Are LBS taking advantage of Customers using Cyclescheme ?

[Downward]

So I walk into a major chain and see a nice Sale bike. The Shop though inform me that although it's 40% off in the sale they have to sell it at full price because Cyclescheme charge them 10% of the Sale of the bike.



Now I know the customer will make savings of maybe 21% ultimately although this is probably a lot less now the HMRC are involved but the shops are just taking advantage now.

I may have to write or give head office a call to ask them how they can justify marking up on taking Vouchers.

 

[2Loose]

Let us know how that goes. A couple of years ago I bought a sale bike on cyclescheme and the shop 'only' added 10% to the sale price to cover the cyclescheme charge, which I think is justifiable...but adding 40%? wtf.

 

[Globalti]

Shopkeepers with whom I have discussed this tell me they're sick of the scheme; people come in. reserve a bike then don't come back for ages to collect it, meaning they've lots of unsold stock cluttering up the shop.

 

[Downward]

Shopkeepers with whom I have discussed this tell me they're sick of the scheme; people come in. reserve a bike then don't come back for ages to collect it, meaning they've lots of unsold stock cluttering up the shop.

Depends how long the Admin takes. We can go online with our details and fill in the request form pretty much as soon as we get the quote from LBS. Then it's up to your employer to sign it off, Cyclesheme to Invoice, Your company to pay and Cyclescheme to send voucher. Even all Electronic it's 2 weeks ish. If your still on the paper system and it has to be manually signed etc it's a long process.

My LBS (not the big chain) will order the bike when you have the voucher, If it's out of stock you choose another hence why I have a Kona not a Giant !

 

[Jezston]

Shopkeepers with whom I have discussed this tell me they're sick of the scheme; people come in. reserve a bike then don't come back for ages to collect it, meaning they've lots of unsold stock cluttering up the shop.

Set a one month limit on the deposit or they keep it and it's win win!

 

[dellzeqq]

Shopkeepers with whom I have discussed this tell me they're sick of the scheme; people come in. reserve a bike then don't come back for ages to collect it, meaning they've lots of unsold stock cluttering up the shop.

I'm afraid you're right.

The typical mark-up on a complete bike is about 33%. Out of that comes the cost of stocking it, the cost of putting it together, the free service after three months and the cost of dealing with the customer. Which is another way of saying that, perversely, selling complete bikes is not as profitable as selling bits of bikes, or clothes....

Take that margin down to 23% and you're looking at not a lot on a £300 bike. I realise that some bike shops pull the bike out of the box and fill the tyres, but my brother spends 60-90 minutes on setting up each bike and will then spend another hour on the three month service if the bike's been treated well. Then there's the C2W admin......

He's never bothered with the C2W scheme, because it's just not worth his while.

 

[Downward]

I'm afraid you're right.

The typical mark-up on a complete bike is about 33%. Out of that comes the cost of stocking it, the cost of putting it together, the free service after three months and the cost of dealing with the customer. Which is another way of saying that, perversely, selling complete bikes is not as profitable as selling bits of bikes, or clothes....

Take that margin down to 23% and you're looking at not a lot on a £300 bike. I realise that some bike shops pull the bike out of the box and fill the tyres, but my brother spends 60-90 minutes on setting up each bike and will then spend another hour on the three month service if the bike's been treated well. Then there's the C2W admin......

He's never bothered with the C2W scheme, because it's just not worth his while.

He must be missing out on Business then . Our company alone in the last 2 years has had 80 odd bikes through CS all of which come from the few LBS in the area.

Add in all the accessories too and it's all business.

 

[dellzeqq]

He must be missing out on Business then . Our company alone in the last 2 years has had 80 odd bikes through CS all of which come from the few LBS in the area.

Add in all the accessories too and it's all business.

there's good business and bad. And making up bikes and filling in a load of paperwork for 23% isn't good

 

[GrumpyGregry]

there's good business and bad. And making up bikes and filling in a load of paperwork for 23% isn't good

on a £300 bike maybe not. on a £1000 one? £230 for two or even three hours work is not minimum wage territory.

 

[gussington]

Shopkeepers with whom I have discussed this tell me they're sick of the scheme; people come in. reserve a bike then don't come back for ages to collect it, meaning they've lots of unsold stock cluttering up the shop.

Let's be honest - Without C2W that would be roughly half the number of bike shops there now are, so it can't be that bad for business!

I think also the majority of bike shops recognise that the profit from the bike is only the star of all of the money that a new customer will spend over the years! I would say that the Shopkeepers you have spoken to are very short sighted. If they give good service to brand new cyclists, they will end up with moner for servicing, accessories - and when they really get hooked lycra!

Of course, if like the local shop I used when I bought my bike they turn out to be crap then that might not be the case!

 

[2Loose]

Surely the lbs can wait for the voucher before ordering in a bike? I know both times that I have been through the scheme this is how the shop have dealt with it, even when when they have a display model the right size.

My local shop sells two thirds of its new bikes through the scheme and thinks half of those customers come back for accessories and\or clothing. In the grand scheme of things it is thriving - which is nice in these times of austerity.

 

[Hilldodger]

Let's be honest - Without C2W that would be roughly half the number of bike shops there now are, so it can't be that bad for business!

You're having a laugh! We don't do C2W and bike sales, serving and repairs are booming. Cycling is on the increase and only in a small part to C2W

 

[gussington]

You're having a laugh! We don't do C2W and bike sales, serving and repairs are booming. Cycling is on the increase and only in a small part to C2W

Fair enough - but there are a hell of a lot more bike shops now in London! Obviously you give good enough service that your business is booming and you are doing well, but if you weren't I'm sure you'd sign up for it. There may well be many other reasons that have got people cycling, but the C2W scheme has had a massive impact as it gives people an opportunity to pay monthly, in much the same way people previously paid for travel through Season tickets loans.

Ps - When I was searching for my next bike on C2W a fairly well known brand offered to give me 15% in vouchers for accessories with the bike if I bought there, so discounts and deals can be struck. In the end I went with another shop that would only offer me a pair of pedals and a lesson on my bike in the workshop on a £1,000 bike - but I went with them because they showed amazing customer service in the way that they dealt with me right from the start.

 

[marinyork]

Shopkeepers with whom I have discussed this tell me they're sick of the scheme; people come in. reserve a bike then don't come back for ages to collect it, meaning they've lots of unsold stock cluttering up the shop.

Come off it, I've had a store arrogantly boasting to my face that they don't need my business as C2W is so lucrative. There's been a huge boom in cycling anyway and C2W makes that even more ridiculous.

 

[Downward]

You're having a laugh! We don't do C2W and bike sales, serving and repairs are booming. Cycling is on the increase and only in a small part to C2W

But would you guess that maybe the boom is C2W and your business is C2W newbies who have gotten into cycling on a more serious level.

I commuted for a year with a few weekend runs but went out and bought N+1 Roadie for the weekends.

Now I have 3 bikes for LBS to take care off !