Login required to started new threads

Login required to post replies

Cervelo share the ride "on hold" says my lbs
Quote | Reply
Heard from my lbs this deal is on hold currently for "internal issues". Is this my lbs only or has anyone heard the same?
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [%FTP] [ In reply to ]
Quote | Reply
I picked mine up last night and there was no indication that the promotion was on hold. I have heard that some smaller shops are no longer participating.
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [JPDMD25] [ In reply to ]
Quote | Reply
My lbs was pretty wishy washy about the Cervelo deal when I called to make an order for 2 P3's this morning. They said they wouldn't order them until they heard back from Cervelo as they were not sure the deal was still going on. Heck, I had the credit card out and everything! They said they would take my number and call back when they knew more.

I then called a major Tri-oriented bike shop several hours away to see if they would take the order, and they outright refused. At least, however, they gave me the low down on the deal. They had decided on their own (as apparently have many other shops) to not sell the bikes under the Share the Ride program, because the economics of the deal simply didn't make sense. They pointed out that they were selling the bikes below their cost, which wasn't being made up by Cervelo. Instead, the lbs gets an aged, though top-end, frame which they then have to turn around and sell. It certainly moves inventory for Cervelo, but it does so by putting much of it into the lbs's inventory. This is a pretty creative way of converting inventory into cash for Cervelo's balance sheet, but it does so by putting the inventory (and hence less cash) onto the lbs's balance sheet.

Anyway, I figure the business aspects of this have probably already been discussed like crazy on other threads so I will stop here. As for the deal, after many phone calls today, it appears the Cervelo deal is up to the lbs to decide to honor. Some will, and others won't. In my case, it appears this deal is a no-go for me, unless I am willing to drive 4-6 hours to a dealer who might still be willing to do this. I am pretty bummed, and to be honest, a little PO'd at Cervelo at how this is going. I don't blame the lbs; business is tough enough without them holding the inventory bag for the manufacturer. I will be traveling the several hours to the tri-oriented bike shop I mentioned to place an order for a tri-bike, but at this point it probably won't be a Cervelo.
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [Kentcart] [ In reply to ]
Quote | Reply
Yup, I heard the same thing. Cervelo is basically putting all the liability on the LBS. They basically have to sell 3 bikes in the end to come out ahead. The LBS sells two Cervelos and gets a frame for "cheap" from Cervelo, which they then have to build up and sell or have to sell just the frame. To me the LBS gets very little benefit in all of this besides selling other items in their shop or a repeat customer, but let's all be honest, we know how fickle the American consumer is when it comes to loyalty. Seems like a desperate move by Cervelo to get rid of their inventory. Good bikes, but just too many laying around I guess.
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [Tell3131] [ In reply to ]
Quote | Reply
I wouldn't buy a frame from a shop not honoring the deal. Do you honestly think they wouldn't put in for it after every 2 frames they sell?
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [packetloss] [ In reply to ]
Quote | Reply
I am not buying a Cervelo, I am a Specialized guy and get way better deals than $1000 off of my bikes. Anyway, I am sure the dealer can sell the frame at some point, but if everyone that wants a Cervelo is buying them now then who will want these frames in the future (built up or not), just going to be an influx of these frames (S5 I think) in LBS around the country, at least for those that choose to participate, which by the sound of things, is going down in number everyday, because they know this is not a great deal for them.
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [Tell3131] [ In reply to ]
Quote | Reply
Isn't "1" of the biggest advantages to the lbs of this deal the opportunity for the lbs to unload P3's before they stuck with them and can't sell them anyway after the P5 comes out?

Obviously Cervelo lowered the msrp on the bikes they wanted to help the lbs' move the most to make the deal unpassable by the consumer.

If I owned a lbs and new the new P5 was coming out in 3 weeks at a price point that would make it impossible to sell P3's at anything other than below cost then I would be pushing P3's on every fat middle aged crises dad that walked in the door.

My apologies for the run on sentences.....but I like them...lol
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [Kentcart] [ In reply to ]
Quote | Reply
Quote:
I then called a major Tri-oriented bike shop several hours away to see if they would take the order, and they outright refused. At least, however, they gave me the low down on the deal. They had decided on their own (as apparently have many other shops) to not sell the bikes under the Share the Ride program, because the economics of the deal simply didn't make sense. They pointed out that they were selling the bikes below their cost, which wasn't being made up by Cervelo. Instead, the lbs gets an aged, though top-end, frame which they then have to turn around and sell. It certainly moves inventory for Cervelo, but it does so by putting much of it into the lbs's inventory. This is a pretty creative way of converting inventory into cash for Cervelo's balance sheet, but it does so by putting the inventory (and hence less cash) onto the lbs's balance sheet.

This seems like the kind of deal thought up by guys in suits around a board room table who have a passion for money, not cycling

Sort of a 'who cares of we screw over our dealers, we will just get new ones'

Cervelo should be sending $2000 rebate check's to dealers for every pair of bikes they sell.
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [Jackb] [ In reply to ]
Quote | Reply
Looks like the banner on cervelo.com is gone too.
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [thesober] [ In reply to ]
Quote | Reply
http://www.cervelo.com/en_us/bikes/2012/


It's still there (left hand side)
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [DM67] [ In reply to ]
Quote | Reply
Oops, you're correct. Could have sworn it was on the front page.
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [Jackb] [ In reply to ]
Quote | Reply
Why are you so jacked up over the Cervelo situation Jack?

My whole life and livelyhood are wrapped up in selling Cervelo bikes ... and I'm not that concerned.

What's your beef?



http://www.austinTRIcyclist.com
http://www.Cannondale.com
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [AustinTriCyclst] [ In reply to ]
Quote | Reply
Maybe you will not have a hard time selling R5 frames......

Pink? Maybe. Maybe not. You decide.
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [japarker24] [ In reply to ]
Quote | Reply
I went in to my LBS tonight to but two Cervelo RS bikes and the owner was pretty clueless. I informed him about the details of the program, and when I walked up to the counter the owner backed out and said he couldn't sell me two bikes with that type of discount. I'm still livid and will never shop at this place again.
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [japarker24] [ In reply to ]
Quote | Reply
I sold something like 3 or 4 R5's in 2011.

It looks like we'll do 20 or so $2k deals
With Cervelo's help (in my experience they help dealers), it will get worked out.



http://www.austinTRIcyclist.com
http://www.Cannondale.com
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [sloarunner99] [ In reply to ]
Quote | Reply
sloarunner99 wrote:
I went in to my LBS tonight to but two Cervelo RS bikes and the owner was pretty clueless. I informed him about the details of the program, and when I walked up to the counter the owner backed out and said he couldn't sell me two bikes with that type of discount. I'm still livid and will never shop at this place again.

Why? He was probably being honest. There are very thin margins on these bikes. unless he knew about the deal (not everyone is a slowtwitch faithful) he genuinely may have been thinking that selling those two at that price will cost him money.

Sounds like you went about it the wrong way.

Perhaps suggest to him to phone his distibutor and ask about the deal and the details. Give him the chance to see if the deal is still current. If he refuses to participate in the deal, then perhaps there are grounds for complaint.
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [The Real Animal] [ In reply to ]
Quote | Reply
The Real Animal wrote:
sloarunner99 wrote:
I went in to my LBS tonight to but two Cervelo RS bikes and the owner was pretty clueless. I informed him about the details of the program, and when I walked up to the counter the owner backed out and said he couldn't sell me two bikes with that type of discount. I'm still livid and will never shop at this place again.

Why? He was probably being honest. There are very thin margins on these bikes. unless he knew about the deal (not everyone is a slowtwitch faithful) he genuinely may have been thinking that selling those two at that price will cost him money.

Sounds like you went about it the wrong way.

Perhaps suggest to him to phone his distibutor and ask about the deal and the details. Give him the chance to see if the deal is still current. If he refuses to participate in the deal, then perhaps there are grounds
for complaint.

And we now get to the root of the problem......what does it say about how this was handled if the shop owner knew nothing about it?

Pink? Maybe. Maybe not. You decide.
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [japarker24] [ In reply to ]
Quote | Reply
Of course. I went about it the wrong way. Why do I even bother posting.
Last edited by: sloarunner99: Dec 31, 11 17:08
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [AustinTriCyclst] [ In reply to ]
Quote | Reply
Perhaps you could shed a little light on the deal from your perspective as a cervelo dealer. Some shops from reading the forum would appear to be opting out of selling bikes with the 2k deal. If you receive a S5 in exchange for doing the 2k deal are you then "free" to set the price for the S5? I understand if you can't answer as a dealer. Thanks!

I was going to stay out of these posts but curiousity has gotten the better of me.

_________________________________________________________________
Supported by Compressport Canada | F2C Nutrition | Element | Argon 18 | 4iiii Innovations | Read my Blog
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [jmaley] [ In reply to ]
Quote | Reply
jmaley wrote:
Perhaps you could shed a little light on the deal from your perspective as a cervelo dealer. Some shops from reading the forum would appear to be opting out of selling bikes with the 2k deal. If you receive a S5 in exchange for doing the 2k deal are you then "free" to set the price for the S5? I understand if you can't answer as a dealer. Thanks!

This was answered in a different thread. The dealer can build it up and sell it at whatever price he see's fit.
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [The Real Animal] [ In reply to ]
Quote | Reply
The Real Animal wrote:
sloarunner99 wrote:
I went in to my LBS tonight to but two Cervelo RS bikes and the owner was pretty clueless. I informed him about the details of the program, and when I walked up to the counter the owner backed out and said he couldn't sell me two bikes with that type of discount. I'm still livid and will never shop at this place again.


Why? He was probably being honest. There are very thin margins on these bikes. unless he knew about the deal (not everyone is a slowtwitch faithful) he genuinely may have been thinking that selling those two at that price will cost him money.

Sounds like you went about it the wrong way.

Perhaps suggest to him to phone his distibutor and ask about the deal and the details. Give him the chance to see if the deal is still current. If he refuses to participate in the deal, then perhaps there are grounds for complaint.

That is a load of crock. Any Cervelo dealer not honoring the deal is shady. Can someone actually be in the business of selling Cervelo frames and be ignorant of this deal? Part of their "job" is keeping up on such things. You have to be aware of your competitors prices and aware of what the current prices are for the products that you sell. A clueless owner is just that; clueless.

To be fair, it would have been a LOT easier on everyone if Cervelo handled the deal with an instant rebate. As a consumer however, I could care less how the deal is handled. It's advertised as $2000 off 2 frames and I would never do business, ever, with a shop that refused to honor the deal. To the consumer it looks and feels shady. Others are clearly getting the deal. If you are not, then you are getting ripped off.....
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [packetloss] [ In reply to ]
Quote | Reply
Thanks! It's a bit hard trying to keep up with all the threads on the same topic.

_________________________________________________________________
Supported by Compressport Canada | F2C Nutrition | Element | Argon 18 | 4iiii Innovations | Read my Blog
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [packetloss] [ In reply to ]
Quote | Reply
yeah, I made that point on another thread. Dealers telling their customers "No" are probably doing 2 things:
  • losing that customer for good
  • likely nearing the end of their Cervelo dealership, whether they want to or not.

As I said, smart / good shops will find ways to make the deal work for them. Shops that are focused only on that particular sale (or as Dan correctly stated are marginal dealers) are gonna bitch about it.



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 Reply
Re: Cervelo share the ride "on hold" says my lbs [jmaley] [ In reply to ]
Quote | Reply
It is not an S5
It is an R5 VWD that is our "compensation"

I think other options will be made available

Cervelo was not out to screw dealers ... they were trying to help us sell bikes (I had my best Cervelo December ever)

I'm sure they wish the PON deal hadn't been leaked early and confused the situation.
They probably should have given us a little more warning.

I enjoy working with Cervelo.
Been doing it for 10 years and hope to for a while longer



http://www.austinTRIcyclist.com
http://www.Cannondale.com
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [AustinTriCyclst] [ In reply to ]
Quote | Reply
AustinTriCyclst wrote:
(I had my best Cervelo December ever)

Measured in units or margin?
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [AustinTriCyclst] [ In reply to ]
Quote | Reply
I agree, that sums it up pretty well. I think most of us were taken by surprise, and needed a lot more clarification.

An R5 is not a major bike we sell, and we didn't need help clearing out 2011 inventory, we did a good job of that ourselves. We did make room for new product lines, including pre-season ordering P5's.

That said, Cervelo was not out to screw anyone, and have been willing to listen to our concerns and explore all options to make this deal work for us. We also are committed to Cervelo for the long term and they have been a great company to work with.

While we might not love this program, we plan to make the best of it, and will continue the program through it's completion. It is a great deal for customers and we have no intention of ending it early.

Chris
athletes lounge
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [10-4] [ In reply to ]
Quote | Reply
Total dollars (if you can figure out margin in a bike shop ... clue me in)

We also had our best total sales in December by like %20 (Cervelo sales were not responsible for much of the increase)

I think 2012 is going to be a good cycling and especially triathlon sales year.



http://www.austinTRIcyclist.com
http://www.Cannondale.com
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [packetloss] [ In reply to ]
Quote | Reply
Dude, your post is absolutely ridiculous! I think your beef is with Cervelo and not the dealer. How do think the bike shop feels about being told about this great new promotion by Cervelo, and by the way you eat the $2000. You, as the consumer, aren't getting ripped off but the shop sure is.
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [chris b] [ In reply to ]
Quote | Reply
chris b wrote:
While we might not love this program, we plan to make the best of it, and will continue the program through it's completion. It is a great deal for customers and we have no intention of ending it early.

This!!

Like I said, good shops will find a way to make the program beneficial for them.

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 Reply
Re: Cervelo share the ride "on hold" says my lbs [Kentcart] [ In reply to ]
Quote | Reply
Kentcart wrote:
My lbs was pretty wishy washy about the Cervelo deal when I called to make an order for 2 P3's this morning. They said they wouldn't order them until they heard back from Cervelo as they were not sure the deal was still going on. Heck, I had the credit card out and everything! They said they would take my number and call back when they knew more.

I then called a major Tri-oriented bike shop several hours away to see if they would take the order, and they outright refused. At least, however, they gave me the low down on the deal. They had decided on their own (as apparently have many other shops) to not sell the bikes under the Share the Ride program, because the economics of the deal simply didn't make sense. They pointed out that they were selling the bikes below their cost, which wasn't being made up by Cervelo. Instead, the lbs gets an aged, though top-end, frame which they then have to turn around and sell. It certainly moves inventory for Cervelo, but it does so by putting much of it into the lbs's inventory. This is a pretty creative way of converting inventory into cash for Cervelo's balance sheet, but it does so by putting the inventory (and hence less cash) onto the lbs's balance sheet.

Anyway, I figure the business aspects of this have probably already been discussed like crazy on other threads so I will stop here. As for the deal, after many phone calls today, it appears the Cervelo deal is up to the lbs to decide to honor. Some will, and others won't. In my case, it appears this deal is a no-go for me, unless I am willing to drive 4-6 hours to a dealer who might still be willing to do this. I am pretty bummed, and to be honest, a little PO'd at Cervelo at how this is going. I don't blame the lbs; business is tough enough without them holding the inventory bag for the manufacturer. I will be traveling the several hours to the tri-oriented bike shop I mentioned to place an order for a tri-bike, but at this point it probably won't be a Cervelo.

Kent you don't happen to live near Ann Arbor do you? Sounds like you called two wheel tango (thats almost exactly what they told my friend before convincing him to buy a different bike), and then you called Frasier Bikes who are no longer participating.

Just Triing
Triathlete since 9:56:39 AM EST Aug 20, 2006.
Be kind English is my 2nd language. My primary language is Dave it's a unique evolution of English.
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [%FTP] [ In reply to ]
Quote | Reply
visited the lbs thursday afternoon to consider a p3 for $2350 out the door.

they offered me their last 2011 p4 (sram red group) for $3k out the door. I paid for it on the spot.

the p4 was picked up this afternoon (saturday) from the lbs because I had no car last thursday.

andrew
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [Jackb] [ In reply to ]
Quote | Reply
Two main Cervelo shops in my (very large) town. I have never warmed to one of them, but never bothered with the other. Heard about the deal, made some calls and went to the shop I had never been to. it turns out it a great shop and I picked up two cervelos on the deal. Now I will frequent this shop and tell all my friends to use this shop. Seems like win win to me.
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [packetloss] [ In reply to ]
Quote | Reply
packetloss wrote:
The Real Animal wrote:
sloarunner99 wrote:
I went in to my LBS tonight to but two Cervelo RS bikes and the owner was pretty clueless. I informed him about the details of the program, and when I walked up to the counter the owner backed out and said he couldn't sell me two bikes with that type of discount. I'm still livid and will never shop at this place again.


Why? He was probably being honest. There are very thin margins on these bikes. unless he knew about the deal (not everyone is a slowtwitch faithful) he genuinely may have been thinking that selling those two at that price will cost him money.

Sounds like you went about it the wrong way.

Perhaps suggest to him to phone his distibutor and ask about the deal and the details. Give him the chance to see if the deal is still current. If he refuses to participate in the deal, then perhaps there are grounds for complaint.


That is a load of crock. Any Cervelo dealer not honoring the deal is shady. Can someone actually be in the business of selling Cervelo frames and be ignorant of this deal? Part of their "job" is keeping up on such things. You have to be aware of your competitors prices and aware of what the current prices are for the products that you sell. A clueless owner is just that; clueless.

To be fair, it would have been a LOT easier on everyone if Cervelo handled the deal with an instant rebate. As a consumer however, I could care less how the deal is handled. It's advertised as $2000 off 2 frames and I would never do business, ever, with a shop that refused to honor the deal. To the consumer it looks and feels shady. Others are clearly getting the deal. If you are not, then you are getting ripped off.....

So now some facts apparantly are dribbling through. You want a bike shop to sell two bikes at a loss, on the chance that they will be able to clear another 2011 model bike later on themselves. Not every bike shop would have the kind of turnover to confidently feel they can get rid of the the other bike. If it sits on their floor till next September they'll never get rid of it. So they are then faced with selling that one at a loss too.

But that's OK by you, you think it's fine for companies to run at a loss, otherwise they are shady....

Believe it or not, some bike shops don't sell more than a cervelo or two a month. Some bike shops sell one or two a day. Each owner is in their own circumstance. If they don't want to participate in this deal it doesn't make them shady one little bit. It simply means they have decided that can not participate and turn a profit. Now, it's ok to take a hit on a bike every now and then to keep patronidge. But once the lock in that they are participating, they are committed to offering the deal to whoever wants it - imagine the uproar if they offered it to one couple but not another.

As for each dealer knowing about it. Just think about that a little. A bike shop probably gets 50 to 100 emails a day. Some small bike shop owners wouldn't have the time to read them until a quiet time in business. They just read the ones they know they will need that day. It just so happens to be the busiest time of year for bike shops! It's hardly surprising that if it was an email that got sent out they might have left it unread because they were too busy selling and assembling bikes for customers.

I'm not sure how this whole deal was communicated to dealers either. It may have been via email, may have been via sales rep visits. Again, low turnover shops don't get as many rep visits if they get them at all.

But it's OK to bash the poor bloke trying to make an honest living selling bikes just because he hasn't cottoned on to a deal offered by one of his few dozen distributors that he sources products from.

Snap back to reality.
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [Power13] [ In reply to ]
Quote | Reply
Power13 wrote:
yeah, I made that point on another thread. Dealers telling their customers "No" are probably doing 2 things:
  • losing that customer for good
  • likely nearing the end of their Cervelo dealership, whether they want to or not.

As I said, smart / good shops will find ways to make the deal work for them. Shops that are focused only on that particular sale (or as Dan correctly stated are marginal dealers) are gonna bitch about it.


I sat and discussed this with a Cervelo dealer yesterday, post ride. Good friend and I have provided business help through the years, so I know his business as well as he does, I think. He would probably disagree . . . I've seen your two bullet points twice now and both times it has made me think, so we discussed it, yesterday.

What they have experienced, so far - lots of calls from people looking for the deal. Some from several hours away. Some local. The local people ask questions and want to "understand" the deal, because it does sound too good to be true. Once they even get a little understanding, they have backed away from the deal out of concern for the dealer. Those are the customers that he wants and he is ultra-appreciative that they will pass on the discount in order to not put him in a bind. I agree with him. That's the loyal customer that every shop tries to cultivate. The ones calling from several hours away? No so much. They travel to another town, get their bikes, and disappear back to wherever they came from. No repeat business and probably not another sale to them, ever.

As for Cervelo pulling someone's dealership over this promo, I think they would have a tough time. Suggested Retail Price Maintenance (essentially "forcing" sellers to not sell below a certain price) has been through the courts and, although recent rulings sort of support the right for them to do that, there are also cases where it has been found to be illegal. My friend is entirely for the enforcement of MSRP selling because it's protects him from the online behemoths that could sell for much less, and make up for it in volume. Here's the predicament for Cervelo, though. They "ask" a dealer to sell two bikes at, what could be, a "no profit" sale for the dealer. Okay, but dealer doesn't get a straight up rebate from Cervelo, they get a frame that is valued at $4900, by Cervelo. Dealer needs to get their money back, so they choose to sell the frame for $2000. Yes, they maybe could sell it for more, but they really just care about getting their operating profit in the bank account. So, the question arose -- How can Cervelo enforce anything (I understand dealer agreements)? You must sell at a much lower price. You must sell at a much higher price. I'm not sure this would stand up well in even a lower level court. Most shops could not afford to fight Cervelo on something like this, but all it takes is one person who can afford to, for whatever reason.

The above, combined with, even just the appearance, that Cervelo pushed this deal out there to reduce their inventory, in light of the PON deal, probably would not be seen favorably in a legal setting, either. That would be my concern if I was the one trying to make that deal happen. It really is an interesting situation that Cervelo has created.
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [road2tri] [ In reply to ]
Quote | Reply
So what your saying is the shop is losing money selling Cervelo bikes and frames at $1000 of retail, but has problems selling them for $2900 off retail?
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [DavHamm] [ In reply to ]
Quote | Reply
My LBS is a bit further north than Tango :-) I want to work with my LBS, as I really do try to support northern Michigan businesses whenever I can, but their response was so unclear that I hung up the phone not really sure what or who was doing what as the next step. I should point out that even this LBS is over an hour drive away, so traveling a bit to get this deal was/is going to have to happen anyway. I have called several of the other Cervelo dealers in Michigan and gotten some interesting, though not helpful, responses. I respect the decision each shop must make on whether or not to do this deal. But as a customer, I am not wrong for wanting to cash in on the Cervelo deal either. Basically, this deal puts a tri-bike within the family budget and is the difference between getting a new tri-bike or riding my road bike this season.

I have to drop off my son in Ann Arbor, so I am planning on visiting Frasier Bike. They have a great reputation and everyone I have talked to likes them a lot. When I called them, they were very straight forward about what was going on and what they could and could not do. I was very impressed. I just wish they were not on the opposite corner of the state from me. I couldn't live further away from Frasier Bike short of moving to the UP :-( After sleeping on it this morning, I am not as angry (ok, disappointed) at Cervelo and this situation as I was yesterday. But I will be spending the day looking at other options, just in case!
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [The Real Animal] [ In reply to ]
Quote | Reply
The Real Animal wrote:
You want a bike shop to sell two bikes at a loss,
People keep saying this, but we don't know that. It almost certainly is not true on the higher price bikes. Why do you think the P1's were not included on this promo?

Quote:
It just so happens to be the busiest time of year for bike shops!
Uh, not it's not. Not even close.

I don't know how the deal was communicated either, but people are talking about shops not knowing of the deal 1 week+ into the deal. Sorry, no excuse for that. As Dan as alluded to, and I completely agree with, most of the shops that are screaming the loudest are the marginal dealers anyway. The fact that some don't know about this deal a week or more later is further evidence of that.

*edit to fix quotes

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
Last edited by: Power13: Jan 1, 12 8:51
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [%FTP] [ In reply to ]
Quote | Reply
So, my question is this. Why didn't Cervelo just do the deal like this. $1000 off a bike of your choice (except P1) and when a customer buys one for $1000 off MSRP, Cervelo sends a $1000 check to the dealer or credits their account or whatever. Wouldn't that move bikes all the same? Wouldn't that be better for the LBS? Seems to me that if Cervelo really cared about their dealers, they would have made it this simple. Instead it is a buy 2 bikes and 1 frame, get "$2000 off". Which it seems LBS know it is not that good of a deal for them, so they say no thank you. I know not all are saying "no", and some dealers might do ok or well with this, but seems like there are more that are not or don't know about it than those that are doing it.
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [andrewcasino] [ In reply to ]
Quote | Reply
andrewcasino wrote:
visited the lbs thursday afternoon to consider a p3 for $2350 out the door.

they offered me their last 2011 p4 (sram red group) for $3k out the door. I paid for it on the spot.

the p4 was picked up this afternoon (saturday) from the lbs because I had no car last thursday.

andrew

Dayum.... And here I go thinking $3750 Can$ was a good deal.

I feel ripped off now

Citizen of the world, former drunkard. Resident Traumatic Brain Injury advocate.
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [Kentcart] [ In reply to ]
Quote | Reply
Kent, Frasier Bike has it on their website and facebook that they are not doing the share the ride program. You see seem to imply that they are sort of? A co-workers wife bought a tri-bike there and was very pleased, her husband was not. Told me he won't buy his next bike there. Mostly it seemed he was not happy with the constant additional charges, even the bike fit was an additional couple hundred I think.

Very interested in hearing your take on the store.

From my Geography, and vacationing. How is cross-village (287) these days. Gotta be about the further point from Frasier without being in the UP. Though Glenn Arbor (273) might be further or maybe Northport (275) . Ok now I have to go to google maps and see. Northern Tip of Mackinac bridge (283).

Ok I need to stop stalling and go work on my dryer.

Just Triing
Triathlete since 9:56:39 AM EST Aug 20, 2006.
Be kind English is my 2nd language. My primary language is Dave it's a unique evolution of English.
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [Tell3131] [ In reply to ]
Quote | Reply
Tell3131 wrote:
So, my question is this. Why didn't Cervelo just do the deal like this. $1000 off a bike of your choice (except P1) and when a customer buys one for $1000 off MSRP, Cervelo sends a $1000 check to the dealer or credits their account or whatever. Wouldn't that move bikes all the same? Wouldn't that be better for the LBS? Seems to me that if Cervelo really cared about their dealers, they would have made it this simple. Instead it is a buy 2 bikes and 1 frame, get "$2000 off". Which it seems LBS know it is not that good of a deal for them, so they say no thank you. I know not all are saying "no", and some dealers might do ok or well with this, but seems like there are more that are not or don't know about it than those that are doing it.

Because this deal moves a lot more inventory. Honestly, I don't think dealers are losing any money from this. I just think their margins are cut down significantly. That's all, I think some are bummed out to not be keeping their typical margin level. Nevertheless, they'll make up the money difference from the lower margin by sheer volume. Which I think some dealers are seeing. The three LBS's that I know have had phones ringing off the hook
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [justkeepedaling] [ In reply to ]
Quote | Reply
justkeepedaling wrote:

Because this deal moves a lot more inventory. Honestly, I don't think dealers are losing any money from this. I just think their margins are cut down significantly. That's all, I think some are bummed out to not be keeping their typical margin level. Nevertheless, they'll make up the money difference from the lower margin by sheer volume. Which I think some dealers are seeing. The three LBS's that I know have had phones ringing off the hook

In the interest of being objective, we don't know the above either. On some models, I doubt they are making much money at all, likely a break even or slightly above scenario. On other models, they are gonna do a bit better.

The end result will depend on the mix and volume sold and there is no way to make a universal assessment of the programs profitability. But absolutely agree with your last sentence....this program is definitively driving customers into stores. Whether or not the dealers choose to take advantage of that traffic is up to them.

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 Reply
Re: Cervelo share the ride "on hold" says my lbs [DavHamm] [ In reply to ]
Quote | Reply
I am in Petoskey, where we are currently getting dumped on with snow and freezing rain. So, not quite as far as Cross Village, but I do ride through there when the weather is a bit nicer :-p

I am going to Frasier even though they are not doing the Cervelo deal for three reasons. First, they were very honest and up front when I spoke with them on the phone. Second, they were already on my short list of places to get my bike fit, as they use both the Specialized BG and the FIST system. Third, I am in their neck of the woods several times a year courtesy of U of M. Now whether or not I am able to afford any bike deal I can arrange with them is another story. Besides, this is a great excuse to my wife on why I need to visit their shop!!

I did a Specialized BG fit on my road bike this year, and while it was a bit pricey, it solved the knee problem I was having. Yes, the fit was one price, and the parts needed to make it work were additional. I knew that going in, so I was not upset when I had to put on a new saddle and stem. I figure I will have the same or similiar changes on the tri bike, so I have that figured into my budget.
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [Power13] [ In reply to ]
Quote | Reply
Power13 wrote:
justkeepedaling wrote:


Because this deal moves a lot more inventory. Honestly, I don't think dealers are losing any money from this. I just think their margins are cut down significantly. That's all, I think some are bummed out to not be keeping their typical margin level. Nevertheless, they'll make up the money difference from the lower margin by sheer volume. Which I think some dealers are seeing. The three LBS's that I know have had phones ringing off the hook


In the interest of being objective, we don't know the above either. On some models, I doubt they are making much money at all, likely a break even or slightly above scenario. On other models, they are gonna do a bit better.

The end result will depend on the mix and volume sold and there is no way to make a universal assessment of the programs profitability. But absolutely agree with your last sentence....this program is definitively driving customers into stores. Whether or not the dealers choose to take advantage of that traffic is up to them.

I said this or something similar on another thread or at least I think/hope it was. We tried to do business at our local dealer and was told he would not sell us anything he had in stock, he would have to order it for share a ride program, then tried to charge me $2,700 for the P3 and wasn't sure if he would be able to have it in the store in time for the deal. This was the second time we went into the shop to buy, a full week after the first time with a scheduled appointment. We also saw a P3 in what he said was my size and a P2 2011 model in my sweeties size. While I wanted to be a customer of his and have a local shop I don't think I want this type of customer service. Long story short we got home, got on the phone and have purchased two bikes both 2012, P3 & P2 both Ultegra for under $4150 out the door. We go pick them up and get our F.I.S.T. fit on Friday.

There is a good book called Customers for Life, I can't imagine going to his shop ever again.

************************
#WeAreTheForge #BlackGunsMatter

"Look, will you guys at leats accept that you are a bunch of dumb asses and just trust me on this one? Please?" BarryP 7/30/2012
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [andrewcasino] [ In reply to ]
Quote | Reply
Quote:
visited the lbs thursday afternoon to consider a p3 for $2350 out the door.

they offered me their last 2011 p4 (sram red group) for $3k out the door. I paid for it on the spot.

the p4 was picked up this afternoon (saturday) from the lbs because I had no car last thursday.

andrew


That's not hard to figure out the markup on...... Wow!
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [Tell3131] [ In reply to ]
Quote | Reply
Tell3131 wrote:
So, my question is this. Why didn't Cervelo just do the deal like this. $1000 off a bike of your choice (except P1) and when a customer buys one for $1000 off MSRP, Cervelo sends a $1000 check to the dealer or credits their account or whatever. Wouldn't that move bikes all the same? Wouldn't that be better for the LBS?
You need to consider why Cervelo is doing this promotion in the first place. The most likely reason is they are short on cash and have excess inventory. Given those circumstances, this arrangement converts their excess inventory into cash. They are drawing down a little of the goodwill they have built with their dealers over the years.
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [Kentcart] [ In reply to ]
Quote | Reply
Kent,
Great riding places up there. We rent a cottage on the lake in Cross VIllage (well just out of town, just into the tunnel of trees). Hope you can find a good deal. So did Tango tell you they still didn't know how the program worked?

Just Triing
Triathlete since 9:56:39 AM EST Aug 20, 2006.
Be kind English is my 2nd language. My primary language is Dave it's a unique evolution of English.
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [Power13] [ In reply to ]
Quote | Reply
Power13 wrote:
The Real Animal wrote:

Quote:
It just so happens to be the busiest time of year for bike shops!
Uh, not it's not. Not even close.

Really? I would have thought Christmas was the busiest time of year for bike shops. It is in most countries.

Is it because it's winter there?
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [The Real Animal] [ In reply to ]
Quote | Reply
Correct. As a rule, December and January are the doldrums of the year. Expenses remain roughly the same (i.e. rent, etc) but cash flow is down considerably. Xmas helps, but hardly offsets the slow period.

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 Reply
Re: Cervelo share the ride "on hold" says my lbs [gregf83] [ In reply to ]
Quote | Reply
gregf83 wrote:
Tell3131 wrote:
So, my question is this. Why didn't Cervelo just do the deal like this. $1000 off a bike of your choice (except P1) and when a customer buys one for $1000 off MSRP, Cervelo sends a $1000 check to the dealer or credits their account or whatever. Wouldn't that move bikes all the same? Wouldn't that be better for the LBS?
You need to consider why Cervelo is doing this promotion in the first place. The most likely reason is they are short on cash and have excess inventory. Given those circumstances, this arrangement converts their excess inventory into cash. They are drawing down a little of the goodwill they have built with their dealers over the years.

And these type of gimmics typically just pull forward future sales- just like the first time home buyer program helped spur real estate sales for a while, and then they fell flat (to levels that were actually new lows), or cars/cash for clunkers pulled forward inevitable sales and then car sales fell flat for an extended period. At the end of the day- many would be Cervelo buyers have their bikes or were going to get their bikes (at higher margins) and it's only the very few that upgrade their existing P3 or P4 to a P5, etc. A tenuous business model at best, and more likely margin compression, along with a much rougher future at worst. Finally, consumers have good memories- and will want their future (or first) Cervelo to be had a sizeable discount or the purchase won't happen.
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [mlinenb] [ In reply to ]
Quote | Reply
mlinenb wrote:
gregf83 wrote:
Tell3131 wrote:
So, my question is this. Why didn't Cervelo just do the deal like this. $1000 off a bike of your choice (except P1) and when a customer buys one for $1000 off MSRP, Cervelo sends a $1000 check to the dealer or credits their account or whatever. Wouldn't that move bikes all the same? Wouldn't that be better for the LBS?
You need to consider why Cervelo is doing this promotion in the first place. The most likely reason is they are short on cash and have excess inventory. Given those circumstances, this arrangement converts their excess inventory into cash. They are drawing down a little of the goodwill they have built with their dealers over the years.


And these type of gimmics typically just pull forward future sales- just like the first time home buyer program helped spur real estate sales for a while, and then they fell flat (to levels that were actually new lows), or cars/cash for clunkers pulled forward inevitable sales and then car sales fell flat for an extended period. At the end of the day- many would be Cervelo buyers have their bikes or were going to get their bikes (at higher margins) and it's only the very few that upgrade their existing P3 or P4 to a P5, etc. A tenuous business model at best, and more likely margin compression, along with a much rougher future at worst. Finally, consumers have good memories- and will want their future (or first) Cervelo to be had a sizeable discount or the purchase won't happen.
Obviously, it's not part of a sustainable business model but a reaction to a difficult situation. Forecasting is not an exact science and unforeseeable events sometime conspire to build more than they can sell in year.
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [%FTP] [ In reply to ]
Quote | Reply
So, my buddy and I went to our lbs store this morning to order our P2s. After much discussion about the program and the fact that it was sort of "in limbo", he said the best we could do was give it a shot. The bikes are paid for and the order will be placed tomorrow morning. I left there feeling about 75% on the side that it wasn't going to work out (from Cervelo and not necessarily the lbs side of things), but then a Twitter exchange happened...

I said "Me and my friend ordered 2 Cervelo P2s. Just have to wait and see if they will honer the Share the Ride deal. Come on @cervelo! #nervous

SECONDS later I got a response - "If you and your dealer followed the guidelines, don't be nervous - just excited! Enjoy your new rides."

Interesting. After that simple Tweet, I'm 75% it will happen. I won't feel good about this until I have that sucker home. ;-)
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [TriWithT1] [ In reply to ]
Quote | Reply
We had kind of the same thing from our LBS, we got home and found what we wanted for almost $800 less than our LBS had told us. a P2 & P3 $4100 ish for both.

************************
#WeAreTheForge #BlackGunsMatter

"Look, will you guys at leats accept that you are a bunch of dumb asses and just trust me on this one? Please?" BarryP 7/30/2012
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [CruseVegas] [ In reply to ]
Quote | Reply
P2 should be $1,800 and p3 should be $2,350. Smokin for those prices!
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [gregf83] [ In reply to ]
Quote | Reply
gregf83 wrote:
Obviously, it's not part of a sustainable business model but a reaction to a difficult situation. Forecasting is not an exact science and unforeseeable events sometime conspire to build more than they can sell in year.


This firesale also puts extreme downward pressure on the resale value of every existing Cervelo owner that paid at full retail or even anything above wholesale. It's similar to an identical house to yours being foreclosed on your street- your new appraisal and what someone is willing to offer you for your home has declined substantially- not fun when you want or need to sell. Anyway- the program appears good for Cervelo equity holders that want to monetize their business and those consumers actually taking advantage of the sale. Existing C bike owners (and my household owns 3 Cervelos)- has just lost equity, a lot of equity. Thank you Cervelo (actually it is no thank you Cervelo)- I really don't appreciate the Christmas present of nearly another 3k being sucked from my wallet, even though I didn't even walk into one of your dealers to 'give away' that money. Why pay a fellow ST $2000 or ebayer for a slightly used P2 without warranty, when you can get a new one for $1400... so will those slightly used P2s now be worth sub $1k? Business decisions always have unintended consequences, that sometimes are never thought about or thought thoroughly through.
Last edited by: mlinenb: Jan 2, 12 11:54
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [mlinenb] [ In reply to ]
Quote | Reply
mlinenb wrote:
gregf83 wrote:
Obviously, it's not part of a sustainable business model but a reaction to a difficult situation. Forecasting is not an exact science and unforeseeable events sometime conspire to build more than they can sell in year.


This firesale also puts extreme downward pressure on the resale value of every existing Cervelo owner that paid at full retail or anything remotely close to retail. It's similar to an identical house being foreclosed on your street- your new appraisal and what someone is willing to offer you for your home has declined substantially- not fun when you want or need to sell. Anyway- the program appears good for Cervelo equity holders that want to monetize their business and those consumers actually taking advantage of the sale. Existing owners (and my household owns 3 Cervelos)- has just lost equity... Why pay a fellow ST $1700 for a slightly used P2 without warranty, when you can get a new one for $1400... so will those slightly used P2s now be worth sub $1k?

Companies have sales all the time that does not impact their day-to-day value on products. It does not affect the long-term values in the resale market. The sale is not the new pricing, so once it ends, the market will return to "normal", or something close to it.

Sales do not affect long term value, other than potentially increasing market supply at a later date. But that impact is a long way from being felt, if at all.

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 Reply
Re: Cervelo share the ride "on hold" says my lbs [mlinenb] [ In reply to ]
Quote | Reply
apparently folks in the classifieds do not all think so, case in point, a brand new R3 with Rival is currently msrp 3150 on cervelo site, before 1k discount with buddy. a slightly used one is listed for 4k????
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [mlinenb] [ In reply to ]
Quote | Reply
Indeed.

In the fall of 2012, what will a used R3 be worth?



On the flip side though, prices could go back up. Think about this: if the cost for a cervelo goes down resulting in a larger saturation of the market, then basic economics would suggest that the supply is high and demand is low thus driving used prices lower. However, is it possible that more cervelos on the market could in the long run be good for used resale? If there is greater saturation in a quickly expanding market, then it is possible that the demand for a cervelo could continue to rise exponentially as more people are exposed to the product. In the tri world, cervelos rule (as we've seen at kona). Not so much in the road bike world. It seems Trek and Spec have that on lock in the US. What if cervelo's became more of a household brand, thus keeping the used prices at the same levels they were a few months ago? After all, prices aren't going to remain this low for retail. Everything resets Feb 1.

Thats my hopeful theory. We'll see what actually happens...
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [Power13] [ In reply to ]
Quote | Reply
Power13 wrote:

Companies have sales all the time that does not impact their day-to-day value on products. It does not affect the long-term values in the resale market. The sale is not the new pricing, so once it ends, the market will return to "normal", or something close to it.

Sales do not affect long term value, other than potentially increasing market supply at a later date. But that impact is a long way from being felt, if at all.

I modified my post that you quoted based on looking more thoroughly at pricing history of successful ebay sales in the used market. Time will tell how much this will truly impact the C brand and their resale value- which is what I care about, when I'd like to upgrade to something new.
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [mlinenb] [ In reply to ]
Quote | Reply
I also think that buying a bike based on potential resale value is kinda silly. Buy the bike that is right for you (fit, appeal, etc) and use it as what it is - a tool. Resale has never once been a consideration for me.

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 Reply
Re: Cervelo share the ride "on hold" says my lbs [jeffp] [ In reply to ]
Quote | Reply
those classifieds will sit unsold. if you do a ebay search of p2 or p3 and check out completed listings- you will see a lot of bikes that went unsold with zero bids. when they go to relist the bikes- they will be in for a rude awakening that their bike might have fetched 1k more 3 weeks ago on ebay.
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [Power13] [ In reply to ]
Quote | Reply
Power13 wrote:
I also think that buying a bike based on potential resale value is kinda silly. Buy the bike that is right for you (fit, appeal, etc) and use it as what it is - a tool. Resale has never once been a consideration for me.


Since we happen to own multiple C bikes that spec out to 10k plus at msrp- I definitely consider resale value at the point of purchase. Frankly, most hobby items that we've purchased, resale value is thought about at the purchase point.
Last edited by: mlinenb: Jan 3, 12 18:07
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [Biertuempfel] [ In reply to ]
Quote | Reply
picked up a P3 Dura Ace for $2375 and S3 Ultegra for $2500....ridiculous!
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [cpotter88] [ In reply to ]
Quote | Reply
Nice.
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [TriWithT1] [ In reply to ]
Quote | Reply
Yesterday I got confirmation from our LBS that we WILL get 2 P2s as part of the "share the ride" deal and they won't even be delivered to the store until the first week of Feb (after the 1/31 deadline). I was told that they were ordered and would be in the first week of Feb... my heart dropped a bit... and then he said that we would still get the $2K off. Sweet.

They will be rewarded with much more of our business over the following years than if they wouldn't have participated!

I still won't believe it until I'm sitting on it getting fitted. ;-)
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [Tell3131] [ In reply to ]
Quote | Reply
Tell3131 wrote:
So, my question is this. Why didn't Cervelo just do the deal like this. $1000 off a bike of your choice (except P1) and when a customer buys one for $1000 off MSRP, Cervelo sends a $1000 check to the dealer or credits their account or whatever. Wouldn't that move bikes all the same? Wouldn't that be better for the LBS? Seems to me that if Cervelo really cared about their dealers, they would have made it this simple. Instead it is a buy 2 bikes and 1 frame, get "$2000 off". Which it seems LBS know it is not that good of a deal for them, so they say no thank you. I know not all are saying "no", and some dealers might do ok or well with this, but seems like there are more that are not or don't know about it than those that are doing it.

While it appears to do the same thing, it would likely cause Cervelo some cash flow issues. They're not "rebating" the shop with cash, they're reimbursing with inventory that has a sunk cost already. The actual cash discount ends being the dealer, not Cervelo, which may explain the sliding scale of reactions in different shops.

Retrospectively, Cervelo could have done a better job in prepping the dealers (IMO). The timing of the PON deal and this deal seems more "firesale" than goodwill. Time will tell. If a dealer was sitting on extra inventory this time of year, it could be a good thing.
Quote Reply
Re: Cervelo share the ride "on hold" says my lbs [wasfast] [ In reply to ]
Quote | Reply
wasfast wrote:
Tell3131 wrote:
So, my question is this. Why didn't Cervelo just do the deal like this. $1000 off a bike of your choice (except P1) and when a customer buys one for $1000 off MSRP, Cervelo sends a $1000 check to the dealer or credits their account or whatever. Wouldn't that move bikes all the same? Wouldn't that be better for the LBS? Seems to me that if Cervelo really cared about their dealers, they would have made it this simple. Instead it is a buy 2 bikes and 1 frame, get "$2000 off". Which it seems LBS know it is not that good of a deal for them, so they say no thank you. I know not all are saying "no", and some dealers might do ok or well with this, but seems like there are more that are not or don't know about it than those that are doing it.


While it appears to do the same thing, it would likely cause Cervelo some cash flow issues. They're not "rebating" the shop with cash, they're reimbursing with inventory that has a sunk cost already. The actual cash discount ends being the dealer, not Cervelo, which may explain the sliding scale of reactions in different shops.

Retrospectively, Cervelo could have done a better job in prepping the dealers (IMO). The timing of the PON deal and this deal seems more "firesale" than goodwill. Time will tell. If a dealer was sitting on extra inventory this time of year, it could be a good thing.

IMHO, this is the biggest problem with this deal.

Pink? Maybe. Maybe not. You decide.
Quote Reply