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Cervelo share the ride "on hold" says my lbs
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Heard from my lbs this deal is on hold currently for "internal issues". Is this my lbs only or has anyone heard the same?
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Re: Cervelo share the ride "on hold" says my lbs [%FTP] [ In reply to ]
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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.
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Re: Cervelo share the ride "on hold" says my lbs [JPDMD25] [ In reply to ]
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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.
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Re: Cervelo share the ride "on hold" says my lbs [Kentcart] [ In reply to ]
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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.
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Re: Cervelo share the ride "on hold" says my lbs [Tell3131] [ In reply to ]
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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?
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Re: Cervelo share the ride "on hold" says my lbs [packetloss] [ In reply to ]
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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.
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Re: Cervelo share the ride "on hold" says my lbs [Tell3131] [ In reply to ]
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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
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Re: Cervelo share the ride "on hold" says my lbs [Kentcart] [ In reply to ]
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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.
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Re: Cervelo share the ride "on hold" says my lbs [Jackb] [ In reply to ]
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Looks like the banner on cervelo.com is gone too.
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Re: Cervelo share the ride "on hold" says my lbs [thesober] [ In reply to ]
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http://www.cervelo.com/en_us/bikes/2012/


It's still there (left hand side)
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Re: Cervelo share the ride "on hold" says my lbs [DM67] [ In reply to ]
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Oops, you're correct. Could have sworn it was on the front page.
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Re: Cervelo share the ride "on hold" says my lbs [Jackb] [ In reply to ]
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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
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Re: Cervelo share the ride "on hold" says my lbs [AustinTriCyclst] [ In reply to ]
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Maybe you will not have a hard time selling R5 frames......

Pink? Maybe. Maybe not. You decide.
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Re: Cervelo share the ride "on hold" says my lbs [japarker24] [ In reply to ]
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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.
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Re: Cervelo share the ride "on hold" says my lbs [japarker24] [ In reply to ]
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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
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Re: Cervelo share the ride "on hold" says my lbs [sloarunner99] [ In reply to ]
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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.
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Re: Cervelo share the ride "on hold" says my lbs [The Real Animal] [ In reply to ]
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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.
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Re: Cervelo share the ride "on hold" says my lbs [japarker24] [ In reply to ]
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Of course. I went about it the wrong way. Why do I even bother posting.
Last edited by: sloarunner99: Dec 31, 11 17:08
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Re: Cervelo share the ride "on hold" says my lbs [AustinTriCyclst] [ In reply to ]
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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.

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Re: Cervelo share the ride "on hold" says my lbs [jmaley] [ In reply to ]
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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.
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Re: Cervelo share the ride "on hold" says my lbs [The Real Animal] [ In reply to ]
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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.....
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Re: Cervelo share the ride "on hold" says my lbs [packetloss] [ In reply to ]
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Thanks! It's a bit hard trying to keep up with all the threads on the same topic.

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Re: Cervelo share the ride "on hold" says my lbs [packetloss] [ In reply to ]
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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.



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Re: Cervelo share the ride "on hold" says my lbs [jmaley] [ In reply to ]
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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
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Re: Cervelo share the ride "on hold" says my lbs [AustinTriCyclst] [ In reply to ]
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AustinTriCyclst wrote:
(I had my best Cervelo December ever)

Measured in units or margin?
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