shops wont budge on Trek prices.......

scazzer

Hi.....Looking around for new bike and like the look of the Trek 6700..
Been in 2 lbs and both have started off with the same price £850,
having then asked whats the best price they can do(as would be expected)
they've both come back with similar stories saying Trek doesnt want retailers
budging from the retail price anymore,but they would throw some other bits n
pieces in with the deal :x which prob aint worth havin or ive already got...

Cant believe i came out of 2 shops and didnt get anything off,not even £1
never happened before............
Has any1 ad the same prob and have Trek realised they are taking over other big names
with their bikes that the days of bartering are nearly over??????????

BlackSpur

Perhaps some of your local bike shops have got together and started price fixing?

ride_whenever

Well, have you seen what they'll throw in? Maybe you could get something of value?

strodey

Its what most sensible retailers will do, by giving you for example £60 of free accessories it is cheaper for them than giving you £60 off the bike as the cost of the accessories to them won't cost them £60!
As for price fixing Trek will be trying to prevent their products being discounted to prevent the brand being devalued and thought of as a cheap brand.
Bike shops are just trying to make some money while offering you a good service, better than internet retailers for example!

scazzer

Looked on actual Trek site and their (suggested retail price)is £850,
but maybe shops are begining to get together to try and stem the amount
of deductions they are giving out....as for for freeby's,only ever get the usual
pump,speedo,pedals or bottle cage,mmmmmm got me thinking now,could do with
a new jacket,cheers :P

The BIG GT

IIRC, Spesh are also quite hot on dealers knocking anything off the price of their bikes unless they are end-of-season or previous models where they will tell them the discounted price they are permitted to sell them at..
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.
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dave_hill

You could always take your money somewhere else??!!!

Atz

Just ask them to throw something you WILL need in. Like a tubeless kit, new pads/discs, bleeding kit, muc-off. Chances are you've got lights, helmets and locks anyway so I wouldn't see any problems with my lbs giving me "extras".

The Spiderman

Take a look at this deal to see what you might be able to bargain for:http://www.pedalon.co.uk/acatalog/trek_6700.html

zero303

Shock horror in businesses trying to maintain their margin and actually make some money!

I own a small independent clothing chain - people are shocked that the clothing biz has a 2.5x markup and think it's a rip off - well no it isn't, take out rent, wages and overheads and the most successful will barely make 10% - I suspect bike shops are the same.

You may think 10% off a bike isn't a big ask but that's basically their profit gone - what's the point of trading? Internet prices aren't helping and in case you hadn't realised, we're in a recession here - simple economics means that what comes around goes around and if you keep screwing bike shops down, they have no money, people lose jobs, this effects other businesses, maybe even your employer etc etc.

Of course it's easy for the LBS to blame the dealer for forcing them to maintain prices rather than tell the truth. I'm not knocking LBSs for this btw, I'm in support of them - most of Bristol's LBSs are a credit to the city and it would be sad to see them go cause we all want bikes at less than list price.

rob cole

there is nothing wrong with a distributor insisting that their dealers maintain the recommend retail price - especially for a large brand like Trek who have dealers all over the UK

if one shop starts discounting then you get into a dealer price war, and the dealer network suffers as customers start shopping outside their local area in order to make a saving, basically the dealer offering the reduced price starts making a higher volume of sales at the expense of the other dealers

if the shop offers you some free accessories then that is still a good deal, and many dealers offer a free 1st service and will generally assist you with any problems that occur or claims for warranty, and may offer a 10% discount to regular customers for cycling parts and accessories

the only time you will find Trek, etc. at reduced prices is during sale season, where stock needs to be cleared in order for dealers to take on the next year's stock - the distributor will actually assist the dealers by offering rebates and margin incentives to keep the dealer from losing their margin whilst selling at a knock-down price

if the dealer does not clear the 07 stock, they don't buy a high volume of 08 stock and Trek would suffer

other companies like Oakley never allow discounting, as they feel it devalues their brand - Oakley will actually take stock back and either distribute it overseas to charity projects or have it destroyed

dave_hill

zero303 wrote:

You may think 10% off a bike isn't a big ask but that's basically their profit gone - what's the point of trading? Internet prices aren't helping and in case you hadn't realised, we're in a recession here - simple economics means that what comes around goes around and if you keep screwing bike shops down, they have no money, people lose jobs, this effects other businesses, maybe even your employer etc etc.

First off, who mentioned anything about 10%? The guy's just expressing his frustration that the people aren't prepared to haggle a bit.

It does seem strange that they are prepared to offer him some free accessories. What's the difference? If they are prepared to give him £20 or £30 in freebies which he doesn't want or need, why refuse to give him the same amount off the bike?

The other thing is, I think it's a bit strong to say that we are in the middle of a recession. You been watching too much telly? OK, so we've had it fairly good for a few years and now things are going a bit quiet. The company I work for supplies packaging and material handling machinery - we are often the first to see a downturn, but so far I would say that business is quiet. I've seen it better, but I've also seen it far, far worse.

Refusing to negotiate on price is in my book bad business practice, especially on what most would consider to be a capital purchase - it doesn't encourage the buyer to return to the dealer, which in turn does nothing for the dealer's reputation, and so his business suffers.

I suppose that you could argue that in this case the dealer is in a catch-22 - if he gives discounts he cuts his profit margins, if he doesn't give a discount he risks losing business. But from a personal stand-point I would rather have a smaller profit margin than no business at all.

papasmurf.

zero303 wrote:

most of Bristol's LBSs are a credit to the city

are they? most are shoddy and over priced.


Trek and Spesh have a reputation of not allowing dealers to discount their bikes, which is fair enough..in fact you'll find a lot of LBS won't give reductions on bikes (or if they do small ones) but they will give you other stuff...I got a 1/2 price xen, a free thomson seat post, v12 mag pedals and some lubes and a pump which was far better for me then 50 quid of the bike..

supersonic

Mark up on bikes typically ranges from 20 to 50%, with budget models having the higher markup. Its a very tough business for a small LBS, who have even less mark up than this. Once you take the overheads off, many struggle to make anything at all. many shops make most money through parts and accessories where the mark up is higher, which is why they are more willing to throw these in as it costs the business less.

We all know why the internet is cheaper - much less overheads. Plus an LBS will let you test the bike, set it up for you, give a free service and all that easy to reach aftersales care, and time is money.

By all means ask for a discount - but if they refuse, you know why.

creamsoda

Over Christmas went into Bike Plus in Croydon and they had both Spesh and Trek 08 models heavily reduced.

So if your near there pay them a visit.

cjw

rob cole wrote:

there is nothing wrong with a distributor insisting that their dealers maintain the recommend retail price - especially for a large brand like Trek who have dealers all over the UK

Just to pick you up on that statement....

It is actually against the law for a distributor to insist that dealers maintain the RRP under Chapter 1 of the Prohibition of the Competition Act 1998. Manufacturers may suggest a RRP, but they CAN NOT enforce retailers to stick to it and not offer discounts. If they do this they are in breach of the law and can (and are) fined heavily. The recent fines dished out to manufactureres of replica soccer kits are a case in point.

However, should dealers not wish to offer discounts etc is up to them. Unfortunately the LBS is under intense price pressure from on-line retailers and can only compete on service - which to stay in business in the future they MUST excel at or go out of business.

Personally I hope they survive and thrive and we will al receive superior customer support!

zero303

The other thing is, I think it's a bit strong to say that we are in the middle of a recession. You been watching too much telly?

No, not at all - I'm a retailer myself, we're actually still doing well cause we run a tight ship and have made stock adjustments in time, but we're still 20% down, commercial rents are at unprecedented lows, competition is falling at the wayside, price wars are becoming unmaintainable.

If there's no recession, why has most of the highstreet been in the sale for most of November and December - the two busiest retail months of the year? Cause people haven't been buying enough and everyone is over-stocked hugely. What happens when you sell most of your stock at cost or less? You can't pay your rent and you can't afford next season's stock... There's a blood bath coming out there and I'm reporting from the front line! :x

zero303

are they? most are shoddy and over priced.

Ok, let's not get into naming and shaming in public, but there are two who I have an issue with and I'm sure we'd probably agree on those two. The rest I've had a good experience with so surely it's at least two thirds good, 1 third bad?

zero303

Manufacturers may suggest a RRP, but they CAN NOT enforce retailers to stick to it and not offer discounts.

You get this in clothing, they won't stop you discounting but you'll see deliveries come in late, or stock becomes unavailable, customer service will go down the pan. We complained about competitors selling our brands at less than half price on ebay from the start of the season, they admit they can't actually stop them but they have their ways!!

papasmurf.

zero303 wrote:

are they? most are shoddy and over priced.

Ok, let's not get into naming and shaming in public, but there are two who I have an issue with and I'm sure we'd probably agree on those two. The rest I've had a good experience with so surely it's at least two thirds good, 1 third bad?

well probably find people argue over which ones constitute the 1/3.. theres one I think is okay that I know someone else thinks crap..plus one my g/f likes and I'm not fussed over..
but yes theres alway 2 that stand out for most people.

dave_hill

zero303 wrote:

If there's no recession, why has most of the highstreet been in the sale for most of November and December - the two busiest retail months of the year? Cause people haven't been buying enough and everyone is over-stocked hugely. What happens when you sell most of your stock at cost or less? You can't pay your rent and you can't afford next season's stock... There's a blood bath coming out there and I'm reporting from the front line! :x

I'm not saying that there isn't a down-turn - I just think that "recession" is too strong a term. Do you remember the last one 16 or 17 years ago? 3.5 million unemployed? Record business failure rate? Are we at that stage yet?

No, nowhere near. There's no denying that things are slowing down somewhat and I agree that you will be among the first to feel it, especially if it gets worse. Just out of interest might I ask how long you have been in business?

I think that someone has already pointed out that many high-street retailers are struggling to compete with on-line sales. Could this be why the sales started earlier this year and why your takings are down? I have to admit that I hardly ever buy from a high-street retailer any more, I do all my business on-line.

cjw

dave_hill wrote:

[ I have to admit that I hardly ever buy from a high-street retailer any more, I do all my business on-line.

Exactly the same here. This year I couldn't face the hastle of getting into town, parking, struggling through crowds etc etc... all Christmas shopping was done online at cheaper prices than the high street. All arrived on time! In fact I've done almost no shopping in the high street for the last year come to think of it. Even grocery shopping is now mostly on-line!

zero303

I'm not saying that there isn't a down-turn - I just think that "recession" is too strong a term.

I'm not trying to cause trouble but you might want to check the definition of recession. It merely defines a temporary recess in the economic climate - a period of negative or neutral growth.

What you are referencing is usually referred to as a Depression.

We're in year 4 of trade btw...

scazzer

hhhaaayyyyy easy fellas .........

Didnt mean to be the ignition for next war,,,,,,,dont get me wrong,i can see where some of you are coming from about lbs having lots of competition from online shops,and the need to try and claw back some profit,but the point i was trying to get across is,that in the past i would always look forward to going around lbs shops,getting to know people on first name terms and having a bit of banter with them,with the shop knowing that 50% of people(at a guess) are going to try for a better deal and both wondering how much each other will give or take and the same when i go back to shops for a item or part,you would almost hear from behind the counter "ohh f**k me,he's back take 1 of me kidneys its cheaper" and banter would kick off again.
Like its been said,if shops are going to tighten up then their after sales are gonna have to be second to non,otherwise punters are gonna use the net a lot more......

gthang

http://www.berkshirebikes.com/

This bike shop in Reading had a trek 6700 for £720 - brand new! this years model. I know coz I have sat on it. Can't see it on the website, ring the Reading shop and ask. (I am 99% sure what I am saying is correct) I did not buy it mainly due to everyone riding a Trek or Specialized, nice bike though esp for £720.

Kwenchin

Most shops will give a 5-10% discount for members of local biking clubs.

scazzer

First of all,thx for all replies and help....
While out and about,i dropped into merlin cycles just to have a browse.
Ive read good reviews on the malt 04 and seen pics,but to actally see the bike in the
flesh,pics dont do it any justice what so ever,its an absolutely gem of a bike...
Not seen a frame like it and the spec is superb to.Straight away it was the 1,so after a
bit of banter and trying for the deal to buy,they were not gonna budge,so had to give in and ordered 1
£790 in all,but only thing is got to wait for 3-4 weeks cos they are waiting on a couple of parts to be delivered before they can start the build,but hay,good things come to those who wait.......................

sparrowlegs78

Way cool....i ordered a Malt 1 from them before Xmas but due to some delay they won't have my size frame in till end of feb so they have given me a top deal on a Malt 2..and you are right..the bikes are so much better in the flesh....i was sized up on a Malt 4 and it looks the dogs pods..good choice

juankerr

Good lad. Got a Malt 4 myself last year. This years is even better.

Re: Trek. They are trying to stop their bikes from being marked down and viewed as a cut price brand as someone else has said. I think they are also trying to stop people selling them mail order too. I know my LBS's website is saying they are "collection only".

steadyrolling

I dunno about MTBs as I'm looking to get into road bikes again, but I've done extensive searches on the net and the only difference in price I've seen on bikes (Trek & Spesh) with an RRP between £500-5000 is 1p! There is obviously some blatant price fixing going on, whether instigated by the manufacturers or not, which cannot be legal or justified. As there's dozens of shops selling the bike(s) I've shortlisted though, I'm gonna make damn sure I play them all off against each other - it's easy to walk away when there's a wide choice...

supersonic

RRP is what the manufacturer sets - theoretically that should be the same in all shops. What the shop sells it is an entirely different matter.

As I said before, some shops can afford to sell cheaper due to reduced overheads.