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Recession hits the high end bike biz

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Recession hits the high end bike biz

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Old 04-29-09, 11:09 AM
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Recession hits the high end bike biz

That is if the two page inside cover spread in the Road Bike Action magazine issue that arrived in today's mail is any indication. Specialized is offering a factory sponsored $1200 rebate on its high end road bikes purchased at authorized dealers from May 14 through May 31.

Good things come to weenies who wait. Still, it ain't no Cervelo.
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Old 04-29-09, 11:17 AM
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What if I lose my job, will they make the payments for 8 months?
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Old 04-29-09, 11:20 AM
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Originally Posted by I_Like_Bike
What if I lose my job, will they make the payments for 8 months?
Half the idiot Road Nazis who would buy these stupid sleds don't have jobs in the first place.
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Old 04-29-09, 11:21 AM
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I picked up an S-Works helmet at lunch for %30 off. Cervelo doesn't make helmets. I think they should get a generic white helmet, slap a red "é" on it, and charge $250 for it.

On another note, some of the guys I ride with said Cadence on Hudson St. in the city is starting to rely on selling CAAD9's as their bread-and-butter. The downtown yuppies can no longer afford their Sunday morning lattes at Runcible and their Zipps.
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Old 04-29-09, 11:31 AM
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Originally Posted by patentcad
That is if the two page inside cover spread in the Road Bike Action magazine issue that arrived in today's mail is any indication. Specialized is offering a factory sponsored $1200 rebate on its high end road bikes purchased at authorized dealers from May 14 through May 31.

Good things come to weenies who wait. Still, it ain't no Cervelo.
I didn't read the article; what % is that $1200 rebate to the total purchase price?
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Old 04-29-09, 11:34 AM
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Originally Posted by MIN
I didn't read the article; what % is that $1200 rebate to the total purchase price?
Like 10-15%. The SL2 package (7900 or SRAM Red, Zipp 404 clinchers, etc.) is around $9K (including tax). That is their highest-end model, excluding Di2, which doesn't exist unless you are the manager of a bike shop.
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Old 04-29-09, 11:38 AM
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Originally Posted by patentcad
Half the idiot Road Nazis who would buy these stupid sleds don't have jobs in the first place.
what is a road nazi?
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Old 04-29-09, 11:42 AM
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Originally Posted by lxpatterson
what is a road nazi?
What is a fred? Why do birds suddenly appear every time you are near? What is the meaning of life?

It will all be revealed to you young Padaweenie. But only if you stick around. Whether that's worth it is highly debatable.
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Old 04-29-09, 11:44 AM
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Originally Posted by lxpatterson
what is a road nazi?
20 pages of answers: https://www.bikeforums.net/search.php?searchid=5950895
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Old 04-29-09, 11:54 AM
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Originally Posted by patentcad
That is if the two page inside cover spread in the Road Bike Action magazine issue that arrived in today's mail is any indication. Specialized is offering a factory sponsored $1200 rebate on its high end road bikes purchased at authorized dealers from May 14 through May 31.

Good things come to weenies who wait. Still, it ain't no Cervelo.
It also gives a data point about margins. Will they still make money at $1200 off?
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Old 04-29-09, 11:57 AM
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I got a flyer in the mail that had $1000 rebate but I can't recall the specifics. I'll look and edit when I get home, but yeah, it sounds like they're really trying to move some bikes.
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Old 04-29-09, 12:15 PM
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Originally Posted by patentcad
That is if the two page inside cover spread in the Road Bike Action magazine issue that arrived in today's mail is any indication. Specialized is offering a factory sponsored $1200 rebate on its high end road bikes purchased at authorized dealers from May 14 through May 31.

Good things come to weenies who wait. Still, it ain't no Cervelo.
Who cares?
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Old 04-29-09, 01:01 PM
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Originally Posted by patentcad
What is a fred? Why do birds suddenly appear every time you are near? What is the meaning of life?
Only John Galt knows for sure.
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Old 04-29-09, 01:35 PM
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Originally Posted by patentcad
Half the idiot Road Nazis who would buy these stupid sleds don't have jobs in the first place.
Please...come up with a better adjective than a word associated with genocide.
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Old 04-29-09, 06:25 PM
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Do you suppose that the $1200 rebate can be applied to any product by any manufacturer? (Careful, trick question.)
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Old 04-29-09, 06:38 PM
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Originally Posted by bostongarden
Do you suppose that the $1200 rebate can be applied to any product by any manufacturer? (Careful, trick question.)
Well if Bikes Direct would honor it they might owe me money.

Seriously, no.
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Old 04-29-09, 07:14 PM
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Originally Posted by bigtea
Please...come up with a better adjective than a word associated with genocide.
believe that's a noun.
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Old 04-29-09, 07:20 PM
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Looks like a Tarmac PRO SL for me then.

Last edited by Bifnasty; 04-29-09 at 07:29 PM.
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Old 04-29-09, 07:22 PM
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Originally Posted by bigtea
Please...come up with a better adjective than a word associated with genocide.
What word fits the idea better? Road Imperialists? Genocide was but one part of the National Socialist regime, and didn't have as much to do with the party's political ideology as it did with Hitler's personal anti-semitism; the term "road nazi" refers to this broader, control-oriented, dissent-quashing aspect of the political party.
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Old 04-29-09, 09:34 PM
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Originally Posted by lechat
believe that's a noun.
Grammar Nazi...
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Old 04-29-09, 10:49 PM
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Originally Posted by patentcad
That is if the two page inside cover spread in the Road Bike Action magazine issue that arrived in today's mail is any indication. Specialized is offering a factory sponsored $1200 rebate on its high end road bikes purchased at authorized dealers from May 14 through May 31.

Good things come to weenies who wait. Still, it ain't no Cervelo.
I went to Cadence NYC yesterday and they now carry Cannondale. They still have all of the other high end frames but it looks like they need to draw in the demographic that isn't spending $4000 on a frame.
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Old 04-29-09, 11:18 PM
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Originally Posted by bigtea
Please...come up with a better adjective than a word associated with genocide.
Why? Because it offends some people? Oh, no we can't have that? We don't want to upset anyone. F'em.

That is entirely their problem, isn't it? So this strongly suggests that it is incumbent upon YOU come up with the different term, and then convince the entire cycling world to use it.

Good luck with that.

After that you can come up with a term to replace 'Fred' and do the same. That should be even more fun.
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Old 04-29-09, 11:34 PM
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Originally Posted by patentcad
Half the idiot Road Nazis who would buy these stupid sleds don't have jobs in the first place.
Are these road Nazis?

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Old 04-30-09, 12:06 AM
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Originally Posted by sced
It also gives a data point about margins. Will they still make money at $1200 off?
dude....you have no idea. Mark up on most bike, even more so with the higher end bike is almost 100%..

ie...you pay 5500 for a Pro SL...the store are paying almost half that, don't worry, they get theirs.
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Old 04-30-09, 12:52 AM
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Originally Posted by Crash716
dude....you have no idea. Mark up on most bike, even more so with the higher end bike is almost 100%..

ie...you pay 5500 for a Pro SL...the store are paying almost half that, don't worry, they get theirs.
Actually, *you* have no idea. The standard markup for bikes is 40%, sometimes as low as %35.

P&A are usually around %100, so that's where the easy money is made in a bike sale.

Dealer cost on a $1500 bike would be somewhere in the neighbourhood of $900 to $1000. Now enter shipping, cost of carrying stock, floorspace, staffing to build the bike, staffing to provide warranty service, staffing to *sell* the bike, plus the fact that some bikes get sold at a discount at end of season.

Anyway, the initial question was about the store's margins being affected by the discount. A rebate from Specialized is *their* money, not the retailer's. The retailer will make their standard markup.
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