Specialized selling bikes direct to consumer - new news?

Bike N Gear said:
Dealers can't get the bikes if Specialized is withholding them for themselves. This is the plan. It's too bad I missed Thursday's webinar when they announced this to the dealers. I would have loved to hear the spin they tried to put on this to show how great this is for us dealers.
Click to expand...
sundaydoug said:
That's unfortunate, although I'm not surprised. I can only assume everyone in their sales hierarchy is dealing with a wrath of shit from their retailer base as a result of this.

The details are pretty well summed up in the Bicycle Retailer article below. What really struck me was the callous way this was delivered. They really, really, really do not care about their retailers. And if you're a lower-tier retailer good luck getting inventory. They count Specialized.com as a Tier 1 retailer, which means the web store gets priority on all incoming bikes. You only get dibs on that inventory after it's been sitting there for 3-4 weeks and doesn't sell.

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 www.bicycleretailer.com
Click to expand...

Sorry, missed that part about Specialized making themselves a Tier 1. I'm really not sure where my shop sits in the hierarchy (Roy's) but I have to imagine they're at least a 2. I'm guessing Hilltop and Strictly are definitely Tier 1. Either way, I'll continue to just shop at my LBS; I can adapt to a different color if it means me helping to keep them in business. Even doing most of my own repairs, their service to me as a customer is priceless.
 
Bikeworks said:
Sorry, missed that part about Specialized making themselves a Tier 1. I'm really not sure where my shop sits in the hierarchy (Roy's) but I have to imagine they're at least a 2. I'm guessing Hilltop and Strictly are definitely Tier 1. Either way, I'll continue to just shop at my LBS; I can adapt to a different color if it means me helping to keep them in business. Even doing most of my own repairs, their service to me as a customer is priceless.
Click to expand...
All Hilltop locations are now owned by Specialized, so not an issue for them.
 
This comment from Bike rumor says what many are thinking I would guess.


lukeeee
9 hours ago


Reply to NoneGiven

I find it funny when people bring up this don't blame “big business” thing. Why should we not…….did specialized sell there bikes in the vacuum of space? Did Mike sinyard make the brand and people woke up in the morning and ran to buy one because in their soul they felt this great God of a man revolutionized bikes? No and no, it was the legions of shops, employees, riders and such that for years pushed specialized to where it is now.
Mike has always been a conman, he screwed his friends to make the first stumpjumper, he sued volagi, claimed to own Roubaix even though the word predates his families existence, screwed stratos and the list goes on and on. I don't care how smart he thinks he is or how much you fawn for his business acumen and how he single handedly sold every specialized in the world by the sweat of his own hands. He built a brand on the backs of his dealers and now he is ruthlessly screwing them because of his greed. Shops do and will have options, but this will create ripples that will harm the industry for years to come. Cycling has been on the decline for years….covid only boosted the numbers to what we saw in the early 2000’s nothing more. More shops will close and sports presence will continue to diminish. For those that talk about the shift to online, I agree that it is inevitable but even online brands like commencal now want dealers to carry their bikes for a simple reason….their voice on the internet is a ant screaming in a crowd of people. It reminds me of the late nineties when every region had their brand that everyone rode but no one else in the country ever heard of…..slingshot in Michigan, Roark in Indiana, curtly in Cali. Dekerf in northwest. Etc…
There is one thing I do take solace in…..all these years bike shops dealt with customers beating them up on price and having to cave. Now you will need to pay your hero every penny he demands to ride his products….no more sales or haggling….and with prices going up and up that just means less bikes everywhere but fewer stressed bike shop owners trying to keep their doors open. I have been working in this industry for 25 years and it only seems like a dumber place to work every year.



It is somewhat evident that S & T are in a war of sorts for market share at all cost. An independent shop that sells either and thinks that they have a trustworthy partner might want to reevaluate that arrangement. Trek has a patent on a DTC bike box and this move form specialized will likely make them double down on their DTC and shop purchining effort. Most see the purchase of an existing shop as a turn to DTC.

www.bicycleretailer.com

Patent Watch: Trek, Canyon and others patent bike boxes for the D2C market

Manufacturers and brands are re-thinking box designs to make it easier for consumers to unpack and assemble a new bicycle. A look at recent patents from Trek, Giant and Canyon.
www.bicycleretailer.com www.bicycleretailer.com

I have received calls / texts from shop owners across the country who are shaken or at least concerned about how this impacts the future of the industry that we love.

Many have been shut off by specialized and are now scrambling to find inventory just as the spring rush nears close. This is particularly tough as most brands have already pre-sold their entire 2022 supply.
 
Can you blame him? He just wants a dick shaped rocket like everyone else. And his employees won't have to piss in a jar at their stations for him to get it.
 
Bike N Gear said:
Not yet.
Click to expand...

Most of what they're doing is to make the Industry a more appealing environment for Employees. We've had a huge loss across the board because no one wants to get yelled at all day for $15 an hour, give up weekends, no 401k, no benefits of any kind, no Lunch Breaks, etc...Owners seldom do right by the people they employ and the only way to advance is to bounce from shop to shop for minimal gains. Now, they have a way to move up in the same Company with Trek or Specialized. It's the future of the Industry, you can join Netflix, or be the last Blockbuster.
 
jimvreeland said:
Most of what they're doing is to make the Industry a more appealing environment for Employees. We've had a huge loss across the board because no one wants to get yelled at all day for $15 an hour, give up weekends, no 401k, no benefits of any kind, no Lunch Breaks, etc...Owners seldom do right by the people they employ and the only way to advance is to bounce from shop to shop for minimal gains. Now, they have a way to move up in the same Company with Trek or Specialized. It's the future of the Industry, you can join Netflix, or be the last Blockbuster.
Click to expand...
kool-aid-oh-yeah.gif
 
jShort said:
Well someone definitely joined the zoom call
Click to expand...

The lack of knowledge is sort of astounding. They've been laying this out for years and have been very open about it to Dealers. We were doing Specialized Direct Deliveries 3 years ago.
 
jimvreeland said:
Most of what they're doing is to make the Industry a more appealing environment for Employees. We've had a huge loss across the board because no one wants to get yelled at all day for $15 an hour, give up weekends, no 401k, no benefits of any kind, no Lunch Breaks, etc...Owners seldom do right by the people they employ and the only way to advance is to bounce from shop to shop for minimal gains. Now, they have a way to move up in the same Company with Trek or Specialized. It's the future of the Industry, you can join Netflix, or be the last Blockbuster.
Click to expand...


Do you know Mike Sinyard’s exit plan? There lie your future with Specialized. If private equity money comes into play don’t expect the same treatment.
 
  • Like
Reactions: don
The Kalmyk said:
Do you know Mike Sinyard’s exit plan? There lay your future with Specialized. If private equity money comes into play don’t expect the same treatment.
Click to expand...
Nah. Mike is in it for the good of his employees. He's not looking for a big payout. It is purely altruistic the way he has screwed over every small shop that has built his brand for him.
 
Bike N Gear said:
Nah. Mike is in it for the good of his employees. He's not looking for a big payout. It is purely altruistic the way he has screwed over every small shop that has built his brand for him.
Click to expand...

Lol- what is the plan when he dies? Who takes the torch? Inwant to look that person up.
 
cassinonorth said:
The plan seems pretty transparent to me.

Buy up the best shops-> Cut other brands out of those shops -> Hurt other brands -> Hurt other shops -> Become the only brand in town -> Eventually close down the lesser stores (wonder how many days Hilltop Livingston has left?) -> Move more and more online and increase their profit margin until they can IPO and start slashing the shit out of the company and industry.
Click to expand...

This would be true if we didn't have a Company doing exactly the same thing a block down the street 🤣
 
You must log in or register to reply here.
Back
Top Bottom