Coolheat - Supply chain debate

[Slowbee]

Madmarc, how do you protect your brand and back up if lots of online shops are selling your stuff?

 

or is this a narrow minded view?

 

 

[madmarc]

Slowbee - Not a narrow minded question at all

How would lots of online shops comprimise your brand. A brand protects itself through it's quality and durability. It's market share that needs to be protected. Market share is gained & protected by getting as many outlets as possible to sell your brands as well as be proffessionaly trained on how to sell the brand.

As far as back up goes; yes the agent will have a lot more customers to service and take care of, but that goes hand in hand with the volumes which are being sold. How does the IT industry or the printer industry do it with the volumes that they move.

 

If i was an agent for a particular brand, i'd rather have 100 dealers selling it than have a mere 25 trying to sell it.

 

Currently cyling components are only sold throught LBS, in my opinion the problems are.

 

Most don't stock much, so most of what you need is ordered

Most don't have any knowledge of components or spares so they don;t know how to help customers with recommendations on repairs and replacment.

Most take ages to pay the agent for parts (which they get payed cash for) and almost always are sending something back for credit 3 - 4 months after they ordered it.

If an established LBS has a new competitor open up in his vicinity, they threaten the agents not to supply or give terrible credit terms to the new shop. (dictating sales policy)

 

In my opinion LBS suck as customers & service providers of the brands they try sell. In fact they do more damage to the brand name than the brand itself. This has been the norm in the industry for the last 30 years.

 

The agent should start coming up with new sales policies and strategies to get the brands out and readibly available to the end user, and ensure that the people selling their brands are qualified to do so

[Slowbee]

 

is there a gap then for a bike spares shop ?

 

doesnt do repairs but just spares and equipemnt?

 

similar to an autozone ?

 

edit:- most bike shops do have stuff, thinking of CWC - but  say a specialist bike bits and pieces shop. yes money is made with servicing and selling bikes but in reading through here that just creates large amounts of hassles unless you have the right staff that need to be paid etc etc etc.

 

 

Slowbee2009-01-16 01:16:50

[fandacious]

 

is there a gap then for a bike spares shop ?

 

doesnt do repairs but just spares and equipemnt?

 

similar to an autozone ?

 

 

 

 

i think its too much of a paradigm shift. people are going to come in, buy something and want you to fit it. if you tell them they have to go to another shop to fit it, they're going to save themselves time and go directly to the other shop first next time. Its a very small market that do their own repairs.

 

just go to HCW and see how many bikes they have in that back storeroom of theirs

 

[madmarc]

is there a gap then for a bike spares shop ?

doesnt do repairs but just spares and equipemnt?

similar to an autozone ?

edit:- most bike shops do have stuff' date=' thinking of CWC - but  say a specialist bike bits and pieces shop. yes money is made with servicing and selling bikes but in reading through here that just creates large amounts of hassles unless you have the right staff that need to be paid etc etc etc.

[/quote']

 

Yes i believe ther is a huge gap.

 

Take Sportsmans wharehouse for example, their inventory has increased considerably since they startd selling components. All be it entry level stuff for now, i believe we will see it grow into bigger things in time to come. The only thing retarding this groweth is they don't offer installation and repair, so they stick to the products that customers can generally fit themselves. If i was the sh*tmano agent i would increase the range; train their sales staff and advertise the fact that the product is available instore.

Whats wrong with being able to buy a 105 groupset from Sportmans Wharehouse and then paying a LBS to fit it for you.

 

Whats wrong with getting MIDAS to do the same thing. As a hardware store they are certaionly diversing into products that you would never have seen in their store 10 years ago.

 

LBS are niche market sellers. the majority of their customers buy from them because they like the shop and or the people, anf they like to go in on a Saturday morning have their bike tweaked and talk a bit of shop.

 

so now a stranger walks in with his bike and some componenets and wants them fitted, if the LBS says no because you didn't buy the components from me, they just turning business away.

 

Why don't agents sell direct to the registered cycling clubs, based on one order per month with cash payment made prior to despatch. Obviously the clubs would not get at the same price as the big stockists but, they would feel they getting a good deal cause they dealing direct with the agent.

 

If online shops start up, why not supply them also based on COD. It's a sales avenue thats not been exploited.

 

A salesman with a bit of inventive thinking could double sh*tmano's component sales in 3 - 4 years, if only they had the balls to ignore the LBS idel threats.

[madmarc]

excuse the spelling

[AndreZA]

Talkign of Sportsman's warehouse. When I was in France in 05 I went into the Decathlon store in every town I was in. I just loved it.  There you could buy Campag bicyles and euro pro kits and spares like Time pedals and all sorts. I even bought an Elite Saeco water bottle from the grocery store. BTW, they even sold Daniel Hechter clothing inside their crocery stores. Here they are speciality stores with crazy prices.

 

 

[markStockton]

 

Currently cyling components are only sold throught LBS' date=' in my opinion the problems are.

 

Most don't stock much, so most of what you need is ordered

Most don't have any knowledge of components or spares so they don;t know how to help customers with recommendations on repairs and replacment.

Most take ages to pay the agent for parts (which they get payed cash for) and almost always are sending something back for credit 3 - 4 months after they ordered it.

If an established LBS has a new competitor open up in his vicinity, they threaten the agents not to supply or give terrible credit terms to the new shop. (dictating sales policy)

[/quote']

 

Some allow the potential of a sale of a new part to sway their advice regarding component repairs.

 

[Slowbee]

 

is there a gap then for a bike spares shop ?

 

doesnt do repairs but just spares and equipemnt?

 

similar to an autozone ?

 

 

 

 

i think its too much of a paradigm shift. people are going to come in' date=' buy something and want you to fit it. if you tell them they have to go to another shop to fit it, they're going to save themselves time and go directly to the other shop first next time. Its a very small market that do their own repairs.

 

just go to HCW and see how many bikes they have in that back storeroom of theirs

[/quote']

 

fand - if only service was ok ....

 

[Slowbee]

 

 

A salesman with a bit of inventive thinking could double sh*tmano's component sales in 3 - 4 years' date=' if only they had the balls to ignore the LBS idel threats.

[/quote']

 

Madmarc and co

 

 

 

so what you saying is a shop like CWC should be changing things?

 

 

 

fitting things and tuning things would also be important ...

 

 

 

but then surely at the end of the day you become a bike shop ?

 

LBS and threats ? how do the LBS threaten a place like coolheat?

 

[Dirtbreath]

A bike whop would need to charge the stranger to install whatever it is they are fitting. This is normally included in the price of the part at the LBS. I would rather fit the item myself, why must I subsidise the guy that cant or needs it installed?

[madmarc]

 

A salesman with a bit of inventive thinking could double sh*tmano's component sales in 3 - 4 years' date=' if only they had the balls to ignore the LBS idel threats.

[/quote']

Madmarc and co

so what you saying is a shop like CWC should be changing things?

fitting things and tuning things would also be important ...

but then surely at the end of the day you become a bike shop ?

LBS and threats ? how do the LBS threaten a place like coolheat?

 

Okay heres an actual threat that i know of

 

A guy opened a small bike shop somewhere in Gauteng (won't mention names here) focused on MTB. He was very knowledgable and new what he was doing. He new his components and could answer virtually any question or query on bikes, components and repair advice. His prices were very reasonable, a lot of MTB'rs supported him.

He was a TREK fan was desperatly trying to get a deal from the TREK agents at the time to stock and sell their range of MTB's

 

The LBS in the same area which had been there for many years was also a TREK dealer, told TREK agents in no uncertain terms that if they supplied the new guy he would no longer sell TREK or any othe products from the agent. the agent backed down and after a few months the new shop closed because he could not get stock. (the few bikes he sold he bought COD through the back door) but it was not enough to sustain the shop.

 

Ironically a few months after closing the established LBS had a blow up with the TREK dealer and dropped the range.

 

This is fact because i was going to buy the shop and during the due diligence it transpired that it was going to be very difficult to get dealer agreements with the agents because the shop was to close to the established LBS.

 

The agent was the loser here because he landed up with no TREK dealer in the area, he let the LBS dictate selling policy to him and was left sucking hinde tit.

 

Why won't agents sell direct to cycle clubs?????? becuase they are scared of the reaction from LBS.

 

Why don't agents use a merchandising sales strategy and enter the mass mart??????? because it's never been done before on this type of product and they scared of the unknown, as well as having absolulty no idea of how to create new markets.

 

Their is no freinds and loyalty from customers in business, they buy based on added value. The agents need to ad the value, based on strict terms which must be met by any customers wanting to do business with them.

 

They must be technically versed with the product and know how to sell it.

They must stock the range in store. (if it is a LBS)

They must stick to agreed credit terms "what ever they are"

 

Why is it that i can go into a corner cafe and buy a Coke, i can then go to another CAfe on the next corner and buy exactly the same Coke at the same price, and then walk over the road to Pick & Pay and get the same Coke again a few cents cheaper.?????mainly because Coke don't allow dealers to dictate how and where they can sell their product.

 

[markStockton]

I must say I agree with Marc. The protectionist attitude of wholesalers and dealers usually only protects poor business practices. 

[Slowbee]

so back to the question then.

 

a specialist shop with spare parts and things.

 

online web ordering ?

 

fits parts, for a fee (but does service bikes?)

 

possibly offers a bike wash?

 

little coffee station to touchy feely (parts) and talk crap with people?

 

is this not CWC ?

 

[Slowbee]

 

markS, how does one break that mould then ?

 

i am sitting here thinking of people like Kiwi, Token, Shamus, etc

 

what if they had an "oulet" that people could feel the equipment? and buy it without worrying and fit it themselves if they want - but for an extra fee have it fitted in the shop?

 

Slowbee2009-01-16 03:46:49

[Moab]

I also agree - especially when you look at Coke who have become one of the biggest brands in the world and its not from a good product its from marketing and a no holds attitude. You get Coke in the oddest most obscure places!