Odd..Mike's Bikes had orders cancelled by Specialized ???

[GuruUno]

Got this e-mail today, sharing.......
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For over 20 years, Mike's Bikes maintained a close partnership with Specialized Bicycles. We've built a strong business here in NorCal and beyond, as both of our companies have grown together.

A few weeks ago, Mike's Bikes was acquired by an amazing family-owned company in Amsterdam, and we couldn't be happier. Upon learning of this, however, Specialized abruptly terminated their relationship with Mike's. They later notified us that they would also be canceling the orders of over 400 customers who had bought and paid for their bikes in advance. They further informed us that as of October 31, they will no longer provide manufacturer warranty support through Mike’s Bikes for the many thousands of Specialized bikes that we’ve sold.

It is unfortunate and extremely disappointing that our Specialized customers are being affected in this way. This is definitely not a situation that we wanted or expected.

Our Wheelsmith Tech Departments will still be able to provide the same professional service on Specialized bikes that we offer on every other major bike brand, but for Specialized customers who need support through the manufacturer's warranty, we encourage you to contact your closest authorized Specialized dealer or to reach out to Specialized rider care directly at (877) 808-8154 or www.specialized.com/us/en/ridercareform

To our customers impacted by Specialized's cancellation of your order, we are reaching out to each of you directly to help find an alternative bike from other excellent bike brands that support us. We will work our tails off to help you find a replacement bike. If you decide to cancel your order at Mike’s and order a Specialized bike elsewhere, we totally understand, and we will issue prompt full refunds.

Looking forward, we’re excited to be able to offer a broader selection of brands in both equipment and bikes. Over the next few weeks, we will announce new partnerships with some of the best brands in the business, and we’ll be offering you more options and more selection than ever before. In the end, nothing has changed at Mike’s Bikes. We continue to be fully dedicated to helping you get the most out of your ride.

We really appreciate the support of our loyal customers, over the years and today in times of change.

-The Mike’s Bikes Team

 

[ava1ar]

Odd move by Specialized for sure...

 

[matt-h]

I've not been thrilled by the post sale support that my household received from Mikes Bikes (on a turbo Creo), and had mixed experiences on other support in the past (some great, some not so good). So I'm hoping for a local shop with a more responsive service department. That said, the way Specialized played this appears to be in bad faith, at least in that many people with legit orders may be kicked from the queue. Bad behavior all around.

 

[Stefan Mikes]

We don't know anything about the past relationship of the new owner with Specialized. It would be good to know the whole story.

 

[ava1ar]

We don't know anything about the past relationship of the new owner with Specialized. It would be good to know the whole story.

It is European company, isn't it enough?

 

[Mulezen]

To some extent you can’t blame Specialized IF they perceive the new overseer as a competitor, yet this established chain is the rock of their Northern Ca. Business. Is Specialized‘s abrupt reaction the spite of a rejected suitor? If so they will lose sales while competitors like Gazelle get a leg up. Also it invites a in heavyweight like Trek. The current supply chain issues work in Specialized‘s favor But 400 paying customers unceremoniously dumped…where’s the logic in that?

 

[ActionJackson]

If you read on Wikipedia Specialized is a serial litigant for all kinds of things. I have a Dutch friend who said the Specialized founder was hooked hard by a tranny in an Amsterdam brothel after trying out a bit of Lebanese hash. Maybe he still carries a monkey on his back from that.

 

[ActionJackson]

But 400 paying customers unceremoniously dumped…where’s the logic in that?

Exactly- not a great way to do business. However we don’t know that they didn’t reach out to them and offer another place in line with a different shop.

 

[Stefan Mikes]

It is European company, isn't it enough?

European or not, what does it matter? Interestingly, the European Specialized Distributor is located in the Netherlands as well.

 

[Rincon]

The European "family" that bought all 12 Mike's Bikes locations is the Pon Group. They own Univega, Focus, Raleigh, Kalkhoff, Gazelle, Cervélo, Juliana, and Santa Cruz Bicycles. The family business is also the Dutch distributor of Volkswagen, Audi, SEAT, Škoda, Lamborghini, Bentley, Bugatti, Porsche, MAN, and Caterpillar. Their annual revenue is about €7 billion.

Specialized has reached out to the affected customers, new and old. I've read their email. They lost 12 dealerships in a single geographic market to a well funded competitor. I don't blame them for the scorched earth policy. I've personally had to terminate rogue dealers who went over to the dark side. (Not cycling.) It isn't fun, but Specialized will regroup and make it up to their customers. They're already working on it.

 

[jimk]

A similar thing happened here. A well established, multi location, privately owned Specialized bike shop was purchased by Trek. I’m sure the owner was offered a price that was too good to refuse.

 

[ActionJackson]

One thing I fail to understand is how dealers in the U.S. are still permitted to require 100% payment prior to the order delivery. That’s stone age.

 

[Rincon]

One thing I fail to understand is how dealers in the U.S. are still permitted to require 100% payment prior to the order delivery. That’s stone age.

I’ve never had to pay 100% before delivery. Deposits are negotiable.

 

[TrailSeeker]

they will no longer provide manufacturer warranty support through Mike’s Bikes for the many thousands of Specialized bikes that we’ve sold.

This is the part that I don't like... even though it's a different brand they could still do something for the old customers that already used Mike's. The new company could've carried over the warranties or offered equivalent ones through them (obviously they aren't the same manufacturer but they could do the equivalent from their product lines or parts and servicing)

 

[ActionJackson]

I’ve never had to pay 100% before delivery. Deposits are negotiable.

That’s the issue - consumers shouldn’t have to negotiate a reasonable deposit. Actually here in Japan deposits are not usually required- you only get charged upon local shipment or delivery. Often after I’ve received the product. I think Europe is similar. I had to put an approximate $2500 deposit on my Porsche 911S a few years back - because it was built to my specification, and it cost a helluva lot more than a bicycle. Some things I can understand, but bicycles in the U.S. are getting charged full price quite often - what a ripoff.

 

[kahn]

This is the part that I don't like... even though it's a different brand they could still do something for the old customers that already used Mike's. The new company could've carried over the warranties or offered equivalent ones through them (obviously they aren't the same manufacturer but they could do the equivalent from their product lines or parts and servicing)

I think the new owners are not really on the hook for warranty work since any parts would have to be Specialized and it is Specialized that terminated the relationship. While it might be gracious for the new owners to help in some way, they are limited for warranty work that requires parts. We don't even know if Specialized would talk them through work that does not need parts. Hopefully, there are other reasonably located Specialized dealers nearby for bike owners.

I'm glad I'm not in that situation. But my local bike shop and Specialized dealer with three locations could be the same thing down the line. It is family owned and they might want to sell. The dealership also sells Trek and other well-known brands.

 

[kahn]

That’s the issue - consumers shouldn’t have to negotiate a reasonable deposit. Actually here in Japan deposits are not usually required- you only get charged upon local shipment or delivery. Often after I’ve received the product. I think Europe is similar. I had to put an approximate $2500 deposit on my Porsche 911S a few years back - because it was built to my specification, and it cost a helluva lot more than a bicycle. Some things I can understand, but bicycles in the U.S. are getting charged full price quite often - what a ripoff.

Actually, I think I only put $50 down on my bike and paid the other THOUSANDS when I picked up the bike.

 

[Merle Nelson]

This is the part that I don't like... even though it's a different brand they could still do something for the old customers that already used Mike's. The new company could've carried over the warranties or offered equivalent ones through them (obviously they aren't the same manufacturer but they could do the equivalent from their product lines or parts and servicing)

If they weren't a billion dollar company they would probably care more about that. Right and wrong aside a high percentage of people that like or love ebikes today will want one again when this one breaks down or the newest thing is improved enough.

 

[mschwett]

Actually, I think I only put $50 down on my bike and paid the other THOUSANDS when I picked up the bike.

i've definitely never put down full price for a deposit for a bike or something like a bike. the couple times i almost bought a bike at mike's, they made it very clear that they required a full deposit. for the road bike i currently have on order at my LBS, i gave them $500, fully refundable of course.

 

[kahn]

i've definitely never put down full price for a deposit for a bike or something like a bike. the couple times i almost bought a bike at mike's, they made it very clear that they required a full deposit. for the road bike i currently have on order at my LBS, i gave them $500, fully refundable of course.

Ahem. ANOTHER road bike?