers, I don't think any of them was happy with Cervelo.

I suspect that some LBS's will drop the brand.

Compsci523

Damn that's a hell of a problem. Hope I have that too!