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Bike Manufacture Contingency Program
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Why don't bicycle manufactures have a contingency program like motorcycle racing?

A contingency program is where the manufacture pays the racer for riding their brand and placing well (top 10) within specific races. For pros, the payout happens typically at each professionally sanctioned race. In amateur racing it's the championship races (IG Kona & regional champs) along a few one off races. To qualify for the program, all the racer needs is a current year race bike (usually current year(N) = N & N-1). See links below showing payout charts for pros and amateurs based on what I could find.

Obviously, bicycle manufactures have an incredibly smaller budget compared to the Japanese motorcycle manufactures, but this could be a great way to move tri bikes.

How about this... Cervelo puts up $100,000 in contingency across all age groups (24?) for anyone racing a current year tri bike at Kona. Based on some googling, at 20% margin /bike with an average bike price of $6K, they'd have to move 83 additional bikes. One can assume not everyone in the top 10 across all 24 age groups rides a Cervelo, so no chance of 100% payout by them. Plus, racers have a better shot at making some $$ back on a costly trip.

Thoughts?

Pro:
https://www.xtrm.com/...mp;yr=2019&evt=2
https://www.xtrm.com/...mp;yr=2019&evt=1
https://www.ktmcash.com/...1-812a-090583ad69ce/

Amateurs:
https://www.xtrm.com/...mp;yr=2019&evt=5
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Re: Bike Manufacture Contingency Program [ttreise] [ In reply to ]
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ttreise wrote:
Why don't bicycle manufactures have a contingency program like motorcycle racing?

A contingency program is where the manufacture pays the racer for riding their brand and placing well (top 10) within specific races. For pros, the payout happens typically at each professionally sanctioned race. In amateur racing it's the championship races (IG Kona & regional champs) along a few one off races. To qualify for the program, all the racer needs is a current year race bike (usually current year(N) = N & N-1). See links below showing payout charts for pros and amateurs based on what I could find.

Obviously, bicycle manufactures have an incredibly smaller budget compared to the Japanese motorcycle manufactures, but this could be a great way to move tri bikes.

How about this... Cervelo puts up $100,000 in contingency across all age groups (24?) for anyone racing a current year tri bike at Kona. Based on some googling, at 20% margin /bike with an average bike price of $6K, they'd have to move 83 additional bikes. One can assume not everyone in the top 10 across all 24 age groups rides a Cervelo, so no chance of 100% payout by them. Plus, racers have a better shot at making some $$ back on a costly trip.

Thoughts?

Pro:
https://www.xtrm.com/...mp;yr=2019&evt=2
https://www.xtrm.com/...mp;yr=2019&evt=1
https://www.ktmcash.com/...1-812a-090583ad69ce/

Amateurs:
https://www.xtrm.com/...mp;yr=2019&evt=5


Doesn't Premier Tactical does something like that?


https://www.premierbike.com/...ored-athlete-program
Last edited by: Cnasta: Dec 18, 19 7:27
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Re: Bike Manufacture Contingency Program [Cnasta] [ In reply to ]
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Didnt know that. Are they still running the program? Would be curious if anyone participated on here.
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Re: Bike Manufacture Contingency Program [ttreise] [ In reply to ]
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Have wondered the same thing since I started cycling as I come from motorcycle Roadracing. The same concept applies to tires and other various parts.

Before I sucked I made a few bucks from Michelin.
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Re: Bike Manufacture Contingency Program [greenlawnracing] [ In reply to ]
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Same with me, well an MX background as you can tell with the links in the OP. During the mid 2000s, lots of Kawi's and Suzuki's on the track because the contingency was so good. Now KTM seemed to be getting that windfall with higher $$ offered based on the back end of my time racing.
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Re: Bike Manufacture Contingency Program [ttreise] [ In reply to ]
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Also the money is often good for the shops. I raced motocross on Yamahas and you had to use the funds at an authorized dealer. Shops liked it because it brought in customers who would often buy more than the contingency dollars they had. Honda changed the game with the visa gift card thing. That was cool, but I don't think it would work as well for cycling/ triathlon.
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Re: Bike Manufacture Contingency Program [Eroc43] [ In reply to ]
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Eroc43 wrote:
Also the money is often good for the shops. I raced motocross on Yamahas and you had to use the funds at an authorized dealer. Shops liked it because it brought in customers who would often buy more than the contingency dollars they had. Honda changed the game with the visa gift card thing. That was cool, but I don't think it would work as well for cycling/ triathlon.

The Visa was weird, happened with Michelin as well. You'd think it would be credit towards their product only as opposed to spending it how you wish.

Why wouldn't it work in cycling? You use Conti tires, win, and get credit towards your next set. Gets everyone to use Conti in hopes of winning $.02 in credit, resulting in more sales and a "perceived value" of winning as the credit does not cost the manufacture the actual face value.

I'm sure I'm missing something given my limited knowledge of this sport, but at first glance it seems to be the same concept.
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Re: Bike Manufacture Contingency Program [greenlawnracing] [ In reply to ]
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Sorry, I meant that I did not think the visa gift card thing would work as well in cycling. Just because in order to make the math work I think it needs to be coming back to your company, or at least supporting your dealer network. Would likely need to be different for different items. IE tires would be an online coupon code for their site, VS cervelo might be used at a dealer.
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Re: Bike Manufacture Contingency Program [greenlawnracing] [ In reply to ]
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I meant that I did not think the Visa gift card would work, because I don't think the math would workout without the money coming back to the manufactures or dealer network. I know that when Honda did it, all the riders liked it, but the shops did not love it.
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Re: Bike Manufacture Contingency Program [Eroc43] [ In reply to ]
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Yeah I wouldnt see tires making their way into this space, guessing only bike and MAYBE wheel manufacturers would jump in based on margin. but I get your point of putting the dealers somewhere they do not want to be. That's only if you're getting paid in Trek Bucks to use at the Trek Store. If the manufactures are paying racers via cash on a debit card, no harm no foul for the dealers.

How about this even... a potential clause that says" To earn your Trek cash, one must buy their bicycle at an authorized dealer. Only authorized dealers can register bike and rider within the program. "
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