Is Trek the GM of bicycles

[PaMtbRider]

http://www.trekbikes.com/us/en/pro_deal/#road
$2800 off a new bike!!! I hope were not going to be bailing out Trek next.

[Smiley]

http://www.trekbikes.com/us/en/pro_deal/#road
$2800 off a new bike!!! I hope were not going to be bailing out Trek next.


They are caught needing to move inventory soon as they introduce the 2010 line up soon.

[Marcusaurelius]

I think everyone is offering large discounts on their 2009 stuff to make room for the 2010. I think it's fairly easy to find 40% off on some 2009 shimano parts.

[caleb]

They are caught needing to move inventory soon as they introduce the 2010 line up soon.

There'll be some blowouts this September. It'll be the worst for the big players like Trek, while companies like Kona that manage their inventories much more closely will fair better.

[bostondrunk]

Madone 6.5 Pro
MSRP $6,929.99 *
Sale Price: $4,999.99

The sale price just looks like the real price you would typically see at a bike shop anyway. So will the LBS's now be offering a big discount on that price?

[John M]

Go to any big brand shop in the fall and 30-40% off retail is typical. The dealers may actually make more profit on these bikes depending on what they paid the manufacturer. Years ago I worked for a shop that made a lot of money on late year discounted bikes that were blown out by the manufacturers at the end of the model year.

[avalonracing]

Maybe no one wants to pay $9000 for a stock Trek.

[lavi]

I'd take that % discount on the CK Cielo frame I've been eyeballing.

[HenryA]

Paying $5,000 for a non-custom bicycle is silly even if it did "list" for $2,000 more. This price drop tells you a lot about what the product is really worth when they have to give it away to move it out the door. Apparently, they missed their projection on how much crap people would swallow.

For that much you could buy a full custom Serotta with nice paint of your choice. Or you could fall into the bicycle industry's fantasy of garish graphics, mysterious frame materials and marketing hype. Your pick.

So yes, Trek is the GM of the bike business but no one will bail them out. As if we had money left to bail out anything after the current orgy of spending and waste and political pay backs.

[CNY rider]

"Is Trek the GM of bicycles?"

I dunno, seems a bit harsh to me.
Trek makes a quality product that appeals to many consumers, and they do it across many very reasonable price points.

I don't think GM can claim to do the same.

[itsalldark]

Trek is without question the GM of the bike world. Look at their concept stores--It's like a GM template. Nothing interesting about them. Only one line of bikes and equipment to view. Not much imagination.

[avalonracing]

The resale value of a $9000 Trek is probably what, $3000 after six months? Seriously.

Hmm, wait, this does sound more and more like GM.

[monkeywobble]

"Is Trek the GM of bicycles?"

No, people want to buy Treks products. :)

[riceburner]

$9129 without tax? We are in motorcycle territory......

[PaMtbRider]

I wasn't trying to bash Trek's product. I realize they make a product that appeals to many people. Some people will compare that price to a new $8000 frameset and think they are getting a great deal. I am just envisioning the two page ad in next month's Bicycling that offers the Friends and Family Trek Deal with no money down and zero percent financing.

[avalonracing]

$9129 without tax? We are in motorcycle territory......

Good motorcycle territory. Or world-class used motorcycle territory. Or everyday, run of the mill, crappy Harley territory. :D

[paulrad9]

Good motorcycle territory. Or world-class used motorcycle territory. Or everyday, run of the mill, crappy Harley territory. :D

While I happen to like Rivendells, your comment about Harleys makes me think that Rivendells are the Harleys of the bike world

[fiamme red]

http://www.globalpost.com/dispatch/the-americas/090615/havana-cars

HAVANA — The Pontiac Aztek never made it to Cuba. Nor did the Dodge Nitro, Chrysler Crossfire, or any other flops of the past 50 years of American auto manufacturing.

So as news of bankruptcy at General Motors and Chrysler reaches this city, where thousands of vintage cars from Detroit's heyday still rumble through the streets, Cuban drivers have been stunned. Where did these giants of American industry go wrong?

“General Motors is a great company with a great reputation,” said Michel Cruz Armas, a taxi driver. He said it without a hint of sarcasm, and for good reason: The 27-year-old earns a living plying Havana's potholed thoroughfares in a battered 1956 Buick, making $15 to $20 a day — equal to an average Cuban worker's monthly salary.

[spacemen3]

I'm friends with the guys at the local Trek store, and they've been selling Madone's like hotcakes this summer. They race on Madones and are very complimentary towards Treks. These are guys who own Serottas, too. Anyhow, even discounted, they don't tempt me in the least. I took my girlfriend bike shopping last weekend. She took one look at the flowery graphics on the Trek WSD models, laughed, and asked if she could keep riding my old Bridgestone MB-1. I guess there is some similarity to GM: great halo product and lame daily driver stuff.

[peanutgallery]

Like GM they have purchased thriving brands and either killed them or turned them into something completely unrecognizable. Klein, Icon, Lemond, Bontranger used to design and manufacture lots of neat items. Currently, it is hard to differentiate what they are selling from the other big guys in the biz. Surprised Fishers are still around, but they are different from what they were. Like GM they are bloating a bit and getting heavy into things other than bicycle and accessory manufacturing. Stores, credit, travel company and a bunch of other stuff.

The car company kind of implosion over a decade would never happen because in reality, their level of business is peanuts compared to the other kinds of fish in the economic sea. All it would take to push them over the edge is the bright idea to build, design and manufacture their own line of motorcycles or something.

Is it just me or is Giant a bigger company that has had great success selling...Giants of all things? None of brand purchasing like Trek, not so much the concept stores and travel companies. Just bikes and functional bike related items

[gemship]

The car company kind of implosion over a decade would never happen because in reality, their level of business is peanuts compared to the other kinds of fish in the economic sea. All it would take to push them over the edge is the bright idea to build, design and manufacture their own line of motorcycles or something.

Is it just me or is Giant a bigger company that has had great success selling...Giants of all things? None of brand purchasing like Trek, not so much the concept stores and travel companies. Just bikes and functional bike related items


Hey Cannondale tried to make dirtbikes and they're still around. Actually I was told and I think I may of even read somewhere that Giant is the biggest bicycle maker in the world.

[JeffS]

Hey Cannondale tried to make dirtbikes and they're still around. Actually I was told and I think I may of even read somewhere that Giant is the biggest bicycle maker in the world.


Are you forgetting the 2003 bankruptcy and 2008 sale to big-box supplier Dorel?

Cannondale is dead, still moving a little, but dead nonetheless. Soon to be reincarnated into a GT/Schwinn/Mongoose type zombie.

[Marcusaurelius]

Like GM they have purchased thriving brands and either killed them or turned them into something completely unrecognizable. Klein, Icon, Lemond, Bontranger used to design and manufacture lots of neat items. Currently, it is hard to differentiate what they are selling from the other big guys in the biz. Surprised Fishers are still around, but they are different from what they were. Like GM they are bloating a bit and getting heavy into things other than bicycle and accessory manufacturing. Stores, credit, travel company and a bunch of other stuff.

The car company kind of implosion over a decade would never happen because in reality, their level of business is peanuts compared to the other kinds of fish in the economic sea. All it would take to push them over the edge is the bright idea to build, design and manufacture their own line of motorcycles or something.

Is it just me or is Giant a bigger company that has had great success selling...Giants of all things? None of brand purchasing like Trek, not so much the concept stores and travel companies. Just bikes and functional bike related items

Well I think Trek did good things for Lemond bikes for many years. The all steel Zurich and Lemond Poprad were fine bicycles and unlike others--they were made in the USA.

Bontrager now makes quality, well made stuff. I don't find anything wrong with that. I don't think there was anything particularly unique about the pre-trek bontrager.

I believe Klein was taken over because it was a company on the edge of disappearing.


Well I have never liked Giant bicycles and I find the whole compact geometry craze a little stupid.

Trek has been making quality bicycles for many years, I just wish they had not moved away from making steel bicycles (Lemond).

[rdparadise]

Hey, my first real bike when I returned to cycling was a Trek 2200. Not a bad bike, built in the good old USA and a fair price. I have a friend who bought one of the higher end new Madone's and he loves it. Me, I don't do carbon and never liked the dull ride of the first vintage Trek OCLV.

I'm with a few of the others, they provide a decent product along the spectrum of pricing and many people buy them. Regarding the 0%, hey, Specialized is doing the same thing. Anything to spur purchases in a down economy is a good thing in my opinion. It keeps people employed and support the local LBS.

Just my 2 cents.

Bob

[JD Smith]

The resale value of a $9000 Trek is probably what, $3000 after six months? Seriously.

Hmm, wait, this does sound more and more like GM.

That just might say something about some of the people who pay $9000 for a Trek and then lose interest in it after six months. They probably lose interest once they start reading about next year's model. A big part of their attraction was the "2009" part of the bike. When the times comes when they risk riding along side someone on a Trek that has "2010" as part of it, well, the humiliation is too much to bear.

[oldguy00]

The resale value of a $9000 Trek is probably what, $3000 after six months? Seriously.
....


Hate to burst your bubble, but it ain't much different with Serotta or any other high price bike.
I believe someone recently sold a Mevici frame/fork/headset here for 3k or under, and that frameset retailed, for what, 7k+??

[rugbysecondrow]

Not to begrudge people their opinions, but Trek makes some very good quality bikes that get people out of the house, off the couch and helps them compete in centuries, triathlons, afternoon rides with the kids etc. Is Trek a custom bike, no, but it also is not intended to be. It has a very different market and one that is meant for mass production. With Low models of $350 Treks, High end models upwards of $7,000. 2,000% difference from top-bottom end makes it unique and makes this analogy void.

As far as resale, used Treks that are entry to mid level models still hold their value pretty well. You will consistantly see 3-5 year old models selling on Ebay and CL for 50-75% of their retail price...not too bad. Top of the line models accross all companies do not hold their value as well ...as pointed out earlier regarding the Mevici sales.

For the sake of playing along though, Schwinn is closest to a GM type company.

[max_powers]

This economy has de-valued just about everything.

You may recall how the Porsche marque held its value well.

Nowadays, a 2003 twin turbo that sold for 125k new can be had for under 40k.

can you say Margin Call?

[csm]

Put "Colnago" or "Pinarello" in place of Trek and Madone's would be gushed over.

[avalonracing]

Put "Colnago" or "Pinarello" in place of Trek and Madone's would be gushed over.

So true.

[Dan Le foot]

Hate to burst your bubble, but it ain't much different with Serotta or any other high price bike.
I believe someone recently sold a Mevici frame/fork/headset here for 3k or under, and that frameset retailed, for what, 7k+??
+1
I struggled to sell our Ottrott for $1600. No buyers on this forum at that price.
Dan

[Mike748]

Trek=Pontiac. Performance is there and they could be great looking cars/bikes if they got rid of the gaudy graphics (and nostrils).

[JeffS]

Yes, but unfortunately they're not alone. Do people really like have 12 Specialized stickers on their bike? It could be twice that, I'm just guessing.

Hell, I personally wouldn't buy a serotta because of the font. It's more offensive to me than the racer-boy graphics of the big-brands.

I've always been anti-branding though, and have often made my feelings known to various manufacturers. Salsa is the only one I can think of that's bothered to reply intelligently.

[gemship]

Yes, but unfortunately they're not alone. Do people really like have 12 Specialized stickers on their bike? It could be twice that, I'm just guessing.

Hell, I personally wouldn't buy a serotta because of the font. It's more offensive to me than the racer-boy graphics of the big-brands.

I've always been anti-branding though, and have often made my feelings known to various manufacturers. Salsa is the only one I can think of that's bothered to reply intelligently.


Salsa graphics are so tribal wannabee. They have to be some of the biggest offenders in my book.

[gemship]

+1
I struggled to sell our Ottrott for $1600. No buyers on this forum at that price.
Dan


So true. In fact that depreciative value may be worse for a brand like Serotta as they are so well known for building "custom" to fit bicycles. One has a better chance reselling a Trek in that sense.