Direct to consumer-bypass the local bike shop? This will become a long thread

[GuruUno]

Recently there have been several articles posted on multiple sites about the new specialized bicycle methods for selling direct to consumers. I can show the different links that describe the story in detail or take the time to summarize it here which I may do in future replies to this thread however I was trying to get some general consensus of the members of this forum as to what their thoughts are specific to the way that specialized has somewhat abandoned their dealers.

Being on vacation and shipping my Volvo SL 5.0 and going to a local bike shop in Fort Lauderdale Florida I could sense the mood when I had the discussion with one of the people working there as to what their feelings were. The bottom line is they are pissed off and they are not happy.
As an example I continue to ask and call specialized if not weekly through phone calls and leaving messages to get answers to questions about service questions about specific things that I need to understand before I rely upon a dealer to assist me in taking care of questionable items that need to be addressed specific to a clicking sound of function away of something operating or not operating and the bottom line is I want to be an educated consumer before I’ve rely upon the actual person in the dealership wherever it may be that they are going to know exactly what it is that the process is to resolve or will they have to get on the phone and contact the specialized support people and wait for phone calls to be returned if ever or do they have a special phone number.
nobody ever calls or replies to any inquiries.
I don’t wanna get off topic here and I don’t wanna make this too long-winded however I had asked about what the prognosis was for ordering the new IGH with carbon belt Vado. I was told that rather than try to ask a dealer to put me on a waiting list or order one for me even though I might have to wait for a year they said you’re better off going on to the website for Specialized and trying to place a order there or call them to be on a waiting list and they will fulfill your order before they will ship to local bike shops. Basically I was told that if no orders were sold through the online process after six months rather than sitting on the inventory then Specialized will release the bikes to the local bike shops to be sold at those local bike shops.

So this may be a double edged post that I don’t want to deviate from but what is the general consensus of the supporter of specialized bicycles by purchasing and believing in the company and then having them turn around and kind of ““ abandon the LBS ?

 

[Stefan Mikes]

As a Specialized supporter, I will simply say I don't like the change.

 

[GuruUno]

One of many reference articles

Why did Specialized decide to start selling online now?

ARNHEM, the Netherlands - The announcement last week that Specialized starts to offer online bicycle and e-bike sales and distribute directly to the consumer was to be expected. The question was: when will the American brand decide to launch this new service and why then? Koos de Boer, of...

www.bike-eu.com

 

[TYJ]

One would certainly hope that Specialized thought about how they would continue to provide solid support to customers if they piss off their dealers. If not, it will be their demise.

 

[GuruUno]

Just another reference

Specialized 'Ship to Home' option is now live, plus more consumer-direct sales details!

As rumored, Specialized is introducing a new way to get your hands on their bikes—one that doesn’t require leaving your house. There are still some…

bikerumor.com

 

[BEC111]

I’ve put in two cents elsewhere, but this could be a better place as what’s going on with Specialized is only one aspect of the changes in the bicycle industry. Here are some thoughts.

The traditional LBS based model has been challenged by the internet based direct to consumer model. The recent explosion in sales and the challenges of extremely dispersed supply and distribution chains has made supply for smaller dealers, often away from cities, problematic.

In my suburban area the closest Specialized dealership has been purchased by Trek. If I want to buy Specialized bikes and, ultimately, services at a retailer I have to drive 35 or 40 miles. There is no safe route by bike. Even if there was, riding a century to get maintenance is excessive.

As their dealer network is experiencing attrition due to competitor acquisition and online sales, Specialized has decided they will be able to maintain their market share by expanding and improving their direct sales platform. (That this will mean that Specialized will need to have excellent, responsive customer support is for another discussion.)

Trek’s strategy is market capture by dealer acquisition and strong, all but exclusive, independent dealer relationships. I haven’t seen a Giant bike at a nearby dealer lately, so they may no longer be a player locally. There are a couple of Cannondale dealers in the area, but even if they stock a few ebikes the focus is on analog.

Here in Loudoun County, Virginia it is possible that the only reliable source for new bikes not made by Trek will be online. This is especially the case for people who don’t have a bike rack to mount on their car and don’t want to spend $1000 for one that will hold their brand new multi-thousand dollar 70 pound ebike for the ride home.

I’m certain that a version of this story is occurring all over the USA and around the world.

 

[Allan47.7339]

Just another reference

Specialized 'Ship to Home' option is now live, plus more consumer-direct sales details!

As rumored, Specialized is introducing a new way to get your hands on their bikes—one that doesn’t require leaving your house. There are still some…

bikerumor.com

Reading the comments in Bike Rumor is like reading Lord of the Flies. If pneumatic tires were a new thing they would be complaining about the idea of using air.

I would never have a bike shipped direct to home when I can have it sent to my favorite shop for setup. If anything is wrong with the shipped bike they can take care of it before you pick it up. I can easily do all of the setup at home but I don't like doing wheels. I'm also in a area where driving 25 miles to pick up my size Creo seemed like a long ways to go for a shop. I can only imagine the rants of people who have an e-bike sent to home and can't figure out how to set it up. Just look through this forum for some examples even with shop setup.

I don't know if shops make more revenue on new sales or if it's on service and accessories. Typically when I go into my favorite shop the bike sales floor is empty and everyone is at the service area.

 

[Jim in Central CA]

I had not heard about this before reading this post so this is a surprise to me. I guess I understand why Specialized is doing this, but I hope their support for their LBS network remains strong. On one hand, I am sure competition for sales is intense and Specialized does not want to be left behind as customers move from brick-and-mortar to on-line purchases. Specialized probably must do this to remain competitive in today's marketplace, and you can see what happened to Sears/K-Mart as an example of what happens to businesses that are left behind. However, with that said, the market for bicycles is not the same as traditional retail, and I believe customers looking to purchase a bicycle are interested in more than just a self-serve business model. Buying a bicycle is not like buying a new pair of pants. The cost and expected long-term durability of the products is dramatically different, and I believe customer expectations are as well. Speaking only for myself, I have been tinkering on and tuning bikes since the 1960s, and I consider myself to be fairly competent at it, but just as with my automobiles today vs. 45 years ago, I no longer just tear in to my Vado 3.0, primarily because I don't want to screw it up. I have neither the necessary experience, nor all of the proper tools to work on my e-bike, unlike my traditional bikes of decades past, and I think I am probably representative of the vast majority of people in the market for bicycles today. And certainly the majority of people looking to purchase e-bikes. I rely on my LBS for expertise and guidance and I hope Specialized understands that and maintains a strong LBS network for their products in addition to their on-line purchase/delivery option.

 

[Allan47.7339]

I notice the announcement specifically excludes electric bikes.

Some Specialized dealers say they'll make the most of it

ASHEVILLE, N.C. (BRAIN) — Kent Cranford, the owner of Motion Makers bike shop here, said the more he thinks about Specialized's new consumer-direct sales channel for bikes, the more accepting he is.

www.bicycleretailer.com

Specialized to add consumer-direct sales on Feb. 1

MORGAN HILL, Calif. (BRAIN) — Specialized Bicycle Components will begin direct online sales of bikes to U.S. consumers next week, adding a “Rider Direct” option for the purchase of non-electric bikes from its website.The company held Zoom calls with retailers on Thursday to go over the details...

www.bicycleretailer.com

 

[scottsdalecommuter]

Interesting change, I told my wife I would take a shot at assembling her new ebike and she laughed and said nope! I talked to local bike shop owner and he said he would be happy to have his mechanic put it together for a nominal fee and just said to ship it right to his shop which was nice of him! Does seem like a good way to get inventory to the folks that want the bikes rather than trying to figure out how to allocate it among bike shops, for example someone in Portland wants bike and shop is sold out but dealer in Phoenix has 3 in stock without buyers, almost like a demand smoothing

 

[gpburdell]

I notice the announcement specifically excludes electric bikes.

Some Specialized dealers say they'll make the most of it

ASHEVILLE, N.C. (BRAIN) — Kent Cranford, the owner of Motion Makers bike shop here, said the more he thinks about Specialized's new consumer-direct sales channel for bikes, the more accepting he is.

www.bicycleretailer.com

Specialized to add consumer-direct sales on Feb. 1

MORGAN HILL, Calif. (BRAIN) — Specialized Bicycle Components will begin direct online sales of bikes to U.S. consumers next week, adding a “Rider Direct” option for the purchase of non-electric bikes from its website.The company held Zoom calls with retailers on Thursday to go over the details...

www.bicycleretailer.com

Correct. Specialized had been offering "Specialized Delivery" or "Pick-up In Store" for ebikes prior to this announcement -- while I'd not used either I'd seen them on the website weeks ago.

The new add is shipping conventional bikes direct to home in a nearly complete state. Wheels, seatpost, handlebar, pedals. See How to assemble your road or gravel bike | Specialized Assembly Guides - YouTube

Seems pretty convenient if someone doesn't have a dealer nearby or doesn't want to wait for dealer delivery.

When I mocked up an order, pricing was the same between the three options, so someone who isn't already well versed in bike mechanics would have no financial reason not to have the bike set up by the dealer in either the dealer-delivery or pick-up models.

 

[BioWheel]

Does anyone know how new bikes arrive to the Specialized dealer under the current plan? Does the LBS get parts and do the assembly at the shop or is it mostly assembled already? I have to say my VadoSL was put together perfectly it seems to me. Even little things like the tire decal lined up with the valve stems. I've never even had to tighten a screw! I'm confident if the bikes are 95% pre-assembled I could take it the rest of the way. But I would miss hanging at the LBS.

 

[rochrunner]

I notice the announcement specifically excludes electric bikes.

I would guess that the reason for this is that there are strict regulations on shipping the batteries. For example, when they ship the regular Vados, the batteries are removed and shipped in a special container that meets the specs. But with the SL models with the internal batteries, they ship the entire bike in an explosion-proof container, which is not cheap. Meeting regulations to ship a single bike to an end customer is probably just not practical.

An additional note is that, at least in my area in the USA, Specialized is also buying up LBS stores and chains. That's practically the same as direct online as far as where the profits go. The shop that my SL is on order with is now directly owned although you'd never know it since they kept the same name and most of the same employees. Another local chain was approached but turned them down.

 

[Nubnub]

Does anyone know how new bikes arrive to the Specialized dealer under the current plan? Does the LBS get parts and do the assembly at the shop or is it mostly assembled already? I have to say my VadoSL was put together perfectly it seems to me. Even little things like the tire decal lined up with the valve stems. I've never even had to tighten a screw! I'm confident if the bikes are 95% pre-assembled I could take it the rest of the way. But I would miss hanging at the LBS.

From the Brain article referenced sounds like there are two ways a bike can be shipped. A smaller box with all the parts that the dealer would assemble, Then a larger box if you chose to have the bike sent to your home. In the latter case, the bike is fully assembled, adjusted and test ridden. Then wheels, pedals, saddle/seatpost and possibly handlebars are removed. This goes in a larger box shipped direct to the consumer. See the links in post #11 above.

Haven't spoken to my local LBS yet, but this seems like a win for me and maybe them. Bikes are in short supply and seems unlikely my LBS will get the model/size (and less important color if an option) that I'd want to buy. OTOH, at least occasionally a bike I'd want shows on the website as available for home deliver or delivery to my local shop. These get snatched up fast. In the case of home delivery - the dealer is cut out of the sale completely - I have to do the partial assembly but possibly get a plastic torque wrench out of it. Spec gets all the dealer margin.

In the case I have delivered to my bike shop, they have to fully assemble and adjust the bike, I go to them and pick it up. They get 50% margin of a bike that they didn't have in stock/allocated to them. I don't get the torque wrench . If I opt for the white glove approach, the dealer gets 75% of the margin with the additional burden of doing the fit and delivery to my home. This is probably what I would work out with my LBS. I'd still pick it up so they get the extra 25% margin.

I can see why LBS might not like this approach. But for a small shop that can never get all the bikes they could potentially sell it may be a plus. If a customer such as myself who prefers to support a specific LBS finds the bike online, it can be delivered to that LBS and they get a (partial) sale that they wouldn't get if Spec doesn't ever allocate them that bike. The alternative if I really want the bike is I buy it somewhere else and again my preferred LBS is cut out. OTOH a big chain like Mike's Bikes used to be able to get very large allotments of bikes and would have a wide range of sizes/colors when they received their shipments. They could move them around between stores as well as having a relatively large availability of stock in their warehouse. It's likely Mike's would have been less than pleased with the online sales models.

As far as service, I "think" my LBS would honor Specialized warranty claims. They would also work on bikes not bought thru them (someone has to people move all the time). In talking to the Specialized Experience Center in Santa Cruz - Specialized would also be providing mobile service in the SF bay area. Sounds like you meet them at a coffee shop and they work on your bike and provide you with a free cup of coffee. Time will tell if this comes to fruition and if it will be sustainable. There are several other mobile bike service options in the area so that is always an option as well if the LBS for some reason won't work with the online sales model.

In the end service isn't that big a concern for me - the only thing I can't do is firmware updates and from what I can tell -the updates haven't done much positively or negatively to the bike's performance.

I'm still deciding on Tero vs Vado 5.0. Once either shows up online I'll probably visit my LBS to get their thoughts. This does bring up one disadvantage for me in buying online. I will need to get rid of one of my bikes. The bike shop uses Bicycle Blue Book values to accept trade-ins. While the value is prob less than I would get private party - it is convenient - so worthi it for me.

 

[tomjasz]

Specialized is showing their true colors and proving they are not any better than Rad or their ilk.

 

[gpburdell]

Haven't spoken to my local LBS yet, but this seems like a win for me and maybe them. Bikes are in short supply and seems unlikely my LBS will get the model/size (and less important color if an option) that I'd want to buy. OTOH, at least occasionally a bike I'd want shows on the website as available for home deliver or delivery to my local shop. These get snatched up fast. In the case of home delivery - the dealer is cut out of the sale completely - I have to do the partial assembly but possibly get a plastic torque wrench out of it. Spec gets all the dealer margin.

In the case I have delivered to my bike shop, they have to fully assemble and adjust the bike, I go to them and pick it up. They get 50% margin of a bike that they didn't have in stock/allocated to them. I don't get the torque wrench . If I opt for the white glove approach, the dealer gets 75% of the margin with the additional burden of doing the fit and delivery to my home. This is probably what I would work out with my LBS. I'd still pick it up so they get the extra 25% margin.

I can see why LBS might not like this approach. But for a small shop that can never get all the bikes they could potentially sell it may be a plus.

So I'll begin with saying I'm not familiar with the bicycle sales model in terms of whether the dealers have inventory on spec or whether they've had to pay for their inventory. If the latter, they're paying whatever their cost-of-capital may be to hold bikes sitting on the sales floor. Depending on how long they're sitting on a model they end up with less margin than a website-order reduced-margin sale.

I do get that website inventory is a take-away from dealers ability to have onsite inventory. On the other hand let's say I want a Vado 5.0 in size Small and color Red and don't want to wait several months. I could drive five hours round-trip to the dealer showing it in inventory whom I will never visit again, or I could order it for pickup/whiteglove at my local dealer whom I wish to support.

Fast forward however long until supply chains recover and dealers have more stock. Let's say I want a Diverge E5 or whatever and I see that it's available on Specialized's site and it's available locally. The cost is the same whether someone else puts it together for me or I put it together myself. Other than if I lived a long distance from a dealer why wouldn't I choose the Pickup or Specialized Delivery options? Not to mention lots of people really aren't all that savvy about bicycle buying and want the help of the LBS.

Just my gut feeling but I suspect this policy will have less impact on dealers than perhaps many fear.

Plus, if I were a salesperson helping someone and I didn't have their size/model in stock I'd check Spesh's website and if in stock there I'd suggest they get on their phone and place their. order for store pickup.

As far as service, I "think" my LBS would honor Specialized warranty claims.

I would be *very* surprised if one couldn't get warranty work performed at any official Specialized dealer.

I can assure you that should I encounter a dealer that refused to perform warranty work on that brand if not purchased there, they'd never see my cross their threshold again. (I'd get it if they prioritized bikes bought there, but a flat out refusal would be a hard stop)

I'm still deciding on Tero vs Vado 5.0.

I'll go you one better... Tero vs Vado 5.0 vs Vado SL 5.0

I'm just not really all that sure of exactly what I want to do with the thing. I'm hoping it'll become more clear as the weather warms and my wife does more riding of her ebike with my tagging along on my conventional hybrid. Already have a nice (non-e) road bike for when I want a good workout.

 

[Stefan Mikes]

I'll go you one better... Tero vs Vado 5.0 vs Vado SL 5.0

Just think if you want a heavy but powerful or lightweight but far less powerful e-bike (I own both so can choose between them).

 

[gpburdell]

Just think if you want a heavy but powerful or lightweight but far less powerful e-bike (I own both so can choose between them).

Trouble is, I’d rather have both powerful and lightweight, and am just not sure which of those two aspects I’d rather have over the other.

I suppose if I had to choose today it’d likely be the Vado, removing fenders and switching to a Topeak MTX rack. That’d roughly match my existing hybrid but would allow for riding around without it being a workout if I didn’t want it to be.

Yet I needn’t choose today, so I’ll continue to watch and wait.

 

[fooferdoggie]

Trouble is, I’d rather have both powerful and lightweight, and am just not sure which of those two aspects I’d rather have over the other.

I suppose if I had to choose today it’d likely be the Vado, removing fenders and switching to a Topeak MTX rack. That’d roughly match my existing hybrid but would allow for riding around without it being a workout if I didn’t want it to be.

Yet I needn’t choose today, so I’ll continue to watch and wait.

once batteries advance you can have that.

 

[kahn]

Trouble is, I’d rather have both powerful and lightweight, and am just not sure which of those two aspects I’d rather have over the other.

I suppose if I had to choose today it’d likely be the Vado, removing fenders and switching to a Topeak MTX rack. That’d roughly match my existing hybrid but would allow for riding around without it being a workout if I didn’t want it to be.

Yet I needn’t choose today, so I’ll continue to watch and wait.

I chose lower weight and chose the Creo. I knew I wanted to be able to put it on a bike rack. I knew it needed to go up a three sets of steps to my house. Not huge steps but three series of steps. I knew it was a bit less powerful than my custom titanium that was converted to a front hub motor and went back for a second test ride to see how that factored in. Now I did go for the aluminum version more due to carrying capacity for a rack/panniers than due to price. But I can lift it onto my Kuat rack and can get it up those steps.

And, yes, if batteries improve weight or distance capacity I hope that I can afford to follow.