Online retailers?
05-12-05 | 10:57 AM
#27
Junior Member
Joined: May 2005
Posts: 6
Likes: 0
Originally Posted by willtsmith_nwi
Warranties ...
The LBS handles warranty issues with the local customer. In return they get exclusive distribution and a territory.
Very few people would want to buy a bike without ordering it. That means the product must be on a shelf near where someone lives. The LBS fullfills this job. In return, they get the territory and effectively a "warehousing" fee for making the inventory more accessible to the consumer.
If the bike shops didn't have dealership arrangements, they'd go out of business because Wal-Mart would then be able to sell their product. The end result would be crappy bikes for everyone. The bike makers realize this. Only startups will sell direct. Once they get dealerships, they'll no longer do this.
The LBS handles warranty issues with the local customer. In return they get exclusive distribution and a territory.
Very few people would want to buy a bike without ordering it. That means the product must be on a shelf near where someone lives. The LBS fullfills this job. In return, they get the territory and effectively a "warehousing" fee for making the inventory more accessible to the consumer.
If the bike shops didn't have dealership arrangements, they'd go out of business because Wal-Mart would then be able to sell their product. The end result would be crappy bikes for everyone. The bike makers realize this. Only startups will sell direct. Once they get dealerships, they'll no longer do this.
05-12-05 | 11:04 AM
#28
Junior Member
Joined: May 2005
Posts: 6
Likes: 0
Originally Posted by willtsmith_nwi
It's all in marketing. The local bike shop is staffed by people who can distinguish quality from garbage (Huffy). Without this distinction in the marketplace, the only selling point is PRICE. That is not what quality bike manufacturers want.
05-12-05 | 04:50 PM
#29
Fritz M
Joined: Mar 2005
Posts: 959
Likes: 0
From: California
Bikes: Trek, Spesh, GT, Centurion
Originally Posted by Huntsman
It's a bit short-sighted, IMHO.
Let's say all of the bike makers start selling online. Enthusiasts buy all of their bikes, gear, and shwag online. Trek, et al start see record sales. LBSs all over the nation fail because of their inability to compete except in some of the largest cities.
Ten years later, sales drop off dramatically. There are no new enthusiasts because there is not local bike shop for newcomers to get help at. Some people might watch an old TdF video and get pumped, buy something online and give up in disgust because the bike doesn't fit right or it's the wrong bike for the activity.
Music (and video): people know what they like, and "try before you buy" is very easy with all of the online radio stations and streaming audio providers. There's zero need for me to step into Fry's or Blockbuster to hear or watch a sample of a new album or video. The music and movie industry's failure to recognize this has only recently started turning around. Buying, downloading, and burning a CD is easy. You can't download a bike via the Internet and get expert help with it.
RFM
