From the article: -------------------------------------------------------------------- Mountain Equipment Co-op, which has built its retailing reputation on a feel-good image of environmental and social responsibility, has ignited anger in an unlikely place – the bicycle industry.
Its foray this month into bike selling has been criticized by rival specialty retailers for everything from unfair competition because of its tax-exempt status, to a Wal-Mart-style money grab, to unethical sourcing.
Bike enthusiasts' ire toward MEC intensified when an executive at the non-profit chain slammed the bike industry in a blog on the company's website, calling it “grey, dusty and dirty.” The blog entry was later removed.
Some bike-parts suppliers have even refused to ship to MEC, while one Quebec distributor last month dropped a major Canadian parts manufacturer from its roster because the supplier is selling to MEC. ---------------------------------------------------------------------
> From the article: > -------------------------------------------------------------------- > Mountain Equipment Co-op, which has built its retailing reputation on > a feel-good image of environmental and social responsibility, has > ignited anger in an unlikely place – the bicycle industry.
> Its foray this month into bike selling has been criticized by rival > specialty retailers for everything from unfair competition because of > its tax-exempt status, to a Wal-Mart-style money grab, to unethical > sourcing.
> Bike enthusiasts' ire toward MEC intensified when an executive at the > non-profit chain slammed the bike industry in a blog on the company's > website, calling it “grey, dusty and dirty.” The blog entry was later > removed.
> Some bike-parts suppliers have even refused to ship to MEC, while one > Quebec distributor last month dropped a major Canadian parts > manufacturer from its roster because the supplier is selling to MEC. > ---------------------------------------------------------------------
Wow...I've always seen MEC as the Canadian analog to REI, which is also a non-profit co-op. REI's always been a huge bike retailer, and I've never seen such charges leveled at them. Dunno if REI has any special tax status, though.
Jason Spaceman wrote: > Some bike-parts suppliers have even refused to ship to MEC, while one > Quebec distributor last month dropped a major Canadian parts > manufacturer from its roster because the supplier is selling to MEC. > ---------------------------------------------------------------------
Interesting. Wonder why REI never faced such ire. They've been selling bicycles for as long as I can remember, and when they first came out with their Novara house brand they dropped all name brands from their stores. How long until MEC moves beyond their house brand?
I know that Specialized recently stopped selling to a Colorado bicycle store with several stores because the store was competing too much on price. Weird when you cut off retailers that move the most product and that pay the same wholesale prices as other shops.
Good shops don't need to worry much about MEC, REI, Sports Basement, etc. These stores take more business away from BikesDirect than they do from the LBS.
> Jason Spaceman wrote: > > Some bike-parts suppliers have even refused to ship to MEC, while one > > Quebec distributor last month dropped a major Canadian parts > > manufacturer from its roster because the supplier is selling to MEC. > > ---------------------------------------------------------------------
> Interesting. Wonder why REI never faced such ire. They've been selling > bicycles for as long as I can remember, and when they first came out > with their Novara house brand they dropped all name brands from their > stores. How long until MEC moves beyond their house brand?
> I know that Specialized recently stopped selling to a Colorado bicycle > store with several stores because the store was competing too much on > price. Weird when you cut off retailers that move the most product and > that pay the same wholesale prices as other shops.
> Good shops don't need to worry much about MEC, REI, Sports Basement, > etc. These stores take more business away from BikesDirect than they do > from the LBS.
And more importantly, Novara owners take their bikes to their neighborhood LBS when they need work done on them.
Complete bikes are low-margin. Labor, repair parts, and acessories are what keep the lights on.
Hank wrote: > And more importantly, Novara owners take their bikes to their > neighborhood LBS when they need work done on them.
Perhaps, but the REI near me has a very good repair department with very fast turnaround, typically one day, sometimes while you wait if the other repairs they're working on are not time-critical. Plus they have a far greater selection of parts and accessories and clothing than nearly every LBS, and they're open later.
> Complete bikes are low-margin. Labor, repair parts, and acessories are > what keep the lights on.
The very high end bikes may still have relatively low margins in terms of percentage, but the price is so high that the profit margin in absolute dollars is high. If dealers couldn't sell enough Madones (or similar) to offset the non-existent profit from $300 hybrids, then the lights would already be off.
>> Interesting. Wonder why REI never faced such ire. They've been selling >> bicycles for as long as I can remember, and when they first came out >> with their Novara house brand they dropped all name brands from their >> stores. How long until MEC moves beyond their house brand?
>> I know that Specialized recently stopped selling to a Colorado bicycle >> store with several stores because the store was competing too much on >> price. Weird when you cut off retailers that move the most product and >> that pay the same wholesale prices as other shops.
>> Good shops don't need to worry much about MEC, REI, Sports Basement, >> etc. These stores take more business away from BikesDirect than they do >> from the LBS.
> And more importantly, Novara owners take their bikes to their > neighborhood LBS when they need work done on them.
> Complete bikes are low-margin. Labor, repair parts, and acessories are > what keep the lights on.
Not necessarily. The local REI store is the closest bike repair facility to me. They also are more than competitive in price on parts and repairs with the other LBS shops in my area.
> Jason Spaceman wrote: > > Some bike-parts suppliers have even refused to ship to MEC, while one > > Quebec distributor last month dropped a major Canadian parts > > manufacturer from its roster because the supplier is selling to MEC. > > ---------------------------------------------------------------------
> Interesting. Wonder why REI never faced such ire. They've been selling > bicycles for as long as I can remember, and when they first came out > with their Novara house brand they dropped all name brands from their > stores. How long until MEC moves beyond their house brand?
> I know that Specialized recently stopped selling to a Colorado bicycle > store with several stores because the store was competing too much on > price. Weird when you cut off retailers that move the most product and > that pay the same wholesale prices as other shops.
> Good shops don't need to worry much about MEC, REI, Sports Basement, > etc. These stores take more business away from BikesDirect than they do > from the LBS.
I live in an area where there are many good LBS. But even here, I think even good bike shops have much reason to fear REI. ( I can't speak to MEC cause I've only been to a few on visits to Canada). REI is certainly no Wal-Mart when it comes to bikes. While you're not going to find any top line boutique bikes there, what they do carry (especially the Novara line) can't be beat. Not to mention their shop employees, who are well trained. I think most wrenches attend either Barnetts or UBI, which is more than can be said of minimum wage, rapid turnover hacks at LBS. I was a bike wrench quite some time ago, so I can certainly distinguish the posers vs. the real deal when it comes to wrenches.
The folks at REI have never failed me when it comes to their bikes. They still have lifetime warranties on their bike frames, and what's more, they really stand by them. As long as they run their bike departments this well there is not much reason for me to visit the LBS. I doubt you'll find that from BikesDirect. Even if you get a bike form BikesDirect, you still have to find and pay someone who can do a proper job assembling it.
> >> Interesting. Wonder why REI never faced such ire. They've been selling > >> bicycles for as long as I can remember, and when they first came out > >> with their Novara house brand they dropped all name brands from their > >> stores. How long until MEC moves beyond their house brand?
> >> I know that Specialized recently stopped selling to a Colorado bicycle > >> store with several stores because the store was competing too much on > >> price. Weird when you cut off retailers that move the most product and > >> that pay the same wholesale prices as other shops.
> >> Good shops don't need to worry much about MEC, REI, Sports Basement, > >> etc. These stores take more business away from BikesDirect than they do > >> from the LBS.
> > And more importantly, Novara owners take their bikes to their > > neighborhood LBS when they need work done on them.
> > Complete bikes are low-margin. Labor, repair parts, and acessories are > > what keep the lights on.
> Not necessarily. The local REI store is the closest bike repair facility to > me. They also are more than competitive in price on parts and repairs with > the other LBS shops in my area.
> Jon- Hide quoted text -
> - Show quoted text -
Sure, that's the case for you, but not for everyone riding a Novara. And my main point is that EVERY shop benefits from more bikes being sold and ridden, and if REI (and MEC) are selling more bikes, then a rising tide raises all boats.
> On Nov 5, 7:09 am, "Zeppo" <ze...@hotmail.org> wrote: >> >> Interesting. Wonder why REI never faced such ire. They've been selling >> >> bicycles for as long as I can remember, and when they first came out >> >> with their Novara house brand they dropped all name brands from their >> >> stores. How long until MEC moves beyond their house brand?
>> >> I know that Specialized recently stopped selling to a Colorado bicycle >> >> store with several stores because the store was competing too much on >> >> price. Weird when you cut off retailers that move the most product and >> >> that pay the same wholesale prices as other shops.
>> >> Good shops don't need to worry much about MEC, REI, Sports Basement, >> >> etc. These stores take more business away from BikesDirect than they >> >> do >> >> from the LBS.
>> > And more importantly, Novara owners take their bikes to their >> > neighborhood LBS when they need work done on them.
>> > Complete bikes are low-margin. Labor, repair parts, and acessories are >> > what keep the lights on.
>> Not necessarily. The local REI store is the closest bike repair facility >> to >> me. They also are more than competitive in price on parts and repairs >> with >> the other LBS shops in my area.
>> Jon- Hide quoted text -
>> - Show quoted text -
> Sure, that's the case for you, but not for everyone riding a Novara. > And my main point is that EVERY shop benefits from more bikes being > sold and ridden, and if REI (and MEC) are selling more bikes, then a > rising tide raises all boats.
> From the article: > -------------------------------------------------------------------- > Mountain Equipment Co-op, which has built its retailing reputation on > a feel-good image of environmental and social responsibility, has > ignited anger in an unlikely place – the bicycle industry.
> Its foray this month into bike selling has been criticized by rival > specialty retailers for everything from unfair competition because of > its tax-exempt status, to a Wal-Mart-style money grab, to unethical > sourcing.
> Bike enthusiasts' ire toward MEC intensified when an executive at the > non-profit chain slammed the bike industry in a blog on the company's > website, calling it “grey, dusty and dirty.” The blog entry was later > removed.
> Some bike-parts suppliers have even refused to ship to MEC, while one > Quebec distributor last month dropped a major Canadian parts > manufacturer from its roster because the supplier is selling to MEC. > ---------------------------------------------------------------------
Interesting. It's tax-exempt status obviously can give it an advantage in every market niche it competes in, especially in Canada where tax rates (well, not sure about corporate) would take a large chunk of retail margins.
So why isn't the flak coming from kayak/ski/hiking shops as well?
Hank <h...@wirtznet.net> wrote: > On Nov 4, 8:14 am, Jason Spaceman <jspace...@linuxquestions.net> > wrote: > > From the article: > > -------------------------------------------------------------------- > > Mountain Equipment Co-op, which has built its retailing reputation on > > a feel-good image of environmental and social responsibility, has > > ignited anger in an unlikely place the bicycle industry.
> > Its foray this month into bike selling has been criticized by rival > > specialty retailers for everything from unfair competition because of > > its tax-exempt status, to a Wal-Mart-style money grab, to unethical > > sourcing.
> > Bike enthusiasts' ire toward MEC intensified when an executive at the > > non-profit chain slammed the bike industry in a blog on the company's > > website, calling it ³grey, dusty and dirty.² The blog entry was later > > removed.
> > Some bike-parts suppliers have even refused to ship to MEC, while one > > Quebec distributor last month dropped a major Canadian parts > > manufacturer from its roster because the supplier is selling to MEC. > > ---------------------------------------------------------------------
> Wow...I've always seen MEC as the Canadian analog to REI, which is > also a non-profit co-op. REI's always been a huge bike retailer, and > I've never seen such charges leveled at them. Dunno if REI has any > special tax status, though.
MEC has sold bike apparel, accessories, and some components for many years. This is their first foray into selling whole bikes.
I have heard retailers complain about MEC's non-profit status before. The complaints are somewhat petulant, in that the "secret" is MEC's margins (and charity causes) are the outlet for their "profits." That's how non-profits work.
-- Ryan Cousineau rcous...@gmail.com http://www.wiredcola.com/ "In other newsgroups, they killfile trolls." "In rec.bicycles.racing, we coach them."
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