Legacy C2W providers sell into businesses as part of a wider employee benefits package. Is GCI exploring this route? The legacy providers are profit-making businesses that can facilitate the extra costs associated with either partnering with a benefits provider or becoming the provider themselves. Partnering with benefit providers usually means paying a commission. This commission is usually more than the commission GCI earns from retailers, which makes it unviable for GCI (as we’re a not-for-profit organisation). Some benefit providers want to specifically work with GCI because of our reputation within the Cycle to Work industry, and will be more accommodating with their fee structure. In terms of becoming a complete benefits provider, we are not looking to pursue this route as we concentrate our efforts in our area of expertise and not try to overreach.
What is GCI’s view of the Cycle to Work Alliance being chaired by a person whose business is a scheme provider and cycle retailer? By choice, GCI is not a member of the C2WA. In large part, this is due to a misalignment of business values, and also partly due to the malevolence shown to GCI when we first launched our pioneering scheme model in 2016. GCI values its relationships with the IBD network, and
to undermine that by undercutting them would not fit with our business ethics. We sympathise with the discord that this has created amongst the IBDs.
How do we support IBDs whilst expanding C2W uptake?
GCI supports IBD by maintaining our low commission rate, which has remained unchanged since we launched, despite our costs going up, just as everyone else’s costs have increased in recent years. We pay our resellers within hours of voucher redemption, aiding the cash flow of the IBD. In return, we ask IBDs to support GCI by recommending our scheme over others at the point of purchase.
With their support, GCI can win new business and help IBDs keep more of their profits within their business. An increase in C2W uptake will lead to more bike sales, which should result in after- sales opportunities via servicing, parts and accessories, and word of mouth promotion. More sales mean increased turnover of stock, enabling the business to invest in pre-orders for new lines, which will attract customers from all sectors.
Why is it easier to buy a £100,000 EV via salary sacrifice than a £1,000 bike?
Is it easier? It’s the same percentage saving as it’s based on PAYE tax bands, which are defined by HMRC, and employers need to be on board. Of course, there’s a big difference in the price tags, but that’s the nature of the product. There is a benefit-in-kind tax to pay on the car benefit, albeit very low at the moment, whilst C2W remains tax-free. The government does seem to be reducing the tax benefits of owning electric cars, and if it continues with this, the EV salary sacrifice mechanism will be pointless.
26 | June 2025
www.bikebiz.com
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