Trek to move to a direct to market retail platform.

[B Rabbit]

Except that Trek import their own stock to Australia, so in this instance no.

I imagine at the moment they have a warehouse, order a shipping container of bikes, then sell said bikes to the retailer.

So now, wont the bikes be shipped to Australia as they are ordered and go straight to the retailer thus cutting the need for a warehouse out?

 

[MARKL]

I imagine at the moment they have a warehouse, order a shipping container of bikes, then sell said bikes to the retailer.

So now, wont the bikes be shipped to Australia as they are ordered and go straight to the retailer thus cutting the need for a warehouse out?

If Trek Aus go down this path they will still need warehousing - probably more so as the dealers will be holding less stock but need it more quickly.

 

[Hamsta]

Except that Trek import their own stock to Australia, so in this instance no.

Yeah...they have a central warehouse in the ACT. Basically they want to establish Trek and Bontranger Boutique Stores, like the Specialized stores. They will still need to hold floor stock because how else are customers going to evaluate their product in person.

The question will be if current Trek retailers will be prepared to exclusively stock Trek and Bontranger. If I had a store and I sold say Giant, BMC and Trek and all sold well for me I think I would be a little pissed if I had to surrender the BMC and Giant sales otherwise I would lose the right to retail Trek.

 

[Calvin27]

The question will be if current Trek retailers will be prepared to exclusively stock Trek and Bontranger. If I had a store and I sold say Giant, BMC and Trek and all sold well for me I think I would be a little pissed if I had to surrender the BMC and Giant sales otherwise I would lose the right to retail Trek.

I think the market will take the offer. I mean it probably comes with some sort of exclusivity (in terms of the amount of dealers in specific geographic areas etc.) and that will guarantee some level of baseline sales. It will be less of an issue if retailers have multiple shops. For example Cycles Galleria in Melbourne are already running a multiple shop format an their QV store is basically a trek concept store. Come to think of it, I can't recall the last time I saw a non-trek bike at that store location. Their other cbd store does other brands.

I think for the type of sales trek are going for, it's not someone who will pick a banshee over a trek. It will be some rich roadie that walks in and decides that he wants to suddenly MTB, looks around and thinks that the yeti is a kmart bike and then proceeds to buy a brand they actually recognize. It sounds stupid, but I assure you most of the CBD location shops wouldn't survive if it weren't for this phenomenon.

 

[Mattydv]

I think the market will take the offer. I mean it probably comes with some sort of exclusivity (in terms of the amount of dealers in specific geographic areas etc.) and that will guarantee some level of baseline sales. It will be less of an issue if retailers have multiple shops. For example Cycles Galleria in Melbourne are already running a multiple shop format an their QV store is basically a trek concept store. Come to think of it, I can't recall the last time I saw a non-trek bike at that store location. Their other cbd store does other brands.

I think for the type of sales trek are going for, it's not someone who will pick a banshee over a trek. It will be some rich roadie that walks in and decides that he wants to suddenly MTB, looks around and thinks that the yeti is a kmart bike and then proceeds to buy a brand they actually recognize. It sounds stupid, but I assure you most of the CBD location shops wouldn't survive if it weren't for this phenomenon.

Not just city CBD type shops, the trails up here absolutely dominated by Trek/Giant/Specialized. In fact, from memory I think I've only come across 1 person riding something different and that was Indica and his GT!

 

[Hamsta]

I think the market will take the offer. I mean it probably comes with some sort of exclusivity (in terms of the amount of dealers in specific geographic areas etc.) and that will guarantee some level of baseline sales. SNIP.

I heard anecdotally that Trek are going to introduce another 'tier' into there current pricing system for retailers. Depending upon sales revenue, a retailer will receive a discount on wholesale price. That is great if their is a large enough market, but what about stores that are independent traders and operate in smaller markets? Unless some allowance is made for these retailers then they will be receiving less discount from Trek when they buy in a bike? Fine if your store operates in the CBD but not so hot if your shop operates in a regional centre?

 

[thatsnotme]

So if this model were to come to Australia, I wonder whether we'd actually be able to buy a bike at this time of the year, during the shift to the new year models? Because if you couldn't, it's just going to highlight the ridiculous situation we face every year.

I was in the market for a Fuel EX 9.8. Tried to get one during the sales a couple of weeks ago - nothing available in my size. The 2016 model isn't available here in any numbers until at least the 23rd of November. So there's a good four month period where I literally can't buy the bike I wanted. So now I'm in the market for a competitors bike, because Trek can't give me what I was after for any money.

If Trek go down this path in Australia, I'd think that they need to be able to have stock available year round. It's bad enough to visit a store and be told that they can't get in what you're after, but if you're visiting the website of the manufacturer to be met with a page full of bikes that are 'not available', then that's really not a good look for the company. I suspect our market is small enough that they just don't care though.

 

[Calvin27]

Fine if your store operates in the CBD but not so hot if your shop operates in a regional centre?

Buy it online? Which is the point of this whole thread.

But seriously, one of two things will happen.
1. Trek will make allowance for smaller regional stores to simply just be assemblers and handle small volumes. Since they are not holding stock or committing to a concept store or equivalent, they can afford to have lower margins.
2. Trek don't give a stuff about regional and you can take a train into somewhere closer to grab the bike.

I actually think the previous model of many brands under one roof will eventually become a dying breed amongst retailers. Not that I like it like that, but that's the way it seems to be going at least for the American companies.

 

[0psi]

​

0psi, where have you been man?

Ha! The general stupidity on here is too much to bare sometimes. Unfortunately the 2 dozen awesome people on here are drowned out by the endless stream of pre-pubescent tards.

I only came on here as I need a new bike because my shiny new Top Fuel won't be here till the end of the year. Couldn't help but have a little lurk.

 

[stirk]

​

Ha! The general stupidity on here is too much to bare sometimes. Unfortunately the 2 dozen awesome people on here are drowned out by the endless stream of pre-pubescent tards.

I only came on here as I need a new bike because my shiny new Top Fuel won't be here till the end of the year. Couldn't help but have a little lurk.

Geez man, when did you grow up?

 

[CP]

Coming late into the discussion, but I see some merits for the customer. Have a look at their Custom Project One campaign. You get to choose your frame, components, and colour. There's a huge opportunity for customisation that is usually not easy (i.e. cost-effective) at a dealer level.

 

[thatsnotme]

Coming late into the discussion, but I see some merits for the customer. Have a look at their Custom Project One campaign. You get to choose your frame, components, and colour. There's a huge opportunity for customisation that is usually not easy (i.e. cost-effective) at a dealer level.

That's what Project One is designed to do though. The direct to market platform isn't suddenly going to be a Project One replacement - it'll be a chance to order the bike you want, in the size you want, and pick it up at your LBS. There isn't going to be an option to get that bike in a different colour - if you want a Fuel EX 9, it'll come in the same colour as everyone else's, with the same brakes, drivetrain and everything else.

 

[shake_rattle_and_ roll]

Much like McDonalds' Burger Creations, there's a pretty distinct premium the user pays for a Project One bike. Personally it's unjustifiable. Funny thing is that the first kind of majors offering a truly custom bike was Santa Cruz circa 03-07. Some will remember the custom form/online bike generator they used to have. Fully customized options right down to being able to spec different coloured front & rear triangles. Spent a few hours building dream bikes on it over the years but much like Project One, I'd get to the end of the process & look at the dollar figure, rationalise it for 0.5sec before uttering the word 'wanker'. But we all process & justify absurdity differently.

 

[thatsnotme]

Much like McDonalds' Burger Creations, there's a pretty distinct premium the user pays for a Project One bike. Personally it's unjustifiable. Funny thing is that the first kind of majors offering a truly custom bike was Santa Cruz circa 03-07. Some will remember the custom form/online bike generator they used to have. Fully customized options right down to being able to spec different coloured front & rear triangles. Spent a few hours building dream bikes on it over the years but much like Project One, I'd get to the end of the process & look at the dollar figure, rationalise it for 0.5sec before uttering the word 'wanker'. But we all process & justify absurdity differently.

Oh absolutely. Just specced up a Fuel EX in Project One that's pretty much equivalent to the Fuel EX 9.8 - only real upgrade is Factory series suspension instead of Performance series. It weighs in at over $9k - and that's without any option to customise paint colour! So a $3k plus premium for owning a Project One bike... The point was more that while Project One is around, Trek aren't going to cannibalize its market by giving people more choice when it comes to their regular lineup, direct to market or not.

I actually own a Project One bike...almost by accident really. The LBS had an alloy Fuel EX they'd specced up and put on the showroom floor that they had a good price on, so I grabbed it. Not a hope in hell I'd build one for myself, this side of winning lotto.