Discounted bikes, w...
 

  You don't need to be an 'investor' to invest in Singletrack: 6 days left: 95% of target - Find out more

[Closed] Discounted bikes, who takes the hit. *may contain Cannondale Trigger references!

14 Posts
13 Users
0 Reactions
46 Views
Posts: 3306
Full Member
Topic starter
 

I have been watching the thread reporting the flurry of purchases of triggers from Pauls Cycles, quite enviously as my 14 year old Jekyll really needs replacing (on the off chance you read this Mrs Rock) and undoubtedly, they do look a pretty good bargain.
The Trigger 4 has gone from £2699 to £999 and they get snapped up.
I was wondering who is taking this hit, Cannondale or its importers.
It also made me wonder what the bite point would be for a bike like this. Even with 50% off it would (perhaps/maybe) surely still sell (if not sell out) and if not, just drop it again in due course but the money clawed back in sales would be greater so less loss suffered along the chain of distribution.
Who thought of that clearance price?
I'm fairly staggered at the level of discount although not complaining, certainly if they have a carbon jekyll 27.5 at £1999 come next March when work issues bonuses*

*although any monies are no doubt already allocated, and not on a new plastic bike.


 
Posted : 15/10/2015 3:54 pm
Posts: 17106
Full Member
 

It must have knocked the arse out of the second hand market as well.


 
Posted : 15/10/2015 4:01 pm
Posts: 3167
Full Member
 

Manufacturer/disty clear out. Good god there are some cheap deals to be had there!


 
Posted : 15/10/2015 4:04 pm
Posts: 56564
Full Member
 

Whoever it is, I couldn't care less. 😀 I still can't quite believe how much bike I've got for £1300 on my Trigger 3. The question I'm asking is what are the usual profit margins that the manufacturers, distributors and shop are making? They can't be selling these at a loss, surely? Though they can't be making much. They're 2015 models. It's not like they've been sat in a warehouse for 2 years.

It's not just Pauls either. Another one of the lads has just got a deal almost as good on some carbon exotica from the LBS.


 
Posted : 15/10/2015 4:16 pm
Posts: 0
Free Member
 

Those Triggers will be drop-shipped I'd guess - usually the buyer has to buy the entire stock, but they get them at a massive discount so in this case Cannondale would have taken the hit.

Can't have been a big seller?

Bike Shops are pretty cagey about what they pay for bikes and I believe there's slightly odd way they buy them - in simple terms they get them, but they don't pay for them (or at least the bulk of it) until they sell them - so they might have a bike on the floor in August for £4k, come Sept/Oct the distributer calls up and says that bike is now discounted year-end and the price goes down - so they discount it to customers - I only think that because I once bought a bike for £3k years ago, a few weeks later it was discounted to £2200 (still no regrets eh) so I joked they must be doing okay if they can afford to discount a bike by £800 and still make a profit, the guy told me that they paid more than £2200 for mine, but could discount the remaining stock.


 
Posted : 15/10/2015 4:21 pm
Posts: 12482
Free Member
 

I just wish the time would hurry up when the Cannonade Slate is reduced to £1000.

I am one of the rare people who actually want one but not enough to spend £2600. Have to hope they make way more than the market actually wants.


 
Posted : 15/10/2015 5:35 pm
Posts: 41395
Free Member
 

in sdimple terms they get them, but they don't pay for them (or at least the bulk of it) until they sell them

Not on this planet.

Binners margin is usually 35-40%. These will have been bought for way less and presuming there are a lot of them I expect Cannondale will have taken the majority of the hit. I don't know what margin Paul's work on,may be lower.


 
Posted : 15/10/2015 5:43 pm
Posts: 0
Free Member
 

I have no need whatsoever for a full suss, but almost bought a Trigger 4 due to the price.....


 
Posted : 15/10/2015 5:49 pm
Posts: 3306
Full Member
Topic starter
 

So is it likely/possible that the prices will reduce further with time, if they dont happen to clear these out.
The carbon trigger 2 increased from the vastly reduced price of 1800 to 2000 which, I assume, was due to demand. Would it work the other way I wonder?

*keeps positive about a carbon jekyll in Spring 2016 for about a grand*


 
Posted : 15/10/2015 6:50 pm
Posts: 0
Free Member
 

Cannondale Uk will have cleared them out at 15-20% discount off trade.This means shops can either buy a few and sell them at 15-20% off at maintain their margin or buy in bulk (which Pauls specialize in) and shag them out at 50% off and make 10-15%.
Sometimes distributors will offer a rebate to shops who bought stock at full price to they don't get massively undercut by the discounts.
I would'nt hold out too much hope of Pauls offering any further discount.They are big enough to be able to sit on stock for a while (as everything else increases in price) until it sells.Unlike smaller shops who have to sell through quickly to pay the bills.

they get them, but they don't pay for them (or at least the bulk of it) until they sell them - so they might have a bike on the floor in August for £4k, come Sept/Oct the distributer calls up and says that bike is now discounted year-end and the price goes down - so they discount it to customers

Ha hahahahaha.....NO.
Apart from tiny brands who do sale or return everyone one else is on 30 day (with 1-2% off for early settlement) or 60 day invoicing.


 
Posted : 15/10/2015 7:07 pm
Posts: 6409
Free Member
 

I would'nt hold out too much hope of Pauls offering any further discount.They are big enough to be able to sit on stock for a while (as everything else increases in price) until it sells

Exhibit A

http://www.paulscycles.co.uk/m6b0s27p4798/CANNONDALE-FLASH-CARBON-ULTIMATE-FRAME-2012

it/they have been there a loooooooong time at the same price


 
Posted : 15/10/2015 7:18 pm
Posts: 43345
Full Member
 

P-Jay, you and hora really need to go into the bike retail business together

[img] [/img]


 
Posted : 15/10/2015 7:47 pm
 hora
Posts: 0
Free Member
 

Evening, binners I'll have 4 wheels next week 8)


 
Posted : 15/10/2015 7:53 pm
Posts: 1503
Free Member
 

As mentioned above, you've got to feel sorry for anyone trying to sell a Trigger secondhand at the moment.


 
Posted : 15/10/2015 8:17 pm
 hora
Posts: 0
Free Member
 

Itll soon be forgotten post-stock.

Remember the massive offload of purple 55 rc3 ti's? A year after they were popping up used for the same £400 (new) price on here..


 
Posted : 15/10/2015 8:49 pm

6 DAYS LEFT
We are currently at 95% of our target!