blarnie

Again, how is a Specialized bicycle, an otherwise common bicycle, a "special order"?

Aren't they like, everywhere?

It's more like an "order", for not currently in stock run of the mill merchandise. A duck isn't a goose,a pig isn't a number two pencil.

Long Tom

Well.... it depends. In the guitar world, lots of stuff is A-Mark, meaning wholesale is 50% of retail. SOP for dealers is to knock 20% (or more) before it even hits the floor, to be competitive with everyone else. So in that case, I'd argue that MSRP is pretty much a farce; it's certainly not a great starting point. The starting point would be AFTER the dealer has taken off that gratuitous 20%.

Then again, with stuff like Collings or Tom Anderson or any number of more boutique guitars, wholesale is more like 70-75% of retail. In that case MSRP might be a great starting point.

This is why I wanted to know how this industry, and Spesh specifically, handled the MSRP conundrum. Because it IS that. I mean,the bike I want is $3800 MSRP and it seems around $2600 wholesale. What if instead it listed for $5000 but was discounted 20% right off the top? Different perception by the consumer, same effective numbers though in the end.

Long Tom

Are Roubaix Experts everywhere? I don't know. It's not an Allez.

But your point has merit. Maybe I'm asking the dealer, in effect, for "dibs" on stuff they were ordering anyway. Good point.

ilvwhtgrls

Thankfully, the bike industry is pretty firm on at least advertising and posting MSRP on bicycles in store. A lot of our bikes are sold at MSRP. However, we also add a few services that are an excellent value to the customer that don't cost us much. The margin on bikes is pretty crappy and can almost be considered a loss leader.

wheelreason

I'll recuse myself from the Specialized discount/cost debate (We're a Specialized dealer), but I'll weigh in on the return policy/procedures of a large retailer. Their return policy often has little or no effect on sales, and they create a large expense, mostly by a disconnect between branches and corporate, misapplication of return policies by stores, and lack of proper accounting, and yes customer abuse, but the latter only contributes a small %, but it all adds up to a big number.

rpenmanparker 

Your assertion of no impact on sales is interesting. Without anything but intuition I have always believed that successful internet businesses could not operate without the no-questions-asked return policy. It is a main driver of that type of business, and is certainly responsible for a major fraction of their sales in the sense that no one would buy from them if mistakes couldn't be easily corrected. And remember that is how Performance got its start. Sure, for a small shop to suddenly say, "Bring back anything for a refund," wouldn't make a whole lot of difference. But for larger, multi-branch and internet businesses, it is a must, the inherent evils notwithstanding. Sure the policy needs tight regulation, but it is an absolute necessity in certain business models else there would be NO sales.

The faults in the policy you mention become inconsequential when one considers that they ARE the hallmarks of the policy; they are expected and pre-accounted for. If you really mean "return for any reason, at any time. no questions asked", then one has to assume you have accounted for that in your pricing structure. Saying it is costly is like saying service is costly. It is just admitting you are not committed to your business model.

wheelreason

I'm speaking brick and mortar (I hate that expression). Online is a different business model, which while growing by leaps and bounds, is still in its infancy and accounts for a small fraction of all retailing.

wheelreason

You just made my day...

rpenmanparker 

Yes, but so much business (like Performance) is hybrid now. How can they have one policy for internet sales and one for the brick and mortar? Actually it is an obvious extension of the bring back whenever you want for any reason policy to accept internet bought merchandise back at brick and mortar locations. A further business complication, yes, but a tremendous convenience for customers.

Long Tom

Interesting. 'Cause it made a sale with me! I went in there just to look around, maybe snag something small (I forget what) and came out with shoes, pedals, and cleats. Since the shoes and pedals are very much a personal-pref thing, and I'm a noob, when he told me how their policy was set up my little brain went.... oh! So I could buy the cheapest shoes they have, which were dang cheap, and if that turns out to be a mistake I can hit the undo button! Sign me up! And if it turns out I want Speedplays after all, it costs me NOTHING to first try the Keo's for like 1/3 the price!

I guess more to the point, perhaps, is that they've also succeeded in differentiating themselves from whatever LBS's exist in an area that they move into. I suspect that virtually any LBS owner would have a fairly militant reaction against the notion of running their shop that way.... it really goes against the idea of converting inventory to money- the inventory could still come back, only now it's used, and you have to give back ALL the money?! So it's also a real attention-getter.

By way of illustration I think everyone on this thread who didn't know they did it that way, was a bit shocked to find out about it, and they won't forget about it, either.

Long Tom

I called a couple Spesh dealers in my region and had no trouble getting a $3500 quote. So that's roughly 8% off MSRP. Just FYI.

lsberrios1 

It may be a different story if you show at the store with cash in hand. That being said 8% is a fair enough deal. I would take it considering how 2014 models JUST came out.

Long Tom

Yeah, given what I've learned on this thread, if my local LBS will do that I'll be ordering it from them here shortly. If not I'll go with the PDX shop.

Funny..... took my soon-to-be "rain bike" out today, and was hammering my route.... I felt really good; was right on my PR pace, and stood up and cranked the entirety of the hill I call "Nasty Wench", and she is all of that, for the first time, and never felt even close to going anaerobic.... anyway, got 40 miles into a 56-mile ride and my rear tire blew out. Sounded like a cap gun going off. I had to make The Call. I'd noticed some cord showing before the ride but I was hoping to not need to spend any money on this current bike before getting the Roubaix but I guess not.