terrymorse 

Trek will not discount online, of course. Because it doesn't need to, and doing so would hurt its brick and mortar sales.

Trek is a quality brand in the minds of consumers (second only to Specialized), and it has a decent network of (mostly happy) retailers. Its direct-to-consumer program includes the retailer in the transaction, keeping those retailers happy (or as happy as an LBS owner can be these days). Trek's program provides convenience to the consumer, without harming its established distribution channel. Win (trek), win (consumer), win (LBS).

prj71

So you named 2 brands out of how many that I listed earlier in this thread that are thriving? And there is nothing nor ever was anything prestigious about Litespeed or Kestrel. Just like everyone else...They designed (or copied) a frame and slapped on components from one of the big component manufacturers.

You need to quit living in the past. I sense a lot of "get off my lawn" in your posts.

https://www.theproscloset.com/blogs/...er-bike-brands

https://gearandgrit.com/direct-to-consumer-bike-brands/

tomato coupe

Good links. I didn't know that both my main road bike (Factor) and my wife's (Alchemy) have gone to direct sales.

Kontact

Who do you think Kestrel and Litespeed copied? The first all carbon frame and the first reliable ti road bike.

Koyote

All I know is that online bike sellers like Canyon are much more profitable than this company. Though I suppose that, if you're going for "exclusivity," you're on the right track. After all, I'd never before even heard of your saddles, much less ever seen one.

CrimsonEclipse

No not at all

I meant snide, rude, self inflated and no useful contribution.

Kontact

Wow. You really are a nasty person, eh? Mylittle company got slammed by Covid production delays. I only just got restocked.

Canyon should be profitable! They're selling the equivalent of a $14,000 bike for $11,000, but didn't need to shell out for the $4000 the dealer would get or whatever the distributor's margin is.

Kontact

Unlike all the rude people who don't even post about bikes and follow me around? Sure - I'm the jerk.

But I'm also the only person that recognized the problem a poster had with his Ultegra shifter and possibly the only person anywhere that developed a solution. Which I shared. Which is one of many examples.

So you are just another uninformed troll.

Koyote

If you're going to post your expert opinions and suggest that you're smarter than everyone at Specialized and Trek, you should expect someone to call you on it.

Kontact

I've repeatedly said that Specialized and Trek built empires from a whole series of wise decisions. I'm not like Trek or Specialized because I only make saddles. There is no comparison, unless you want to talk about the very beginning of either company.


When you overhear people talking about a football game, do you attack them for their Monday morning quarterbacking? It is amazing how offended you get about someone having an opinion you don't share. I hope you start getting treated similarly for having your own views.

Koyote

That doesn't offend me at all. But that's not what you're doing, whether or not you realize it.

CrimsonEclipse

You sure are better than everyone else.
Narcissistic and pedantic.

You represent all of the worst aspects of bikeforums.net

Do us a favor and leave this place and make it a better forum.

tomato coupe

If Canyon is selling the equivalent of $14k bikes for $11k, how is that "a race to the bottom"? It sure looks like the customer is coming out ahead on that deal. And, since this business model is also generating good profits for Canyon, why do you continue to insist that it's a terrible business strategy for other companies to emulate?

Kontact

What motivates people like you to seek out others that you have no connection with and insult them?

I'm a pretty chill person for the most part, but certain people will slam anyone who expresses an opinion they don't care for. Those folks set the tone - not me. I'm just responding in kind.

tomato coupe

As a general rule, if you find yourself saying "It's not me, it's everybody else", it probably means it is you.

Kontact

Because Trek has been a major player for 40 years, and Canyon is the newest flash in the pan. Trek owns a quarter of the market. Trek can ask and get $14k for a bike that another company would only get $11k for, or $800 for what another company gets $700.

Sustained higher prices that, instead of scaring off consumers, causes more of them to flock to your brand.

In contrast, all Canyon really has going for it is the value proposition. This much bike for this much money. Which is attractive, but only as long as there isn't someone else is doing it cheaper. Kmart did really well for decades, but then died because of Walmart. Now Walmart is struggling. That's the race to the bottom. Canyon is not the first company to do this. I forget the German company that was "hot" 8 years ago with a similar model.

It is both profitable and sustainable to not be the discounter.


In terms of consumers, there will always be bargain brands if that's what you need. But the benefit of sustainable brands is that they keep local bike shops running. Anybody from a small town knows how hard it is to get much done when Walmart comes to town and all the local specialty stores go out of business. Walmart doesn't really sell hardware, but suddenly there is no hardware store in town. Bike shops are kept going largely by bike shop exclusive brands. Having Trek in your shop makes people come in and buy things that they could have bought online. It keeps your service department open so all the weird junk Canyon does can be repaired. It gives consumers a place to even consider buying a ridiculously expensive bike from a really high end brand without the risk of sight unseen. And consumers get to participate in joining Trek fandom, if they wish, and buy a popular and slightly overpriced bike with massive name recognition.

It is absolutely true that when a product is priced higher, people believe they are getting more than they would from the less expensive product. That psychology makes a brand stable. Neiman Marcus, Audi, Lego, Disney, Ruth's Chris, Viking, Rolex, Tiffany's.

Kontact

If the majority of your posts are about people and not the topic, you probably aren't very interested in the topic. I think this stuff is interesting. I don't think you are interesting. But you don't want to talk about anything but me, or attempt to turn the topic into a weapon against me.

It's not like you and I happen to disagree on one or two things. You and your clones follow me around for the thrill of being awful. People used to have a sense of shame when they acted like that.

tomato coupe

I hate to break it to you, but providing the best value is a cornerstone of capitalism, as is the ever present possibility that someone will come along with something that offers better value. The idea that there is no future for a company that offers better value is pure silliness.

tomato coupe

Ummmm ... you just responded to my post (#88) that was about bikes, and right above this post is another one (#93) about bikes. But, I'm going to end it at that ...

Koyote

I just spat up my coffee.

You seem to believe that "the value proposition" is a triviality, rather than a huge market advantage.

And when "someone else is doing it cheaper," that's called "competition" -- which benefits consumers.

You seem to have little (or no) understanding of how a market economy operates...I'd figured that out a while ago, but this post (above) makes it very stark. And yet, you keep posting about these very successful firms as if you know something that they don't understand. Have you heard of the Dunning-Kruger Effect?

Kontact

I already addressed what benefits customers about having bike shop brands that stick around.

What you seem to not get is what happens to brands that don't have brand loyalty beyond price. Here's an old article about direct to consumer bike brands. How many do you think are still around?
https://www.bikemag.com/gear-feature...e-new-economy/

prj71

All of the DTC companies listed in that article are still around and doing well. Are you really that obtuse?

https://www.commencalusa.com/

https://us.yt-industries.com/

https://www.canyon.com/

https://www.diamondback.com/

https://spotbikes.com/

https://intensecycles.com/

Kontact

Who did Litespeed and Kestrel copy, again?

Koyote

You should take an introductory economics course. Seriously.

Kontact

You should try to post something that doesn't hinge entirely on calling me stupid.
Seriously.