YETI bikes, disgusting corporate behaviour

[madbradd]

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)

 

I know they've been looking for a Plan B (to retail in general) for a while. Specifically because of brands going the direct route (like Canyon) and having to compete with online stores while having to go through local agents. I think this is where the tours came in, and I know it's picked up quite well for them.

 

Also as Patch says, not really easy to pick up on a new brand that easily. Even if it takes only 3 months to get all sorted, that's still 3 months worth of overhead you need to carry on a store just to survive until you can get new bikes on the floor.And it would likely be significantly longer than that...

[Yo-Yo]

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? 

 

1) it's a nightmare

2) it's a nightmare

3) You have to try to wrangle all kinds of things that aren't in normal agent agreements due to tax, crap exchange rates, CSR, employees, luxury tax, VAT, duties, try to future proof against our economy and the rest. For a smaller niche brand (mostly the ones that aren't in SA already with the big boys) it's not a enviable task to get that up and running then sell the SA public on it... like Salsa. Great bikes but I can't see them doing numbers here. 

4) see point number 1

[keithbe]

actually specialized have also bullied some small businesses, so by supporting the brand you also support the ethics. 

 

I was behind you until the Spaz comment. Not cool dude!

 

Based on your comments I suspect you own high end electronic equipment and clothing items - if you do then question your own ethics. "Buddy".

[Bikalot]

Being involved in the industry I must say our involvement with Cyclic was always positive. The gents were always quick and pleasant in their communication and invoices settled promptly.

[Eldron]

I was behind you until the Spaz comment. Not cool dude!

 

Based on your comments I suspect you own high end electronic equipment and clothing items - if you do then question your own ethics. "Buddy".

Some background reading for you: https://www.outsideonline.com/1920596/war-specialized

[Yo-Yo]

I was behind you until the Spaz comment. Not cool dude!

 

Based on your comments I suspect you own high end electronic equipment and clothing items - if you do then question your own ethics. "Buddy".

 

But Spez have a history of bullying smaller businesses / peeps remember the 'Roubaix' shop incident which the CEO was forced to make public apology for their attack dog tactic. Conveniently about the time that Fuji decided to mull over publicly their thoughts on the licensing of the Roubaix name that they own and let Spez use. There have been a few incidents like that from that company so it's not that much of unfounded comment.

 

[GrahamS2]

That letter clears things up somewhat. Reading between the lines, Yeti see a model such as Specialized, with a national footprint and huge brand growth in SA (which Yeti seem to have missed somewhat), and decide they want a slice of the action. Current distributors can't support that model/meet targets, so Yeti find someone who (promises they) can.  

[AntonG]

This story sounds similar to the BMC and Swiss Cycles conversation.

 

To date, BMC have not signed up a new dealer in the northern suburbs of JHB.

If you want to buy a new bike its an online order platform. Not ideal...

 

Swiss Cycles sadly closed its doors.

 

Really sad to see how the LBS suffers in this corporate tactic and as a result their loyal clients too.  

[the nerd]

Some background reading for you: https://www.outsideonline.com/1920596/war-specialized

 

I was going to quote this article. 

 

People are quick to jump!

[madbradd]

That letter clears things up somewhat. Reading between the lines, Yeti see a model such as Specialized, with a national footprint and huge brand growth in SA (which Yeti seem to have missed somewhat), and decide they want a slice of the action. Current distributors can't support that model/meet targets, so Yeti find someone who (promises they) can.  

 

Which is all well except that Yeti are not particularly XC focussed, which is where the bulk of the SA market is at. Yeti don't have a hardtail on their website (not sure if they still do the ARC) and I see the ASR is also off the website, so the most XC bike they have (on the website) is a 114mm travel bike with a 67degree head angle. Not one of the bikes (on the website) takes a waterbottle inside the triangle. Very different to what the SA market is looking at. On top of that, they start at around R75k so your available market is very limited. 

[Skott5]

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? 

 

Change your business model and be a normal retail outlet.

If your service and reputation is good they will come to you.

I know someone who has done exactly that.

Doesn't all have to be about one brand. 

[karma]

Some background reading for you: https://www.outsideonline.com/1920596/war-specialized

 

We can't use the word Brain anymore either, Spez owns it, they might sue. 

[GrahamS2]

Which is all well except that Yeti are not particularly XC focussed, which is where the bulk of the SA market is at. Yeti don't have a hardtail on their website (not sure if they still do the ARC) and I see the ASR is also off the website, so the most XC bike they have (on the website) is a 114mm travel bike with a 67degree head angle. Not one of the bikes (on the website) takes a waterbottle inside the triangle. Very different to what the SA market is looking at. On top of that, they start at around R75k so your available market is very limited. 

Either way, they've remained a small, boutique brand in a local MTB market that has boomed in recent years... I don't know the details of the distribution deal, or how and why it was ended, just making observations

[eddy]

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? 

 

 

You also need a lot of capital to do secure such a deal...

[zeepee]

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

I think that is him being polite in his letter to his clients.

[Shebeen]

I know they've been looking for a Plan B (to retail in general) for a while. Specifically because of brands going the direct route (like Canyon) and having to compete with online stores while having to go through local agents. I think this is where the tours came in, and I know it's picked up quite well for them.

 

Also as Patch says, not really easy to pick up on a new brand that easily. Even if it takes only 3 months to get all sorted, that's still 3 months worth of overhead you need to carry on a store just to survive until you can get new bikes on the floor.And it would likely be significantly longer than that...

If that's the case then the scenario is more of an issue with the way bike distribution is going than with Yeti HQ in particular, which is what the OP is suggesting.

 

 

back to the more important issue, are there going to be some sexy ass Yeti's flooding the classifieds at bargain prices soon?

 

http://www.treadmtb.co.za/wp-content/uploads/2016/07/TreadMTBmagazineYetiASR-6.jpg