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Can order 2011 bikes directly on cervelo.com

Last post 06-15-2011 12:10 AM by Don. 49 replies.
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  • 10-08-2010 4:39 PM

    Can order 2011 bikes directly on cervelo.com

     I found this article on cervelo's news page. If I read it correctly, it says that for 2011, you can no longer buy bikes from online retailers but can order it from cervelo directly... and customize it also.

     

    New focus for Cervélo consumer sales

    October 08, 2010 - Filed under: Company
    Cervélo bikes are a technical product, and we believe that personal service is paramount to ensure our customers purchase the right product. This includes personal advice, test rides, fitting and after-sales service. Starting with the 2011 model year, Cervélo will take this commitment to customer satisfaction to a whole new level.
     
    For starters, Cervélo is investing heavily in more customer service staff and in their continuous training. We want our staff to be able to give fast and accurate information on any topic. And for the very technical issues, they can always rely on our engineers who are sitting right next to them.
     
    The second step is the Cervélo website, which will allow our customers to choose and order their Cervélo of choice right there. This bike will then be delivered through one of the Cervélo retailers near them.
     
    Why through the Cervélo retailer? Because serious test rides and good fitting advice probably have the biggest effect on customer satisfaction, so the bike shop is extremely important in this regard. Cervélo was one of the first bike companies to introduce Brainbike retailer training meetings, and in 2011 Brainbike will once again be bigger and better. So whether you have ordered your Cervélo at cervelo.com or directly at the store, the Cervélo retailers are ready to help you get the most out of it.
     
    This means that in 2011, you will have two ways to order your Cervélo: in your local Cervélo store or at cervelo.com, but not at individual online retailers. The local retailer will then arrange the delivery with you. This gives the consumer the best of both worlds; the convenience of ordering online along with local service and support whenever you need it.
     
    Consumers may still be able to buy some 2010 models with full warranty from our online dealers who have some 2010 product in stock.
    2010 Cervelo R3 Ultegra
  • 10-08-2010 5:14 PM In reply to

    Re: Can order 2011 bikes directly on cervelo.com

    Very interesting.  From an article a few months ago on Competitive Cyclist (who now appear to have been advocating a strategy that will bite them in the rear):

     

    Gossip, anyone? From multiple sources this week I've heard tales of a juicy potential acquisition. Dorel, owner of Cycle Sport Group (read: Cannondale, GT, Schwinn, Mongoose), is rumored to be in talks to acquire Performance Bicycle. It's a transaction that makes sense in almost every conceivable way.

    As I've noted here on several previous occasions, the big hitters of North American bike manufacture are dying to modernize their distribution chains. For now the big hitters -- Specialized, Trek, Cannondale, Giant -- have only one channel of distribution: Their dealer network. Take any other highly-regarded, high-end consumer good sold in America -- Patagonia Capilene shirts, Apple iPods, Nike Air Jordans, Coach leathergoods, or any of a billion other examples -- and you have a multitude of ways to buy them: Direct from the brand on-line; direct from the brand through a corporate brick & mortar store; through a 3rd party online retailer; or through a 3rd party brick & mortar retailer. Illuminated manufacturers all know one fact: The name of the game is customer convenience, which means offering your goods through whatever sales channel suits customers best. This concept, in business-speak, is known as "multi-channel retail."

    In the bike industry as it exists now, multi-channel retail is non-existent. Wanna buy a Specialized Roubaix? You need to buy it from your local Specialized dealer (whether you like them or not.) Wanna buy it from Specialized.com? Not an option. Wanna buy it elsewhere on-line? There's only one place: Ebay, in violation of Specialized warranty. Brands like Specialized & Trek have fought bloody battles over the last decade to sire the biggest dealer networks possible, and they're terrified of losing dealers to their rivals as a consequence of diversifying into additional sales channels. Their fear of their dealers outweighs their regard for customer convenience.

    If Dorel buys Performance, it provides them total vertical integration thanks to Performance's ~94 brick and mortar locations, and their healthy online business. No company currently has integration from manufacturing all the way to multi-channel retail like this. For Performance, being acquired is pre-destined: They were acquired by a private equity concern just 3 years ago, and given the strong numbers reported by the bike industry's most solid players, the time to sell is now. Last I heard, private equity types aren't collectors. Buying & selling is what they do.

    Is there any downside to a Dorel acquisition of Performance? In terms of GT, Schwinn, and Mongoose, there's no risk. These are big box brands (i.e. Walmart) and companies like these don't fret about itty-bitty specialty channels like Performance. The only interesting issue is Cannondale: Word on the street is that of all the big brands, they're the one that fared the best during the economic turndown of 2009-ish -- a byproduct of Cannondale's excellent management of their dealer channel. Will your local Cannondale dealer stand for Cannondale bikes being parked in Performance stores? What if they're sold on Performance's website (or on Cannondale's website)? A mass exodus of previously committed Cannondale dealers is the one risk factor for Dorel here. Given the irrational, ornery ways of most IBD's, even the remotest connection of Cannondale to Performance might cause them to jettison the brand. The drama should be fun to watch unfold

  • 10-08-2010 5:15 PM In reply to

    • PWRDave
    • Not Ranked
    • Joined on 09-06-2010
    • Bowral Australia
    • Posts 26

    Re: Can order 2011 bikes directly on cervelo.com

    Smart move by Cervelo. Will help them control price and stop discounting. I like the idea of specifying my bike in the comfort of my home with no pressure from LBS then having it delivered to my local dealer for fitting. Many years ago I remember saying to my wife that I wish cars could be ordered this way!
    S2 SRAM Red
  • 10-11-2010 2:59 AM In reply to

    Re: Can order 2011 bikes directly on cervelo.com

    Yeah, I just posted re this, before I saw this posting. I have been in touch with Competitive re a crash replacement and they responded with: "Unfortunately, CERVELO has broken ties with all online retailers (including us) and you must deal with them directly for warranty work." My concern with this is having to deal with an LBS that does not elicit my confidence in their customer service and/or commitment to a quality fit. My hope is that I can select a point of delivery if I decide to purchase directly from Cervelo. I agree with PWRDave about being able to shop without the pressure from the LBS...

  • 10-11-2010 6:12 AM In reply to

    Re: Can order 2011 bikes directly on cervelo.com

    BigPapaK:
    I have been in touch with Competitive re a crash replacement and they responded with: "Unfortunately, CERVELO has broken ties with all online retailers (including us) and you must deal with them directly for warranty work."
     

     

    Interesting. I have always found dealing with Cervelo direct to be better than dealing with my LBS/the UK distributor when it comes to warranty issues. But my "dealing" has usually consisted of chasing for responses and lead times. It hasn't touched on "is this a warranty issue" - that call has been made by the UK distributor.

    So how is this going to work in future if you're based outside North America, I wonder? The UK distributor has flat-out refused to speak to me on the phone in the past, on the basis that I'm not a bike shop. Will it still assess whether something is a warranty issue, or will we have to ship our bikes to Cervelo in Canada to have them assessed, then have a frame shipped back? Besides shipping fees, I can see there is potential for the warranty replacement frames (which should come into the country free of import duties and taxes, at least payable by the end user, as I understand it) coming over with import duties and taxes to pay.

    Watch this space...

  • 10-11-2010 6:55 AM In reply to

    Re: Can order 2011 bikes directly on cervelo.com

     It doesn't take a genius to see that this strategy will only hurt cervelo's sales and customer base.  First off, by controlling pricing the amount of cervelo bikes sold will decrease.  Why is that?  Pure and simple, economics.. As you raise the price per unit sold the amount of units sold decreases.  Secondly, this strategy was tried in the automotive business and failed miserably.  Twenty years ago it was thought that the modern car dealership would go extinct because of the internet and online shopping.  It was thought that a customer would simply be able to design and order a car online and have it delivered to his or her door.  This idea failed for the main reason that cars (and bikes) are emotional purchases.  Touching, feeling seeing and even riding the bikes stimulate additional sales, a lot of these impulse sales.  Now you may ask, "Why can't Cervelo simply have demo bikes in their showroom?"  Well, if the LBS has other brands of bikes guess which bikes the salespeople are going to push, what they have available today.  I agree that Cervelo makes the best bikes in the world, but face it, their expertise is in designing and building bikes, not online sales.  It is my opinion that this "idealistic" attitude in running their company got them in trouble over the last few years and this will only make it worse. 

  • 10-11-2010 10:30 AM In reply to

    • Don
    • Top 10 Contributor
    • Joined on 11-15-2008
    • Atlantic Canada
    • Posts 729

    Re: Can order 2011 bikes directly on cervelo.com

    Re "New focus for Cervelo consumer sales ... Why through the Cervélo retailer? Because serious test rides and good fitting advice probably have the biggest effect on customer satisfaction, so the bike shop is extremely important in this regard."

    A proper bike fit is part of the mantra of this forum being a typical response to many questions. My observation is that in a 250 km radius of my home, none of the 3 Cervelo dealers offer a bike fitting service of the type that Sam of Peloton Cyclery offers, something like the Serotta bike fit. Sam frequently responds on this forum which is why I made the reference.

    Had I followed the advice of this forum and obtained the specialized service of a bike fit, I would have gone to Montreal and today I would likely be riding an Argon 18 because that is what is sold at the bike fitter's shop that I would have visited. However, I prefer the Cervelo geometry and made my purchase at the most distant of the 3 Cervelo dealers where I have made past purchases. I know the owners and staff of this dealer are serious cyclists. I know this is also the case for one of the other 2 dealers but the third dealer I have far less certainty and confidence. In the case of the third dealer, I happened to be in the store over a year ago when the Cervelo representative was "training" the dealer's sales staff in the store. The part of the training that I overheard was very, very basic.

    My advice to Cervelo is that if you are going to rely on your network of LBS, be certain that they can deliver. Cervelo is too expensive of a bike for a purchaser to make a mistake and a purchaser like me is unforgiving.

  • 10-11-2010 11:47 AM In reply to

    Re: Can order 2011 bikes directly on cervelo.com

     CompetitiveCyclist's take on the change...

     http://www.competitivecyclist.com/road-bikes/whats-new/the-wind-tunnel-is-not-meant-for-macroeconomic-testing.385.html

     I personally feel it is a step back and against the interests of the consumer.

    AF

    - Cervélo R5
    - Cervélo Soloist Team
  • 10-11-2010 12:23 PM In reply to

    Re: Can order 2011 bikes directly on cervelo.com

    UFGators:

     It doesn't take a genius to see that this strategy will only hurt cervelo's sales and customer base...Touching, feeling seeing and even riding the bikes stimulate additional sales, a lot of these impulse sales.

     

     

    Is there anything in this statement that says you can *only* purchase bikes online? It seems to me that Cervelo is only taking ownership of online sales. There will continue to be bikes on the rack at your LBS.

  • 10-11-2010 12:34 PM In reply to

    Re: Can order 2011 bikes directly on cervelo.com

    InIllinois:

    UFGators:

     It doesn't take a genius to see that this strategy will only hurt cervelo's sales and customer base...Touching, feeling seeing and even riding the bikes stimulate additional sales, a lot of these impulse sales.

     

     

    Is there anything in this statement that says you can *only* purchase bikes online? It seems to me that Cervelo is only taking ownership of online sales. There will continue to be bikes on the rack at your LBS.

    No, I don't think so. It looks like they're after getting more sales coming out of the LBS, either bought directly from the LBS or right from Cervelo with a pick up at the LBS. Personally, I'm all for supporting the LBS. But I often find myself defending my choices...

  • 10-11-2010 12:35 PM In reply to

    Re: Can order 2011 bikes directly on cervelo.com

     but what do you do if you don't have a LBS that stocks Cervélo?

    AF

    - Cervélo R5
    - Cervélo Soloist Team
  • 10-11-2010 12:49 PM In reply to

    Re: Can order 2011 bikes directly on cervelo.com

    Travel further? Heck, that's a good question. I wonder if they would deliver to a non-Cervelo dealer under those circumstances. If so, how would that impact warranty issues??? This change in protocol seems to have the potential to get muddled up pretty darn quickly.

  • 10-11-2010 1:02 PM In reply to

    Re: Can order 2011 bikes directly on cervelo.com

    Rouleur:

     CompetitiveCyclist's take on the change...

     http://www.competitivecyclist.com/road-bikes/whats-new/the-wind-tunnel-is-not-meant-for-macroeconomic-testing.385.html

     I personally feel it is a step back and against the interests of the consumer.

    When one buys a Cervelo from Competitive Cyclist and has a problem, what's the procedure? Pack up and ship the bike to CC?

    Seems to me working through an LBS is a much easier and secure way to go for the consumer. Bike has a problem, take it to the LBS and let them fix it or ship it.
    2012 R3 / 2010 Campagnolo 11

    The miracle of a lemniscate left
    Upon wet sand by nonchalantly deft
    Bicycle tires.
  • 10-11-2010 2:26 PM In reply to

    Re: Can order 2011 bikes directly on cervelo.com

    I think this is a great idea! Does anyone have an idea of when the site might be up?

  • 10-11-2010 2:36 PM In reply to

    Re: Can order 2011 bikes directly on cervelo.com

    I like this.  I usually shop online because I know what I want and don't need any sales help, nor do I want to be pushed to something I don't want.  That said shipping costs are high and having to deal with a retailer that is not local for issues is a challenge.

    To me this is the best of both worlds, I can shop online, but pick up local and have an LBS for after sales service.  Only question is will the LBS give me the same level of service?  If I buy online from Cervelo does the LBS still make profit and therefore want to keep me happy?

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