SSU insolvency and the bike industry generally

[grinch]

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Dunno about that, from how many we service in the shop that end up needing something directly from YT, they usually have to wait for seriously long lead times or a get long lag in communication. Direct sale brands come with a big question mark as far as actual support since you have no shop to help out. There's so much those brands can get away with (so as to not always help a customer by avoiding what they can) since they don't know the ins and outs of how the industry works. My shop is right next to RMU in breck who is doing a YT pop up shop and man the folks from the brand are the most anti bike community folks I've ever encountered. It's all about money and trying to look rad, that's it. </p>
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Pretty hilarious YT is talking about "discount wars" when they're literally the cause of it as a direct sale brand. </p>
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I say fuck em</p>

Im seeing their lack of cs support recently. I figured that was related to their recent financial problems but it could the last few years after financial equity firms took partial control. Ive always had quick responses and parts shipped quick apart from a wait for water bottle/cage to be restocked. Frame parts for my bike*pivots, bolts etc) have always been in stock.Now all the bikes come with a bottle/cage.
They def cant complain about price wars. They've had the lowest prices for a while now. Thats help me absorb the price of a busted derailleur or worn drivetrain.
Theyre not the onlg bike vo teetering. Some much bigger companies are in the same position or close to it

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[XXX-er]

a couple years ago LBS bro sat me down at a kitchen table and for 2 hrs went on about how armageddon is coming all the stuff wrong with the industry in point form from too high margins too high courier costs too high shop costs cost of RE ect ect

Wow, So who will it affect I asks I ... everyone from the LBS to established bike brands which was not wrong cuz thats what we have seen

So who will survive ... an LBS with a good shop

So far LBS bro&#39;s RE business is OK Bro is actualy in RE not bikes just like macdonalds is in the RE business not the burger business

So what about bike business with no shop ?

[waxman]

People keep saying "high margin" when it comes to bikes. Maybe accessories? They certainly aren't talking about any bike brand I'm aware of. High prices? Yes. Definitely not high margin.

[Eluder]

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Im seeing their lack of cs support recently. I figured that was related to their recent financial problems but it could the last few years after financial equity firms took partial control. Ive always had quick responses and parts shipped quick apart from a wait for water bottle/cage to be restocked. Frame parts for my bike*pivots, bolts etc) have always been in stock.Now all the bikes come with a bottle/cage. They def cant complain about price wars. They&#39;ve had the lowest prices for a while now. Thats help me absorb the price of a busted derailleur or worn drivetrain. Theyre not the onlg bike vo teetering. Some much bigger companies are in the same position or close to it Sent from my SM-S711W using TGR Forums mobile app

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There is a delusion that there is big markup in complete bikes.&nbsp;</p>

[XXX-er]

it was my understanding shops makes the most off cheaper bikes and not much off dentist bikes ?

[grinch]

1.55 is bike mark up. Parts and accersories is 2(dbl wholesale).
Bike companies probably have jacked the prices but they wouldve been ok. The error was having exess stock thinking the huge sales numbers during covid and then when the economy was foring was going to be the norm. Now theyre stuck with huge aging inventory and still having to bring new bikes tp market.
A good honest customer service oriented lbs that doesnt overstock and knows its local market is always going to survive. They charge the same to work on bikes theyve sold or bikes that people buy elsewhere. Some people have corvette taste with chevette cash flow so they do what they can to get the good shit. 2nd hand or online. If the lbs is smart they gove everyone the fair service and pick up what future sales they can. Ive saved thousands and still got good dervice from good lbs' and in turn ive bought stuff. I used to like one great shop. They understood each customer. Everyone got a deal. Some new Joe off the strret got 10% off and he was stoked. He'd leave the shop, walk around the blook and come back and buy a t shirt just because he was stoked. Then the local hard core that sends people in the shop deal and he sends even more people in. The shop grows and they get busy busy. Then in a few years they burn out and lose the plot. You have to buy the right stuff for your market and know your customer, whether new or old

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