ADVERTORIAL
SPONSORED ARTICLE IN PARTNERSHIP WITH GREEN COMMUTE INITIATIVE
AN INSIDE PERSPECTIVE ON THE CYCLE TO WORK SCHEME N
ot all Cycle to Work Scheme providers are the same. Green Commute Initiative (GCI) is an alternative provider of the scheme, one that prides itself on fair
play policies for retailers as well as employees/employers. GCI is a not-for-profit social enterprise which does not seek
to profit from the scheme’s tax savings, therefore we do not impose unfair charges on anyone using the scheme, including retailers. Our only revenue is our commission charge. As a keen supporter of IBDs, GCI is committed to offering a fair deal and prompt payment with most vouchers paid the same day they are redeemed. All bike shops are treated the equally with a standard set of terms. What’s more, there’s a cap in place so the commission amount never exceeds £300. In fact, if you choose, GCI can be a zero-cost to your business because GCI is the only scheme provider to allow retailers to pass on the commission to the customer, as long as it’s done in a clear and transparent way. So, you can either accept GCI’s 5% commission as a cost of sale, like other payment fees, or pass on the commission to preserve profit margins. Its important for IBDs to prosper to safeguard customer choice. We understand that making a profit is important to small businesses. Remember, GCI developed and pioneered the no limits scheme model and our average order value will be higher than those on the legacy schemes. Most GCI customers upgrade their purchase for a bike over £2,500 meaning that bike shop profits on a GCI order are generally higher than on standard scheme providers. When you factor in our low commission rate, it’s a win/win; the customer gets the bike they want and you make a profit.
Unredeemed vouchers are commonplace and GCI regularly checks that bike shops redeem vouchers for fulfilled orders.
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Over a recent three-month period, GCI contacted bike shops about £100,000 worth of unredeemed vouchers. GCI is proud to offer the scheme free to employees of bike shops with their applications processed without charge. 2023 saw 237 bike shop employee orders processed, totalling more than half a million pounds. The commission that GCI forwent was worth more than £26,000. As a result, we hope the bike shops will support GCI in the following ways: Your website – if you are happy with GCI’s service, please use GCI’s website assets to update your Cycle to Work webpages. Why promote a scheme you are unhappy with? as demand for GCI grows, employers and benefit platforms will have to listen and be open to including GCI on their supplier list.
Running a compliant Cycle to Work Scheme is not straightforward and not without risk. There is the prospect of a retailer redeeming a voucher but failing to deliver the goods. In this situation, GCI will have to reimburse the employer; the Vanmoof saga cost GCI a significant amount of money. Our clients expect generous payment terms which means we often pay the bike shop before we’ve received the money from the client which impacts cash flow. The Cycle to Work Scheme has an important role to play in promoting commuter cycling and its tax incentives beat any other savings that the industry can offer. Although imperfect, the implications of scrapping the scheme may be more significant than many realise. An alternative government-led cycling incentive will be put out to tender with the biggest, most well-known providers in pole position to win. The losers will be the independent bike trade. It will be far simpler to choose your scheme partners carefully.
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