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Old 05-22-07 | 05:49 AM
  #58  
dekindy
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Joined: Jul 2006
Posts: 2,418
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This might work out best for the LBS. Scheels sells a lot more bicycles but cannot service them properly. Buyers discover Albrechts and take their bikes to them for service. Albrechts does not have to carry inventory and sell bicycles at low margins. Albrechts even gets to charge for services that they normally do for free with a new bike sale. And when it comes to upgrading/installing higher margin components and eventually bikes, then Albrechts get the sale of a Giant, Specialized or other brand bike. Scheels does not meet Trek's expectations in sales and service and begs Albrechts to take them back. Albrechts drives a hard bargain and gets Scheels contract terms. What do you think?
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