Bicycle Trade-In Program

hey i just read on http://www.americantri.com/mambo/ that American Bicycle Group is now taking trade ins!
Has anyone else heard anything about this? I have an old litespeed i would love to trade in for a new ride. Any details would be nice.

Not of much interest to us. IMHO the best way to get rid of your used bike is to take a nice digital photo, get an e-bay user i.d. and post it on e-bay with an honset and detailed description along with your contact information. You will be able to sell it for more than you imagined, almost guaranteed. The, take the cash down to your local Litespeed dealer and get a new bike. E-bay is a fantastic venue for clearing old equipment when done correctly. It’s easy and fast and you’ll get absolute top dollar, far more than I or any other dealer would offer in trade.

i dont know if i have time for that e-bay stuff, sure would be nice to treat it like a used car and trade it in and get something new while im there, ya know? but thats my preference.

Letter from ABG:

Hey cyclists!

Tired of your older titanium bike? Want to try the latest, most advanced cycling technology on the planet? Soon, you can trade-in your old titanium bike for a brand-new ride!

That’s right! American Bicycle Group, parent company to Litespeed, Quintana Roo, Merlin, & Tomac, is excited to announce a new bicycle trade-in program called Trade-in for New! This program will offer titanium bicycle owners everywhere the opportunity to keep at the forefront of cycling technology by trading in their old domestic titanium bicycle for a brand new Litespeed, Quintana Roo, Merlin, or Tomac bicycle!

We’ve made huge advancements in frame technology in the last two years alone, and we want our customers to take advantage of these advancements! Now we have a trade-in program that helps our customers do just that, and Trade-in for New is completely unique in the cycling industry.

Here’s a quick look at some of the *Trade-in for New *features:

… Get rid of your old bike for a brand-new one
… Trade-in values are a breeze thanks to an automated on-line valuation program
… Simple processes make the entire trade-in incredibly easy
… Participating dealer locator on Trade-in for New website
… Combine the trade-in program with 6 month Same-As-Cash financing at participating dealers

Beginning in April 15, Trade-in for New, located on the web at preownedbikes.com & at participating dealers throughout North America, will accept used titanium bicycles from Litespeed, Quintana Roo, Merlin, Dean, Douglas, Ibis, Independent Fabrication, Lemond, Macalu, Merckx, Mongoose, Moots, Serotta, & Seven. Trade-in for New will be accepting complete bicycles only, as far back as the 1996 model year. If you don’t see your bike listed, just ask the Trade-in for New staff if it is eligible for trade. Bikes not listed will be taken on a case-by-case basis.

For more information about this program, view the Trade-in for New web pages at preownedbikes.com, or email the Trade-in for New staff at info@preownedbikes.com. The web page goes live April 15!

Paula Wilson American Bicycle Group Marketing/Sales Assistant toll free: 800.229.0198 direct: 423.238.8810 email: paulaw@americanbicyclegroup.com

Is your time worth an extra $600-$1000? Sound better now? Basically you’d get the margin I’d be making selling the bike, AND the “wholesale” (what a dealer gave you) price of the bike- so you make out. Also, now that you have an e-bay user i.d. you can buy and sell on e-bay. You know those old 8 speed race wheels in the garage? All those old bike clothes? That seat you pulled off your bike when you bought a new one? You got it- turn it into cash.

Sounds pretty interesting. . . I haven’t heard of a program that takes back just about ANY ti-bike. I’ll be interested in seeing the sight go up.
Tom – you mentioned $600-1000 extra for selling your bike on ebay. I know it is a sellers market, but do you have some info on the trade-in values that will be offered through the program? Seems like a lot of $$
Also, I’ve seen postings about getting ripped off with ebay. Is this a big problem, or something that is easily avoided?

For some insight on doing business on e-bay, check out my editorial. This editorial was eclipsed by the uproar over the one I wrote about Iraqi Freedom, and the subsequent media attention. Here’s the link to copy and paste in your browser window:
http://www.bikesportmichigan.com/editorials/0000026.shtml

And some thoughts on the economics of this trade-in program from the ground level:
A customer comes in and is interested in a used Litespeed (or other used bike), I say:

"Yes, this bike is in excellent condition, we have verified it. Now, the frame fits you but… You need a new handlebar stem, different size bars, shorter (or longer) cranks, new cables since I’m changing the stem length, a different saddle and a roll of handlebar tape. Here’s the break-down:

Stem: $79.99, bars: 59.99, cranks: $200, cables and housing: $20, saddle: $109, tape: 9.99 and some labor to get it up and running: Let’s call it $60 since you’re buying a bike from me: Total $571.30 to get it ready to go out the door, and you might as well put some new rubber on there too… That’s another $120. And you want a fitting? OK- $65. Now we’re up to $756.30 and you still have a used bike. Now, can I interest you in a NEW Litespeed with ALL of those things already on it, built to your specifications, with no history of roof rack transport, crashes, flight case mysteries, or other scary skeletons for about another $400? Hmm, suddenly the new bike is starting to sound like a better deal. And I think it is. I’m been accused of some ugly things on this forum- most deservedly so. but the one thing I was accussed of that I am NOT is a used car salesman. This is an interesting promotion, but I am in the business of selling brand-new bicycles built individually for a specific customer at no additional charge to the price of the bike. I am NOT a used car salesman. Just my opinion, I am having trouble seeing the true value in it. I am sure there may be some consumers who disagree.

I second Tom’s opinion. You can’t really afford NOT to do the Ebay thing. The “hassle” is nothing compared to the extra $$.

Example: 2002 Specialized Allez Comp at LBS: $2000. Let’s say that I could trade in for this. I’d probably only get about $700 for the Tequilo, and could only trade in one. That leaves me with $1300 out of pocket to get the standard equipment bike.

          2002 Specialized Allez Comp the Ebay way:  Sold 2000 Tequilo, 1994 Specialized Allez Pro and misc bike gear accumulated over the years and no longer used:  Netted $2000.  Bought 2002 Specialized Allez Comp for $800 on Ebay in Dec, 2001 (read that again!  it was less than 1 mo. old and less than 200mi on the bike!)  With the extra $1200 I got Speedplay Stainless Zero's, Nike Poggios, Easton carbon seatpost, SLR saddle, cages, computer, new shorts and jersey, as well as replaced the OEM Shimano wheels for Mavic Cosmos for an additional $150.  This cost me $0 out of current pocket and I have a much sweeter, and more complete ride.  AND, in the end, my LBS STILL got $1200 out of me on the transaction.  AND my wife was happy to be rid of at least one box of old bike junk.  AND, because it cost me $0 to do, I was able to easily turn around 9 months later and buy a new Litespeed Saber "all the way" as they say in the south.   

Again, you really can’t afford NOT to Ebay (taking prudent precautions, of course)

Perfect Example TriBriGuy. As a retailer, I embrace e-bay. There is an Arabic proverb: “The enemy of my enemy is my friend”. Also, this trade-in promotion is viable and extremely successful in the automotive industry. The difference between automotive trade-ins and resales is they are not nearly as size specific as performance bicycles: A guy 6’2" tall trades in a nice Landrover. I can’t afford a new one but they are durable vehicles so I decide to buy used. I’m 5’8" tall and guess what, his used Landrover fits me- because they are all the same size. Now, I want to buy this same guy’s used Litespeed. Ooops, minor problem. He’s on a 59cm and I’m on a 53cm. It’s not the same.

some good points made here, i will take that into account, thx for the input.

And a final note: My liability insurance coverage reads “…sale of new bicycles…” That language is specific so that in the event of a large liability suit, there is a second party (the bike manufacturer) for the plaintiff’s attorney to go after. My pockets are only so deep: Once a lawsuit for several million $$$ for a wrongful death on a bicycle that I sold is filed and a jury or mediator assigns 10% of the liability to me then they can go after the bike company if the bike is new. A smart attorney for the plaintiff knows this and will name them (the bike company) in the complaint also. My insurance protects me in that environment. When I sell a used bike with no 2nd party, I am as naked as a jaybird. I’m not covered. Too risky for me.

I should add that the length of the entire evolution from decision to buy the new Specialized, through selling on Ebay, through bidding, winning and receiving the new bike, and finalizing with the other gear was less than 2 months. I started in mid December (I had originally talked my wife into the new bike for Xmas), and was riding the complete new package by the last week in January. All in all, I consider that time well spent. Even if I hadn’t had a mountain bike to tide me over for the three weeks I was without a road bike, that is deep off season and easily made up for.

The program is a re-creation of the cannondale program from 6 years ago. Could be because the sales VP at ABG is Ex-Cannawhale man. He has no origianl ideas just re-dos and thefts ie. their financing program was stole from Supergo by their own admission.

i suspected as much, woodchuck. as i recall the c-dale program was not a bad deal for the consumer in the pre-ebay universe. of course, old c-dales are junk and old ibis double butted ti bikes are timeless masterpieces so there is perhaps a slight difference there !! but i am not a fan of ebay and will never support it - recent personal thefts and conversations with law enforcement have shed light unto me that there is literally no end of stolen junk being fenced thru that harmless auction host, and that thieves of easily moved material specialty goods have never had life so good because of it. looks like there is more than one reason and way to “turn things into cash” !! maybe our granpa’s had it right when they coined the phrase " never buy something from somebody you can’t punch in the mouth".

Yo Tom, since I didn’t feel like make a new thread, maybe you can answer a question.

Since you sell bikes, how much would a 2001 (or 2000, not really sure) Bianchi Reparto Coarse Light Alloy with full 105 gears sell for? I’m pretty sure there is around 2500K on it. One pretty big crash, frame wasn’t damaged, and I replaced the saddle + post with a new one. New tires too (100K on them).

The program is a re-creation of the cannondale program from 6 years ago. Could be because the sales VP at ABG is Ex-Cannawhale man. He has no origianl ideas just re-dos and thefts ie. their financing program was stole from Supergo by their own admission.

sounds like a personal issue woodchuck?

i just read about the trade-in program and thought it sounded interesting thats about it.

Tom, Isn’t the program called “Trade in for new”? Wouldn’t you still be selling new bikes? I don’t see where you’d be a used bike salesman. You’d just accept the trade in right? Maybe I’m not seeing the whole picture here, but I don’t read anywhere on that release where bike shops will be reselling the old bikes.

Trischnitz

I have to admit secondtrans, you really got jumped on here. For my part in that I apologize. Here’s the reason why I joined (or instigated)the lynching: American Bicycle Group (who owns Litespeed) makes some truly great bicycles. Their products speak for themselves. The quality and performance of the Saber, Tuscany, Vortex, Ghisallo, the new aluminum bikes, the Ultimate and other models represents (to me) absolutely the best options in titanium, and in some cases, maybe the best options for some customers period. Most of their bikes are very, very good- almost all of them. So, I have always felt the company should sell the bikes on the strength of the product- the virtues of the bikes alone. I sometimes wonder if they even know how good the products are. I’m a retailer, and as a retailer it is frustrating when a company who makes impressive products seems to be resorting to creative marketing to sell a few more units. To me, they could sell A LOT more units and EARN the sales by spending time and effort on validating how good their bikes really (already) are. All this “0% financing, 90 days same as cash, trade-in, trade-up” stuff. It rubs me the wrong way. I am not a Ford dealer (not to knock Ford, I just am not in that business). I am trying to be a Ferrari dealer. I am concerned with getting my customers on the best fitting bike- not “getting them into something new”. Litespeed makes bikes that fit and function great. Why don’t they come up with a program to send customers to my store to be measured for a new Litespeed? Why don’t they reprint their catalogs with in-depth technical information that explains in a more articulate manner the features and benefits of a Litespeed- of each model. Those are the marketing tools I need- to let people know how fine these bicycles truly are. I don’t need “image” ads of kids shaving their legs, trade-in programs and 0% 90 days same as cash financing. I just need a solid product, some good documentation, a computer, my measuring tools, a website and to be left alone. Then I can sell bikes.

Someone asked me why I haven’t posted my review of the Litespeed Saber: I spent a lot of time on that review and it favors the bike to the extreme. I didn’t and probably won’t post it because ABG opened a dealer in a competitive market in close proximity to my store in an attempt to sell a couple extra bikes and try to hedge their bets. When I post a review on MY own personal bikeshop site it gets thousands and thousands of hits. It sell bikes for companies not just in my store, but all over the world. I see who is hitting my site and where from. It is huge. People are reading our reviews and making buying decisions based on them. I have no problem helping my friends at Litespeed sell some additional bikes in Colorado, California, New York, Ohio, Europe. But I do have an issue with my reviews selling their bikes out of a store a few miles from here when they weren’t a dealer last year and I am partially responsible for the person’s buying decision. It shows me ABG dosen’t care about the effort I put into to partenring with them in “our” marketing efforts. Since they don’t seem to care, it seems appropriate to devote the time, effort and space on my page to another manufacturer who does sell bikes around the U.S., but won’t drop another dealer in my backyard. So now you have the ugly truth. Litespeed’s bikes are awesome. I have not been a big advocate of their marketing strategies and tactics- but I continue to sell their bikes becasue of their fine quality and excellent workmanship. I think they should focus on that. Just my opinion.

Oh, and by the way, just so I don’t come off as being a pussy-assed cry baby running to Daddy Dan to complain about big, bad ABG in front of the rest of the family (you guys), I HAVE mentioned this to ABG at least three times in the more “appropriate” context of a private meeting. They exercised their God given right to ignore my sagacious advice. I imagine I will be hearing from them any time now…