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REI . . . conspicuous withholding of information

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REI . . . conspicuous withholding of information

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Old 04-21-06, 12:00 PM
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gurana
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REI . . . conspicuous withholding of information

A couple of weeks ago, I'm helping a friend shop for a bike. We looked at a few places last summer, but now he's got the money so he decides to go for it. Initially I think he was looking at a Trek, but fell in love with the Cannondale Roadwarrior 800. We were at REI when he saw it. Up to that point, I had been speaking with him about some of the different things he might keep in mind... compact double vs triple, knobbies (like on a cyclocross) vs ... smooth, different things about the geometry, components. Stuff like that. Anyways, after speaking with him, and giving him all the knowlege I could, we speak with the guy that was hanging around.

Now, I'm not against a person trying to make a sale, but this guy was a little on the pushy side. Not only that, but he gave suspect advice and recomendations. One example: he pointed out that one bike was good because you could put wider knobby tires on it, which was BS because I could see right off that there wasn't enough clearance with the brakes OR the fork to actually go much larger, let alone with knobbies. I let it go, giving him the benefit of the doubt... maybe you could cram some larger tires on there... I guess that's the problem with the chain stores like that; the people that work there aren't necessarily experts in that particular department, rather they've got a little knowlege on just about everything at the store.

At this point, I'm figuring that he's just going to go on and on and not really tell us anything, so I ask specificially about two of the bikes that he had expressed an interest in. I ask, how much (no price tag), and how long it would take to build up if they didn't have his size, and if they could build one up for him to test ride (he's 6'4"). THIS IS THE F*'D UP PART: He specifically points to the cannondale, says it's $xxx.xx (I forget exactly), but if he becomes a member, he gets the discount, which was considerable. I did something similar through HTO, and suggested that he do the same... the refund you get with a big ticket purchase like that pays off for itself right away. The store is about to close, so we leave without test riding anything, saying that we'll go back sometime that weekend. He goes in without me, doesn't get fitted (probably not a big deal), trusts the guy when he tells him that the L should be fine (I'm inclined to believe him), but when he gets to the counter: "OH, THE DISCOUNT DOES NOT WORK FOR THE CANNONDALES. JUST THE HOUSE BRANDS." The thing that irritates me most about that, is the fact that he went ahead and bought it anyways

This isn't my gripe, but it kind of pisses me off. If he was going to pay full price anyways, he could have gone to a real LBS. I really wish I was there though. I probably wouldn't have been able to get the discount anyways, because sometimes it is what it is, but I would have made DAMN sure that one of their employees either didn't know wtf he was talking about, or was lying to the customers.
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Old 04-21-06, 12:12 PM
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Did your friend still become an REI member? At the end of the year, you get a certain percentage back on everything you buy at REI if you're a member. You get your refund in the form of an REI gift certificate, so it's not as good as cash. But then you have another excuse to go to REI and buy more stuff! Which nets you another cerfticate... It's a nice cycle (no pun intended).
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Old 04-21-06, 12:18 PM
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when I was looking as well, they weren't very pushy at all...let me try out whatever...and let them know my intent not to buy at that moment. anyway, hope the bike fits and he'll enjoy it...
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Old 04-21-06, 12:22 PM
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Originally Posted by KevinF
Did your friend still become an REI member? At the end of the year, you get a certain percentage back on everything you buy at REI if you're a member. You get your refund in the form of an REI gift certificate, so it's not as good as cash. But then you have another excuse to go to REI and buy more stuff! Which nets you another cerfticate... It's a nice cycle (no pun intended).
I don't know. Seems like it might be worth it after all if that's the case. I have my doubts though, mostly because the sales guy said that it would be a discount, not a refund. If it was a end of the year refund he was trying to sell, why did the cashier say the program didn't work with cannondales? I mean, if he only gets a refund on other schtuff he buys from them, and not the big ticket item, why whould he stick with REI, who lied to him?

I'll ask him, and report back. I'm not one for complaining about a company (usually) but this was a little redonkulous. That said, if there is some sort of refund he gets regardless of bike brand, I want to put that out there as well.
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Old 04-21-06, 12:53 PM
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What discount are you talking about? The annual membership rebate should apply to all store purchases, except for clearance sales. There is also a 20% discount coupon that is given to members once a year and that coupon has specific restrictions printed on it. You should real the coupon if the discount is a significant amount.
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Old 04-21-06, 12:56 PM
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i learned a new word. conspicuous.

'tis the season for noob bike purchasers and noob bike sales people. not a good combo. i know some of the floor guys are doing their best, but buyer beware and do the research 'cuz the sales guys won't know all the right answers. or give you wrong answers to sell a bike. this will happen shops besides rei.

nice bikes though.
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Old 04-21-06, 12:59 PM
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I am an REI member who recently joined. There are a few things here:

(a) The discount you speak of is unrelated to the 10% annual dividend on total purchases. The 10% dividend is paid out in early April. Now you may be upset that it is not in cash, but rather only in a gift card essentially to purchase stuff at REI. But unless you think you will never be purchasing anything ever again at REI including the occasional replacement tube, spare parts, new clothes etc..., at the end of the day, your net cash savings is the same.

(b) I beleive the 20% discount you speak of was to entice new members to join. I agree that the sales person was not as clear as he should have been. But, unless the bike is on sale at another LBS at the time you purchase it, that 10% savings you get off of the bike is still a great deal.

(c) Once caveat with the 10% dividend. It is not guaranteed. If REI has a bad year, and needs extra to stay in the black, you may get less than the 10% dividend. There might be a chance that you will get no dividend. This is the risk you take. And given the rate of gas prices on purchasing power of individuals, this year may not exactly be a great year for REI.
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Old 04-21-06, 01:09 PM
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REI has full money back policy. Talk your buddy into taking the bike back and go to an LBS.
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Old 04-21-06, 01:31 PM
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Originally Posted by bigskymacadam
i learned a new word. conspicuous.

'tis the season for noob bike purchasers and noob bike sales people. not a good combo. i know some of the floor guys are doing their best, but buyer beware and do the research 'cuz the sales guys won't know all the right answers. or give you wrong answers to sell a bike. this will happen shops besides rei.

nice bikes though.
Originally Posted by VT Biker
I am an REI member who recently joined. There are a few things here:

(a) The discount you speak of is unrelated to the 10% annual dividend on total purchases. The 10% dividend is paid out in early April. Now you may be upset that it is not in cash, but rather only in a gift card essentially to purchase stuff at REI. But unless you think you will never be purchasing anything ever again at REI including the occasional replacement tube, spare parts, new clothes etc..., at the end of the day, your net cash savings is the same.

(b) I beleive the 20% discount you speak of was to entice new members to join. I agree that the sales person was not as clear as he should have been. But, unless the bike is on sale at another LBS at the time you purchase it, that 10% savings you get off of the bike is still a great deal.

(c) Once caveat with the 10% dividend. It is not guaranteed. If REI has a bad year, and needs extra to stay in the black, you may get less than the 10% dividend. There might be a chance that you will get no dividend. This is the risk you take. And given the rate of gas prices on purchasing power of individuals, this year may not exactly be a great year for REI.
Little clarification on my part here:
I wasn't even aware of any 10% dividend with REI. I've never been a customer of them. I got my bike from down the street at a Hudson Trail Outfitters. It may be a good deal; I haven't thought about it. The first I heard about it was when someone replied to this thread. I was really only concerned with the discount that the guy said he would get.

As far as the 20% discount on the bike with new membership is concerned, I recognize that it's explicitly for the purpose of getting people to join. It's why I joined with HTO when I bought my Allez. I also recognize that they have every right to say which products it can be used on. But this has nothing to do with being a 'noob bike buyer, and everything to do with being given wrong information. When we asked about the price of the Cannondale Road Warrior 800 specifically, the sales guy specifcally told us the price, but that he could get a discount if he became a member.

Originally Posted by Doggus
REI has full money back policy. Talk your buddy into taking the bike back and go to an LBS.
I kind of suggested it to him when I found out. But he brought up a good point in that, if he had gotten it anywhere else, he would have paid about the same anyways. He's got no particular reason to support an LBS, besides my best efforts to get him to do so

I feel kind of strongly about this whole thing, but it wasn't my money or purchase, so it doesn't even effect me really. However, I'm not rallying against REI. It's most likely a misunderstanding; it could happen to anyone at any store, even an LBS. I may still go to REI for stuff. I'm simply pointing out that what this particular guy at REI said, and the truth were at odds.

conspicuous: 1 : obvious to the eye or mind
2 : attracting attention : STRIKING
3 : marked by a noticeable violation of good taste
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Old 04-21-06, 01:45 PM
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Originally Posted by VT Biker
I am an REI member who recently joined. There are a few things here:

(a) The discount you speak of is unrelated to the 10% annual dividend on total purchases. The 10% dividend is paid out in early April. Now you may be upset that it is not in cash, but rather only in a gift card essentially to purchase stuff at REI. But unless you think you will never be purchasing anything ever again at REI including the occasional replacement tube, spare parts, new clothes etc..., at the end of the day, your net cash savings is the same.

(b) I beleive the 20% discount you speak of was to entice new members to join. I agree that the sales person was not as clear as he should have been. But, unless the bike is on sale at another LBS at the time you purchase it, that 10% savings you get off of the bike is still a great deal.

(c) Once caveat with the 10% dividend. It is not guaranteed. If REI has a bad year, and needs extra to stay in the black, you may get less than the 10% dividend. There might be a chance that you will get no dividend. This is the risk you take. And given the rate of gas prices on purchasing power of individuals, this year may not exactly be a great year for REI.
As a 7 year REI member, I can tell you REi has not failed to give me back close to or all of my 10% of purchases each year in my dividend. True that you are not guaranteed the full amount but you usually get something. About the refund being only for a gift certificate, this is not exactly true. Though most use there dividend for more REI gear, REI members have a second option. You usually get your refund notice in February. After July 1 of the same year, you can request a check for the amount of your dividend or the balance therein. Sooo....you can get cash back, you just have to wait a little while and go through a little trouble. As for REI cycling, I don't really shop that department. I don't feel they are experienced enough or provide the selection I'm looking for. I generally stick to the Backpacking/camping and apparel section.
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Old 04-21-06, 01:55 PM
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The divedend refund can be used in the store, or after June or July, you can just walk into the store, hand it in and they give you cold hard cash back. Not a bad deal!
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Old 04-21-06, 01:56 PM
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update, for those interested.

I just got an email from him. He did sign up. He cited the reason being the 10% end-of-year dividend thing, and his purchase of the Cannondale does go towards that (so, I assume like $100 bucks, but I don't know how much membership cost). Now, since I'm not too familiar with it, I'll hold off on telling him what's been posted here (the caveat that VT Biker mentioned: the dividend is not guaranteed) until I see the terms of the program.

I still maintain two interesting points:
  1. Dividends are not the same as a discount. The dividend thing only really pays off if he buys a lot of stuff from them. The discount was part of the reason he was so interested in the bike. The end result? The bike cost more than the sales guy had led us to believe.
  2. Even if they were comparable, 10% < 20%.
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Old 04-21-06, 02:42 PM
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Originally Posted by gurana
update, for those interested.

I just got an email from him. He did sign up. He cited the reason being the 10% end-of-year dividend thing, and his purchase of the Cannondale does go towards that (so, I assume like $100 bucks, but I don't know how much membership cost). Now, since I'm not too familiar with it, I'll hold off on telling him what's been posted here (the caveat that VT Biker mentioned: the dividend is not guaranteed) until I see the terms of the program.

I still maintain two interesting points:
  1. Dividends are not the same as a discount. The dividend thing only really pays off if he buys a lot of stuff from them. The discount was part of the reason he was so interested in the bike. The end result? The bike cost more than the sales guy had led us to believe.
  2. Even if they were comparable, 10% < 20%.
The membership is $15 one time fee and as long as you spend at least $15 each year, your membership is maintained. $15/ year is easy to do with even little purchases throughout the year so really it's a $15 one fee that is significant. The 20% coupon is pretty deceiving. You just have to read the fine print. It is pretty biassed againest bike purchases (other than Novara or K2), gps units, oakley products and some others. It's a great coupon if your buying backpacking gear or clothes or racks, but not so good for bicycles or electronics. I do like the fact that you get that coupon twice a year as a member. It's useful for things. Last thing I used mine for (since I really didn't need anything else) was for some Kool Stop salmon brake pads. I've also, in the past used it for backpack purchases, sleeping bags, and car rack accessories. Again, I consider REI a backpacking/camping/outdoor apparel/climbing/kayaking store that happens to carry bicycles as well.
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Old 04-21-06, 03:13 PM
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Originally Posted by huytheskigod
The membership is $15 one time fee and as long as you spend at least $15 each year, your membership is maintained. $15/ year is easy to do with even little purchases throughout the year so really it's a $15 one fee that is significant. The 20% coupon is pretty deceiving. You just have to read the fine print. It is pretty biassed againest bike purchases (other than Novara or K2), gps units, oakley products and some others. It's a great coupon if your buying backpacking gear or clothes or racks, but not so good for bicycles or electronics. I do like the fact that you get that coupon twice a year as a member. It's useful for things. Last thing I used mine for (since I really didn't need anything else) was for some Kool Stop salmon brake pads. I've also, in the past used it for backpack purchases, sleeping bags, and car rack accessories. Again, I consider REI a backpacking/camping/outdoor apparel/climbing/kayaking store that happens to carry bicycles as well.
There was no fine print. We were going solely by what the sales guy was pitching to us. I dont' think I ever mentioned a 20% "coupon". The guy said 20% discount. If he had said coupon I would have asked if it could be used at the time of purchase. (This is still F*d up, because it ended up not being true for the Cannondale anyways.) If he had said rebate, I would have known he would have had to pay upfront, but his final price on the bike would have been minus %20 the sticker price. He was pretty clear I think. He didn't say, 'discount on future purchases', or 'rewards program'. "How much does this Cannondale Road Warrior 800 cost?... This much, but you get a 20% discount with new membership".

I just read what I wrote, and to me it comes off as if I'm passionately advocating that REI is a piece of crap store. I do not believe that, nor do I want anybody else to think that. I'm also not saying that it's not a good program. It sounds good, especially the more you spend. He's already got like $85 or so towards stuff from REI, so it's more than he had, but again, it's not what the sales guy said.

BTW, I agree with your charactarization of REI as a camping type store. I feel the same about HTO, where I got my own bike. I'm not much of a camping guy, so I haven't really been back there since I got my bike. I get most of my stuff from performance (next door to the REI in question, incidentally)
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Old 04-21-06, 03:24 PM
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Originally Posted by huytheskigod
Last thing I used mine for (since I really didn't need anything else) was for some Kool Stop salmon brake pads.
I feel better knowing that someone else did this.

I was feeling kind of lame using an "any single item at 20%" coupon on brake pads, but that's about all I needed from REI at the time. They were nice enough to let me use it for two pair.
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Old 04-21-06, 03:33 PM
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Originally Posted by dtrain
I feel better knowing that someone else did this.

I was feeling kind of lame using an "any single item at 20%" coupon on brake pads, but that's about all I needed from REI at the time. They were nice enough to let me use it for two pair.
Whoa, it's like looking into a mirror.
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Old 04-21-06, 03:36 PM
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Originally Posted by dtrain
I feel better knowing that someone else did this.

I was feeling kind of lame using an "any single item at 20%" coupon on brake pads, but that's about all I needed from REI at the time. They were nice enough to let me use it for two pair.
Here's the sad part, I used both the 20% coupon and my dividend to buy the brake pads.
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Old 04-21-06, 04:20 PM
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Originally Posted by huytheskigod
Here's the sad part, I used both the 20% coupon and my dividend to buy the brake pads.

No, no...not sadder than me. I did the exact same thing because my dividend was all of about 3 bucks. Didn't even cover the reduced price of a single brake pad pair. Seems that nearly everything I buy at REI these days is clearance priced or from REI-OULET.com. Neither qualify for the dividend credit, but that's obviously not my greatest concern.
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Old 04-21-06, 04:21 PM
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Originally Posted by TheDTrain
Whoa, it's like looking into a mirror.
Hey, look at that. What up 'D'?
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Old 04-21-06, 04:23 PM
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Well, you joined before me, but two dtrains are better than one. Your name begins with D too right?
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Old 04-21-06, 04:50 PM
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Did you shop Cannondale bikes anywhere else? I would have searched around rather than buy from REI.
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Old 04-21-06, 04:54 PM
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I wouldn't worry to much over it. A lot of sales people talk out their a$$ all the time anyway. Figuring your friend still bought the bike anyway must be a sign that he really likes it, which is most important overall. It doesn't really matter if you save a ton of money on something if it isn't something you really want IMO.
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Old 04-21-06, 04:59 PM
  #23  
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Originally Posted by TheDTrain
Well, you joined before me, but two dtrains are better than one. Your name begins with D too right?
Yeah, my name's Derek. College teammates started calling me D-Train back in the day. Your use of "The", and the avatars of course, are plenty to tell us apart...so we're good.
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"The older you do get, the more rules they're gonna try to get you to follow. You just gotta keep livin', man, L-I-V-I-N." - Wooderson

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Old 04-21-06, 06:10 PM
  #24  
kahn
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Originally Posted by huytheskigod
The membership is $15 one time fee and as long as you spend at least $15 each year, your membership is maintained. $15/ year is easy to do with even little purchases throughout the year so really it's a $15 one fee that is significant. The 20% coupon is pretty deceiving. You just have to read the fine print. It is pretty biassed againest bike purchases (other than Novara or K2), gps units, oakley products and some others. It's a great coupon if your buying backpacking gear or clothes or racks, but not so good for bicycles or electronics. I do like the fact that you get that coupon twice a year as a member. It's useful for things. Last thing I used mine for (since I really didn't need anything else) was for some Kool Stop salmon brake pads. I've also, in the past used it for backpack purchases, sleeping bags, and car rack accessories. Again, I consider REI a backpacking/camping/outdoor apparel/climbing/kayaking store that happens to carry bicycles as well.
I am not sure what the deal was last SPRING. It was AFTER the 20% coupon that accompanies the dividend. I looked at bikes but did not purchase any since there was no discount on what I wanted. Well, later last Spring, they had another 20% Sale but it was NOT LIMITED as far as other brands of bikes - I got a new Scott Mt Bike and got the discount. So they do have some sales. But, yes, generally, No Garmin and some other stuff.

Years ago, on occasion the dividend exceeded the 10% but I don't know if that still happens.

The bike shop at the Seattle Flagship store has more knowledge help, I guess - it is a 4 mile bike ride away!
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Old 04-21-06, 06:14 PM
  #25  
thewalrus
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Originally Posted by gurana
If he was going to pay full price anyways, he could have gone to a real LBS.
As the original poster points out, REI is not a real LBS. It's a store that sells tents and boots and clothing and also happens to have some bikes. That said, I like the Seattle REI near I-5. It's large, well laid out, nicely designed and has a good selection of stuff.
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