Trek to start selling directly
 

Came across a story recently which mentioned that Trek will start selling directly to consumers. However, this does not mean that LBS's will be impacted. Delivery still takes place at the LBS.

This story is creating fear in bicycle shops. Read the comments at Trek to begin online bike sales ? Dealers will assemble bikes and get a service commission | Bicycle Retailer and Industry News . They are very worried.

Thanks,
Yan

i'm sure some bike shops will just drop the Trek lineup.

There is nothing that can replace Trek. It is the biggest bike brand in the USA. FYI every brand will follow suit by selling direct in less than 12 months. The shops will have to live in fear for a while.

Thanks,
Yan

Giant maybe following:

Giant USA 'studying' online bike sales through dealers | Bicycle Retailer and Industry News

Raleigh USA tried this about 5-7 years ago. Don't think it worked out so well. What happens with returns?

There are lots of good bikes out there. I don't think Trek bikes are USA made anymore. The family bike market is the big bike market for bike shops. Bike shops will have less Trek inventory and more inventory of the other makers. Buyers want to see, feel, touch and ride out of the shop on their new bike the same day.

Trek is supposedly charging 6k to get setup online plus 3k per year. I would guess returns are the dealers problem.

Thanks,
Yan

Sounds awfully stupid to me, part of me think a lot of parents really enjoy taking their kids to buy a bike and the reactions of the kids when they get to choose one. Can you imagine when that is gone and the kid is at home clicking a mouse to buy a bike.

Some Internet bike shops have ignored bike company policies against shipping bikes so Trek is giving way to the inevitable.

The bike company policy meant to protect dealers have ended up hurting them because they cannot profit on a sale that comes through their shop.

And the bike company itself passes up a sale because consumers cannot buy what they want online.

When Bikes Direct and other online stores offering shipping either to one's home or to one's local bike shop, the irrational insistence of bike companies not take advantage of everything their online store could offer is ultimately self-defeating.

If people can't buy from you, they'll buy elsewhere if you insist they can only pick up your purchase at a dealer even that's not always convenient for them. The old adage is true here: the customer is always the boss.

Diamondback sells through Amazon. Its been very successful for them and people are happy they can buy a bike they want online with few hassles. I picked up my Schwinn from a bike shop online about couple of years from Michigan and in the past year I bought my Marin from eBay.

Bike companies can either accept people are going to circumvent their ban on online bike sales or they can give them what they want. As I said, people don't need to be protected from themselves.

Fender stirred the pot in the guitar world last year when they started doing the same thing, and it's worked out pretty well for them so far.

I have seen several large manufacturers cutting out dealers in favor of direct sales lately.

QBP has now abandoned the direct sales model, ostensibly to protect dealers.

When they begin losing sales, they'll reverse their new policy.

So, what is the general consensus? Better or worse for consumers?

I was told by a guy who is the Trek distributor to a major group of Countries about the impact on him. He welcomed it because he will receive a large percentage of compensation on the sales online. This includes all of the Trek group of companies including Bontrager. Don't worry, the smart retailers will be able to carry on. He told me another interesting thing. It is cheaper to buy 100% of his shimano stock from Chainreaction, as they pay 20% less wholesale than any other shop in the world.

I may be mistaken -- UK forum members might correct me -- but I believe that Trek is following, at least in part, the model established by Giant in the UK? Not unique to Giant, but it might be the first of the 'big three' into this 'hybrid' (!) sales set up.

Buyers in the UK have the option of selecting/ordering/paying for a bike online, and then arranging to collect at a Giant dealer or have the bike delivered to a home/other address for a small fee. In either case, the dealer still unpacks/sets up/safety checks the bike etc.

Giant's UK website is completely set up for this; I'd imagine that's why, for example, it includes a pretty good 'sizing guide' for each frame model.

If there have a sizing chart that works, children will get a perfect bike for their body, and a wonderful new experience. Does it have to be the same as yours? FYI I never had such an experience.

Thanks,
Yan

[QUOTE=giantcfr1;18067981 He told me another interesting thing. It is cheaper to buy 100% of his shimano stock from Chainreaction, as they pay 20% less wholesale than any other shop in the world.[/QUOTE]

Thanks for this info...did not know about them.

Yan

It gives the consumer more options, hence it must be better. However shops are in fear, non-Trek shops are worried they will not be able to compete, and Trek shops worry that Trek will take over their business eventually.

FYI the industry prefers inefficiency....it has grown accustomed to it.

Thanks,
Yan

IMHO, some will like not having to go to the bike shop. Others like myself will be "why bother" as I want to have some hands on time. Plus, if I buy something online, I expect a "deal", as overhead is much lower. If I'm going to buy a bike online, I have incentive to do so from Bikes direct, or Amazon, or eBay, as I will save $$$ and get is delivered where I want it delivered. None of this applies to a Trek bike. The argument of having to checked over by the local dealer will sway a few, but most people that are competent enough to get what they need online, will have no issues doing finally assemble and checks on an internet bike.

QT

I've had no issue with bike fit.

As for workmanship, that's covered by the warranty and in the unlikely event the frame falls apart, I just would get a new bike at no cost.

So I'm perfectly aware of what could arise in an Internet transaction and I've been a happy customer.

I buy what I want without some pushy salesman telling me what I need.

Direct sales is the future and LBS simply cannot turn away customers who ship a bike they've bought to their store.

Not so good for their sales staff but it makes their mechanics very happy to get that business.

I think overall this will be better for consumers. It is more efficient and that is better for the manufacturers, so it will probably be better for Trek. I don't know enough about how it will affect the average LBS to know whether or not it will help them, although I speculate that seeing as most of them make more money off of service and parts that it won't affect their bottom line negatively. It also has the potential of reducing the amount of inventory they have to keep on hand.

There will always be a percentage of people who aren't sure what they want and will desire to touch and feel (and ride) a few different bikes before they purchase them. These aren't the people to whom this type of selling is targeting. I speculate that those types of people will take the traditional route and select a bike from what's currently in stock at a dealer.

Then there are the types (of which I am one) who do a ton of research before selecting a bike and know exactly what they're looking for, including size and geometry. For people like us, the LBS rarely has the exact bike we want to purchase in stock anyway, so ordering the bike sight unseen is typical. This new direct sales model has the benefit of allowing Trek to compete more closely with other online retailers.

I can see more and more companies taking this approach in the future. The younger generation has grown up with online purchasing being the norm rather than the novel recent innovation us old geezers perceive it as. To them purchasing direct will seem like a very natural process.

I can also see car companies/dealers moving to to this type of sales approach as well.

No you jerk it does not have to be the same as mine.

Agreed. It allows for flexibility since if the original bike isn't stock, the online store will usually let one place another order.

Plus, a customer can track delivery via UPS. What's not to love?

You're not bringing up similar examples. This (the Trek program) is different from direct to customer sales which eliminate the bike shop.