Halfords to stock Pinarello

ianwilliams

bernithebiker wrote:

Volume is all well and good if you can keep your brand integrity.

This is the exact opposite strategy to Specialized who are opening their own exclusive stores, presumably to better control quality and service.

Brand integrity is largely worthless unless the brand can monetize it. They will be focused on profit.

All they need to make this move work is to increase the profit of their lower-margin, lower-price bikes at a rate greater than that from their higher-margin, higher-price bikes decreases. I would say that is achievable. In fact, introducing the brand to a whole new audience opens up a new market to upsell the pricier bikes to in future.

I would be more concerned if I was Boardman.

Re: Specialized, I think that's more a move to upsell additional services and products (e.g. Body Geometry) and 'fetishize' (I can't think of any other word!) the top models - much as Apple do. Their products are still easily bought in an Evans or everywhere online.

rob21

You could argue that Pinarello are lucky to get a prime spot on the "High Street".

+1

I would be more concerned if I was Boardman.

+1

navrig

Here's another thought.

How many of the "New to cycling, what bike should I get?" threads on the Beginner's Forum list Pinarello as a first bike option?

Very few I would guess.

How many list Boardman?

Loads.

Give it 12 months and then ask those questions.

I'll bet that Pinarello appears more and more often.

superyellow

halfords have to be allowed to start somewhere to up their cycling high end offerings.

I bet people wont be complaining about the next Halfords sale when it includes these new bikes

rob21

Halfords are really like Marmite you either love it or you hate it

Crozza

I'd be surprised if Pinarello would be selling the top top bikes through Halfords - it will probably be limited to the same sort of stuff that you can already get on Wiggle (FP Uno etc)

much like Boardman has done - Halfords for the lower end of the range, LBSs for the Elite ranges

rich164h

ju5t1n wrote:

I own two Pinarellos and don’t think this will harm the brand at all, in fact I think this is a good move for Pinarello. Selling bikes is all about volume, so getting your product into the retailer which sells more than one in three of all of the UK's new bikes can only be a good thing. It shows that their sponsorship of Team Sky has paid off.

Selling bikes is only about volume if that's your business model and you consider brand value and exclusivity, and possibly quality, as secondary. It's hard to believe that Mr Pegoretti for example would see volume as his main driver or as a measure of his success.

Ok, so Pinarello aren't that sort of boutique company but they have traditionally marketed themselves as a high-end, almost exclusive brand which does run totally counter (or at least orthogonal) to the normal "stack 'em high, sell 'em cheap" ethos that places like Halfords foster. There's nothing wrong with that approach of course and I'm sure that from a business perspective that the Apollo and Carerra and to be honest Boardman brands are huge successes in that context, but it doesn't sit well with a product that has previously placed itself in a different place in the market. Companies change though so maybe this is the way of the future of Pinarello.

ju5t1n

rich164h wrote:

Selling bikes is only about volume if that's your business model and you consider brand value and exclusivity, and possibly quality, as secondary. It's hard to believe that Mr Pegoretti for example would see volume as his main driver or as a measure of his success.

You don’t spend millions of Euros on sponsorship deals with the likes of SKY and Movistar if you don’t expect volume sales as a return

rich164h

I agree, and in fact my second paragraph acknowledges that this is what they do, but I was just pointing out that not all companies that sell bikes are motivated by volume sales.

navrig

rich164h wrote:

I agree, and in fact my second paragraph acknowledges that this is what they do, but I was just pointing out that not all companies that sell bikes are motivated by volume sales.

Perhaps not but in order to be that way the unit profit needs to be high suggesting that, perhaps, the cost of a Piranaello is not really anymore than a lower cost machine.

Makes you wonder why they sell.

Perhaps the afore mentioned marketing is quite succesful?

il_principe

Why do people think Pinarello sponsor Pro Teams?

The decision to sell via Halfords makes perfect sense to me. They want to grow the brand, so they need increased mental availability (sponsorship) and physical availability (stockists). They've been sold by Evans for a few years, so why not Halfords. They'll reach a whole load more customers this way.

Honestly the snobbery (inverted as well) on here is hilarious sometimes. It's like people complaining when a little known band they love suddenly becomes popular. I also don't get the line about their brand cachet. Pinarello have sold bikes at a range of price points for years, they're not exactly Cervelo who only operate at the top-end (and look what happened to them). Ultimately they are a business and need to make money. The fact that they sell a mix of cheap and expensive bikes doesn't make their high-end less exclusive - the price tag and association with Sky takes care of that.

BTW I switched to Pinarello in 2008 (a Prince) and bought again last year (Dogma2), I've been riding Road since 2003/4. I like their bikes and am glad to see the firm doing well. I really could not give a toss who sells them, as long as my LBS continues to stock... would never buy a Team Sky liveried one though.

Anyway, despite all the fuss, I still see far more Cervelo's than I do Dogma2's!

nickyboy zz

I think Pinarello have made a very smart move. Riding on the back of the cachet of being Sky's brand of choice they have locked into UK's biggest cycling retailer.

It also works well for Halfords. Their "premium" bike sales are up 33% and although they don't break it down by sector, their whole business operates on a 55% gross margin. They want more volume and they realise it is coming from premium rather than cheap in their stores already

Who loses out? Well, existing Pinarello customers lose the exclusivity of the brand but I suspect Pinarello have done the maths and reckon they will make a lot more from their Halfords association than they will lose elsewhere. Oh, and Boardman too....he must be crapping himself.

Sooner LBS realise that the future is in maintaining theses expensive machines the better. Cycling Kwik Fit anyone?

rich164h

Navrig wrote:

rich164h wrote:

I agree, and in fact my second paragraph acknowledges that this is what they do, but I was just pointing out that not all companies that sell bikes are motivated by volume sales.

Perhaps not but in order to be that way the unit profit needs to be high suggesting that, perhaps, the cost of a Piranaello is not really anymore than a lower cost machine.

Quite, and I have no knowledge of their costs but I wouldn't be at all surprised is the unit price to them is in fact significantly lower than many of the "cheap" brands you see as they are buying in much larger volumes from the factories in the far east. What they do have to pay for though is the huge marketing campaign costs and hence they need to charge higher prices, but in return they deliver to the customer a good product with a significant brand value that obviously, the customers feel is worth paying for.

In the UK at least, I can't help but think that the Halfords connections will weaken the brand value aspect although I'd be certain that they will sell more bikes so the shareholders will be happy. Regardless, the UK is only one country in a global market for them, so I doubt they care too much to be honest. Overall the any weakening of the brand will be insignificant to the point of being irrelevant.

Pituophis

Maybe in the current climate, the threat from "Chinarello" and co. has forced the real deal to re think their strategy?

Some of us (I don't own a Pinarello by the way) appreciate quality products for what they are; you get what you pay for, and all that.
But not everyone thinks the same, and a lot of people don't have the cash to splash any more, but still desire the brand, what ever that may be.

Personally, I hope Tesco do start selling decent bike kit, as there's one 100 yards from my house

simon_masterson

Pinarello has been around for decades. They haven't always made 10k carbon fibre bikes. Who cares if Halfords is going to sell them?

Crispyapp

Camus wrote:

dyson1590 wrote:

I take your point, but I see buying bikes from Halfords in the same way I see buying jewellery from Elizabeth Duke at Argos...it's "does the job, low end cheap kit" to me...which I didn't think Pinarello would want to be associated with.

Quite. There's a store near me (Manchester) just opened called the Bike Rooms. The showroom is quite glitzy and in the bike department it stocks Pinarellos exclusively, this is alongside apparel and accessories from Assos and Giordana. Very high end, so Pinarello in part obviously want to pursue that image.

The shop has the full range of Pinarellos from what I could tell wandering around, unfortunately the brand doesn't do much for me, too many wavy bits on the frames. Will be interesting to see what effect, if any, the deal with Halfords has. As someone above mentioned Halfords won't be selling Dogmas. If it encourages more people onto bikes it can only be a good thing for the environment and traffic levels on the roads.

I got to say I really do not like pinos at all. But this is my op. and only my op. I went into the bike room and have to say I was really impressed. And I actually will admit there was 1 downstairs, all stealth matt blk which did look v nice... And after the slating the shop got on here I have to say I disagree with what was said. The young lad in the shop couldn't of been more helpful if I'm honest. Could of chatted to him for hours.....

giropaul

I'm old enough to remember when Raleigh produced vast numbers of "everyday" bikes. Some were sprayed up to look like the team bikes. Models like the "Europa" had a team colour scheme.

However, somewhere in the factory (and then in Ilkeston) they also made really good racing frames with Gerald O'Donovan at the helm.

No-one who was in a club, or who followed the sport, was ever in any doubt as to what was what. The Raleigh Special Products frames were some of the most desirable around. Any similarities in brand or finish with the Halfords-sold ranges never affected the Special Products cachet.

andi1363

I always wanted a Pinerello. Not any more

greasedscotsman

Il Principe wrote:

Anyway, despite all the fuss, I still see far more Cervelo's than I do Dogma2's!

That's not really a fair comparison though, is it. How many Cervelo R5ca have you seen?

nickyboy zz

andi1363 wrote:

I always wanted a Pinerello. Not any more

I never wanted one before , I do now

ju5t1n

It will be interesting to see how many Halfords actually sell.

I hope Pinarello don’t come up with a £200 ‘Wiggo special’ just for this market. Now that really would damage the brand.

Paul 8v

I don't think Pinarello will risk making a cheapy cheap bike to sell at Halfords but a more mid ranged one would be excellent.

I think Halfords do some great bikes in the Carerra and Boardman ranges, apart from the B Twin range it's hard to find something at the £300 point that's better. The Boardman bikes are great too and do very well in reviews. To be honest I think it's good that people are buying better bikes from Halfords these days, beats all the Y frame Apollos you used to see around...

If Pinarello did a bike I could actually afford I'd have no qualms buying it from Halfords with one caveat, that they didn't put it together, they would really have to up their game, I've seen some shockingly set up bikes from some of the stores (That were fine after some fettling)

juggler

ADIHEAD wrote:

I'm trying to recall the name of the company who he claims makes them. I can't find anything online so I'll ask him to remind me when I pop into the shop the weekend. Come on we're all brand snobs aren't we

mmm.. I must admit I find this slightly hard to believe. If it is the case then it would have to be done with the agreement of Pinarello as the shape of the frame and decals would all be copyrighted. It would also leave Pinarello open to misleading advertising. Plus i know this happened in the old days , but i thought that there were UCI regulations in place now to stop this sort of thing.

McClaren making Mark Cavendish;s bike is a different case... it was later sold and marketed as being made by McClaren so there was no deception.

I am not clear what the advanntge would be for the Sky team to get their bikes made by someone else and then disguised a Pinarello Dogma's. Weight isn't an issue, they are all on the UCI weight limit anyway, aerodynamically they would be the same, as they look like Dogma's. So maybe the carbon might be different(?)

Gadge

The Bike Room Shops are owned by Yellow who are the distributors of Pinarello in the UK.

I am curious where Halford's will be buying.
From Yellow or direct from Pinarello due to their expected volume?

Interesting also that Halford's are indeed exclusive on Boardman Bikes in the UK BUT if you change your delivery location on the WIGGLE web site to another country e.g. Switzerland they do in fact then list and sell Boardman bikes.
Try it and see.

oldwelshman

juggler wrote:

ADIHEAD wrote:

I'm trying to recall the name of the company who he claims makes them. I can't find anything online so I'll ask him to remind me when I pop into the shop the weekend. Come on we're all brand snobs aren't we

mmm.. I must admit I find this slightly hard to believe. If it is the case then it would have to be done with the agreement of Pinarello as the shape of the frame and decals would all be copyrighted. It would also leave Pinarello open to misleading advertising. Plus i know this happened in the old days , but i thought that there were UCI regulations in place now to stop this sort of thing.

McClaren making Mark Cavendish;s bike is a different case... it was later sold and marketed as being made by McClaren so there was no deception.

I am not clear what the advanntge would be for the Sky team to get their bikes made by someone else and then disguised a Pinarello Dogma's. Weight isn't an issue, they are all on the UCI weight limit anyway, aerodynamically they would be the same, as they look like Dogma's. So maybe the carbon might be different(?)

+1 the team bikes have to be available to public., ones I saw were pinarellos.
I wonder if Halfords realise yellow are the only importer and they have to deal with the fat waaanker and will get crap service and make him richer and more arrogant?

rsands

I am sure they are well aware of what they are doing. They are running a business not keeping peoples ego high. Who cares were you get the bike from?? Back down to earth for the people who say I wouldnt buy a bike because halfords stock it....its a bike!

nickyboy zz

There's no way Halfords will be buying Pinarellos via a middle man, just like they source Boardman bikes directly. It's not so much the extra costs involved, it is the lack of control over the manufacturing process.

Pinarello will have to give direct access to their factory in Taiwan or wherever to Halfords buying team. Halfords will want direct access to the manufacturing process to ensure product quality. They have a brand to protect too. Halfords will either pay Pinarello or they will pay the factory (just like Pinarello do) and pay a licensing fee to Pinarello.

If Yellow have an exclusive agency agreement with Pinarello for UK, Pinarello just give them some cash to compensate them and modify the agreement to be non-exclusive. Happens all the time in business.

Regarding the super high tech Sky Dogma, if this isn't made by Pinarello then this would have been part of the general contract between the two parties. To deal with the problem of "passing off" this as a Pinarello, Pinarello will buy it from the high tech supplier and sell to Sky, thus allowing it to be branded Pinarello

On_What

Chinarello anyone?

Rapidly becoming as uncool as another boring Specialized

ADIHEAD

I'll get the full gem tomorrow on who I was told makes the Sky Dogma's but I remember the story now that the reason Sky didn't go to Specialised or Trek was that these brands insist on supplying stock frames. The chap who gave me the story is an ex Pro Triathlete and sells Pinarello's/Treks/Giants etc so isn't trying to blacken the name. He says the stock Dogma is rock hard to ride, even for a pro bike, although it's very stiff and the sharpest handling frame he's ever ridden. The Team bikes are nicer to ride apparently. Anyway, I'll get the story tomorrow as I say so long as the proprietor has made it to work through the snow!

small_bloke

I don't think I will buy a Pinarello from Halfords. Nothing to do with snobbery - Halfords don't allow test rides out of the store. So it could be an expensive mistake.

BTW.... I own a Boardman carbon racing bake and also a Pinarello already. They are both good bikes despite one of them being twice the price of the other for similar spec.

Makes me think of another point, the Pinarellos won't be able to compete against the price of Boardmans. Unless of course they offer completely different model/price ranges so one doesn't trade off the other?