OFF TRACK SPOKES
On 650b tyres and IBD’s 35% margins
Carlton Reid talks to a supplier who’s not convinced some IBDs are worth the margins they get. And 650b is a marketing ploy...
THIS BACK-OF-THE-MAGAZINE column is all about opinions. Mine, as it so happens. But this month I’m handing over the column to Supplier Z who, for reasons that will become obvious, would not wish to be identified. His views were shared with me recently and, whether you agree with them or not, they are worth putting down on paper. Some other suppliers have voiced similar opinions to me in the past but to go public with them would not be conducive to good relations with IBDs.
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“IBDS ARE on 35 points for selling a bike while we are on maybe 18 points for sourcing, manufacturing, marketing the product as well as bankrolling the IBD. That’s not right!
“What do IBDs add to the experience for their 35 points? Too often it’s nothing. They don’t even have to stock products in depth; they expect us to supply [overnight]. “IBD websites are often
poor. Some IBDs don’t even list their opening times on their website. Real time availability of product isn’t supported by some IBD [websites] because it’s seen as giving away information to competitors. “The bike industry is trying to ape the car industry’s
just-in-time method. But the car industry is based on commitment all the way through the chain. Dealers are
brand-based and put in forward orders. Multi-brand bike shops don’t offer that commitment. Trek, Specialized and to certain extent Giant and Raleigh, recognise this fatal flaw and want to have shops focused on just their brand. Imagine what it will be like in ten years time. “Not enough IBDs add true value to what they’re
selling. It’s too easy for consumers to use them to get measured for bikes and kit and then to order, cheaper, from Wiggle or Chain Reaction.” “Second tier bike brands also risk getting eaten up
especially now the bigger brands are forcing multi-brand IBDs to sign ‘no compete’ clauses against certain competitor brands. “IBDs have got to start
adding value to their retail offerings or they won’t get their 35 points in the future.” Supplier Z also has strong opinions on the 650b tyre size. He doesn’t like it.
“650b is money making
pure and simple and will do a lot of harm [to the bicycle business]. We’ve tested 650b against 29ers and 26 inches. There’s no performance gain. We’re all being stretched. It’s crazy to have to carry a third line of forks, a third line of tyres. We’re cutting our own throats.”
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If you strongly disagree with Supplier Z’s opinions feel free to air your views on the forum of
BikeBiz.com or write to us.
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Wondering what the Twitterati have been up to this month? Look no further...
“A devil was telling me ‘attack’ and an angel on the other
shoulder was telling me to be careful. But I decided to attack.” @albertocontador
@iamspecialized
Woohoo! It’s the #Eurobike rave tonight. Throwing shapes
on the floor with Taiwanese component dudes.
@bobbin bicycle
Can we have a quiet day in procycling today please?
There’s stuff to be done in the real world.
@Velocentric
Nearly got run over by a fully costumed Elvis
impersonator on a bike...I couldn’t make that up.
@horrorshowcrew
For Christ’s sake, I’m still in my chamois and I’ve been
home for over an hour!! @neilroad
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