Saw this severing of Specialized's ties with a LBS
Likes For helmet4000:
#2
Not actually Tmonk
Join Date: Jun 2007
Location: San Diego, CA
Posts: 14,099
Bikes: road, track, mtb
Mentioned: 140 Post(s)
Tagged: 0 Thread(s)
Quoted: 2617 Post(s)
Liked 3,129 Times
in
1,645 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.
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
"Your beauty is an aeroplane;
so high, my heart cannot bear the strain." -A.C. Jobim, Triste
Likes For TMonk:
#3
On Your Left
Join Date: Nov 2011
Location: Long Island, New York, USA
Posts: 8,373
Bikes: Trek Emonda SLR, Sram eTap, Zipp 303
Mentioned: 34 Post(s)
Tagged: 0 Thread(s)
Quoted: 3004 Post(s)
Liked 2,433 Times
in
1,187 Posts
I bet there some history between Specialized and the new owners.
Likes For GlennR:
#4
Klaatu..Verata..Necktie?
Join Date: May 2007
Location: SF Bay Area
Posts: 17,913
Bikes: Litespeed Ultimate, Ultegra; 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: 41 Post(s)
Tagged: 0 Thread(s)
Quoted: 10397 Post(s)
Liked 11,857 Times
in
6,071 Posts
Likes For genejockey:
#5
Senior Member
Join Date: Jan 2010
Location: TC, MN
Posts: 39,516
Bikes: R3 Disc, Haanjo
Mentioned: 354 Post(s)
Tagged: 1 Thread(s)
Quoted: 20808 Post(s)
Liked 9,450 Times
in
4,668 Posts
Think we'll see some coverage on NorCalCycling's YouTube channel?
#6
Advocatus Diaboli
Join Date: Feb 2015
Location: Wherever I am
Posts: 8,631
Bikes: Merlin Cyrene, Nashbar steel CX
Mentioned: 14 Post(s)
Tagged: 1 Thread(s)
Quoted: 4729 Post(s)
Liked 1,531 Times
in
1,002 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?
So, if you want to cancel your order at Mike's, and not order a Specialized bike anywhere?
#7
Klaatu..Verata..Necktie?
Join Date: May 2007
Location: SF Bay Area
Posts: 17,913
Bikes: Litespeed Ultimate, Ultegra; 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: 41 Post(s)
Tagged: 0 Thread(s)
Quoted: 10397 Post(s)
Liked 11,857 Times
in
6,071 Posts
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
"Don't take life so serious-it ain't nohow permanent."
"Everybody's gotta be somewhere." - Eccles
Likes For genejockey:
#8
Senior Member
Join Date: Sep 2007
Location: Far beyond the pale horizon.
Posts: 14,259
Mentioned: 31 Post(s)
Tagged: 0 Thread(s)
Quoted: 4245 Post(s)
Liked 1,349 Times
in
936 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?
So, if you want to cancel your order at Mike's, and not order a Specialized bike anywhere?
It’s not likely they can ask for proof you ordered a specialized bike elsewhere.
They can’t legally force you to accept another bike instead of the specialized bike you ordered.
Meh. Meh. Meh.
Likes For njkayaker:
#9
Senior Member
Join Date: Jul 2007
Location: South shore, L.I., NY
Posts: 6,859
Bikes: Flyxii FR322, Cannondale Topstone, Miyata City Liner, Specialized Chisel, Specialized Epic Evo
Mentioned: 18 Post(s)
Tagged: 0 Thread(s)
Quoted: 3221 Post(s)
Liked 2,049 Times
in
1,171 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 ?
Likes For Steve B.:
#10
Senior Member
^^ 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...
Likes For Hapsmo911:
#11
Senior Member
Join Date: Dec 2019
Location: South Shore of Long Island
Posts: 2,785
Bikes: 2010 Carrera Volans, 2015 C-Dale Trail 2sl, 2017 Raleigh Rush Hour, 2017 Blue Proseccio, 1992 Giant Perigee, 80s Gitane Rallye Tandem
Mentioned: 12 Post(s)
Tagged: 0 Thread(s)
Quoted: 1079 Post(s)
Liked 1,019 Times
in
719 Posts
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.
#12
Senior Member
Join Date: May 2021
Location: San Francisco
Posts: 2,032
Bikes: addict, aethos, creo, vanmoof, sirrus, public ...
Mentioned: 2 Post(s)
Tagged: 0 Thread(s)
Quoted: 1273 Post(s)
Liked 1,384 Times
in
708 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.
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.
Likes For mschwett:
#13
Advocatus Diaboli
Join Date: Feb 2015
Location: Wherever I am
Posts: 8,631
Bikes: Merlin Cyrene, Nashbar steel CX
Mentioned: 14 Post(s)
Tagged: 1 Thread(s)
Quoted: 4729 Post(s)
Liked 1,531 Times
in
1,002 Posts
Where's the money sitting that the 400 customers put down? With Mike or Spesh?
#15
Senior Member
Join Date: May 2010
Location: Bastrop Texas
Posts: 4,467
Bikes: Univega, Peu P6, Peu PR-10, Ted Williams, Peu UO-8, Peu UO-18 Mixte, Peu Dolomites
Mentioned: 13 Post(s)
Tagged: 0 Thread(s)
Quoted: 956 Post(s)
Liked 1,619 Times
in
1,039 Posts
Likes For zandoval:
#16
Advocatus Diaboli
Join Date: Feb 2015
Location: Wherever I am
Posts: 8,631
Bikes: Merlin Cyrene, Nashbar steel CX
Mentioned: 14 Post(s)
Tagged: 1 Thread(s)
Quoted: 4729 Post(s)
Liked 1,531 Times
in
1,002 Posts
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?
Likes For Sy Reene:
#17
Disco Infiltrator
Join Date: May 2013
Location: Folsom CA
Posts: 13,446
Bikes: Stormchaser, Paramount, Tilt, Samba tandem
Mentioned: 72 Post(s)
Tagged: 0 Thread(s)
Quoted: 3126 Post(s)
Liked 2,102 Times
in
1,366 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.
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
Genesis 49:16-17
Likes For Darth Lefty:
#18
Senior Member
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.
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.
Likes For softreset:
#19
Senior Member
Join Date: Sep 2007
Location: Far beyond the pale horizon.
Posts: 14,259
Mentioned: 31 Post(s)
Tagged: 0 Thread(s)
Quoted: 4245 Post(s)
Liked 1,349 Times
in
936 Posts
They (Mike’s or specialized) can’t keep the money and not deliver the bike that was ordered.
It’s a contract.
It’s not likely that it says we don’t actually have to give you the bike you ordered.
#20
Senior Member
Join Date: May 2021
Posts: 8,381
Mentioned: 12 Post(s)
Tagged: 0 Thread(s)
Quoted: 4387 Post(s)
Liked 4,828 Times
in
2,984 Posts
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.
#21
Thread Killer
Join Date: Aug 2008
Location: Ann Arbor, MI
Posts: 12,428
Bikes: 15 Kinesis Racelight 4S, 76 Motebecane Gran Jubilée, 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, 91 Serotta CII, 23 3T Strada
Mentioned: 30 Post(s)
Tagged: 0 Thread(s)
Quoted: 3129 Post(s)
Liked 1,698 Times
in
1,026 Posts
There is simply no way Mike’s could not have expected this, so they are simply lying and shifting blame to Specialized for Mike’s taking a buyout deal, and probably a sweet one at that, but I don’t 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 Mike’s is clearly trying to do rather than refund, does not net a bonus (or other profit incentive) for Mike’s owners/sellers.
I don’t begrudge Mike’s 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, Mike’s got in bed with them a long time ago, so again, it’s just simply impossible to believe they did not see this coming, so the whole thing reeks of their dishonesty. I mean, I’m 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. It’s the same story for a lot of shops across the country, that I know too, but Mike’s wants us to believe they had no idea what Specialized would do? Liars.
Likes For chaadster:
#22
Senior Member
Join Date: May 2021
Posts: 8,381
Mentioned: 12 Post(s)
Tagged: 0 Thread(s)
Quoted: 4387 Post(s)
Liked 4,828 Times
in
2,984 Posts
Yes, this is all there is in this story, and the wording Mike’s chose for the letter in the OP reveals as much.
There is simply no way Mike’s could not have expected this, so they are simply lying and shifting blame to Specialized for Mike’s taking a buyout deal, and probably a sweet one at that, but I don’t 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 Mike’s is clearly trying to do rather than refund, does not net a bonus (or other profit incentive) for Mike’s owners/sellers.
I don’t begrudge Mike’s 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, Mike’s got in bed with them a long time ago, so again, it’s just simply impossible to believe they did not see this coming, so the whole thing reeks of their dishonesty. I mean, I’m 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. It’s the same story for a lot of shops across the country, that I know too, but Mike’s wants us to believe they had no idea what Specialized would do? Liars.
There is simply no way Mike’s could not have expected this, so they are simply lying and shifting blame to Specialized for Mike’s taking a buyout deal, and probably a sweet one at that, but I don’t 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 Mike’s is clearly trying to do rather than refund, does not net a bonus (or other profit incentive) for Mike’s owners/sellers.
I don’t begrudge Mike’s 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, Mike’s got in bed with them a long time ago, so again, it’s just simply impossible to believe they did not see this coming, so the whole thing reeks of their dishonesty. I mean, I’m 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. It’s the same story for a lot of shops across the country, that I know too, but Mike’s wants us to believe they had no idea what Specialized would do? Liars.
Likes For PeteHski:
#23
-------
Join Date: Jul 2020
Location: Tejas
Posts: 12,795
Mentioned: 2 Post(s)
Tagged: 0 Thread(s)
Quoted: 9652 Post(s)
Liked 6,363 Times
in
3,503 Posts
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?
Likes For Mojo31:
#24
Full Member
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.
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.
Likes For Dancing Skeleton:
#25
Senior Member
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.
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.