Quoted message said:Quoted message said:Thanks for the insight. I'm sure you are much better informed about
Trek than Jacoubsowsky is.
I'm sure that Mike J. would never publicly post anything negative about
Trek
as long as he is dependent on them for his income, regardless of the
veracity of "hizark"'s claims.
If Trek cancelled Mike's dealership agreement tomorrow, how long would it
take for Mike to get all new dealership agreements in place with other
major
manufacturers, without encroaching on other dealer's protected
territories?
If something were to happen that resulted in us going down a different path
than Trek, there would be quite a few companies knocking on our door,
including those with nearby dealerships. About 7 years ago one of the other
major bike companies, one with a very significant and well-established
dealer in town, called and asked for a dinner meeting. Interesting... I
wondered why? I figured why not, what harm would come of it, so I go and
have dinner with their VP and National Sales Manager and one other guy. They
begin to lay out their plans and I ask them what it has to do with me, since
they've already got a very loyal dealer in town. Well apparently that's
subject to change, at which point I tell them I'm uncomfortable with things
and please, anything that's discussed has to be something that can be spoken
about openly outside the dinner. Things got very quiet.
Bike companies are very fond of dealers who pay their bills on time, and
don't keep secrets from them (as in, if you're hitting a rough spot, let the
credit manager know, don't try to hide things). We're very good about that;
many dealers aren't. They see an adversarial relationship between themselves
and the credit department, which creates a lot of FUD (fear, uncertainty &
doubt). This is not to say that the bike companies themselves are blameless
in what they do! We had a major row with Trek some years ago when they gave
Fisher and LeMond to a chain store down the street, despite early assurances
it would not happen. That caused about a 4 month chill in our relationship.
But overall, the point is that a well-financed honest dealer with the
smallest amount of patience can probably pick up just about any line they
want from one of the major companies. They come knocking on our door now,
they'll become even friendlier were we to part ways with Trek But it's
unlikely to happen, since we've invested so heavily in Trek over the years.
Not in product, not even in terms of how we've marketed them. Rather, the
relationships within the company that we have, relationships that, in many
cases, go back over 20 years... those would be very tough to leave. If
something comes up with a Trek bike, I don't just have the best connection
in the tech & warranty departments to deal with, I can talk directly with
the engineer involved with the product. I can bump issues up the chain as
high as required to get results, if need be. I can have an honest
conversation with the sales department about what's selling, what's not, and
why. I don't have to worry about someone giving me the company line to keep
me "up" about selling their product, because they know I'm in it for the
long haul and helping them work through a problem (one they'd perhaps rather
not other dealers focus on, because it might effect their sales) won't
negatively effect their image with us.
--Mike-- Chain Reaction Bicycles
www.ChainReactionBicycles.com
"Steven L. Sheffield" <[email hidden]> wrote in message
news:[email hidden]...
Quoted message said:On 08/11/2007 02:50 AM, in article
[email hidden], "John Forrest Tomlinson"
Quoted message said:email hidden said:On Aug 10, 2:49 pm, "Mike Jacoubowsky" <[email hidden]>
wrote:
>> I am interested to see how the Trek stores are affected. I am not
>> convinced that a single brand store of that size has enough brand
>> equity to survive.
I suppose one reason for being a Trek only store is because Trek
demands that it's dealers product line consist of 70% Trek products. I
guess they want to like the old Schwinn shops. The other thing to
remember is that bicycle brands have their ups and downs.
If you are a smaller to midsize shop this less of a concern But
dealers have invested a huge amount of capital in the Trek concept
stores here in San Diego. One problem is that their overhead is so
high. A friend who owns a shop tells me that the rent is $9000 for a
Trek concept store in Kearney Mesa SD.
Trek also has been acting heavy handed with their dealers. I
personally believe that a lot of their dealers will revolt if Treks
sales drop off much.
Thanks for the insight. I'm sure you are much better informed about
Trek than Jacoubsowsky is.
I'm sure that Mike J. would never publicly post anything negative about
Trek
as long as he is dependent on them for his income, regardless of the
veracity of "hizark"'s claims.
If Trek cancelled Mike's dealership agreement tomorrow, how long would it
take for Mike to get all new dealership agreements in place with other
major
manufacturers, without encroaching on other dealer's protected
territories?
--
Steven L. Sheffield
stevens at veloworks dot com
bellum pax est libertas servitus est ignoratio vis est
ess ay ell tea ell ay kay ee sea eye tee why you ti ay aitch
aitch tee tea pea colon [for word] slash [four ward] slash double-you
double-yew double-ewe dot flahute dot com [foreword] slash