Or they are trying to get the last of last year's inventory off the floor and under customers.

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Brian Stover USAT LII
Accelerate3 Coaching
Insta

    Cervelo is struggling, generating cash, they'll be out of business soon. At this point, I wouldn't buy any of their crap.





ps. Hey, it's ST, and like most here, I'm just making sh*t up.

I'm pissed because I already own two Cervelos, a 2009 P2 and a 2009 R3, and they refused my request for a $2000 refund! I'll never buy another Cervelo until the next time I buy a bike!!!

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Rodney
TrainingPeaks | Altra Running | RAD Roller
http://www.goinglong.ca

Conversely, I am pissed that I'm not in the market (that's a me thing, not a Cervelo thing), but will likely be next year around this time. So hopefully, but highly doubtful, Cervelo will a similar promotion then. I've been considering the upgrade for a bunch of years but have postponed it for a number of reasons. Getting back into the sport, I bought the no longer available Cervelo Dual, and it's been a great bike don't get me wrong, but I have been admiring the P2. However I am not comfortable parting with the $$$ at this time, having recently relocated.

Exactly, a major rule in retail and customer service industry: you deal with the CUSTOMER first, and the POTENTIAL CUSTOMER second. Nothing angers me more than when I am in the middle of a sale with an employee and they stop and answer the phone and interrupt my transaction. He who has the cash in hand gets dibs.

Haven't read the whole thread so maybe someone's addressed this comment. It doesn't illustrate "huge" mark-ups. I as a matter of fact wasn't thrilled about the promotion, partly because people that don't know will make that same assumption you've made, and partly because Cervelo's product IS worth the full retail. I won't go into detail with as to how the promotion works on our end, however if I don't take advantage of it then we'll miss out on some bikes upsetting some customers at the same time. As a dealer, you have to participate in part because other dealers are participating...

What Andres said.

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Geoffrey Nenninger

yeah, I called him on that point above. He then went on to say that ir represents at least a 20-30% mark-up, as if that equates to "huge."

LOL!!

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Chicago Cubs - 2016 WORLD SERIES Champions!!!!

"If ever the time should come, when vain and aspiring men shall possess the highest seats in government, our country will stand in need of its experienced patriots to prevent its ruin." - Samuel Adams

It's always interesting to me to hear the perspective of someone in the industry...

As a consumer, on a general level I like this deal since it gets product in our hands at prices below usual market value.

However, if I take a more objective, business approach, I think this deal undermines Cervelo's brand, conveys desperation and the impression that there's too much product in the pipeline that needs to be moved at firesale prices, and potentially undermines their future pricing structure and perceived value.

Looking at it from another angle, it's unlikely I can take advantage of this deal right now and as the current owner of an older Cervelo, it also undermines the used resale value of that product when I do upgrade it. (Probably not much if I don't try to sell it right away.)

But the folks at Cervelo are smart folks and presumably they've weighed the positives and negatives and the positives won out.

You raise some valid points... on that last one, I sure hope that's the case.

This isn't a cash grab for Cervelo. These bikes are already sold - this shows they actually HAVE cash to offer the rebates.

This is a way to clear inventory so that when the real bike buying season starts in Feb / March dealers will have lots of open-to-buy spots to bring in P5s and S5s.

Specialized did the exact same thing three years ago in the spring with the Road to the Tour promotion where they offered up to $1200 off S-Works bikes.

andres, are you saying that the dealers have to eat the $2,000 and not cervelo?

He's saying that Cervelo eats the $2k and make it back when dealers restock with newer model bikes.

newer models? most of the bikes in the showrooms atm are the 2012 bikes. they've been in stock since july. btw, i do know how the promotion "works on the dealer end" (as andres said), i just wasn't clear about who "loses" the $2,000.

New model p5; more of everything else. Whatever. It's more bikes sold. Get over the semantics, mutt.

The markup on all these bikes is ridiculous. I don't think anyone will believe that this sale is for charity. Even with a $2k discount the bikes are really expensive. Worth full retail? Depends on your definition of "worth". It's an easy sell on this website but all those people who think fancy pants bikes are excessively expensive are right.

semantics is all we have on a forum where the written word is the only form of expression.

Chuck Finley wrote:

He's saying that Cervelo eats the $2k and make it back when dealers restock with newer model bikes.

No, that's not what I said...




Again, I don't want to get into the specifics. The promotion is a great way to get more Cervelo's out there, an awesome deal for consumers (one that I would certainly take advantage of), and I will continue to promote and honor at the store for its entirety. My biggest regret with the promotion is that the product is being devalued when it doesn't need to be. Regardless of who's "eating the $2,000".

Actually, most companies will honor a sale price if you bought within 30 days of the sale price. I've benefitted from this on multiple occasions. With Apple IPod, HP laptop, and Trek.

My understanding is that the LBS gets an R5 frame set instead of the $2000. The problem is that hardly anyone buys R5 frames. Building them will bring the cost up to the same as a complete bike so there's no upside for the LBS. They dump bikes people buy and get stuck with bikes people don't buy so much.

I'm sorry, Chuck but you have no idea what you are talking about. I worked in the industry for 10 years and I can tell you that the markups on bikes is nowhere what people think they are.

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Chicago Cubs - 2016 WORLD SERIES Champions!!!!

"If ever the time should come, when vain and aspiring men shall possess the highest seats in government, our country will stand in need of its experienced patriots to prevent its ruin." - Samuel Adams

quote
"My understanding is that the LBS gets an R5 frame set instead of the $2000. The problem is that hardly anyone buys R5 frames. Building them will bring the cost up to the same as a complete bike so there's no upside for the LBS. They dump bikes people buy and get stuck with bikes people don't buy so much"

you are correct about this one. ebay will be flooded with R5 frames that the LBS can't sell otherwise. or you will be able to buy an R5 for peanuts.

I wish this deal did work on framesets. I'd be all over it since I like building my own bikes. The complete bike thing kills it for me though.

Part it out, sell the stuff you don't want and use the cash / savings to buy the stuff you do want.

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Chicago Cubs - 2016 WORLD SERIES Champions!!!!

"If ever the time should come, when vain and aspiring men shall possess the highest seats in government, our country will stand in need of its experienced patriots to prevent its ruin." - Samuel Adams

Thats a pretty big pain in the neck, and I'd still be high on what I would spend right now on a frame. Oh well I can wait not like i'm biking outside right now anyways

So set us all straight - what are the mark-ups from actual cost to the retailer and manufacturer? If they aren't very big then I don't see any reason for the industry folks chiming in here not to be open and honest with us customers. I have no problem with a business making a fair profit.