Buying a bike on-line and wanting a local shop to do warranty service

[Scooteretti]

All, We are an ebike retailer and the issue that we normally run into is many of the manufacturers won't pay for labor on warranties and hence why we typically just charge a nominal fee to do the service for work for bikes not purchased from us. Unfortunately we still have the overhead to cover and customers have been happy with it and have converted into future customers. We also see the flip side where some dealers would actually be compensated from the manufacturers (parts and labor) and refuse to work on the bikes.

 

[Barry S]

I've enjoyed reading this thread as I hope to make my first ebike purchase in the coming months. My opinion is that ebike manufacturers should require a LBS wanting to be a dealer of their bikes to perform warranty service on their bikes regardless of where it was purchased. Now, I'm assuming that the manufacturer has an agreed reimbursement schedule with their dealers. If there is no schedule or written reimbursement terms then as a LBS I wouldn't sell the bike. I think the manufacturer also has a responsibility to refrain from selling their bikes direct to the public at less than MSRP, or at all, to protect their dealers. A manufacturer should also not make their bikes available to online dealers or big box stores for less than the LBS can buy them for. If I'm a LBS dealer for your brand, and you make the same bikes I'm selling available to Here-Today-Gone-Tomorrow-Bikes.com for less than what you're selling them to me for, I can guarantee you I'm going to drop your brand. Now, if the online dealer or another LBS dealer wants to discount the retail price to their customers that's their business. For the record, I'm very pro-LBS but there's a limit to my loyalty. The ebike dealers here on O'ahu that sell known ebike brands have starting prices of $2500 for something comparable to a Juiced CrossCurrent. The local Trek and Specialized dealers have their budget ebike offerings starting at $3k. There's one shop that sells some unbranded stuff under $2k, but I wouldn't touch it. To some, those prices may seem fine, but when the budget for your first ebike is max'd out at $2k, those prices are prohibitive. When you question why their price is HUNDREDS more than a LBS on the Mainland, they'll all say, "Well, we have to ship it here." Something tells me there were a lot of other goods on the container ship from CA than the half-dozen ebikes on your showroom floor. Yes, I can order an ebike online for A LOT cheaper than something comparable from any of the O'ahu LBSs until I get to that "Calculate Shipping" portion of the web form. It's either, "Shipping is not available to your area" or I get slapped with an outrageous shipping charge like Rad Power Bikes who wants $450 to ship a Rad Rover. Fortunately, there are a few vendors who don't view Hawaii as Antarctica and their shipping charges are much more reasonable. E-Glide Electric Bikes charges $175 and Voltbikes charges an additional $70 on top of their normal flat shipping rate. I think Juiced was $190, but don't quote me on that. Now, I've found a few offerings that inclusive of shipping stay below my $2k budget, but what if need service whether under warranty or not. Both E-Glide and Voltbike state in their warranty if they can't fix it by sending you a replacement part or talking you through it over the phone then they'll work with a LBS in your area to get it resolved. From E-Glidebike, "It rarely happens, but sometimes issues can arise during shipping. If any parts happen to be damaged during shipping, E-Glide will send a replacement part at our expense and will work with you or the bike shop of your choice to fix the issue. If the issue cannot be fixed, E-Glide will exchange the bicycle. For warranty issues, E-Glide will cover the cost of labor involved handling the warranty service within a 30-day period after delivery. We will work with, and pay directly, your local bike shop of choice. After the 30-day free repair labor period, the owner will be responsible for labor costs associated with warranty replacements." The question then becomes, can I find a LBS willing to work with E-Glide in such warranty matters, and is there a LBS that will work on ebikes they didn't sell for non-warranty issues? That's what I'm working on finding out right now. Regardless of what I discover, I think for me the choice is to go with a company who has a track record of making a valid effort at satisfying their customers post-sale. I may not find a LBS willing to work on an ebike they don't sell, but if the company that sold me the bike will send me the part and a link to a YouTube video that will walk me through the process of replacing it than I should be good to go. Personally and professionally, I think any LBS that turns away a customer because of the "you didn't buy it from me" attitude loses a potential future customer. Just my 2-cents.

 

[Dan Dialogue]

@Scooterelli, thanks for the insight. If the local dealer doesn't get reimbursed for the labor, then I certainly wouldn't expect them to have to eat the repair. I thikn for me and my LBS, it was more of the attitude they had about it. If they had been more polite about it, it would have been a better approach. @PCDoctorUSA, the manufacturers should agreed upon reimbursement rates for authorized dealers. Like you, I'm pro LBS but dang, my bike was $1800 more if bought locally.

 

[Scooteretti]

@dandialogue, I totally agree It's all how you talk and explain things to people. There's no need for any dealer to have an attitude but rather just to explain the facts and most people will be understanding from my experience here at Scooteretti. all the best, Will

 

[kiltym]

@Scooteretti, also thanks for participating in this. No question, you as a dealer, should not lose money on warranty work. That warranty was built into the price from the manufacturer, not the dealer (unless you offer something additional). The fact you are willing to not charge even your customers for warranty work when the manufacturer is not reimbursing you is quite generous IMO. So my question to you is, why is the relationship between dealer and manufacturer such that warranty work is not simply paid for by the manufacturer, like in most other industries? Is there no way the dealer network can get together and demand the manufacturers stand behind their warranty, and in turn, pay for warranty repairs. I am new to the bike "industry", but this seems to backwards it is a bit frightening. Seems to me the warranty offered by the bike manufacturer is basically meaningless. All that matters is what the LBS will do. Which at the end of the day is bad news for the customers.

 

[rich c]

It's my opinion that unless you operate a small business, LBS or any business, it takes a real leap to speculate on how they should operate their business. If they are still in business, they know what they are doing!

 

[kiltym]

I do in fact own my own business, and deal with warranty issues on our products. The thought of pushing the responsibility onto a dealer, and not reimbursing them, has never crossed my mind in 9 years. I didn't even think it was an option! And in reality, it shouldn't be.