Specialized at it again

[BroDeal]

http://www.bicycleretailer.com/news/newsDetail/7047.html

MORGAN HILL, CA (BRAIN) Thursday August 2 2012 9:38 AM MT—Specialized has sent amended dealer agreements to select retailers asking they stop selling certain competing brands.

In one copy of an amendment obtained by BRAIN, Specialized requests the recipient stop buying Giant bicycles and accessories as of Aug. 15, terminate the Giant account and begin to sell down existing 2012 Giant inventory. The agreement also requires the dealer to provide Specialized with an inventory of current Giant product on-hand.

 

[FitSsikS]

I guess they want their dealers to um...err....specialize and sell one brand.

 

[avanti]

My experience is that local bike shops that carry only one brand of bike tend to have lousy service.

 

[Fiemme]

From the article I would say Mike Sinyard has an issue with an ex-employee (John Thompson) working for the opposition.

Maybe the retailers should stop selling Specialized and sell every other brand. I think offering the customer a greater choice would be better for business that consolidating on one brand.

 

[Llewellyn]

I make a conscious effort to never buy from company's like this who bully their customers or competitors. McDonalds is another one that relies heavily on corporate thuggery so they'll never get a cent out of me either (and their "food" tastes like complete s**t anyway).

 

[Bustedknuckle]

http://www.bicycleretailer.com/news/newsDetail/7047.html

MORGAN HILL, CA (BRAIN) Thursday August 2 2012 9:38 AM MT—Specialized has sent amended dealer agreements to select retailers asking they stop selling certain competing brands.

In one copy of an amendment obtained by BRAIN, Specialized requests the recipient stop buying Giant bicycles and accessories as of Aug. 15, terminate the Giant account and begin to sell down existing 2012 Giant inventory. The agreement also requires the dealer to provide Specialized with an inventory of current Giant product on-hand.

Hmmm, 4 special-ed dealers here in the republic. I wonder if cervelo is next(2 of them sell cervelo and specialized). maybe cannondale also...

 

[biker77]

This kind of letter should be illegal but I bet the letter just asks in a very nice way that promotes cycling and the lbs in general.

 

[DirtyWorks]

This kind of letter should be illegal but I bet the letter just asks in a very nice way that promotes cycling and the lbs in general.

It's not illegal. Specialized dealers are functionally equivalent to a restaurant franchise like Subway. In exchange for better profit margins and the benefits of Specialized's marketing, you agree to sell their stuff. It's their way or the highway.

It sounds like they are faltering. I don't wish ill will on anyone, because what will replace them will probably be worse. Merida will not be happy. I wonder how Giant and Trek (one in the same these days) will react or if they are under the same pressure.

For most of these brands, independent LBS's are far less profitable than running their own shops. A brand like Specialized has no need for independents and doesn't want them around.

 

[Boeing]

Gut tells me that next on their axe list here in socal is Niner at the Rock n Road errrr rock n specialized outlet stores.

 

[Boeing]

My experience is that local bike shops that carry only one brand of bike tend to have lousy service.

I do give slight props to rock n Road specialized shops here in socal. they tend to have well informed staff, mechanics and good service with turn around.

However Jacks Trek only trek all the time whatever is about the worst place to buy a bike or get a re[pair in the OC.

 

[Parera]

They are clearing stock for them ugly *** seatposts.

 

[ElChingon]

Who is actually buying from these stores?

Even when I bought my first bike those shops selling one brand were a total turn off and smelled like rotten fish, and I knew nothing about these angles on selling, it just didn't look right to me to have a bike all one brand. Not sure where I got my idea that it wasn't right but I'm glad I never have bought from a uni-vendor shop. These day's I buy all the parts from all different vendors on-line and local, some direct from the company others through middle men but no uni-brands.

 

[Boeing]

Who is actually buying from these stores?

.

see the "should Tri-tools be allowed on bikes" thread

 

[ustabe]

I don't approve, but if anybody is qualified to do this sort of thing, it's Specialized. Their brand loyalty is off the charts, and have to admit that nobody makes shoes, saddles, and stems that are easier to fit to most serious but non-competitive riders. Roval wheels, meh, but, for example, Bontrager may finally have hit on the right way to do shoes and saddles, but after getting it wrong for four years, they have a lot of convincing to do.

On my daily commute to The People's Republic, I see more Roubaixs than any other bike.

 

[simo1733]

It's not illegal. Specialized dealers are functionally equivalent to a restaurant franchise like Subway. In exchange for better profit margins and the benefits of Specialized's marketing, you agree to sell their stuff. It's their way or the highway.

It sounds like they are faltering. I don't wish ill will on anyone, because what will replace them will probably be worse. Merida will not be happy. I wonder how Giant and Trek (one in the same these days) will react or if they are under the same pressure.

For most of these brands, independent LBS's are far less profitable than running their own shops. A brand like Specialized has no need for independents and doesn't want them around.

When did Giant and Trek become one and the same?

 

[DirtyWorks]

When did Giant and Trek become one and the same?

One doesn't own the other, but where do you think all those bikes get made? At Trek's size, they are beholden to Giant for many facets of their business (quality/technology/revenue) and they can't switch.

 

[Bustedknuckle]

I don't approve, but if anybody is qualified to do this sort of thing, it's Specialized. Their brand loyalty is off the charts, and have to admit that nobody makes shoes, saddles, and stems that are easier to fit to most serious but non-competitive riders. Roval wheels, meh, but, for example, Bontrager may finally have hit on the right way to do shoes and saddles, but after getting it wrong for four years, they have a lot of convincing to do.

On my daily commute to The People's Republic, I see more Roubaixs than any other bike.

4 spec-ed dealers in the republic doesn't hurt, gross sales but I'll bet the stores wish there were fewer spec-ed dealers.

 

[avanti]

One doesn't own the other, but where do you think all those bikes get made? At Trek's size, they are beholden to Giant for many facets of their business (quality/technology/revenue) and they can't switch.

My understanding is that Giant and their subsidiary companies make over 90% of the road bikes sold in the world.
On one ride my wife parked her Specialialized road bike next to another brand (I recall it was a Felt) and the frames were identical except for the paint.

 

[DirtyWorks]

My understanding is that Giant and their subsidiary companies make over 90% of the road bikes sold in the world.
On one ride my wife parked her Specialialized road bike next to another brand (I recall it was a Felt) and the frames were identical except for the paint.

Exactly. FYI Felt is on my list of brands that vaguely use terms like R&D in their marketing where there is none. Zero. They order from a book and the book is very thin.

Felt is interesting in only one area. They've got quite a bit of money behind them. So they are probably funded by at least one OEM with the goal of becoming a Specialized/Merida. I don't know who backs them though.