YETI bikes, disgusting corporate behaviour

[Pure Savage]

Buy a cannondale those okes are awesome.

 

Yeti smeti.

[Skinnyone]

It is a bit swak for sure, however you never know perhaps someone else approached Yeti and promised them they would sell double the numbers in SA ( and perhaps they have the working capital to do so) so at the end of the day - it is really business....

 

If you had a business supplying X to a distributor - Y for many years on a hand shake and a smile, and Mr Z comes along and says he can double your profits in the next year, are you really going to stay with Y and eek out a living?

 

Perhaps they had negotiations that failed as Cyclic couldn't (or wouldn't) meet their targets/demands?

[Patchelicious]

It is a bit swak for sure, however you never know perhaps someone else approached Yeti and promised them they would sell double the numbers in SA ( and perhaps they have the working capital to do so) so at the end of the day - it is really business....

 

If you had a business supplying X to a distributor - Y for many years on a hand shake and a smile, and Mr Z comes along and says he can double your profits in the next year, are you really going to stay with Y and eek out a living?

 

Perhaps they had negotiations that failed as Cyclic couldn't (or wouldn't) meet their targets/demands?

Just as long as Mr Z knows that Yeti might just do it again and drop them for Mr Q who promises to double sales again.

[madbradd]

Hi Zeepee. how did you come across this information? Is it publicly available for further reading?

 

I don't have specifics other than the mail that was sent out by Cyclic to their customers. As it was sent to a wide distribution list, I don't feel that it would be an issue posting it here to give anyone else interested the same information:

 

"Hi Customers and Friends,

 

It is with a great deal of sadness that we are letting you know that we are going to be closing our retail business as of the 1^st of April 2018 after 21 years of business.

This is not a decision we have taken lightly and at the end is purely a business decision. We discussed it at length, particularly as we have formed relationships with many of you and feel personally responsible for your bikes and ultimately your enjoyment of cycling as a whole. We have been there to see all of you compete in all the cycling events that fill our years and be involved with how the cycling industry has changed time and time again.

As you are all aware, we have had Yeti Cycles as a fundamental part of our business. We have worked with them for over 12 years and through their range offering changing over this time. We have built the brand a couple of times through the early days and again when we all went 29” crazy. It has unfortunately got to the point where our business models are no longer aligned. Our understanding of what kind of product and the number of these products that are applicable to our South African market is not inline with Yetis understanding. We are not willing to conform to a situation that we do not believe to be viable and for that reasons Yeti have decided to select a new South African distributor. It’s with a lot of heartache that we have accepted this situation which was against our will, as we feel that Yeti Cycles and their phenomenal bikes has become as much a part of our lives over the years as you all have.

Without the part of the business that the import and sales of Yeti Cycles occupied, our retail store will no longer be a profitable or viable business and it is for this reason that we have made the decision to close the doors. This decision was also heavily influenced by our other venture that many of you may be aware of into cycle tourism and the traction and opportunity for growth we have there. In this light we will be pursuing this part of our business full time going forward and we hope that through this we will still be able to work with all of you, just in a different setting.

 We’d like to thank all of you for the support and loyalty for the past few years, some of you for a few decades! We have loved all the chats, all the bike builds, all the races and all trails we’ve shared with you over this time. We will certainly still be around, and you’ll see a lot of us, we just wont be fixing your flat tires anymore…

 

 

Thanks, Colin and Jared"

 

To give you an idea, that was sent on the 29th March. I popped round their shop on Friday afternoon (6th April) expecting that they might still be there closing up shop, and it was completely cleared out, so things happened really fast. I haven't been in touch with Colin or Jared since, so can't comment further.

 

Edit: Formatting

Edited April 9, 2018 by madbradd

[Yo-Yo]

Yeti have been about for ages have been sold to Schwinn and the ski company Volant previously before being bought and run by two yeti employees - Chris Conroy (Pres) and Steve Hoogendoorn (VP) - in 2001. 

 

Distributors and local agents change all the time just look at the Easton farce of a couple of years back and the Fox swap in the UK where they go no notice and the upside was a firesale of note! Usually it's okay and very little difference to the customer on the shop floor but sometime it becomes a farce. 

It does seem odd that there was no consultation period if they were unhappy or switching focus  or notice period built into contract for Morningside. Shame if they have put alot into growing the brand here. 

 

Locallly in CT the Gear Change were big Yeti pushers with great looking bikes but recently there have been less and less on the floor and Trek becoming the main focus. They are great bikes but high end and pricey here in SA and don't fit into the higher turnover brands like Spez or giant that succeed here.Maybe they haven't been getting the growth they needed, maybe they might do direct model as well like so many other brands. As boutique brand like Transition, Banshee, YT, Canyon, Orbea and Commencal I don't think they would shift the numbers in the SA scene than you would over seas where trail, enduro and AM bikes have a bigger reach and audience. 

Was surprised to see BMC seem to have gone this route in SA. Unfortunately the direct model is only a benefit to customers if you get great spec' and deals like YT and Commencal have shown you can do and not just use it a a lazy way to reduce costs, keep the same prices / spec, increase ,margins and just make more profit.  

Edited April 9, 2018 by Yo-yo

[zeepee]

zeepee... What's up dog?

 

I actually agree with you.

 

Guys saying 'that's business' or jumping on the anti OP bandwagon (which very often happen here in hubland unfortunately) are just removed from the emotions of a friend having to close down his business because someone else has (legally or illegally) screwed him.

 

As a brand, there should have been some negotiation or forewarning. Transparency and honesty in business go a very long way.

 

My apologies it has hit close to home. Yeti do still make rad bikes and I will never be able to afford one, so will say just this.....

 

Maybe they have taken the backing of Richie Rude a little too literally......

Lekker and you? Hehe, do you also practice jewjitsu?

 

Thanks, corporate ethics is a big thing for me, I consciously try and spend my money with ethical companies. Also these are dream bikes for me, I’m not in a position to just swipe a card for a R100k bike whenever I feel like it, each one took careful manouvering to get.

So yeah, gutted about this.

[AllezAllez]

Strange that Cyclic didn't know about the distribution changing hands before it actually happened, as it had been talk in the industry for the last couple of months...

 

I totally agree with you when it comes to ethical business practice and integrity, as this has happened to me in the past with a big 'premium' brand where I was retrenched without any warning whatsoever, not even an "oh, business is not doing so well, these are our plans..."

[lechatnoir]

It is a bit swak for sure, however you never know perhaps someone else approached Yeti and promised them they would sell double the numbers in SA ( and perhaps they have the working capital to do so) so at the end of the day - it is really business....

 

If you had a business supplying X to a distributor - Y for many years on a hand shake and a smile, and Mr Z comes along and says he can double your profits in the next year, are you really going to stay with Y and eek out a living?

 

Perhaps they had negotiations that failed as Cyclic couldn't (or wouldn't) meet their targets/demands?

 

as always, it takes two to tango... but imagine riding a Yeti, wearing a Giro helmet?

[Yo-Yo]

 

I don't have specifics other than the mail that was sent out by Cyclic to their customers. As it was sent to a wide distribution list, I don't feel that it would be an issue posting it here to give anyone else interested the same information:

 

"Hi Customers and Friends,

 

It is with a great deal of sadness that we are letting you know that we are going to be closing our retail business as of the 1^st of April 2018 after 21 years of business.

This is not a decision we have taken lightly and at the end is purely a business decision. We discussed it at length, particularly as we have formed relationships with many of you and feel personally responsible for your bikes and ultimately your enjoyment of cycling as a whole. We have been there to see all of you compete in all the cycling events that fill our years and be involved with how the cycling industry has changed time and time again.

As you are all aware, we have had Yeti Cycles as a fundamental part of our business. We have worked with them for over 12 years and through their range offering changing over this time. We have built the brand a couple of times through the early days and again when we all went 29” crazy. It has unfortunately got to the point where our business models are no longer aligned. Our understanding of what kind of product and the number of these products that are applicable to our South African market is not inline with Yetis understanding. We are not willing to conform to a situation that we do not believe to be viable and for that reasons Yeti have decided to select a new South African distributor. It’s with a lot of heartache that we have accepted this situation which was against our will, as we feel that Yeti Cycles and their phenomenal bikes has become as much a part of our lives over the years as you all have.

Without the part of the business that the import and sales of Yeti Cycles occupied, our retail store will no longer be a profitable or viable business and it is for this reason that we have made the decision to close the doors. This decision was also heavily influenced by our other venture that many of you may be aware of into cycle tourism and the traction and opportunity for growth we have there. In this light we will be pursuing this part of our business full time going forward and we hope that through this we will still be able to work with all of you, just in a different setting.

 We’d like to thank all of you for the support and loyalty for the past few years, some of you for a few decades! We have loved all the chats, all the bike builds, all the races and all trails we’ve shared with you over this time. We will certainly still be around, and you’ll see a lot of us, we just wont be fixing your flat tires anymore…

 

 

Thanks, Colin and Jared"

 

To give you an idea, that was sent on the 29th March. I popped round their shop on Friday afternoon (6th April) expecting that they might still be there closing up shop, and it was completely cleared out, so things happened really fast. I haven't been in touch with Colin or Jared since, so can't comment further.

 

Edit: Formatting

 

Seems like they knew it was coming for a while and that the issue of swap was one of Yeti's wish on targets, market and goals. 

Edited April 9, 2018 by Yo-yo

[Shebeen]

I don't have specifics other than the mail that was sent out by Cyclic to their customers. As it was sent to a wide distribution list, I don't feel that it would be an issue posting it here to give anyone else interested the same information:

 

"Hi Customers and Friends,

 

It is with a great deal of sadness that we are letting you know that we are going to be closing our retail business as of the 1^st of April 2018 after 21 years of business.

This is not a decision we have taken lightly and at the end is purely a business decision. We discussed it at length, particularly as we have formed relationships with many of you and feel personally responsible for your bikes and ultimately your enjoyment of cycling as a whole. We have been there to see all of you compete in all the cycling events that fill our years and be involved with how the cycling industry has changed time and time again.

As you are all aware, we have had Yeti Cycles as a fundamental part of our business. We have worked with them for over 12 years and through their range offering changing over this time. We have built the brand a couple of times through the early days and again when we all went 29” crazy. It has unfortunately got to the point where our business models are no longer aligned. Our understanding of what kind of product and the number of these products that are applicable to our South African market is not inline with Yetis understanding. We are not willing to conform to a situation that we do not believe to be viable and for that reasons Yeti have decided to select a new South African distributor. It’s with a lot of heartache that we have accepted this situation which was against our will, as we feel that Yeti Cycles and their phenomenal bikes has become as much a part of our lives over the years as you all have.

Without the part of the business that the import and sales of Yeti Cycles occupied, our retail store will no longer be a profitable or viable business and it is for this reason that we have made the decision to close the doors. This decision was also heavily influenced by our other venture that many of you may be aware of into cycle tourism and the traction and opportunity for growth we have there. In this light we will be pursuing this part of our business full time going forward and we hope that through this we will still be able to work with all of you, just in a different setting.

 We’d like to thank all of you for the support and loyalty for the past few years, some of you for a few decades! We have loved all the chats, all the bike builds, all the races and all trails we’ve shared with you over this time. We will certainly still be around, and you’ll see a lot of us, we just wont be fixing your flat tires anymore…

 

 

Thanks, Colin and Jared"

 

To give you an idea, that was sent on the 29th March. I popped round their shop on Friday afternoon (6th April) expecting that they might still be there closing up shop, and it was completely cleared out, so things happened really fast. I haven't been in touch with Colin or Jared since, so can't comment further.

 

That's unfortunately business, similar thing happened to the Spaz distributor (Le Peleton) on a much larger scale when HQ decided to come to SA themselves. They did however 'conveniently' wait for all that price fixing stuff to get out the way first!

 

They could both be a victim of their own success.

 

As someone who has no idea on the background this is a very honest email, and it looks like they are basically just shifting to a totally different sector of the industry.

.

a)I can't blame Morningside/Cyclic for not having a tighter agreement on their deal.

b)I can blame them for not having a retail plan B, as this situation could have happened at any time. If they are really that good, then they should have been able to have found a similar brand with zero local representation (Salsa off the top of my head)

[Wet Ears]

Was chatting to a mate about this over the weekend as he owns a Yeti and has also been a long time client of the shop.

 

I suppose the big question now is - who does he get hold of in SA for a warranty claim.

Edited April 9, 2018 by Wet Ears

[Hairy]

bit of world wide web looking around leads to this...but if could be very far off too

 

https://nsquared.co.za/

 

 

[Skott5]

Mmmm, I think there is a bit more too it that what is being let on.

 

 

They could have picked up another brand very quickly, and carried on.

[Patchelicious]

Mmmm, I think there is a bit more too it that what is being let on.

 

 

They could have picked up another brand very quickly, and carried on.

Oh really, have you ever tried securing a brand for distribution in SA after you have focused solely on selling a specific one for the last decade? 

[Blackbeard]

I don't have specifics other than the mail that was sent out by Cyclic to their customers. As it was sent to a wide distribution list, I don't feel that it would be an issue posting it here to give anyone else interested the same information:

 

"Hi Customers and Friends,

 

It is with a great deal of sadness that we are letting you know that we are going to be closing our retail business as of the 1^st of April 2018 after 21 years of business.

This is not a decision we have taken lightly and at the end is purely a business decision. We discussed it at length, particularly as we have formed relationships with many of you and feel personally responsible for your bikes and ultimately your enjoyment of cycling as a whole. We have been there to see all of you compete in all the cycling events that fill our years and be involved with how the cycling industry has changed time and time again.

As you are all aware, we have had Yeti Cycles as a fundamental part of our business. We have worked with them for over 12 years and through their range offering changing over this time. We have built the brand a couple of times through the early days and again when we all went 29” crazy. It has unfortunately got to the point where our business models are no longer aligned. Our understanding of what kind of product and the number of these products that are applicable to our South African market is not inline with Yetis understanding. We are not willing to conform to a situation that we do not believe to be viable and for that reasons Yeti have decided to select a new South African distributor. It’s with a lot of heartache that we have accepted this situation which was against our will, as we feel that Yeti Cycles and their phenomenal bikes has become as much a part of our lives over the years as you all have.

Without the part of the business that the import and sales of Yeti Cycles occupied, our retail store will no longer be a profitable or viable business and it is for this reason that we have made the decision to close the doors. This decision was also heavily influenced by our other venture that many of you may be aware of into cycle tourism and the traction and opportunity for growth we have there. In this light we will be pursuing this part of our business full time going forward and we hope that through this we will still be able to work with all of you, just in a different setting.

 We’d like to thank all of you for the support and loyalty for the past few years, some of you for a few decades! We have loved all the chats, all the bike builds, all the races and all trails we’ve shared with you over this time. We will certainly still be around, and you’ll see a lot of us, we just wont be fixing your flat tires anymore…

 

 

Thanks, Colin and Jared"

 

To give you an idea, that was sent on the 29th March. I popped round their shop on Friday afternoon (6th April) expecting that they might still be there closing up shop, and it was completely cleared out, so things happened really fast. I haven't been in touch with Colin or Jared since, so can't comment further.

 

Edit: Formatting

The highlighted portion does not accord with what the OP claims.

Edited April 9, 2018 by Blackbeard

[NicoBoshoff]

As always, waiting for the third side to the tale...