LBS vs Mail Order

[Mike V]

I need two of the same part. It was a non stock item for the LBS. The mail order had it in stock. Ordered and payed in full at LBS and they told me it would be 3-5 business days. Went home and ordered and got email saying 3-5 days. Let's see what happens.

[duff_duffy]

Are we betting? Taking sides?

[weisan]

.

[giordana93]

I need two of the same part. It was a non stock item for the LBS. The mail order had it in stock. Ordered and payed in full at LBS and they told me it would be 3-5 business days. Went home and ordered and got email saying 3-5 days. Let's see what happens.

and your point is?

[Blue Jays]

Should be a great race! Campagnolo part will be faster than Shimano or SRAM. :banana:

[Mike V]

and your point is?

Both ordered on 2/16. I went in to LBS and ordered what I thought I needed. Remembered when I got home that I needed another one and ordered online.

I got an email a week later from mail order that my order shipped. Nothing from LBS.

[ultraman6970]

I had similar experience from european online store, US based online and lbs... interestingly enough the USA online store i had to cancel the order after 30 days, the LBS did so so with like 2 weeks after I got the stuff from the UK.

Some online retailers list stuff they dont have in stock and once they get and order they order the stuff... the few shops I knew worked that way arent in bussiness anymore like for example Airpump.com?.. lbs well... I did not know what to think... or even speculate about it, I know for them was like a tiny flip but one flip then another flip and so and so on you accumulate clients willing to use them but personally i did not come back, actually the shop closed.

[earlfoss]

It will arrive at the shop on time but since you already paid for it they'll forget to call you for a week or two to let you know it's in.

[Mike V]

It will arrive at the shop on time but since you already paid for it they'll forget to call you for a week or two to let you know it's in.

Monday would have been on time. My guess is that they know I'll come in on the weekend and will call Friday. They know me well and know I'm not around most weekdays.

[oldpotatoe]

Monday would have been on time. My guess is that they know I'll come in on the weekend and will call Friday. They know me well and know I'm not around most weekdays.

OK, nice little thread, what are we talking about? What gadget did you need to order 2 of?

[Mike V]

OK, nice little thread, what are we talking about? What gadget did you need to order 2 of?

Chris King 1 inch Gripnut silver

[unterhausen]

my lbs sends me a text when they get my stuff. QBP is delivered the next day for most things, unless I order late in the day. I almost always take longer to go get it than it takes for them to get it.

The advantage to the LBS is no package shows up at the door. My wife catastrophizes about packages, not so much about the money

[amerikaner]

I think it's that most LBS dont make money of selling parts, but make money selling full bikes and/or service. A few of my LBS who are Trek dealers seem to place warehouse orders ok once a week...which makes sense, but what really sucks is that I'm in an area where Trek's warehouse is less than 40miles away.

There needs to be better logistics between LBS and their suppliers in order to compete with online retailers.

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[giordana93]

It will arrive at the shop on time but since you already paid for it they'll forget to call you for a week or two to let you know it's in.

or they will call the day it gets in, or the next, after box of 20 other widgets is unpacked and packing lists rectified, leave a voicemail, then customer will call back a week later complaining they never called....

actually I'm surprised it takes a week to get a shipping notification from mail order; that is slow in today's climate

[dave thompson]

I think it's that most LBS dont make money of selling parts, but make money selling full bikes and/or service. A few of my LBS who are Trek dealers seem to place warehouse orders ok once a week...which makes sense, but what really sucks is that I'm in an area where Trek's warehouse is less than 40miles away.

There needs to be better logistics between LBS and their suppliers in order to compete with online retailers.

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An issue that LBS face with special orders is that they must pay shipping on orders under a certain dollar amount, which is specified by the vendor. So the shop accumulates these special orders until the value exceeds this minimum. Shipping can add a significant percentage to the final cost.

An example would be that it costs the same to ship a one dollar bill as it would to ship a hundred dollar bill. In this example if the shipping cost were $1 for each, the one dollar bill now cost 100% more, where the hundred dollar bill would cost only 1% more.

Also the shop may get a discount on an order over a certain value.

[pdmtong]

An issue that LBS face with special orders is that they must pay shipping on orders under a certain dollar amount, which is specified by the vendor. So the shop accumulates these special orders until the value exceeds this minimum. Shipping can add a significant percentage to the final cost.

An example would be that it costs the same to ship a one dollar bill as it would to ship a hundred dollar bill. In this example if the shipping cost were $1 for each, the one dollar bill now cost 100% more, where the hundred dollar bill would cost only 1% more.

Also the shop may get a discount on an order over a certain value.

well put. I asked my LBS to order some stuff I wanted for some work I was having them do, but I told them a few weeks in advance of when I was dropping the bike by so they had the time to accumulate orders to meet that threshold.

[Mike V]

A shop with good customer service would inform a customer of that situation.

An issue that LBS face with special orders is that they must pay shipping on orders under a certain dollar amount, which is specified by the vendor. So the shop accumulates these special orders until the value exceeds this minimum. Shipping can add a significant percentage to the final cost.

An example would be that it costs the same to ship a one dollar bill as it would to ship a hundred dollar bill. In this example if the shipping cost were $1 for each, the one dollar bill now cost 100% more, where the hundred dollar bill would cost only 1% more.

Also the shop may get a discount on an order over a certain value.

[pdmtong]

A shop with good customer service would inform a customer of that situation.
That's true too since most customers dont know or care about that nuance.

[hokoman]

i could have shipped one out quicker!

[oldpotatoe]

I think it's that most LBS dont make money of selling parts, but make money selling full bikes and/or service. A few of my LBS who are Trek dealers seem to place warehouse orders ok once a week...which makes sense, but what really sucks is that I'm in an area where Trek's warehouse is less than 40miles away.

There needs to be better logistics between LBS and their suppliers in order to compete with online retailers.

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As mentioned, 3 QBP warehouses means 'stuff' gets delivered in about 2 days, 3 at the most. MANY 'online retailers' ALSO do either JIT supply(order when THEY receive and order) or 'dropship', order from supplier who sends to end user.

Without similar overhead, largest $ for a storefront..rent, labor, insurance, etc..LBS will NEVER be able to really compete with MO on price..unless they go the volume route, which is tough for a relatively small business. Even BIG, chain, bike retailers are tiny when compared to some 'MO outfits'.

Some 'can' compete but backwards in that the price is mandated by the manufacturer, so MO cannot discount, otherwise lose their ability to order that 'stuff'.."Price protected'..so MO sells because of inventory/availability, not price.

PLUS, more than few 'distributors', more in Europe but in the US, operate MO 'departments', sell direct..along with selling to LBS'..
Quality Bike Parts, pretty sure, is one..Via ''Planet Cyclery", here in Broomfield.

[C40_guy]

Some 'can' compete but backwards in that the price is mandated by the manufacturer, so MO cannot discount, otherwise lose their ability to order that 'stuff'.."Price protected'..so MO sells because of inventory/availability, not price.



Well, technically the manufacturer cannot mandate retail price. But with minimum advertised price guidelines driving advertising reimbursement programs, and stock management (lowballers don't get product), manufacturers have some control over the advertised price...

[oldpotatoe]

Well, technically the manufacturer cannot mandate retail price. But with minimum advertised price guidelines driving advertising reimbursement programs, and stock management (lowballers don't get product), manufacturers have some control over the advertised price...

Correct but what they do if you sell way below MAP, they just refuse to sell to ya. I see you mentioned that. AND in the US..MUCH less restictive in Europe. The reseller signs the contract, with manufacturer and the manufacturer HAS to sell to reseller, even if they low ball the price.

[Mark McM]

Correct but what they do if you sell way below MAP, they just refuse to sell to ya. I see you mentioned that. AND in the US..MUCH less restictive in Europe. The reseller signs the contract, with manufacturer and the manufacturer HAS to sell to reseller, even if they low ball the price.

Isn't that how free market capitalism is supposed to work?

[bikinchris]

Correct but what they do if you sell way below MAP, they just refuse to sell to ya. I see you mentioned that. AND in the US..MUCH less restictive in Europe. The reseller signs the contract, with manufacturer and the manufacturer HAS to sell to reseller, even if they low ball the price.

Maybe they could let them sell only two or three a year at the lowball price?

[oldpotatoe]

Isn't that how free market capitalism is supposed to work?

Well, sure, the distributor is getting THEIR margin but decent US distributors recognize their 'bread' is the IBD and they want to protect those who can't use MO/interweb and deep discount the stuff they are providing.

Why there is a large and healthy 'back door', grey/black market, 'alternative' distribution set up all over the world. PLUS, as I mentioned, more than one 'distributor' selling to LBS' AND direct to consumer(QBP)..Like I said, the distributor gets their 'margin' either way.