Looks like Quintana Roo has become the latest manufacturer to imperil its dealers’ and retailers’ business models by moving toward direct-to-consumer distribution via internets. Seems this is the day Dan warned Tom Demerly about back in the era before personal computing…
Anyways, at $4500 for a PRsix frameset, these QR products seem overpriced vis-a-vis DTC competitors like Canyon, Diamondback, Premier Tactical. I can get a Canyon Speedmax CF SLX 9.0 LTD with Dura Ace Di2 9160 and Zipp 808 NSWs or I can get a PRsix with Reynolds Strikes and Ultegra 6870 – not a tough choice. Or I can pick up a Premier Tactical with a dual sided power meter and a travel case for under $6k.
This seems like a problem for manufacturers that need to shift from traditional retail distribution – they can’t undercut and cannibalize their dealers too much by slashing e-tail pricing, so they can’t be competitive and extend the price-value benefits of the virtual model to consumers.
It’s too bad really, because with the new stem and bento options, the PRsix has improved a lot and it seems to be a very underrated bike.
I heard ABG had a bad reputation from LBS… maybe this is their way of not having to do anything about that reputation.
But I’m not in the business, so I’m just repeating hearsay…
it looks like they are pricing well below what dealers are selling the same bike for.
I just checked TriSports.com compared to QR direct for what seemed to be the same exact bike.
$6150 vs $4499.
Just added one to my cart, looks like i can ship it direct from QR to mi casa.
How does QR spin this to dealers? You buy inventory, customers can come and look but order direct?
Offer a maintenance package to encourage them to take it into QR dealers. If I was a QR dealer, I’d announce my own. “Buying a QR direct? Register it with Bike MegaMart for only $20 a month and we will take care of all your regular maintenance!”
Or QR could sell a maintenance package as an upsell and it’s good at any QR store, and any QR store can get reimbursed for work charged against it.
Either way, this gets the customer in the door of the LBS to buy all the stuff that actually makes the shop money.
Either way, this gets the customer in the door of the LBS to buy all the stuff that actually makes the shop money.
What makes the shop money?
Mainly service, consumables and “soft goods” (read clothing etc). The hardware is “get them in the door” low margin. If QR still gets them through the door via some mechanism that is coupled with the consumer direct sales, then everyone wins.
I guess I’m not following your math. You want the shop to lose $4500 sale in hope they make $500 on clothing and $500 on goods/maintenance?
ETA: I say that because more times than not if you go buy a bike online, I’ll put money thay you’ll buy 70% of the other stuff online as well. So basically the shop can sell bike maintance to the customer.
Either way, this gets the customer in the door of the LBS to buy all the stuff that actually makes the shop money.
What makes the shop money?
While they are cleaning up your bike, they tell you the chain is stretched and needs to be replaced. Sorry, that’s not maintenance, that’s a replacement part. That’s some money in their pocket, plus labor. While you wait, you pick up some Gu, a new pair of socks, and a bike light. You got your bike cleaned and adjusted, and they just made another $150.
How does QR spin this to dealers? You buy inventory, customers can come and look but order direct?
I don’t think there’s any spin that sounds good to dealers. It’s just survival by the manufacturer. Canyon, Diamondback etal. are growing.
I think the LBS industry is only going to shrink. It won’t go away, because service, fits, and quick access to parts, snacks, etc. But I think that towns that once supported 3-4 shops might shrink to 2-3, etc.
I heard ABG had a bad reputation from LBS… maybe this is their way of not having to do anything about that reputation.
after having been at 40 road shows in 15 months, along with having hosted fitters from more than 800 bike shops in recent years, i can tell you that QR absolutely does NOT have a bad reputation from the LBS community.
But I’m not in the business, so I’m just repeating hearsay…
exactly.
now, whether they go consumer direct, remain an IBD brand, or end up somewhere in between, i honestly do not know. that’s another subject. what i would say is that QR had a history over the past 7 or 8 years of too many closeouts. i think the reason is that the product suffered. now, with the PR3 thru 6 the product no longer suffers. if QR does go consumer direct maybe it’s a case of bad timing. maybe if QR had its current bikes 5 years ago it would have more success selling into IBDs, it would not have had the discounts, and it would not have to look at different sales channels. just, the dealers that they have sold into over the past 2 or so years that i’ve been visiting have been quite happy with QR.
I guess I’m not following your math. You want the shop to lose $4500 sale in hope they make $500 on clothing and $500 on goods/maintenance?
ETA: I say that because more times than not if you go buy a bike online, I’ll put money thay you’ll buy 70% of the other stuff online as well. So basically the shop can sell bike maintance to the customer.
The bike shop isn’t making $4,500 on selling that bike. They are making a couple hundred bucks at most, enough to cover the cost of storing and building it and to pay a sales guy the time it took to sell it to you. The real money they make on it is you bringing it back in to get it worked on.
If you buy it direct, the bike shop doesn’t need to make that $200 to build it and sell it to you - you just did that yourself. But they still need you to bring it in so they can make money off you while it’s being worked on. Until bikes don’t need maintenance or we all become expert mechanics, that’s where the money is made.
The same thing works with car dealers. You can find out exactly how much the dealer is paying for a Ford Focus, then tell them you will pay them $400 over that price so they make their money on it, since it has to go through their parking lot. And then they are counting on you bringing it back to them for repairs and maintenance over the next X years.
The bike shop isn’t making $4,500 on selling that bike. They are making a couple hundred bucks at most, enough to cover the cost of storing and building it and to pay a sales guy the time it took to sell it to you. The real money they make on it is you bringing it back in to get it worked on.
No and yes. Bike stores make usually well over $1k on a bike sale ordinarily. So the real money is getting you to buy a bike AND come back after said safe.
ETA: a store is not buying a bike at cost of $4100 and then selling it at $4500. $4100 cost would likely be $5600-$6k bike
QR has been selling direct dozens of different ways for some time now, via team deals and coaching deals and bro deals and whatnot. They just pretended otherwise.
These aren’t moves made in confidence. They are moves made in desperation. Stock up your derailleur hangers, seat clamps, and seat posts now.
The bike shop isn’t making $4,500 on selling that bike. They are making a couple hundred bucks at most, enough to cover the cost of storing and building it and to pay a sales guy the time it took to sell it to you. The real money they make on it is you bringing it back in to get it worked on.
No and yes. Bike stores make usually well over $1k on a bike sale ordinarily. So the real money is getting you to buy a bike AND come back after said safe.
Ok, true… ish. Depends on the bike. They aren’t making that on a $500 entry level bike. The profit margins on most of their bikes are really small. But yes, you are right on that.
it looks like they are pricing well below what dealers are selling the same bike for.
I just checked TriSports.com compared to QR direct for what seemed to be the same exact bike.
$6150 vs $4499.
Just added one to my cart, looks like i can ship it direct from QR to mi casa.dont think that’s the case - price is at parity with dealers…for now. You have to change the configuration in the drop down.
It’s only a matter of time before that “team deal” is the price on the website.