[oldpotatoe]

Originally Posted by carlucci1106

I'll add a bit as now I recall. The credit was based on the best tiered price the dealer could purchase the bike at wholesale originally. As most of you know. tiered pricing involves giving better wholesale to shops who commit to more product. So if you were on a lower tier (a small LBS, let's say) the credit was a large percentage of what you paid, vs. what you would buy it for wholesale now.

For the Erik's shops it was the exact difference betweeen what you paid, and would now pay wholesale.

What is most disconcerting is that your supplier is your competitor at the retail level. They have modeled the sales of their bikes to sell through the LBS channel, their stores, or the D-2-C channel. Some mix of those.

When they are selling "their" bikes at just-above wholesale cost, they are still making a very healthy profit, but the shop now has to match their price to compete, if they are still flush with inventory. If you didn't, people would "showroom" you for size/color, and then turn around and buy it direct. Next week, you'll be building that Stumpjumper.

So, needless to say, your supplier is not your friend when times get tough. I don't get offended when OldP says Rep(tile) because it 100% TRUE. These people egg you on to buy their overpriced crap, then they keep a contingency of inventory to have the power to control your prices-via the digital realm, so all their products sell. You fail- they will do nothing to prop you up, except maybe offer to buy you out.

Need a like button. We got bit by the D2C alligator more than once. Again, with shoes..Got 'showroomed', then the guy rides by to show us his new bike(mail-order), and we notice his new shoes...Happened with Colnago too with Maestro-UK..even tho we 'were' a Colnago dealer. The Rep(tile) told us to just lower our prices 'to compete'...Amazing that some of these companies will piss on their LBS network not realizing it's their bread and butter..it sure ain't volume MO/D2C.