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Comments - The Wind Tunnel Is Not Meant For Macroeconomic Testing

March 12, 2012

Nice article, I think i really like how you explained it :) best regard.
- iaMSevenfold, Mkz

October 19, 2010

Jon, I bought a frame from them only to have the manager insult my decision to put SRAM on an Italian bike {{GASP}}. To think that the Bissell team rode Pinarello's and SRAM for at least a season must have blown his mind. Additionally, the price quoted for me to buy the SRAM drivetrain from them was $300 more than a LBS closer to me that I depend on.
- Carl, Fairfax Co.

October 19, 2010

Re: Carl, Fairfax Co. Hahahaha, I had the same thought as you did about Darrin's store. I looked on the webpage though, and (a) they have nobody by that name and (b) they don't have staff that fit his descriptions (Kona, ITU champions, etc.), and they're not shy about trumpeting accomplishments. So it might be a different Arlington. I am fairly sad about the move. I bought my bike from CC a couple of years ago. I really, really, really don't like the store for the reasons you mention, plus they never have any parts I need in stock. I could not, for the life of me, buy a brass shim for the seatpost there. Need a new seatpost? That'll be 4-6 weeks. Need something repaired? There's currently a month waiting list. What do you recommend in the meantime? Buy a second bike so you'll have one in service. This is why I'll terribly miss the retail presence of CC and Excel Sports Boulder. Maybe my LBS does proper fitting, but what good is a service that they're too busy to sell proper service and don't stock enough parts?
- Jon, Arlington

October 17, 2010

i bought my s3 through CC at the recommendation of a friend and the experience was outstanding. i was able to fully customize every single part (will never happen at LBS), the selection was great (good luck finding the breadth of high end brands CC caries at LBS), and got good advice on sizing and fit with their online calculators/tutorials and a numerous consults over the phone when i was unsure about certain dimensions (it's the luck of the draw whether or not the guy you talk to at the LBS cares and know what they're doing in my opinion). CC is not bikenash, people don't shop here just because of price. the site is great, the merchandise assortment is well thought out and comprehensive, the product write-ups and video reviews go beyond just specs are very helpful, and the service is awesome. even if sale tax were applied i would buy a bike here again. CC is the amazon.com of cycling retailing, don't penalize them for being great merchants that consistently offers a better shopping experience over local shops that don't up their game. dumb move cervelo.
- S, Pasadena

October 16, 2010

the element that I find the most disturbing is the fact that not only the online retailer loose, but so will the consumer will, along with Cervelo. The big 6 (R and A Cycles, CC , Nytro, All 3, Excel and Insideout) are online retailers that carry deep inventory of the brand. These 6 are broken into 2 catagories, with 3 of them specializing in ROAD and the other 3 in Tri/TT. In their respective catagories, you can call these online giants and get a bike in your size. Then there is R and A who carries all sizes, colors, and models (raod and tri) There is something to be said for these dealers. They commit by going deep and marketing the Cervelo brand. Good luck going into a regular brick and mortar dealer to get set up on a 48cm p2 for the wife and a 61cm R3 for the husband. Not going to happen. In the end, the dedicated Cervelo consumer will either have to wait for Cervelo to connect the dots to another store or change the loyalty and go purchase another brand. In the end, the consumer has been screwed because they have invested their emotion into all of the Cervelo marketing, having to switch-only to find out the religion they have mastered is no longer the one for them. Phil, Brennan, Cid, Skip, Morgan, and Mr Excel are loosing 40-100% of their biggest bike brand. Lastly, Cervelo will loose an immediate 4mm in sales and a lot of faith in those that help build the empire. The ones to gain are other bike brands along with the non Cervelo dealers. Much respect to the bikes and to those who have ridden the wave....
- Paul , San Marcos

October 16, 2010

To Fred in Providence, Come on, Cervelo dumped CC, and from what I can see this was an early reaction to that, Human nature when you get rejected and kicked in the teeth very suddenly at a bad time of year, It is obvious to me he made the comment to ease the pain and rejection.
- Fred, Longmont

October 16, 2010

I shop at CC for the selection of product and the great service if needed. I do not shop there for best prices, they are not a discount shop. Not sure why so much digital ink is being spilled on this topic and the rants of taking away other peoples jobs are insane. The US economy must be causing some distress. I wish Cervelo well but the truth is prob more like they took a sh*t kicking sponsoring a Protour team with hardly and incremental sales, the US economy has hurt their sales and now they are trying to keep every penny and dollar for themselves. In Canada they sell right from the factory to the LBS without a rep network so they have already maximized their margin there. Too bad some of their chosen LBS are Tri stores whose service levels are suspect at best. It'll be interesting for sure. Trek and Specialized have such a strangle hold on so many LBS in the US they are gonna have a hard time building the same network.
- Glenn , YEG

October 15, 2010

@jeff. you need to come to little rock and should also try shopping at CC. you have a lot of misconceptions. CC sponsors local races, local rides (including the recent swag ride) and maintains the single largest section of the Syllamo trail system. additionally, their bikes come ready to ride and dont need LBS support. you are gravely misinformed about how they run their biz. i live local and they are my LBS and the beat the pants off the other locals with full showrooms etc.
- sambo, little rock

October 15, 2010

Jeff - look up the word concise. Anyway, not an employee but I live in LR so quit trying to distratct us from the main issue - SERVICE. I can find products cheaper than CC about 90% of the time...but I still buy from them. You can't admit to yourself that CC does a better job of customer service than you. You sound miserable.
- Phil W, LR,AR

October 15, 2010

I've enjoyed reading this lively discussion. Personally I feel that my LBS and CC could, should, and will coexist, because they each have their own strengths and weaknesses. However, something bothered me when I originally read your blog entry and I finally figured it out. When you (oh nameless CC blogger) blithely dismissed Cervelo with the comment that you could replace the brand by lunch time, you also dismissed me as a happy Cervelo rider. No I didn't buy my Cervelo RS from you - I bought it used on Ebay - but the things you wrote about it and the position you took behind the brand did affect my decision. You advanced strong claims for Cervelo, you made it sound special, and I bought into that - so it's disconcerting to see you imply that the bikes are a dime a dozen, and can be replaced by something better in the blink of an eye. That just seemed very very shallow, and certainly makes me a little more skeptical of all your other brand endorsements. Maybe I should be grateful for this reminder not be so naive, but it still doesn't feel so hot.
- Fred, Providence, RI

October 15, 2010

You suggest that Cervelo has local dealers that customers don't like, assuming that they would like Competitive Cyclist. You suggest that new Cervelo sales in a brick and mortar store come at the expense of a T or S sale, when they would actually replace the online Cervelo sales - those sales simply adding to the total for the brick and mortar retailer. When the sales tax laws change to level the playing field, the conversation about whether or not 'net bike sales is the future of the industry changes as well.
- andrew, ny

October 15, 2010

Wow, is this the pot calling the kettle black? "In the bike industry the act of re-printing press releases passes as journalism. Over-sentimental reminiscences fraught with adverb-abuse and cliché pass as high literature. Opinion is suppressed for the fear of offending advertisers and customers. That's lame, and it's exactly what our weekly What's New dispatches are not. Click here to read the latest." That's how I got here and read this article.
- Ben, Stillwater, OK

October 15, 2010

CC (and other online retailers) offer little more than selection and price at the cost of cheating state and local governments out of sales taxes and robbing your friends and neighbors from making a livelihood. Until I can find a way to send my newly purchased bike back to them for a simple derailleur adjustment for less than 100$ in shipping costs I will shop local. It would be very interesting if all of the 400+ LBS decided to go on vacation for the same week. Who would fix that derailluer (they enable you to buy online and know it unfortunately) or replace that broken spoke before your big race or charity ride on the spot. Let's see just how great of service CC and others will give you in your time of need. I'm sure they would love to serve you by selling you a new wheel. Think about where you work. Do you appreciate it when your service and expertise is marginalized. This is how you support your family.
- Brent, Cedar Falls

October 15, 2010

I'm with my fellow Little Rocker, Anthony. This conversation is interesting but won't settle anything, and I am especially entertained by the folks knocking the competence of CC. I'm in Comp Cyclist regularly and I can assure you that you won't find a more professsional bunch. Can your local LBS/wrench do things for you that CC can't? Of course they can and the good ones deserve your support. Does your local shop have the range of product and depth of inventory that CC carries along with fast service and a liberal return policy? Unlikely, but lucky you if they do. We have several thriving very good local shops in town and I do business with most of them, but each offers something a little different and I'm glad to have choices. "LBS" and "on line sales" are not mutually exclusive. Each can offer a different facet of value and service to the customer and the better player within both concepts will survive.
- JBar, North Little Rock, AR

October 15, 2010

I appreciate what Stephen said. Joe Black, et al: humor me and try this experiment. Go to an LBS that likely doesn't have something you want. Rather than wearing an attitude of unmet expectation, just be polite to a manager or owner and let them know there is a product you would like to have that they don't stock, that you would like to keep your business with the LBS, and ask if they would be willing to get it for you. You might be amazed at how amazed they are at your show of support and polite request -- so much so that they bend over backwards to serve you. For those few LBSs, probably in dense markets, that don't seem to care, they are just the physical version of most etailers. Enough business willing to come to them that they don't need to care. There are bad businessmen in all distribution models. Hopefully most people have a competitive LBS environment and have choices there, too.
- Jeff, Manhattan, KS

October 15, 2010

Phil W. Enjoyed your post. Since you've been to most of the 4,000+ LBSs (not including big box chains) and worked with most of their staff, such that you are qualified to speak for their compentence on the whole, then please educate us: In what fashion do most etailers get to share their superior knowledge and advice with the customer? (Those you can find the phone number for, that is.) Is it the ability to arrange lots of pictures and prices on a webpage in an attractive way, or cut & paste manufacturer descriptions underneath those pictures? And what about all the bike product that moves on Ebay -- does that come from sellers giving great advice to buyers before the sale, or is it driven by prices so low the risk is worth it? If a customer isn't sure of their size and doesn't know if their unusually long or short in some body aspect, do you tell them to send you a picture standing next to a yardstick, LOL, or just describe themselves to you on the phone? Oh, and I gather that CC offers all the industry's SKUs and they are never out of stock. I think you're a CC employee defending his job. I am an LBS owner and if you poll my customer base, the results will not support any of your assertions. I know there are customers of yours in my market, and not a single one will tell you they bought from you because you knew more or we couldn't get it for them. They bought from you to save a buck. It's about price, baby, just admit it. I happen to own an IT company, too, so I'm no purist about brick & mortar. There is a place for you guys. It's just annoying to read the dishonesty in all the ways you try to spin your place up into a bright, trouble-free future when you have only one advantage -- lower overhead per SKU because you don't have to give the customer personal service, the trade-off of which is price. Just be honest about your place in the market and I'll have plenty of respect for your place in it.
- Jeff, Manhattan, KS

October 15, 2010

Jeff I hear you without the LBS online places like CC would not stand a chance to grow the way they have. The idea that they can fully service what they sell without the LBS is insulting to my intelligence. As for the depth of product selection they offer, they grew out of support from the online customer, that was developed based on price and savings on sales tax. Given the same support the LBS would be able to offer similar product selection. No one holds back a LBS from carrying any of the products we see online except consumer demand,. I have no problem getting any product I want from my LBS. JOE BLACK- As far as "Ordering it sight unseen" Isn't that what you do when you order it online? Why not support your local business that pays local taxes and supports local trails and local advocacy that provides for a community where you can ride you brand new Cervelo. CC does nothing for you or your town they seem more like a leach on the system, more than a contributor to it. If I push more of my dollars through a local business then they will be more willing to stock and sell the products I want, that is just the simple law of supply and demand, we learned that in elementary school didn't we? CC does nothing special they just have a customer base that is willing to take a chance on buying from them and that provides them the financial needs to do what they do. As far as the rants and raves of CC, I seem to remember a blog a few years back when they said "Trek will be begging them to sell their precious Madones within two years" Well it has been two years why doesn't CC have Trek? because the larger bike companies realize that true long term sustainability lies in the LBS because of the product support and ability to sell more than just 1 model of their entire line. I suspect this move from Cervelo means they are looking at growing their line and realized that the online model stifles that ability to grow long term. But for whatever reason it is only time will tell. Until then give your LBS and all other local businesses your support and you will not have to worry so much about the local schools closing or laying off teachers plus a whole world of other benefits. Realize you live in a community and that local community needs your support.
- Chris, Houston

October 15, 2010

The LBS where I spend the bulk of my bike related money does not carry or have access to Yokozuna Cables, Hincappie, Giordana, Assos, Pinarello parts, Oakley and Arundel, to name a few. The challenge for this LBS is being limited by the distribution network, namely QBP and few other supply channels. Jeff, I shop from CC because of the selection and availability of brands that I would not otherwise have access to.
- Stephen, Alexandria, VA

October 15, 2010

Jeff from Manhattan.....you are a wreck man. Just shut up before you embarass yourself anymore. Most of the LBS I know have struggled mightly BECAUSE they finally had competition in the form of online retail. It isn't because of price alone. As has been stated already, most LBS are staffed by incompetent people. CC has tremendous service and do a wonderful job of taking care of customers........unlike you I suspect. Oh...Cervelo will learn the hard way that this was foolish. CC will thrive just like they always have.
- Phil W, LR,AR

October 15, 2010

The common thread in the comments is that price is the key driver for online sales. For me, the primary driver is the ability to find cycling items that I can't easily get locally. Price only comes into play when there is a considerable discount. When a new product is released to market it usually takes months, if ever at all, for it to show up at the LBS. To make matters worse, if you want to see something that's not in stock you will need to have the lbs special order it for you sight unseen and then you are on the hook for it when it arrives. Does the local bike shop will have the new Assos Habu jacket in stock for you to check out? Will they ever?
- Joe Black, TX

October 15, 2010

@ Jeff, Manhattan: You like Glenn Beck don't you....just a hunch.
- Joe, Chicago

October 15, 2010

P.S. Why didn't you call yourselves "Convenient" Cyclist instead of "Competitive" Cyclist? When you guys win, it is because of price alone. Remove that advantage and you offer nothing.
- Jeff, Manhattan, KS

October 15, 2010

Pay attention Competitive Cyclist: maybe Cervelo decided they want their customers to be really happy with their bikes and not regretful that they bought less than the optimal bike for them (wrong type, size, etc) online, no matter how great the brand's quality. Maybe Cervelo wants to build its brand by making sure every Cervelo sold came with local LBS support and free services that really educate a cyclist how to get the most out of their bike and get it the best cared for. Maybe Cervelo recognized that positioning the customer to pay full price for every extra product and service they need (starting with initial assembly) from an LBS because they got the bike online all but wipes out the online savings when considering total lifetime cost of ownership. The internet is a wonderful tool for communicating information. It's a lousy one for most forms of commerce. Its profiteers herald the age of all-online product distribution coming in some near future. AmWay in the 1980's predicted that by 2000 70%+ of all household products would be bought through MLMs. So much for that hype. The only customer who is well-suited and should buy bicycles online are ex-bike shop mechanics who know the product and how to assemble and maintain it themselves. That's a very tiny market. Funny how much distribution, dissemination of information, advocacy, local infrastructure projects, and experience relies on a vast network of LBSs, which Competitive Cyclist can't survive without. I don't expect to see a sign saying "sponsored by Competitive Cyclist" next to the new bike path in my town. Competitive Cyclist just camps on the LBS lawn without paying its share of the rent.
- Jeff, Manhattan, KS

October 15, 2010

The bickering here is entertaining, but of little worth. Let's remember this article is not a journalistic piece, it's biased spin on a battle the etailers lost. The author has a limited understanding of consumers. Online sales are not driven by convenience. Most people don't choose to shop online because they don't feel like getting dressed or because it takes less time to weed through the glut of online information vs visiting a local store to talk to someone about product choices. Most people choose to shop online because of price, period. Test #1: There is nothing convenient about parking and shopping at Wal-Mart. Wal-Mart grows its sales even in a recession. Most of Wal-Mart's SKUs are available online and probably for about the same price. If it's so much more convenient to shop online, why do their brick & mortar stores do so well? Test #2: Hey Competitive Cyclist, charge MSRP for your products, sit back, and watch how many of your customers don't return because you're "more convenient". The fact that no online etailer can deny is that it cannot provide the same customer experience (an emphasis that the author was right to be concerned with) that a local bike shop (LBS) can. No one should buy a shop quality bicycle without riding it. Buying a bicycle online is like buying a bride based on the picture without spending some time with her. Just because you can do that doesn't make it a good idea. Or, was it more convenient for the customer to visit and be served by an LBS with help and test rides before ultimately buying their choice of bicycle online because of price?
- Jeff, Manhattan, KS

October 14, 2010

@curtis: i think you are right. its a stepping stone to an online only model.
- hootie, charleston

October 14, 2010

Humm Let me see Cervelo.com gets an online order, or telephone order, from East Caratunk, confirms it with the customer and says you have to drive to Bike Shop X to pick it up. Customer says no thanks I will not go there for whatever reason, here is my CC, I want you to ship it to me or I will buy my #2 choice. Who really thinks Cervelo will pass on the sale for the benefit of their closet bike shop to East Caratunk. Wake up Cervelo Dealers, the mother ship is going to be the new online sales outlet, nothing else makes sense. Why are they allowing posts on their website that 80% of the time are derogatory toward bike dealers? You have a new online competitor and they hold all the chips.
- Curtis, Hood River, OR

October 14, 2010

--So for those of us in Little Rock, it's now a 2 or 3 hour drive to "pick up" or potential ervelo. I agree, the h... with cervelo. - Jeff, online-- The flip side of the coin is that a local retailer in Little Rock may bewilling to stock the line if they're not concerned about customers buying on-line to save sales tax. Eventually this will be "fixed" when they come up with a workable plan to charge sales tax on mail-order purchases, which will have the effect of leveling the playing field a bit and you'll see less animosity from bricks & mortar shops towards their on-line brothers & sisters. But for now, not having to pay sales tax on a very expensive purchase can be a very powerful incentive towards on-line purchases.
- Mike, Redwood City, CA

October 14, 2010

My Exp. CC made me a great deal on my Ridley Noah frame. I also got my local LBS to call the importer to get the frame from them. I ended up having my local shop sell me the frame. The profit was $100 for the LBS, $150 more out of my pocket for the frame. The best thing is that I can show up for the rides at the LBS and feel great about my decision. Please ...everyone try to support your LBS. Even if it does not workout I am sure they will be greatful you called on them first.
- JB, Somewhere USA

October 14, 2010

Hey Darin, keep that arrogance up and see how many more customers you lose. Maybe there is a reason more than price that people don't buy from y'all. You have a nice selection but are the most annoying and egotistical shop to deal with in the whole DC area.
- Carl, Fairfax Co.

October 14, 2010

There is a ton of speculation here - and that's all it is speculation. Also is there a way we can stop talking about online Vs. brick and mortar? that conversation is as dead linux versus windows. Cervelo has made a business decision based on some kind of research I assume and has decided to stop online sales. The interesting question this brings is what will CC do? I've snooped around the CC site and it appears that one out of every 20 bikes cc sells is a Cervelo. I found that out by looking at the gallery of sold bikes (no dates on this so I have no idea on the timeline). What this says to me is that Cervelo is not as big a sales driver as many would believe. If the come back (as some think) great if not, this give CC a chance to do some really interesting things. How about a steel frame program How about a mainstream brand How about a new (ish) euro brand how about a private label (especially since the bulk of carbon frames are shall we say - not exactly unique in there vision or production) The whole thing raise some really interesting choices for CC as a company. We were told you would have the answer by lunchtime. Well?
- Matthew, Brooklyn, NY

October 14, 2010

So far I,ve learned CC dont know what they are doing , Cervelo dont know either, nor do any of the LBS, the only wise people left are the People posting here
- Dingle, Bend

October 14, 2010

Hey guys, I just thought of Google (yeah, the Goliath) trying to sell phones (yeah, much simpler stuff and commonly researched/assessed on the web about) directly (Nexus phone)... Well, they gave up... May be a lesson to be learned by Cervelo, in advance of a potential mistake...
- Raul tri, Rio, Brazil

October 13, 2010

without a doubt cervelo was forced into this by their brick and mortar stores and i expect we'll see more of it for anything other than boutique brands. big players will think they can do better than the likes of CC - they will likely be wrong but hubris will prevail. although i always get good service from CC and only get good service at my LBS 50% of the time, i do think that good online retailers have forced my LBS and others to adapt and improve. i think its fine that cervelo dumped CC and i am sure a worthy replacement is near at hand. the one question i have for CC is whats next? your own brand? how does CC grow?
- billy bobby, bald knob, ms

October 13, 2010

I love this bullshit; everybody is an economist and a business guru. We'll have to wait and see who benefits and who loses from this (and other reactionary) action.
- Anthony, Little Rock

October 13, 2010

Online rules if you have any experience and knowledge. The majority of brick and mortar staff at bike shops are skate board kids and the owners spend all their time at the local buffet or convincing themselves they rode pro, when in reality they get dropped in Cat.3
- Steve, NY

October 13, 2010

Cervelo sucks! They do not have the finish quality for the money. The owners are a bunch of nerds who ignore their own country and think they are too good to show up at the Canadian or Interbike trade shows. The Test Team was a flop. The R3 frames were a good design for the time, but their tri-bikes are total marketing hype. My old Look KG196 had all their aero ideas a decade before. Funny how the close rear wheel got dismissed by all the aero guru guys.
- Steve, NY

October 13, 2010

James from Seattle our shop does Online & In Store sales. As far as stepping aside and letting the big boys handle the business? It must be a hard lifestyle for you to live on a Performance Bicycle salary? We are so far ahead of you and not only in Sales. How many Iroman Kona finishers do you have on staff? How many ITU World Championship finishers? How many Cat 2 racers? How many of your staff gross over $65K a year? We are a shop of professionals that also like to ride and race bikes. Our passion and we are damn great at it son.
- Darin, Arlington

October 13, 2010

This is one of your better posts and it was a good read. sorry this happened, but I have to ask, are you really surprised? As in for real? Let's start with Cervelo the brand. My take is their brand value has gone down and was at a pinnacle years ago. Cervelo was the wow brand when Hamilton was winning stages on a broken collar bone and Jens wore the yellow while riding a new soloist. Then Fabian won flanders and stuey too. Now let me ask you - Fabian winning roubaix - same guy, same race, same result - do you want a specialized? Thought so. Now let me ask you this, what about when Carlos won the tour - big race, right? It didn't mean crap, cause the guy is a bore. In the end I got to try a cervelo frame - a solist from your mail order program (loved the program) and a R3 from a friend. The verdict? Whatever. Nothing all that special about the frames - the R3 was a like a dale to me. Maybe you will feel special, and that's worth something, but by themselves those frames have lost some cache. Now you can't also tell me that seeing a real cervelo doesn't have merit. Come on, it does. You also can't tell me some LBS location really work it? I just got some aero wheels with tubulars glued on - this was after they let me use zipps and other clinchers and other mavics - in the end, they worked it and they earned their money and represented the brands. Sure not all LBS locations like this, and maybe cervelo needs to clean house, but you can't tell me a good experience like this doesn't have it's merits over online. Best of luck, and sorry you lost out.
- Tom, DC

October 13, 2010

I love my new Canyon. Great bike at a great price, but when the rear d hanger broke it took weeks to get a replacement from Germany. One option shopping is not the way to go. Should CC pick up the brand my praise for the brand would be given without reservation.
- adam, hamilton

October 13, 2010

I guess i'm lucky that South Eastern PA has a few good LBS's. The reason I buy stuff online is mainly convenience. I can shop at 5:00AM while I drink my coffee because on a typical day, Ill never make it to the LBS. The reasons I shop locally is simple: service. Sometimes I don't know what I want, what I need, what fits, what's right or what won't last. Sometime's I don't have skill or time to do it myself. Sometimes I don't know what went wrong. One problem I see with high end bikes in general is how uninformed consumers are. I laugh at number of high end bikes I see that don't fit the rider or don't work well for the riders needs. Perhaps cervelo is suffering from a backlash on bikes sold online and the satisfaction of customers is higher when bikes are sold in an LBS's than online? Obviously, not all online sales organizations are the same, just like LBS's.
- e, PA

October 13, 2010

I find it amusing that the non-online shops always make the claim that people come in their shops, fondle stuff, and then go buy online somewhere? Who cares? As if people that buy at your shop didn't look online and make comparisons between products and prices first? What about the online retailer's time spent in developing product pages or in doing actual reviews (both text and video) like CC does? Please shop owners, spare us the thought that all locally purchased products are also locally researched and decided upon. Find a way to survive in the new paradigm or go out of business.
- K., Utah

October 13, 2010

Darin, get used to it. Online is here to stay. You sound like mom and pop bookstores. Stop basing your business model what YOU feel is right or wrong. Customers want online and they will get it one way or another. Just step aside and let the big boys handle the business.
- James, Seattle

October 13, 2010

Dave just because your deleting my comments doesn't mean you're not hiding in the tool shed (closet).
- Darin, Arlington

October 13, 2010

Where are CC customers going to test ride and size themselves on Cervelos if the time is up for brick and mortar stores? I'm happy to see online sales pulled because I've spent multiple days with customers, who obviously liked the assistance, that then went to CC and ask for a better price. I'm stuck at msrp due to dealer argeements, but was undercut by CC after spending hours educating your customer PS: Dave, come out of that closet you call a tool shed
- Darrin, Arlington

October 13, 2010

Ummm...it's backasswards. However, this may be on purpose...they might be in the toilet financially b/c they dumped their Pro team as well. Going direct may be a compliment to you guys at doing "too good" a job. Now, they might be figuring they can just do what you do....only better (in their eyes). Supporting a dealer network is expensive and annoying. Brick & Mortar retail has a shelf life that's quickly approaching. It may be that they want to follow GURU like marketing (they are both Canadian ehh) in the future. They also are approaching a big hurdle...why is their carbon better than the myriad of others out their now? They might feel they can explain it better than some gum shoe in a retail store or on the phone somewhere, therefore, giving the customer a better understanding of their oversold engineering prowess. Frankly, year to year, most carbon bikes change so little it's getting to the point it's less engineering than mold tweeks to sell something new. At any rate it does seem kind of stupid at this point b/c I would have done the exact opposite...dump the brick & mortar and go online only...more product. I buy mine online now almost exclusively. Buyers really are more informed than the average "shop guy" and really don't need their help on high end products like these bikes.
- Gary, Fort Worth

October 13, 2010

OK, in case you haven't already thought of this, since you have a very nice brick and mortar showroom and probably qualify as a LBS, why not just sell the frames or bikes by phone, or web site with phone followup, instead of a straight internet order and then everyones happy. You sell the products, and technically not online sales. And I get to buy a bike without having to deal with some of the inept employees at my LBS. I've had some crappy experiences there and would prefer to continue to build my own bikes from ordered parts.
- Steve, Tucson, AZ

October 13, 2010

Bring on canyon Frames. focus bikes remind me of treks.
- Andrew, Pleasanton

October 13, 2010

I am really curious to see how this plays out for Cervelo. I am guessing this was Cervelo caving to pressure from its brick and mortar retailers and attempting to make inroads against Trek and Specialized dominance. But not wanting to totally lose online sales, it opted for the dealer delivery option. Frankly I think that puts the LBS in a tough spot and it will be interesting to know how much they will make from each delivery/sale. It is somewhat perplexing why Cervelo wouldn't just opt for all retail channels, which, again, suggests that there was some strong pressure from the local retailers to drop online retailers and specifically CC.
- Luke, Utah

October 12, 2010

I may not agree with Cervelo's decision not to distribute online, however I'd like to point out that if they still did, I'm sure that Competitive Cyclist would be over priced as usual.
- Matt, Canada

October 12, 2010

ugh such arrogance! I have been leaning away from CC for a while now. Nail meet coffin.
- Linda, Charleston

October 12, 2010

Sorry CC, but my S2 was listed almost $800 cheaper at my LBS. That's what happens...
- Jen, Jacksonville

October 12, 2010

Maybe it has to do with the fact that online distributors change the components that Cervelo ships the bike with and then replace those components with cheaper components but sell the bike at same price in order to increase their profit margin. For example swap out the carbon bars and stem for alloy bars and stem but charge the same price and if you want to upgrade to the carbon bars and stem then charge extra from the customer. I commend Cervelo for taking this step and will be buying directly from them.
- Jeremy, Houston

October 12, 2010

Cervelo is a great company but this is the perfect time for Canyon to break into the US market. The second I see a Canyon frame on CC my credit card is coming out
- Steve, San Francisco

October 12, 2010

Canyon or Focus. Time would be a left hook surprise. Ouch, Cervelo - that's a gutsy move - especially in these times. Can't wait for the replacement!
- Anon, Toronto

October 12, 2010

@jimmy/louisville - "Not too sure how any bike company giving a nod to their LBS market can ever be a bad thing either." You really think that's what Cervelo's doing? When they ask you to pick up that soap, don't be surprised what happens next.
- Cinghiale, JHole, Wyo.

October 12, 2010

OK, IT IS PAST LUNCH TIME SO WHO IS THE LUCKY BRAND? LOYAL CC CUSTOMERS WANT TO KNOW.
- MIACHAEL, MIAMI

October 12, 2010

I'm sure Cervelo offered CC the right to be a brick & mortar dealer only.... like all the others in their network ? right. Most rousing post in a long time this one, goody
- Dan, Kansas

October 12, 2010

Sounds to me like Cervelo is going to down the path of Trek Project 1. Geek out online, order, then pick it up at the shop. Having done the P1 experience I would say it is overrated, but I am a guy who can build a bike at home and prefer to do so. But to get a P1 Trek I had to buy it with Bontrager bits and then swap stuff out once it arrived. Doubtful I would do that process again. The downside to the P1 model is that it ultimately restricts flexibility. Say I am buying a Cervelo S2 from CC, I have so many options for group, whees, bar/stem/saddle. Once it goes to a P1 from Cervelo there is no doubt there will be a reduction of selection. Shimano, SRAM yes, Campy no. Wheels from 2 or maybe 3 vendors. Probably an exclusive bar/stem contract with 3T. In the end, less selection and less convenience for the advanced customer. My interpretation of Cervelo sales at CC was that they were either high-end custom spec or on-sale stock bikes with factory spec. I don't see Cervelo's new model serviing either of these customer bases very well. Time will tell, and I also cast a vote for Canyon as the replacement.
- EKH, YVR

October 12, 2010

I bought my Cervelo S3 from a dealer near me and did a 6 person ride with Ted King this summer. He was fresh off Giro, I wasn't so fresh.
- Greg, Manhattan

October 12, 2010

How about 60% off all your remaining Cervelo stock? It might not fill the financial void, but it should clear some space in the warehouse -- before lunch!
- Oliver, Carrboro

October 12, 2010

Wow, really? My first reaction was CC just being a bunch of assholes. While fitting, I don't think it really hits the mark. Douche bags, appropriate, but still not there. High school ex-girlfriend shit talking... there we go. Running a LBS I still see a place for internet retailers. Not every shop is going to carry everything a customer wants and even if an LBS can get it, it may not be within a time line that fits the customers need. That said, for CC to come out and tear down brick and mortar stores and make gross generalizations just adds to the immaturity of this entire article. While I don't know the details I'd be willing to bet CC was not in the Cervélo board room while this decision was being made. Cervélo has their reasons and after reading this piece I can't help but back the hell out of them, regardless of what those reasons may be. Not too sure how any bike company giving a nod to their LBS market can ever be a bad thing either. You remember your local shop, right. That basic corner stone of a cycling community. That place that has people that actually work on your bike. The counter that you can inspect a part, in physical form before purchase. Yeah, that place where you get to have a beer, do some shit talking and be in the company of real people that also love bicycles. At any rate, I could really give a shit less what happens to either Cervélo of Competitive Cyclist as neither of these companies have any bearing on my daily life. It does seem fairly apparent that the yahoos at CC need to wake the fuck up and get with the program. CC is not the end all be all of sales and service, online or otherwise. Brands exist without you, as do riders.
- jimmy, louisville, ky

October 12, 2010

So when does Canyon come on board? Sounds like the perfect brand to fill the void.
- Phil W, LR,AR

October 12, 2010

Always thought that Cervelo thought too much of themselves as if they invented the bike. Curious move on their part and I'll wait to see the outcome before I judge. Interesting that CC is calling the time of death on brick and mortar stores, they arent all dead and the smart ones learn from those that fail. Its the industry thats jacked and cant see the consumer out there through the carbon forrest. Oh and Gordon Gecko, short the stock.
- Hung Low, Philly

October 12, 2010

Interesting to get the view from a retailer. I too think it looks like a restriction on the sales and it's a big change for a bunch of engineers to make, like they've been hanging out with some management consultants. As others have said in the comments, many don't need the extra service, they just want a well-engineered frame. I write a blog called the Inner Ring and discussed this the other day. Amongst the the comments from readers there's been some discussion that the move is a bit like the car dealership model where control of the brand is important and sales is via recognised channels.
- Matt, Monaco

October 12, 2010

Well you naysayers about CC forget one thing, some of us are now not going to buy Cervelos under the new model. I was going to buy an RS for the GF from CC. But there is no way I going to buy one from the idiotic Australian LBS, as well as plonking down an extra $800 to be treated like an idiot.. Hubris exist everywhere.
- Peter, Sydney

October 11, 2010

Wow, I always knew Competitive Cyclist's (CC) brand and tone was always one of slight arrogance, but this post takes it to a whole new level. As a proponent of Internet sales, I'll agree it probably isn't the brightest move by Cervelo to discontinue Internet sales as I don't think there's a ton of channel conflict or cannibalization, but at the same time, it's pretty clear that CC is pretty butthurt about the whole thing here as they claim to "fill the financial void by lunchtime." Cervelo has clearly created a valuable brand for itself these last few years and if the beancounters did their job, this decision won't be drastically detrimental to their top or bottom line growth as I'm sure they've boosted their retail presence in anticipation of this move. But enough of that, we'll save the competitive strategy analysis for a HBS case. In the interim, post reeks of teenage jealousy from the cheerleader (CC) who didn't get asked to prom by the quarterback (Cervelo). Stay classy, Competitive Cyclist, stay classy.
- Kyle, San Francisco

October 11, 2010

Interesting read. It'll be interesting to see if consumers are accepting of Cervelo half assing consumer direct. I don't think so. I do agree with a lot of the comments here in that part of the issues with some manufacturers are their apparent lack of focus on the customer's wants and needs. I suppose that's because for them, it's a B2B business. Their dealers are the end of the supply chain. I've never understood that about how some manufactures operate. Every other consumer product category/industry in the world is consumer focused. Every decision being made with the end consumer in mind, not a component of the supply chain.
- Julian Franco, Franco Bicycles

October 11, 2010

Wait 6 months and buy Cervelo stocks
- Gordon Gecko, Wall Street

October 11, 2010

Wow. It must be tough to always be the smartest guys in the room. By lunch time? Seeing the future so clearly. Open arms. Did you have a bit too much smug with breakfast?
- John, Tampa

October 11, 2010

the only long term solution is for competitive cyclist to create its own brand.
- sam, small pebble, ar

October 11, 2010

Good riddance.
- PawleeWalnutz, NYC

October 11, 2010

I think you should put on your trench coat, stand outside the Cervelo HQ window, lift your boom box over your head, and play "In Your Eyes" by Peter Gabriel at maximum volume. That will teach them to break up with you! Seriously, this is an interesting marketing strategy - I'm not real sure what they're hoping to accomplish. Judging by the commentary here, they're not making many friends.
- Cru Doggy Dogg, Jonesboro, AR

October 11, 2010

Makes my decision to by an R5 easier. Now its down to Impec, Dogma or....Canyon?!
- Ryan, Morgantwonb

October 11, 2010

This guy called it. http://www.velocipedesalon.com/forum/f5/bikes-direct-manufacturer-5479.html Cervelo sucks.
- Don, Allston, MA

October 11, 2010

i was going to say Canyon or FOCUS.
- Isa, Edmonton

October 11, 2010

Makes perfect sense to ditch their loyal and stable online dealers. Certainly their 2011 R-series bikes with Rotor cranks, new geometries and taller head tubes will sell with no problem...and the UCI issues with their TT bikes don't affect the average rider. Wonder why Sastre switched back to his 2010 R3SL in the Vuelta?
- Andy, Rockville, MD

October 11, 2010

I think this is screwed up. I will not buy one because of this.
- Andrew, Pleasanton

October 11, 2010

Don I found your Rolex at costco and costco online to boot. I was considering the brand but as a Canadian I found thier lack of support for home grown talent suspicious. As for the LBS, I'll pay for expertise. I will not pay a priemium to those who know less than the shopper.
- Kevin,, Canadian EH!

October 11, 2010

Let me get this straight...so Cervelo will take your order online, 'sell' the frame directly to you, charge the LBS cost on the frame, and hand over the profits to the LBS? Ya, ok...that makes a lot of sense...to someone, I guess. What value does the LBS REALLY bring to this equation...the one where most folks that buy Cervelos already have a (mental or physical) jig for their personal sizing, and know what they want? I'm sorry, but dealing with a LBS for anything regarding Cervelos is a hit-or-miss proposition at best...witness the 4 week delay during the Wolf fork recall in getting a new fork, strictly because the LBS refused to get their ass off of their shoulders and handle the issue. I agree that Cervelo could move toward a consumer-direct model, and that would be vastly preferable to dealing with the LBS that I was forced to deal with for 2 warranty issues. In closing, THIS SUCKS.
- Todd, Camarillo

October 11, 2010

I´ve lived in probably 10 different cities in the US and I am still to find a really friendly and unbiased LBS. They all have an attitude and point towards commercial brands. This might prove really bad for Cervelo
- Felipe, Go online shopping

October 11, 2010

Great analysis!
- Sebastian, Shawnee

October 11, 2010

"All great brands make their goods available in all sales channels (brick and mortar, catalog, online)." Do a little research into high-end watch brands (Rolex, Patek Philippe, etc.). You will see these "great brands" don't "make their goods available in all sales channels."
- Don, Los Angeles

October 11, 2010

Here's exactly what has happened in other areas: http://news.cnet.com/8301-13860_3-9861143-56.html History repeating soon.
- Aaron, Melbourne

October 11, 2010

I do not believe Cervelo one iota. I already ride 3 Cervelos. Do they really think I need some salesman somewhere telling me which size, fitting or componentry to use if I ever buy another one? Do they really think, when I bought all 3 Cervelos online, that I would have gone into a shop, and talked to a bike salesman and paid their markup as well? Seriously? Cervelo need to make more money, and you think this is the way to do it. Good luck with that. But ffs, don't try to pretend you are doing it "for the customer". Good grief.
- Aaron, Melbourne

October 11, 2010

Darrin, isn't that tune up due today? Maybe you should get back to work and off the computer. Oh wait, there's a customer wanting a new $300 hybrid. Love the finger pointing. You got it, CC ruined it for everybody by selling online at full retail prices.
- Dave, Hiding in your tool shed

October 11, 2010

maybe competitve cyclist should have followed the rules and not been under cutting everyone else with their pricing and leaving an email trail. these guys screwed themselves.
- Darrin , Arlington

October 11, 2010

@Edward, I'm all for consumer-direct, or a hybrid, but asking customers to swing by their LBS if they want a Cervelo? That consumer-direct-fsck-you. As was mentioned earlier, this likely isn't C's endgame. Just a stepping stone, but a lame one, imho.
- Matthew, buying something online

October 11, 2010

You'll get it worked out by lunch.
- Samuel, Boca Raton

October 11, 2010

Look around it's all going consumer direct. Anyone seen what Neil Pryde Bikes is doing?
- Edward , Seattle

October 11, 2010

Cervelo has a huge task ahead of them to recruit and train the right types of people to work in their revamped customer service center. Their existing customer service department and dealer services service levels were already laughable. Huge huge mistake, they are shunting their sales through their weakest link. Brendan, they will be back long before 2013 unless they hire the Austin Powers of bike geeks to bring the mojo to their service departments. Customer service superstars like that are few and far between in any industry - in something as technical as bike geek-dom with knowledge of fit issues? oh boy.
- nacho libre, sans-cashville

October 11, 2010

i'm sure that cervelo would counter much of what is said here by reminding all that most online retailers dont offer the same level of service that competitive cyclist does. however, its still not an excuse to drop a world class retailer. the bottom line tho is that cervelo figures they can make more money the other way. my guess is that to be a cervelo dealer you need to purchase a certain number of frames/bikes which at least for the first year will make them more money. the real story will be whether LBSs can give the floorspace and make the sales beyond years 1 and 2.
- stb, little rock

October 11, 2010

I would say that this article is definitely slanted in the opinion of the on-line retailer. While Cervelo has taken a stance on on-line retail that is definitely abrupt, and perhaps a bit harsh on a channel that may work well for some products, those of us who make our living dealing with customers face-to-face and succeeding by offering services that aren't available through a computer screen may have a different thought. Yes - we do a bit of business via the internet, but in a "price-is-the-only-thing-that-matters" environment like that, the customer base tends to be less discriminating about WHO they buy from as much as "will they get it to me reasonably quickly and for a good price?" Some product tends towards being sold that way, others don't. Cervelo is probably focusing on dealers who spend time helping customers face-to-face, who then go on-line where the cost of business is lower, and buy it so that they see a box on their doorstep a few days later. If there's any issue, guess who gets to deal with the problem? They might try to go back to the dealer with it (more cost of business being passed along to someone not profiting from that transaction) or they absorb the time and shipping costs to have the issue resolved. There are costs to everything. Actually, I applaud Cervelo for the stance.
- Scott, Castro Valley

October 11, 2010

When I get bikes from CC - they are wery clean and correctly assembled. I got 2 Cervlo bikes (p3 and s2) from local retailer during fall clearance and in both cases was pretty disappointed with bike prep. I work on my bikes myself, so I relly did not care very much, but for most people I see it may be quite an issue. Cervelo will not be able to make LBS mechanics to do good job. Customer should be able to select where they like to buy bikes, frames etc.
- Serge, Barringtron IL

October 11, 2010

Cervelo guys will miss out on the International Customers in countries which dont have the Cervelo outlets and these are many Countries; though a small number but nevertheless we do exist , we who buy in US (as it offers the most convenient and price competitive experience) and have their goods shipped via friends / family in US and coming home for vacation or even direct international shipment (reserved for desperate times). When buying long distance the Customer needs top class cycling outlets whom they can rely on blind folded like our CC and who provide realtime advise on what to buy. A question to Cervelo Guys - Where will we the Internatonal customers go for shopping for Cervelo bikes? In present day and age Customer is the King and giving buying options to the Customer reflects well on the product / company caring for its customers / potential customers. I hope the Cervelo business strategist have thought well about their decision and do share their thoughts with us.
- Rayomand , Karachi

October 11, 2010

It will be interesting to see if Cervelo customer service will match that of CC. Will they ask as many questions?....get the fit right?....follow up?....have easy returns?.....fast shipping options? The idea that the company itself could provide better service for their product than CC is laughable. If I wanted to buy from a local bike shop, I would buy from a local bike shop. My shop never has the right model or size in stock. They can always "special order" something for me and have it here in 1-2 weeks....then, when it doesn't fit, I can order again and wait while another one is shipped. More than likely though, I just take the one that doesn't fit as well because I'm psyched and ready to ride. Who wins when I have to wait, lose a bunch of time, AND get a bad fit?....NOBODY. Stupid move Cervelo. You should have gone the "marquee" dealer route and chosen a few select dealers that get it right as your online presence.
- K., Utah

October 11, 2010

Man, that totally blows. Glad at least that this didn't happy two years ago before I got my Cervélo from CC or I probably wouldn't even own one.
- Chris, PA

October 11, 2010

I love you.
- Charlie, Little Rock, AR

October 11, 2010

I suspect they'll be back sooner than 2013. In the stock market we say "the trend is your friend." Cervelo is turning its back on its friend (i.e., the marketplace), imo. By Sunday the press release was pulled from their site. Other press releases are there, but not this one. Gives one pause. I made a PDF of the cached version if anybody wants it (baruch@technitext.com). Maybe they were classy in their communication to CC. If you say so, it must be. But to us, i.e., those who pull the trigger and empty our wallets for their product, well, let's just say they were less than classy. Saturday night I registered my displeasure with them. For what's it's worth, here are some of the salient points: 2. I read your press release today. Buy from us and we'll ship it, not to you, but to a retail middleman. Oh yeah, that's going to be better for me. Better customer service. Right. My first response? "They think I'm stupid." Smart move. I buy a new frame every 2 yrs or so. I think I'll buy a Parlee, or a Canyon, or an AX Lightness, or a Time, or a Guru. But I don't think my next frame will be a Cervelo. Sorry guys. 3. Here's a clue: we comparative shop; we shop online; we don't leave money on the table; we like Competitive Cyclist. If you want our business, you need to respect that, and your latest press release implies quite emphatically that you don't. 4. I almost never dash off nastygrams. My apologies. But your press release struck a chord. A highly negative one. You should know that. I am the proverbial canary-in-the-coal-mine for you.
- Baruch, Kiryat Yearim, Israel

October 11, 2010

Add Parlee. It's a no-brainer.
- Dave , Fairfield, CT

October 11, 2010

So for those of us in Little Rock, it's now a 2 or 3 hour drive to "pick up" or potential ervelo. I agree, the h... with cervelo.
- Jeff, online

October 11, 2010

Seems to me that online retailers could get around this by having a brick and mortar pseudo showroom at their online offices with demo bikes up on the wall instead of in the box back in the storeroom. Store hours would be for pickups only and by appointment as to avoid having regular showroom hours. I honestly don't see the logic in the move. It seems counterproductive to close a venue market to move your goods. But I'm not a marketing genius.
- spokejunky, Charleston, SC

October 11, 2010

I agree lets bring on Canyon, something different for a change. The h... with cervelo.
- Michael, Miami, FL

October 11, 2010

Excellent article. Point very well addressed by CC. It's sad to see Cervelo getting away from Online sales. As pointed by the article, many of us don't have access to a decent LBS and depend exclusively on online purchases. I do support my LBS as much as possible buying accessories and supplies whenever possible, but because of the limited availability of high-end accessories and components, I must resource to online vendors. I bought my first bike (Quintana Roo Caliente) back in 2003, then followed the following year with a 2004 Cervelo Soloist, both I acquired online since I was, and I'm now again, assigned overseas on military orders. I'm still in love with the bike, and even though I have 5 other bikes, I cannot bring myself to sell that QR or the Soloist. I certainly hope Cervelo rethinks their new business model for the sake of all involved; online dealers, bike shops, and most importantly, their fans (and potential customers)
- Ramon, San Sebastian, PR

October 11, 2010

in store pick up is lame. 1. its not faster or more convenient. 2. the sales person is in no way compelled to provide a high level of service. 3. the average LBS wont stock an adequate variety of sizes which again makes the customer wait. the primary reason compcyc is so successful is that you provide as good, and usually much better than, LBS service. cervelo is crazy to give that up.
- tb, little rock

October 11, 2010

I love Assos clothing. Its pretty much all I wear on the bike. I HATE Peachtree Bikes which is the only dealer in Atlanta. If I couldn't buy Assos from Competitive Cyclist, I would find another brand (my loss but also Assos' loss). No way in expletive that I buy from Peachtree Bikes. I can't imagine that I'm the only customer out there who has sworn off a store for bad service. I just don't get why Cervelo would limit themselves like that. Please bring Canyon to replace.
- Robert, Atlanta, GA

October 11, 2010

My LBS is doing a lot of online sales, which I assume is approved by Trek, Cannondale, Cervelo, Pinarello etc. While I generally agree with your take on the direction of the business, don't count out the B&M people.
- Steve, Miami

October 11, 2010

first cervelo teams up with garmin... now this... what the hell?
- Andrew, Orange County

October 11, 2010

Let us not forget the added cost of sales tax.
- Tom, Pennington, NJ

October 11, 2010

Since you can never seen find anything bad to say about the B-brands you sell, this move fortunately saves you the awful problem of having to stop badmouthing the Garmin team.
- Josh, Kutztown

October 11, 2010

Yes, Canyon was my first thought, after all those hints about imminent US distribution, but my second thought was volume - is Canyon in Cervelo's league for volume? Maybe that's a chicken and egg question with CC in the mix.
- Dobbin, Horse Country

October 11, 2010

This seems idiotic. I think you are on the money......."expect to see Cervélo back here at Competitive Cyclist in 2013". No doubt CC will be fine, but I hate seeing Cervelo leave.
- Phil W, LR,AR

October 11, 2010

It's really an absurd! And it's well beyond (great) Comp. Cyclist... Wow, I guess they did so well over these years that they think it's about them and not about what they do... Will have to review this decision: either now or very soon... "As they say it: rest will be history" :-(
- Raul tri, Rio, Brazil

October 11, 2010

"Because it's respectful of customers." // Therein lies the bicycling-industry rub. As a lifelong cyclist, I have never got the feeling that the companies behind the bikes and components I bought gave a r*ts cuss about me. Never once. // As to C doing what they're doing, it smells of the same ideology: Ask not what you can do for the customer, ask what you can do for the company. Who knows what their ultimate plan is, but shame on them for asking customers to jump through any unnecessary hoops at all. // As for CC, just don't get desperate and add Felt. K?
- Matthew, online

October 11, 2010

You can order Canyon direct from them...
- Josh, Los Angeles

October 11, 2010

So, Canyon? I'd like to get some Canyon in the US.
- Gavin, Chicago