Need help with a bike buying decision and the stores sale pricing.

[midibiker]

To add insult to injury. I have seen the same model being sold elsewhere for £500 less and the store will not price match it either. Because they are saying that they are already selling the bike in the sale at a loss.

But I don't see the other retailer making any mention of selling it at a loss.

I am in the process of cancelling my order with the shop because of all of these surprise add-ons and their refusal to price match with the other shop. The other shop uses the same bike distributor! But the shop I am ordering from says that even though they are the same model, it is the allocation that affects the pricing. So one place gets less discount or margin than some. Well, that's what I think they mean.

Anyway, I don't think the bike is going anywhere fast, it's been sitting there for 2.2 years. They are still trying to sell it in line with their 2024 sale bikes. And they will probably have to drop the price some more and potentially wish that they have accepted my order.

It's no loss. It saves me thousands on a bike, which I can use to buy a new Van.

I thought the C2W scheme looked good and I had to jump through fire to get it. But I'm not paying extra for it, or the bike even if I am making a saving.

 

[Regular.Cyclist]

So on C2W there’s a circa £700 surcharge that the shop has capped at £300, thus saving you £400 and you want them to drop the bike by £500 to match elsewhere?

They may eventually have to drop the price a bit but by £900? That’s unlikely. I’m not surprised you got a ‘no’ from them.

 

[Kingfisher101]

To add insult to injury. I have seen the same model being sold elsewhere for £500 less and the store will not price match it either. Because they are saying that they are already selling the bike in the sale at a loss.

But I don't see the other retailer making any mention of selling it at a loss.

I am in the process of cancelling my order with the shop because of all of these surprise add-ons and their refusal to price match with the other shop. The other shop uses the same bike distributor! But the shop I am ordering from says that even though they are the same model, it is the allocation that affects the pricing. So one place gets less discount or margin than some. Well, that's what I think they mean.

Anyway, I don't think the bike is going anywhere fast, it's been sitting there for 2.2 years. They are still trying to sell it in line with their 2024 sale bikes. And they will probably have to drop the price some more and potentially wish that they have accepted my order.

It's no loss. It saves me thousands on a bike, which I can use to buy a new Van.

I thought the C2W scheme looked good and I had to jump through fire to get it. But I'm not paying extra for it, or the bike even if I am making a saving.

Buy it at the other shop then? There's no point getting upset about it. These things happen all the time in a capitalist economy.

 

[Aescott]

I got my new bike on the C2W scheme from my local bike shop. They added 5% to the cost because the scheme is administered by Halfords which makes the charge. They were upfront about it, and when I considered that the salary sacrifice element would save me over 40% on the price, and I go to pay for the bike over 18 months, it seemed reasonable.

 

[PedallingNowhereSlowly]

I don't understand spending such a large sum on a bike with a generous tax write off and quibbling about a less than 5% variation on the price? (... which will be even less after tax and NI)

Just buy the bike and enjoy it (either the 2022 or the 2024 model). Or don't buy it.
I suspect both models will provide the same level of enjoyment and when you've got a couple hundred miles down you will quickly forget about the 5% surcharge.

The proprietors of the bike shop have to make some money - CycleScheme is a doubled edge sword because it brings them custom but also gouges profits. If they are having to pay 10% finders fee to the CycleScheme voucher provider and they are swallowing £400 of that, that's already very good of them. There's nothing to say they paid the same wholesale price as the other bike shop or that they can sweat the same sorts of losses.

The cycle industry in some turmoil at the moment and the last thing we need is to lose more independent bike shops.

 

[Dadam]

I don't understand spending such a large sum on a bike with a generous tax write off and quibbling about a less than 5% variation on the price? (... which will be even less after tax and NI)

Just buy the bike and enjoy it (either the 2022 or the 2024 model). Or don't buy it.
I suspect both models will provide the same level of enjoyment and when you've got a couple hundred miles down you will quickly forget about the 5% surcharge.

The proprietors of the bike shop have to make some money - CycleScheme is a doubled edge sword because it brings them custom but also gouges profits. If they are having to pay 10% finders fee to the CycleScheme voucher provider and they are swallowing £400 of that, that's already very good of them. There's nothing to say they paid the same wholesale price as the other bike shop or that they can sweat the same sorts of losses.

The cycle industry in some turmoil at the moment and the last thing we need is to lose more independent bike shops.

I disagree. The thing is you don't "save over 40% on the price" when you consider the final payment which does not attract the tax savings and can be a considerable chunk. This is why I got mine over 3 years not 1, so more of the residual value is removed through payments and depreciation.

You also have to factor in the reduction of pension contributions, with loss of tax savings on those plus the loss of the employer's contribution.

On top of that the scheme for my first c2w bike at a previous employer charged VAT on the "disposal fee" (final payment) which was a percentage of the invoice price which was itself inclusive of VAT. So I even had to pay VAT on the VAT! As I chose to extend the "hire period" rather than have them take the bike back (obviously) the "disposal fee" was allegedly to cover their costs of admin instead of disposing of the bike. This admin amounted to sending 2 emails, both automated.

So after all, that a bike shop that indulges in scalping an extra 5% on RRP can frankly jog on! They only do it because they can get away with it. People think they're getting a huge bargain and don't do their sums.

 

[Elybazza61]

The Cyclescheme charge can vary for the shop depending on the scheme usually 10-15% and getting the money from some schemes can be like getting blood from a stone.

Also some places due sell bikes at a loss and people wonder why shops and businesses go bust.

There are also some rumours kicking around of big bike brands(can't name names) dumping bikes at discount stores to get some cash in , as they have so much stock and need to shift it asap otherwise,,,,,

 

[Elybazza61]

Should also add that some margins on new bikes can be as low as 30% so take a potential 15% off that and you can see why they would want to add the scheme charge on a bike that they may only be making 15% (if that) on in a sale.

Also a few years ago a guy wanted to buy a sale Genesis on a scheme but wasn't happy that we needed to add a bit on so he want to another shop and got the bike there on sale with no surcharge.That shop (chain actually) has now closed and we get the bike in sometimes for servicing; so it was good for him but obviously not the shop.

Actually another non scheme tale was that one of our regulars wanted some bike packing bags from a well known German company so we offered him a good deal but he said it was cheaper somewhere else (basically about our trade price) and got them there,funnilly enough it was the same shop/chain as above