Friday, July 13, 2007

How to put the "S" in "Action"....

OK, yes, there is no "S" in action, but there's an "S" in lots of other words. But this is a family show, so I'll keep it clean.

Just wanted to share a link with you for two reasons:

1) To prove that I'm really not dead and I do still care about my blog
2) Because this story is just amazing to me from a business standpoint.

Mike and Debbe Simmons own an awesome chain of bike shops here in San Diego called Bicycle Warehouse. Hands down, they are the biggest and best chain in San Diego County, not to mention just plain nice folks. Before I worked in the industry, I used to shop in their stores all the time.

Anyhow, they have been a HUGE account of Specialized's for many, many years, so it really surprised me to hear that Specialized recently dropped them recently. I didn't really know the whole story, but I got it here. Damn. What on earth are they thinking?

I'll probably rot in hell for saying this, but I'm just wondering when some of the big guys like Trek and Specialized will start to play nice in the sandbox with the rest of the kids. When will they stop telling retailers how to run their businesses? Yeah, the world of business can be an ugly place sometimes in effort to stay profitable, but I truly think stuff like this will start to backfire on them eventually.

Can't wait to see the comments I get on this one.


Tim Jackson- Masi Guy said...

Amen sister BBB!

(Check your visitor stats to see if the lawyers are reading this.)

Fat Lad said...

People (and blogger) power! I'm looking to replace my old hardtail this year with a full bounce for the first time, I was looking at Kona, Spesh and Trek. Now I've narrowed it down to two!

Not Cricket!

Fat Lad

wrw said...

A recent comment from my local longtime bicycle dealer,
"Someday bicycle vendors will ask US about product were expected sell!'
I believe his statement best discribes 'odd doings' within bicycling today.
Send my regards to 'legal' types, do something productive with your life, BIKE!

PacMan said...

I too shop at Bicycle Warehouse and know for a fact that Mike and Debbe are great people.

When I heard about what Specialized did I was amazed at the audacity. I mean, here's the deal: I owned a Specialized Enduro and loved it--I recently sold it and now I'm glad I did. I sold it because I found a much better bike.

Specialized makes a good bike, but it is far from the "end all, be all" of bicycles. I really liked the lifetime frame warranty and that was the key reason I purchased a Specialized bike. Now, I have also heard they did away with the lifetime warranty. I know a lifetime warranty is a huge thing to offer and it isn't neccessarily inreasonable for them to discontinue it. However--that warranty set them apart. Now they are the same as every other manufacturer and in my opinion, their bikes aren't nice enough to be "just like everyone else".

I now own a Yeti, a Giant and a Haro and will never go back to Specialized.

Tim Jackson- Masi Guy said...

And now Mike and Debbe have had to pull the story off the website because the Specialized attorneys are going to hit them even harder than they were before.

Is this the way the cycling industry is supposed to grow and draw in new retailers?

A major bummer.

Anonymous said...

Specialized sucks anyways. Talk about a soul less company. No allegiance to their dealers what so ever. Everyone knows bicycle warehouse is the reason Specialized is big in SD county in the first place. I will never purchase a Specialized again!

- Noble Rider 1

Norcountyroady said...

Amen too that: Specialized is the DEVIL!!!

Anonymous said...

check this latest story out about Specialized:

Specialized in Dispute Over $412,000 in Inventory

SAN DIEGO, CA (BRAIN)--A dispute between Specialized and a retailer with five stores in the hyper-competitive San Diego market sparked a lawsuit in June over $412,000 in inventory that’s either been sold or is still on the floor.

Mike Simmons, who owns the Bicycle Warehouse, said he had no problem paying back the $412,000, but that he was looking for a sensible payment plan. The lawsuit, he claims, is simply an attempt by Specialized to put Bicycle Warehouse out of business.

But John Thompson, U.S. sales manager for Specialized, said he gave Simmons more than 100 days notice before terminating their dealer agreement and extended him credit terms to close out the account. Simmons failed to make payments even after selling off Specialized products, Thompson said, in a written statement sent to Bicycle Retailer and Industry News.

“We only filed (the lawsuit) when negotiations failed to result in an agreement to be paid as originally promised,” Thompson said.

Simmons said he had been encouraged by Specialized over the last few years to open three new locations but then Specialized failed to supply one of those stores, claiming it was too close to another Specialized dealer. The Morgan Hill, California, company later opened a Specialized concept store less than four miles from Simmons’ main outlet, Simmons said.

Simmons sells five other brands—Diamondback, Felt, Giant, Raleigh and Santa Cruz—and those brands also compete with Specialized sales at Bicycle Warehouse.

In terminating its dealer agreement with Simmons, Thompson said he had placed “insufficient” emphasis on Specialized’s products.

See a more detailed article on the dispute, including John Thompson’s letter, in the Aug. 15 issue of Bicycle Retailer and Industry News. –Jason Norman

Anonymous said...

A Specialized concept store?

HAHA who do they think they are Trek?

Really a store that has only one product line? I don't get it.

F Special-Ed...I'm getting a Masi!

Anonymous said...

Hey Jill,
It's halfway through August and we haven't had a new post since July. Your fan club has higher expectations, so what's up? I look forward to reading your next enlightening contribution. It is almost time to drag out my ancient Schwinn hardtail and explore all that Phoenix has to offer, (South Mountain ROCKS).

Dave (yeah, that one)