Go Back  Bike Forums > Bike Forums > Road Cycling
Reload this Page >

Saw this severing of Specialized's ties with a LBS

Notices
Road Cycling ďIt is by riding a bicycle that you learn the contours of a country best, since you have to sweat up the hills and coast down them. Thus you remember them as they actually are, while in a motor car only a high hill impresses you, and you have no such accurate remembrance of country you have driven through as you gain by riding a bicycle.Ē -- Ernest Hemingway

Saw this severing of Specialized's ties with a LBS

Old 09-10-21, 05:07 PM
  #1  
helmet4000
Senior Member
Thread Starter
 
Join Date: Nov 2012
Location: Essex County, NJ
Posts: 155
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 68 Post(s)
Liked 12 Times in 9 Posts
Saw this severing of Specialized's ties with a LBS



Such a strange business practice...
helmet4000 is offline  
Likes For helmet4000:
Old 09-10-21, 05:15 PM
  #2  
TMonk
Not actually Tmonk
 
TMonk's Avatar
 
Join Date: Jun 2007
Location: San Diego, CA
Posts: 12,183

Bikes: road, track, mtb

Mentioned: 139 Post(s)
Tagged: 0 Thread(s)
Quoted: 1342 Post(s)
Liked 1,341 Times in 721 Posts
well that's not nice. doesn't exactly make me proud to be a specialized bike owner... in my defense, it was purchased at cost since it was a team bike - provided to the elite team by our sponsorship shop. I could have given it back for free, but I was in need of a race bike at the time.

I've read of other stories like this and it doesn't make me super inclined to give them my business.
__________________
"Your beauty is an aeroplane;
so high, my heart cannot bear the strain." -A.C. Jobim, Triste
TMonk is offline  
Likes For TMonk:
Old 09-10-21, 05:19 PM
  #3  
GlennR
On Your Left
 
GlennR's Avatar
 
Join Date: Nov 2011
Location: Long Island, New York, USA
Posts: 8,364

Bikes: Trek Emonda SLR, Sram eTap, Zipp 303

Mentioned: 34 Post(s)
Tagged: 0 Thread(s)
Quoted: 3000 Post(s)
Liked 2,421 Times in 1,183 Posts
I bet there some history between Specialized and the new owners.
GlennR is offline  
Old 09-10-21, 05:20 PM
  #4  
genejockey 
Klaatu..Verata..Necktie?
 
genejockey's Avatar
 
Join Date: May 2007
Location: SF Bay Area
Posts: 10,072

Bikes: Canyon Endurace, 105; Battaglin MAX, Chorus; Bianchi 928 Veloce; Ritchey Road Logic, Dura Ace; Cannondale R500 RX100; Schwinn Circuit, Sante; Lotus Supreme, Dura Ace

Mentioned: 34 Post(s)
Tagged: 0 Thread(s)
Quoted: 5431 Post(s)
Liked 5,696 Times in 2,905 Posts
Originally Posted by GlennR View Post
I bet there some history between Specialized and the new owners.
The new owners also own Cervelo, Santa Cruz, Focus and several other bike brands.
__________________
"Don't take life so serious-it ain't nohow permanent."

"Everybody's gotta be somewhere." - Eccles
genejockey is offline  
Likes For genejockey:
Old 09-10-21, 05:28 PM
  #5  
WhyFi
Senior Member
 
WhyFi's Avatar
 
Join Date: Jan 2010
Location: TC, MN
Posts: 37,908

Bikes: R3 Disc, Haanjo

Mentioned: 352 Post(s)
Tagged: 1 Thread(s)
Quoted: 19422 Post(s)
Liked 7,991 Times in 4,029 Posts
Think we'll see some coverage on NorCalCycling's YouTube channel?
WhyFi is offline  
Likes For WhyFi:
Old 09-10-21, 05:42 PM
  #6  
Sy Reene
Advocatus Diaboli
 
Sy Reene's Avatar
 
Join Date: Feb 2015
Location: Wherever I am
Posts: 7,762

Bikes: Merlin Cyrene, Nashbar steel CX

Mentioned: 12 Post(s)
Tagged: 1 Thread(s)
Quoted: 4176 Post(s)
Liked 1,170 Times in 767 Posts
Interesting wording in the letter.. "If you decide to cancel your order at Mike's and order a Specialized bike elsewhere, we totally understand, and we will issue prompt full refunds."
So, if you want to cancel your order at Mike's, and not order a Specialized bike anywhere?
Sy Reene is offline  
Old 09-10-21, 05:43 PM
  #7  
genejockey 
Klaatu..Verata..Necktie?
 
genejockey's Avatar
 
Join Date: May 2007
Location: SF Bay Area
Posts: 10,072

Bikes: Canyon Endurace, 105; Battaglin MAX, Chorus; Bianchi 928 Veloce; Ritchey Road Logic, Dura Ace; Cannondale R500 RX100; Schwinn Circuit, Sante; Lotus Supreme, Dura Ace

Mentioned: 34 Post(s)
Tagged: 0 Thread(s)
Quoted: 5431 Post(s)
Liked 5,696 Times in 2,905 Posts
Originally Posted by WhyFi View Post
Think we'll see some coverage on NorCalCycling's YouTube channel?
I just hope Team Mike's Bikes sponsorship continues. I love his videos about individual and team tactics ("Don't chase your teammates!")
__________________
"Don't take life so serious-it ain't nohow permanent."

"Everybody's gotta be somewhere." - Eccles
genejockey is offline  
Likes For genejockey:
Old 09-10-21, 06:27 PM
  #8  
njkayaker
Senior Member
 
Join Date: Sep 2007
Posts: 13,007
Mentioned: 27 Post(s)
Tagged: 0 Thread(s)
Quoted: 3324 Post(s)
Liked 818 Times in 570 Posts
Originally Posted by Sy Reene View Post
Interesting wording in the letter.. "If you decide to cancel your order at Mike's and order a Specialized bike elsewhere, we totally understand, and we will issue prompt full refunds."
So, if you want to cancel your order at Mike's, and not order a Specialized bike anywhere?
Meh. So, they said it in a less than accurate way.

Itís not likely they can ask for proof you ordered a specialized bike elsewhere.

They canít legally force you to accept another bike instead of the specialized bike you ordered.

Meh. Meh. Meh.
njkayaker is offline  
Likes For njkayaker:
Old 09-10-21, 06:32 PM
  #9  
Steve B.
Senior Member
 
Join Date: Jul 2007
Location: South shore, L.I., NY
Posts: 5,448

Bikes: Flyxii FR322, Cannondale Topstone, Miyata City Liner, Specialized Chisel, Specialized Epic Evo

Mentioned: 16 Post(s)
Tagged: 0 Thread(s)
Quoted: 2221 Post(s)
Liked 963 Times in 560 Posts
Specialized had a contract with Mikes Bikes. Mikes Bikes is essentially no longer. They don't have a contract with XX company, so how is this unexpected ?
Steve B. is offline  
Old 09-10-21, 06:39 PM
  #10  
Hapsmo911
Senior Member
 
Hapsmo911's Avatar
 
Join Date: Jun 2008
Location: SF Bay Area
Posts: 854
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 88 Post(s)
Liked 33 Times in 18 Posts
Originally Posted by Steve B. View Post
Specialized had a contract with Mikes Bikes. Mikes Bikes is essentially no longer. They don't have a contract with XX company, so how is this unexpected ?

^^ This..

If they took deposits at the dealer level not the manufacturers fault if the business sells and the new owners cant make a new dealer agreement...
Hapsmo911 is offline  
Likes For Hapsmo911:
Old 09-10-21, 06:44 PM
  #11  
Russ Roth
Senior Member
 
Join Date: Dec 2019
Location: South Shore of Long Island
Posts: 2,078

Bikes: 2010 Carrera Volans, 2015 C-Dale Trail 2sl, 2017 Raleigh Rush Hour, 2017 Blue Proseccio, 1992 Giant Perigee, 80s Gitane Rallye Tandem

Mentioned: 9 Post(s)
Tagged: 0 Thread(s)
Quoted: 785 Post(s)
Liked 629 Times in 477 Posts
Originally Posted by Steve B. View Post
Specialized had a contract with Mikes Bikes. Mikes Bikes is essentially no longer. They don't have a contract with XX company, so how is this unexpected ?
Pretty much this. When new owners take over a shop they have to establish new contracts with the bike brands and if their credit isn't good enough or their business plan isn't strong enough the bigger brands will have no problem dropping them. What makes this different is we live in a time when a shop can have 400 customers waiting for a new bike from just one brand where most shops were getting orders fulfilled weekly a couple years ago.
Russ Roth is offline  
Old 09-10-21, 07:33 PM
  #12  
mschwett 
pretty much a newbie
 
Join Date: May 2021
Location: San Francisco
Posts: 539

Bikes: aethos, creo, vanmoof, public ...

Mentioned: 1 Post(s)
Tagged: 0 Thread(s)
Quoted: 277 Post(s)
Liked 341 Times in 186 Posts
the coverage of this is pretty one-sided. i'm a customer of both specialized and mike's bikes (although not together) and IMO they're both relatively responsible and fair companies from a customer standpoint, with the caveat that like all companies, their primary motivation, as required for self-preservation, is profit.

as i understand it mike's was also in discussions to sell themselves to specialized - and likely several other suitors. obviously that didn't come to pass, and they sold themselves to PON, the parent company of several other bike brands. mike's is pitching this as a surprise that specialized responded the way they did, but there are two sides to every story, and in business most of us will never know the confidential details. they (mike's) HAD to know specialized would respond when they were acquired by a competitor.

i'm not sure how i feel about specialized dabbling in direct to consumer. probably necessary to compete with canyon and vanmoof and so on, but hopefully this doesn't hurt the true LBS too much. secretly, i'm semi-pleased that perhaps the aethos i have on order at my LBS will arrive sooner, since Mike's has always gotten a disproportionate share of specialized bikes based on their long relationship.

mschwett is offline  
Likes For mschwett:
Old 09-10-21, 07:48 PM
  #13  
Sy Reene
Advocatus Diaboli
 
Sy Reene's Avatar
 
Join Date: Feb 2015
Location: Wherever I am
Posts: 7,762

Bikes: Merlin Cyrene, Nashbar steel CX

Mentioned: 12 Post(s)
Tagged: 1 Thread(s)
Quoted: 4176 Post(s)
Liked 1,170 Times in 767 Posts
Originally Posted by njkayaker View Post
Meh. So, they said it in a less than accurate way.

Itís not likely they can ask for proof you ordered a specialized bike elsewhere.

They canít legally force you to accept another bike instead of the specialized bike you ordered.

Meh. Meh. Meh.
Where's the money sitting that the 400 customers put down? With Mike or Spesh?
Sy Reene is offline  
Old 09-10-21, 08:24 PM
  #14  
guachi
Senior Member
 
Join Date: May 2019
Posts: 519
Mentioned: 2 Post(s)
Tagged: 0 Thread(s)
Quoted: 229 Post(s)
Liked 326 Times in 179 Posts
Mike's Bikes was purchased by a competing bike manufacturer. What did they expect would happen? Mike's Bikes really screwed over their customers with this move.
guachi is offline  
Old 09-10-21, 08:36 PM
  #15  
zandoval 
Senior Member
 
zandoval's Avatar
 
Join Date: May 2010
Location: Bastrop Texas
Posts: 3,011

Bikes: Univega, Peu P6, Peu PR-10, Ted Williams, Peu UO-8, Peu UO-18 Mixte, Peu Dolomites

Mentioned: 4 Post(s)
Tagged: 0 Thread(s)
Quoted: 411 Post(s)
Liked 584 Times in 399 Posts
Originally Posted by njkayaker View Post
Meh... Meh. Meh. Meh.
Exactly said!!!

Was Mike's a Bike Shop or a Dealership?

There used to be a difference but I am so outta the loop I do not know...
__________________
No matter where your at... There you are... Δf:=f(1/2)-f(-1/2)
zandoval is offline  
Likes For zandoval:
Old 09-10-21, 10:11 PM
  #16  
Sy Reene
Advocatus Diaboli
 
Sy Reene's Avatar
 
Join Date: Feb 2015
Location: Wherever I am
Posts: 7,762

Bikes: Merlin Cyrene, Nashbar steel CX

Mentioned: 12 Post(s)
Tagged: 1 Thread(s)
Quoted: 4176 Post(s)
Liked 1,170 Times in 767 Posts
Originally Posted by zandoval View Post
Exactly said!!!

Was Mike's a Bike Shop or a Dealership?

There used to be a difference but I am so outta the loop I do not know...
It's perhaps easy to be indifferent to what this is all about. But forgetting about Mikes/Spesh for the moment, I have the impression that there are a LOT of deposits or maybe even full payments on bikes out there on preorders for future delivery. Out of curiosity, since I'm not one of those people, where is the money -- with the shop or forwarded on to the manufacturer to secure the order? What if any recourse is there for the buyer if the shop stops being a reseller of the brand bike he preordered, or, alternatively the shop goes out of business and closes its door? If none of the deposit/payment is sitting with the manufacturer, why did the shop require it?
Sy Reene is offline  
Likes For Sy Reene:
Old 09-10-21, 10:19 PM
  #17  
Darth Lefty 
Disco Infiltrator
 
Darth Lefty's Avatar
 
Join Date: May 2013
Location: Folsom CA
Posts: 12,771

Bikes: Stormchaser, Paramount, Timberjack, Expert TG, Samba tandem

Mentioned: 67 Post(s)
Tagged: 0 Thread(s)
Quoted: 2688 Post(s)
Liked 1,500 Times in 981 Posts
Spesh is a great big company that has done some tone deaf things in the past.

Mike's (and its bought-out predecessors) is a smaller company that I have been happy with.

Who to support? Well, there's a "LBS" Mike's in my town that has participated in Tour of California and otherwise been a local bike hub, and who cares about Spesh, they will be fine either way.
__________________
Genesis 49:16-17
Darth Lefty is offline  
Likes For Darth Lefty:
Old 09-10-21, 11:24 PM
  #18  
softreset
Senior Member
 
Join Date: Jun 2013
Location: Sacramento, CA
Posts: 832
Mentioned: 4 Post(s)
Tagged: 0 Thread(s)
Quoted: 125 Post(s)
Liked 50 Times in 21 Posts
I can't speak to Mike's or how Specialized does it (with shops that buy their bikes) but the shop I worked at was net 30 for any "over the counter order." I don't recall if Project One bikes (it was a Trek shop, but not a Trek owned shop).

Over the counter - A SKU'd bike from one of the manufacturers we carried.

I know the owners told me that they would commit to X number of units via their pre-season shopping, that typically occurred in May-June for the upcoming model year. The model year was typically August 1st - July 31st. I also recall them saying that if they bought X number of a certain "tier" of bike they got a better pricing and also to maintain their tier of pricing they were required to buy X number of certain models, often sight unseen (colorways not known). We also had to have so many "halo bikes" on the floor. At the time I worked there it was the SLR 10 which had just come out, ironically of the three we brought in on the first wave they all sold very quickly.

So to answer the question, the money stayed in the shop. Also, we were a 100% paid in full on any bike or color we didn't actively stock. As well as "low volume sizes" (typically anything that wasn't a 54 or 56cm in men's or a 47-52cm in ladies). Trek had a few stinker colorways over the years I worked there that we didn't want to sit on if the buyer got remorse.
softreset is offline  
Likes For softreset:
Old 09-11-21, 04:20 AM
  #19  
njkayaker
Senior Member
 
Join Date: Sep 2007
Posts: 13,007
Mentioned: 27 Post(s)
Tagged: 0 Thread(s)
Quoted: 3324 Post(s)
Liked 818 Times in 570 Posts
Originally Posted by Sy Reene View Post
Where's the money sitting that the 400 customers put down? With Mike or Spesh?
Doesnít matter.

They (Mikeís or specialized) canít keep the money and not deliver the bike that was ordered.

Itís a contract.

Itís not likely that it says we donít actually have to give you the bike you ordered.
njkayaker is offline  
Old 09-11-21, 04:27 AM
  #20  
PeteHski
Senior Member
 
PeteHski's Avatar
 
Join Date: May 2021
Posts: 3,236
Mentioned: 3 Post(s)
Tagged: 0 Thread(s)
Quoted: 1524 Post(s)
Liked 1,637 Times in 1,042 Posts
Originally Posted by guachi View Post
Mike's Bikes was purchased by a competing bike manufacturer. What did they expect would happen? Mike's Bikes really screwed over their customers with this move.
I think they would have expected to honour the 400 orders already taken, but not accept any new orders. Seems like a dumb move by Specialized as some of those 400 people who ordered will be pissed and probably order a different bike.
PeteHski is offline  
Likes For PeteHski:
Old 09-11-21, 04:52 AM
  #21  
chaadster
Thread Killer
 
Join Date: Aug 2008
Location: Ann Arbor, MI
Posts: 11,401

Bikes: '15 Kinesis Racelight 4S, '76 Motebecane Gran Jubilťe, '17 Dedacciai Gladiatore2, '12 Breezer Venturi, '09 Dahon Mariner, '12 Mercier Nano, '95 DeKerf Team SL, '19 Tern Rally, ‘21 Breezer Doppler Cafe+, ‘19 T-Lab X3

Mentioned: 23 Post(s)
Tagged: 0 Thread(s)
Quoted: 2011 Post(s)
Liked 1,095 Times in 662 Posts
Originally Posted by guachi View Post
Mike's Bikes was purchased by a competing bike manufacturer. What did they expect would happen? Mike's Bikes really screwed over their customers with this move.
Yes, this is all there is in this story, and the wording Mikeís chose for the letter in the OP reveals as much.

There is simply no way Mikeís could not have expected this, so they are simply lying and shifting blame to Specialized for Mikeís taking a buyout deal, and probably a sweet one at that, but I donít know if they were in debt or what.

Anyway, no shocker at all, and I would not be surprised if retaining Specialized preorder and deposit dollars for conversion to Pon brands purchases, as Mikeís is clearly trying to do rather than refund, does not net a bonus (or other profit incentive) for Mikeís owners/sellers.

I donít begrudge Mikeís making money on the sale, but blaming Specialized for their own decisions seems childish. And to the extent Specialized may in fact be the devil in all this, well, Mikeís got in bed with them a long time ago, so again, itís just simply impossible to believe they did not see this coming, so the whole thing reeks of their dishonesty. I mean, Iím not even in the biz, but I saw what Specialized was doing with the company store model 20 years ago; I saw the impact on my LBS selection, on its workforce, and ultimately the closure of the business. Itís the same story for a lot of shops across the country, that I know too, but Mikeís wants us to believe they had no idea what Specialized would do? Liars.
chaadster is offline  
Likes For chaadster:
Old 09-11-21, 12:53 PM
  #22  
PeteHski
Senior Member
 
PeteHski's Avatar
 
Join Date: May 2021
Posts: 3,236
Mentioned: 3 Post(s)
Tagged: 0 Thread(s)
Quoted: 1524 Post(s)
Liked 1,637 Times in 1,042 Posts
Originally Posted by chaadster View Post
Yes, this is all there is in this story, and the wording Mikeís chose for the letter in the OP reveals as much.

There is simply no way Mikeís could not have expected this, so they are simply lying and shifting blame to Specialized for Mikeís taking a buyout deal, and probably a sweet one at that, but I donít know if they were in debt or what.

Anyway, no shocker at all, and I would not be surprised if retaining Specialized preorder and deposit dollars for conversion to Pon brands purchases, as Mikeís is clearly trying to do rather than refund, does not net a bonus (or other profit incentive) for Mikeís owners/sellers.

I donít begrudge Mikeís making money on the sale, but blaming Specialized for their own decisions seems childish. And to the extent Specialized may in fact be the devil in all this, well, Mikeís got in bed with them a long time ago, so again, itís just simply impossible to believe they did not see this coming, so the whole thing reeks of their dishonesty. I mean, Iím not even in the biz, but I saw what Specialized was doing with the company store model 20 years ago; I saw the impact on my LBS selection, on its workforce, and ultimately the closure of the business. Itís the same story for a lot of shops across the country, that I know too, but Mikeís wants us to believe they had no idea what Specialized would do? Liars.
It's the cancelling of 400 existing orders that I don't really understand. I got the impression that's what surprised Mike's Bikes too.
PeteHski is offline  
Likes For PeteHski:
Old 09-11-21, 01:03 PM
  #23  
Mojo31
...
 
Join Date: Jul 2020
Posts: 6,429
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 4885 Post(s)
Liked 2,925 Times in 1,626 Posts
Originally Posted by Sy Reene View Post
It's perhaps easy to be indifferent to what this is all about. But forgetting about Mikes/Spesh for the moment, I have the impression that there are a LOT of deposits or maybe even full payments on bikes out there on preorders for future delivery. Out of curiosity, since I'm not one of those people, where is the money -- with the shop or forwarded on to the manufacturer to secure the order? What if any recourse is there for the buyer if the shop stops being a reseller of the brand bike he preordered, or, alternatively the shop goes out of business and closes its door? If none of the deposit/payment is sitting with the manufacturer, why did the shop require it?
Your contract to order and buy a bike is with the shop that sells it to you. even if the shop pays that money to the manufacturer for some purpose, the manufacturer does not owe the consumer they money. Those 400 customers that ordered thru Mike's have a beef with Mike's, not Spesh.
Mojo31 is offline  
Likes For Mojo31:
Old 09-11-21, 01:20 PM
  #24  
Dancing Skeleton
Senior Member
 
Dancing Skeleton's Avatar
 
Join Date: Oct 2010
Posts: 388
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 68 Post(s)
Likes: 0
Liked 51 Times in 30 Posts
Specialized should have delivered on the existing orders, and not taken new ones.
This shows no respect for its customers.
They have a history of aggressive business tactics,
remember their attack on a coffee shop, as if they own the word "Robaiux"?

I'll never buy a Specialized bike, although they are awesome.
Dancing Skeleton is offline  
Likes For Dancing Skeleton:
Old 09-11-21, 01:20 PM
  #25  
philbob57
Senior Member
 
Join Date: Jul 2013
Location: Chicago North Shore
Posts: 1,987

Bikes: frankenbike based on MKM frame

Mentioned: 5 Post(s)
Tagged: 0 Thread(s)
Quoted: 585 Post(s)
Liked 375 Times in 240 Posts
Specialized accepted the orders. Customers have a monetary problem with Mike's only if they don't fork over full refunds promptly.

If I were one of the 400 who pre-ordered a Specialized bike, I'd be very wary of Specialized. If Spec's action delayed my getting a bike, I do my best to spend my money elsewhere.

Mike's isn't owned by Spec, nor (presumably) is it a franchise (i.e. like McDonald's). They presumably sell other brands. If their agreement with Spec prohibits selling certain brands, I'd consider the agreement to be a restraint of trade that may be a violation of law; it's certainly a violation of free market principles.

I'm not in the market for a new bike, but Mike's letter certainly has turned me off Specialized, which is probably what they intended.

Last edited by philbob57; 09-11-21 at 01:49 PM.
philbob57 is offline  

Thread Tools
Search this Thread

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information -

Copyright © 2021 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.