Bike to work question

Rykard
Rykard Posts: 582
edited October 2007 in Commuting chat
Hi,

does the amount you sacrifice have to the the rrp or can it be the discounted price?
Cheers
Rich

A Vision of a Champion is someone who is bent over, drenched with sweat, at the point of exhaustion, when no one else is watching.

Comments

  • graham_g
    graham_g Posts: 652
    Depends on who is operating the scheme - many of the shops will not do a discounted (sale) bike on there as they get charged a commission by cyclescheme.co.uk. That is not to say that it has to be RRP - 'street price' or 'shop price' is standard. Get in touch with whoever the scheme provider is - Evans/Halfords may not care.
  • RufusA
    RufusA Posts: 500
    The salary sacrifice can in theory be ANY amount. You are effectively paying your employer rent for your bike, and your employer can decide to set this rent level at anything, be it 10p a month, or 1/12 of the RRP less VAT.

    If you are going through a scheme provider, then the amount depends on what is dicated in the scheme / contract with employer. However because of the costs the scheme provider recovers from the retailer you may find that discounted bikes, special offers etc. are specifically excluded from the scheme.

    YMMV - Rufus.
  • Massimo
    Massimo Posts: 318
    I got my bike thru the scheme run by Evans, which inlcudes all sale bikes - so the sacrifice is on the sale value :wink:
    Crash 'n Burn, Peel 'n Chew
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  • graham_g
    graham_g Posts: 652
    Just found out from a colleague that Cyclescheme shops get ass-raped to the tune of 10% commission on every order. Fine if spending £200; not so great on £1k.
  • thebikeliker
    thebikeliker Posts: 66
    Graham G
    As someone pointed out in another thread:
    There really is no need to be such a miserable bugger now is there? As far as the policy goes, it's never going to be wonderful as there are always pifalls and downside which generally only affect the minority - be thankful it's there in the first place!
    Oh, it was you!
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  • mailmannz
    mailmannz Posts: 173
    As Graham said in his first posting...it all depends on who runs your scheme. My work one gives you a set amount plus 20% on top for accessories (but you only pay for the original set amount, not the 20% extra, which is free).

    The draw back is if your voucher is for £1000 and your bike ends up being £700 you dont get any money back. BUT on the flip side you will now have £400 left over to spend on accessories.

    Even then though, my work scheme is through halfords and there seems to be some variation in what the monkey staff will let you do. Some say they wont let you spend the left over on accessories and some say you can etc.

    Best thing to do...ask the people who run your scheme.

    Mailman
  • graham_g
    graham_g Posts: 652
    thebikeliker wrote:
    Graham G
    As someone pointed out in another thread:
    There really is no need to be such a miserable bugger now is there? As far as the policy goes, it's never going to be wonderful as there are always pifalls and downside which generally only affect the minority - be thankful it's there in the first place!
    Oh, it was you!

    :D

    I was just giving a LBS perspective here.

    Sorry if I was a bit of an arsehole!
  • RossC
    RossC Posts: 38
    Graham G wrote:
    Just found out from a colleague that Cyclescheme shops get ass-raped to the tune of 10% commission on every order. Fine if spending £200; not so great on £1k.

    a charming turn-of-phrase, but some shops dont like having to do the paperwork necessary too

    How do you make a small fortune in bicycle retail?
    Start with a large fortune!
  • MikeX
    MikeX Posts: 75
    I believe the statement that Cyclescheme make 10% on the sale price of the bike from the LBS is correct but think of ot this way - a bike sold on the scheme for RRP less 10% to Cyclescheme is 5% more than they get selling it to Joe Public when he has haggled a 15% discount.
    This is why the LBS would be hard pushed to discount the bike on Cyclescheme as they get a double hit.
    i managed to get Cyclescheme introduced at work 3 years ago - it took a load of work I had to get an new best mate who was Chief Administration Officer for UK operating devision (circumnavigated our HR department).
    Having done all that a few of my colleagues who are into quite specialised areas or riding said 'if we had used such and such we could have saved more'. Well - next time they can get the scheme in place.... to date we have about a 13% uptake by staff and the average bike purchase is £800 - I cant see many people in the Bike industry complaining in the Bike Renaissance......... especially my LBS
    MikeX

    Why is the wind always head on?

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