Originally Posted by
Squeeze
So Raleigh corporate makes the sale and takes the profit, and their dealers have to assemble bikes that they made no money on?
I've been suspicious of this whole deal since I first clicked the link in some other thread at this forum (it has been widely discussed) and was asked for personal information before seeing any bikes or prices.
It sounds like a data harvesting operation to me: they sell bikes at dealer cost (my guess) to maybe 10% or 20% of people who create an account, but gain data for future marketing and to sell to other marketers for everyone who is curious enough about prices to go through the registration process at their site.
If the parent company is already selling bikes at dealer cost and lets a few slip out the door directly to customers in exchange for thousands of marketing contacts, what's the harm?
Nothing, I guess, except the local dealers must be highly upset...IF my assumptions are correct, which they very well may not be.
Just some random thoughts here. I have nothing against Raleigh (I own one), and I'm glad to see people getting good deals, but the whole thing just smells fishy to me, somehow.
Raleigh pays the dealers $125 or $150 to assemble the bike. I know this because I was looking at ordering a willard, and my mom insisted on putting some money in for christmas and my birthday that's a few days after. So she ordered, and I would pay her back. Except she had the bike delivered to her house(we're pretty rural, nearest dealer is 90 minutes away). I had her call Raleigh, and change they were able to change the delivery address, so the shop would put it together.
Shop said, 'sorry, we didn't get paid for this order due to the address change-we won't assemble for free.'
So they aren't COMPLETELY screwing over their dealers.
I will say I liked the shop a lot, and wouldn't hesitate to go there for service(were I closer). I don't blame them for not wanting to work for free. Especially for someone 90 minutes away that is unlikely to be a repeat customer.
Originally Posted by
mstateglfr
Looks like something did give- brick and mortar retail. If shops are shutting down in droves, then that is what gave.
There has to be some value to a B&M to be worth paying more than online. If I go into a violin shop looking to spend $1500, I can play a half dozen $10,000+ instruments, and see what makes a great instrument. Then play 20 in my budget. Take home 2-4 for a week or two. Figure out my favorite. Buy that. That's worth the $300/25% markup from online.
That isn't really the case for LBS's.
'but but test rides' yeah yeah. Firstly, I'm 6'5". I'm a special order that needs to buy the bike in advance anyway because the LBS isn't going to buy one that's going to sit in inventory for who knows how long. Secondly, riding 10 minutes around the block isn't terribly representative of anybodies riding over the age of 12.
Having tubes available that day is important, but after being charged 3x more than amazon, I keep several extras in the shop.
Originally Posted by
Barrettscv
I'm not sure how the local Raleigh dealer benefits, if they do at all.
Many companies target the internet buyer as a separate market from the retail buyer. I have many bikes, none have been purchased at retail. I almost never like the selection at retail in any event.
Yeah not carrying and cross/gravel/touring bikes at all(or not in my size) when I've gone shopping makes me less than sympathetic towards LBSs. I get that inventory costs, and depreciating model years and sheer floor space restrictions make it difficult. But if I'm buying blind, I'll buy cheaper online or through REI/Performance Bike due to their return policies. And just use my favorite LBS for service.