Another BIG Bike Brand is Going DIRECT To CONSUMER??

[@GCPerformance18]

I will continue to pay close attention to this to see how it unfolds, if they continue to add more inventory to the website or if its just these closeout items

[@jarhead4657]

You can count on them going consumer direct with everything. It's not like Scott is doing well.

[@Livitt351]

@@jarhead4657 none of them are

[@yocyclo74]

Hello GC, i have a bikeshop in France and i can tell you in Europe Scott and a lot of other brands (Specialized, Cannondale...) sell directly on his personnal website. The customer clic and your bike arrived at home, don't need a shop !!!

[@fabianmolyneux2308]

I suppose selling on-line and cutting out the “middle-man” (store-front retailer) may work our well for the big bike brands, but as a longer-term strategy it may not prove to be the answer. In some respects bikes are a little like cars in that there are heaps of brands, various models, prices, components etc and while on-line researching can sort a lot of that out the expertise you get at your LBS can’t be beaten and is still necessary.

[@kidsafe]

This is online retail, not D2C though.

[@superstrada6847]

I'm sorry but I must confess. I recently needed to pick out a bike for my wife. So after looking around for a while there was no real option other than to purchase from Canyon. Endurace, Ultegra, Di2 12speed, carbon rims + Power Meter in a lovely metallic champagne. It was delivered to my front door in four days. You mentioned that the industry has completely changed; Most riders already know what they want and only need a bike shop for repairs. Best to you GCP.

[@jamessankey01]

And a lovely pressfit bottom bracket. Any local trek dealer has sales now that beat canyon... With threaded bb.

[@jou3708]

Good luck exchanging frames!

[@GCPerformance18]

No need to apologize at all canyon is making it easy and simple for consumers to get good quality product at a price that people feel like there not over paying for

[@FliskerX]

Maybe Czech Republic sucks for local bike shops, but I perfectly understand why ppl are buying online. A year ago I went to 4 bike shops in a big city and basically all they would offer me, would be a complete bike, if I asked about swapping components around, they were looking at me weird... like nah dude, this is it. So then I asked about trying the bikes out, right? How the hell am I supposed to know what to buy as a new cyclist? And 2 out of 4 would let me ride it for like 5-10 minutes around the block (which is useless anyway to newbie). So I went and bought a secondhand/new bike myself, of course it was too fu... big, in the end turned offset seatpost 180 degree to be able to somehow ride it... finally gave up at the end of the season and ordered new Aeroad in smaller size, the bike is a rocket, fits great and looks sick. No other brand can offer anything even close to this for the price or at all. So yea... the way I see it, they will all have to offer direct option, because I imagine this experience is not just CZ, there will be many other places where it's exactly the same = it makes zero sense to buy in LBS.

[@diehardbikes]

​@FliskerX im sorry you had this experience. However, as a local bike shop you must realize there are many reasons to buy at a local bike shop for many types of riders- however, as you mentioned, not everyone should be buying from a LBS. For example, I know what I want, and I can buy all the parts, frame, wheels, components, all what I want, all fitting well, and exactly specced how I want it to be, for WAY less than I could even as a dealer for a lot of things. However, for the majority of people, buying at a LBS makes perfect sense because some people don't understand the differences between this gravel bike or this gravel bike, or why thier hands hurt on thier current bike and they think they need a whole new bike to fix the issue! A bike shop is there for so much more than just price and affordability and bang for your buck. Because in the end, while we aren't the best option for every rider, for most riders we save them a lot of frustration, headache, and money.

[@SRK5227]

Yes, more brands will jump. In June, I bought online a Canyon Ultimate SL 8 w Ultegra mechanical and a 4iii power meter for $3,291 delivered, including tax. That's a fantastic price by current standards and hard for a dealer to compete with. It is an excellent bike, and it was easy to assemble. If a brand wants to compete with Canyon, it will pretty much have to offer bikes online at competitive prices. Therefore, we may expect much of the industry will move online. The dealer network is likely to contract and consolidate and focus on 1) bike servicing, 2) high-end customization, 3) various goodies and related products like clothing and accessories, 4) rentals (where applicable), 5) consulting services like bike fits and training, and 6) ancillary services like bike clubs, etc. to drive traffic into the store. I'd add that I see the margins on the high-end bikes compressing by quite a bit. Canyon's high-end Ultimates are largely selling (albeit on sale) for about $1,000 less than their normal price. I don't think those higher prices will return. Instead, I anticipate that manufacturers will trim margins to try to entice more price-sensitive customers to trade up to a more expensive model, because it offers great value. I think the current Canyon pricing is a harbinger of things to come.

[@ChrisCapoccia]

For myself, I want the advice from someone in a bike store and I don't want to try setting up the bike myself. There is no way I'm going to be ordering from any direct to consumer brand unless it's set up with an option to have it sent to the store for final assembly/pickup. That's basically how I bought my Diverge last year. The store had a kiosk where I could put all of my info in and select the bike off of the Specialized page while I was there.

[@Mapdec]

I wish all the major brands would just hurry up and go direct as soon as possible. All this sitting on the fence is just confusing business plans. We just need to move forward and adapt. I personally think that bike shops will become authorised service centres and ambassadors for brands rather than stockists.

[@GCPerformance18]

I understand this because I think your business model is more based on repairs and service more. But as a retail business that has been around for 40 years it’s something we have always known. And if that ever did happen where everyone went direct to consumer you would absolutely guarantee every brand would have there own name store that is service center that they will have some incentive to go there. Also more service centers would pop up to compete against you as well. It’s just like the cell phone industry a while back. There use to be so many mom and pop cell phone stores and then all the big names made there own stores. T-Mobile and att and Verizon have there own stores to help customers and everyone goes strait to the source instead of 3rd party stores. And they have a massive advantage because these retail stores can act as local drop off and pickups for new products. Be complete service centers and they don’t even need to turn a profit. The store can literally report a loss of profits for the year for taxes and it will probably be better for the company that is taking in the cash from all the direct to consumer sales. To offset the big take bill.

[@GCPerformance18]

Here were we are at there is a bike shop within 5 miles of every Bikeshop with so many service options for customers. They don’t like the price, they go down the street, they don’t like the wait time, they go down the street, they don’t want to drive there bike to you, there are 2-3 mobile mechanics who will come to your house with warranties and insurance in place with certified companies. America is great to open a business but the competition is crazy. Customers are loyal for so long until they feel that you maybe raised the price for something they don’t agree with

[@Mapdec]

@@GCPerformance18 maybe. I still strongly believe that people buy from people, and the future landscape of the industry may look very different, but that simple fact still remains. Where there is footfall there is opportunity.

[@cup_and_cone]

This is not direct to consumer, it's just online retail...but the big issue you did not mention is existing Scott retailers can lose money doing warranty work on bikes bought online. These online retailers sell them basically risk free because when there is an issue, they tell the consumer go to their local Scott dealer.

[@deployeddan]

Not true!!! Warranty work must be first approved through Scott B2B service no matter where the bike has been bought. We've worked on bikes sold online and received credit from Scott for the pre-authorized warranty work.

[@galenkehler]

​@@deployeddanexactly. Like any work, somebody is paying. If it's not approved then the customer is just paying for service

[@cup_and_cone]

@@deployeddan Not at every shop rate and not including loses on initial diagnosis before submitting a claim.

[@tomahoks]

Here in Europe Bikester has had sweet deals of Scott bikes all Summer and fall. I havent bought any...

[@jamesmckenzie3532]

Something you have that direct to consumer doesn't is experience. That's where you win. Specialized requires ship to store so you get their experience as well.

[@robertcatuara5118]

Specalized have Rider Direct where the bike ships DTC.

[@ZwiftDude]

Just checked how much a full blown SCOTT Foil RC Ultimate Bike 2024 would cost and it would be a cool $19,054.80! Near me.

[@cyclingjeremy7201]

One of my favorite dealers who is the oldest in Charlotte sells Scott. I have purchased 2 from them and I will not purchase from anyone else. I don't care if I can get it a little bit cheaper online. I love going in there and talking to them and seeing what they have. They are also super friendly

[@JohnSmith-ck5qk]

at first i got excited thinking you can now buy their syncros wheels, but alas

[@jarhead4657]

I bet it's coming.

[@prof_writer]

Good point about how these may bee prior model year bikes. Many of the big bike brands...2025 models are coming out and they're facing inventory backlog two or three years.

[@robbchastain3036]

Thanks for this update, Grant, and yeah, it does seem to be the way of the shopping world, direct sales of bicycles and I can understand it, nice to be able to select exact model and size and color and what not. Still, there should be a set-up and shipping option to a local bike shop, I know I would prefer that and I'm pretty good with bike mechanics from a lifetime of it. And, to be sure, a huge BOO to Scott for NOT telling you ANYTHING about this FIRST. Not cool, their failure in this age of digital communications.

[@GCPerformance18]

Yea I don’t know how this is gonna come about in the future but, if this is a one time thing to sell off old inventory to get some capital back then I guess it works but it also just looks bad

[@alfkh]

i hv a polygon too. The shop that i bot it fm was a store like yours. they also sell polygons online as i'm sure your store does too. Not sure where your store is, i went 2 sch for 1 year in UM, coral gables which might not b so tough 4 u 2 deliver, but if someone asked u 2 deliver 2 pensacola, that might b a problem & might even b more problematic 2 get after sales service such as fixing a flat or servicing squeaky disc brakes.

[@GCPerformance18]

Yea it makes sense like you said

[@markwright8030]

Hi GC Performance Very informative video as always 👍 keep up the good work 🚴‍♂️👍

[@GCPerformance18]

Glad you enjoyed it

[@kevinbourke6899]

My local bike store 'sells' Scott bikes but their sales floor is 90% Trek and 10% giant bikes. Ask for a Scott, you'll be steered toward a Trek.

[@Livitt351]

They losing there gatekeeper status as consumers have more choice and information than ever, and a glut in stock at the moment

[@jarhead4657]

@@Livitt351 I've been riding high end road bikes since the early 80's and have had a lot of terrible service from bike hops in that time. if the market moves more towards shops that do mostly repair it's ok with me. I bought a Specialized recently from a specialized owned store and had to being it back 3 times with obvious screwups on their part. Yeah...and the only reason I sometimes buy Spesh instead of Canyon is they have a 15% veterans discount on road bike and I think 20% on mountain bikes.

[@andyward87]

You must live in the same town as me, exact same, Scott dealer with maybe one scott bike on the floor in any given year but full of treks

[@milesrodger3724]

Trek have better margins? Or why you think?

[@Thomas-fy9yc]

My LBS shop has had all their Scott bikes 50%, picked up a Speedster Gravel Contessa Tiagra for the daughter for cheaper than used bike

[@bcm1013]

ridden Scott road bikes since 2012 and have 3 in my stable now. Always liked their products but always been a low volume in the US. My LBS has always struggled a Scott dealer and they only carry the common sizes (54, 56) and not much else for us tall people. When I have bought mine (XXL or 61) they have been special orders and always waited months for them. The bike listed on Bikes Online you show in the vid is the 2023 which is exactly the same as the 2022 I bought brand new earlier this year only difference is the color. Got mine for $4,000 just b/c the shop was needing it gone. That was half the retail price of $8,000 in 2022. As you said in the vid, I think this is a 'dipping a toe into the water' event with selling through a DTC model. Scott needs money (see the big loan the parent corp made them earlier this year) likely stuff like this will start to become more common as inventory and market pressures increase.

[@kevinbarkema1666]

I know nothing about the business but I can't help but think that maybe these "boutique" brands like Bianchi and Calnago etc... should somehow get together and present themselves to LBS's in a unified way. Together maybe they have enough product options to get an LBS to sell there stuff. Maybe that would be better than competing against the companies that supply the bikes.

[@theyorkshirewheeler]

My LBS is a Bianchi dealer but you rarely see anyone in my area riding one 🤷🏻‍♂️

[@aaronsosnoski1017]

Bikes Online has been selling Scott for a bit now.

[@Stealthwealth1001]

The only bikes worthy of the $10K + price are artisan bikes that are full custom. The Frameworks bike ”peak torque” has is absolutely rideable precision artwork. The full 3D printed frames are super sick. I think Pegoretti, Scarab, English are also pretty desirable and worthy of premium prices. Just because a bike is light and stiff and says SirVelo on the down tube does not mean it’s better than some killer priced China bikes like the Seka Spear and Tavelo

[@Roger101Watson]

It's going to happen more and more. The brands can squeeze out the middle man ie you, sell direct, lower their prices increase their sales and make more money. win, win..for them

[@robinfowler9477]

you may have to charge a flat-rate fee for setting up mail order bikes, if dont already do so. some bikers may be good enough mechanics but not everyone will be, imho. there are bound to be issues

[@iMadrid11]

Going consumer direct won’t work in the Philippines. Unless the import duties and vat are included during checkout. Vendors like Canyon don’t do that here. Without that you are at the mercy of corrupt sharks at customs surprising you a ridiculous tax computation. As a strategy to extort you to pay a bribe instead of doing it legally.

[@johnventevogel7415]

The Scott bike distribution in the USA is a mess. You cannot order a bike, you can only reserve a bike that has been allocated to a dealer. Not to mention you have no way of looking up stock online at the dealers. The whole process is broken!!

[@thomashines8]

I think everyone is okay. We won’t get the Scott models people really want on there. Including 3T and Superior. Can you imagine how good the new gravel Superior bike would sell over here..Won’t see it though. The 3T models seem to be ones that aren’t selling and probably won’t appeal to majority of people.

[@ninjazzrhythm400]

Was the back ground from Philippines? I know China copied it so I couldn't tell the difference

[@AJXOXO-vz1pn]

The big bike brands are going to become like car dealerships.

[@djjd3027]

This is looking more and more like the future whereas customers will have bikes shipped either to their house or the their local bike shop wear it will get assembled. Oh and tell your roommate to do himself a big favor and instead of getting married run for the hills as far as he can.

[@albertagt]

I used to be in the computer business since 2000 and I was a DELL channel partner...long story short at some point, I was able to find better prices on their website or the outlet store than being committed to quotas with the channel....so the channel will always loose, regardless price protection or old inventory the factory does not give a $h33t!!!!

[@GCPerformance18]

Yeah it’s a tough spot to be in, it happens to the best of us, and the factory doesn’t care about quotas.

[@departurexx1520]

Did the price go down? Answer is NO.

[@RideNowKen]

Oh man….that will be a big squeeze.

[@Lenser]

Skip the middleman and benefit the consumer

[@hsppygrandpa]

How do you feel about bike brands selling direct to consumer, but still expect their LBS to stump up and do the servicing and warranty repairs?

[@CupheadAleks]

It's crazy now that your biggest competition isn't the local shops that are in the area, but is rather the company whose product you're selling.

[@atlantaswelder]

Looking at an Addict Gavel 40 but out of stock online 👎

[@GCPerformance18]

yea they are out everywhere the addict gravel is ahard bike to get

[@BlatantlyLit]

The people want a new Addict RC

[@SkiRidesMTB]

Scott won't be around much longer anyway.

[@Eirikkinserdal]

They couldn't even deliver the capitol wheels to you 😅

[@GCPerformance18]

Lmao true

[@petersouthernboy6327]

Scott road bikes still use the BB86 BB - which sux for dub users.

[@jarhead4657]

You don't say why so I will...SRAM uses very small ball bearings which means if you use BB86 you should probably make sure it has been faced so the small sram bearings don't get compressed or tight on one side or the other. This is a SRAM issue more than anything.

[@petersouthernboy6327]

@@jarhead4657 bearing pre-load is quite important. I use an aftermarket BB with dual rows of bearings in each cup and it’s worked fine through two seasons of gravel racing and road training. I ride about 175 miles per week. Using the correct crank spacers and not over tightening the preload collar is important. SRAM has a very good pdf for which spacers to use on which side for optimum chain line. Having said that - T-47 is the way to go, and BSA is acceptable.

[@Livitt351]

This is great for the consumer! Maybe now when I bring my Canyon in you LBS owners will be greatful for the business instead of rolling your eyeballs into the back of your head because you didn't make 30 percent margin on my bike I got online at a great price😅

[@jarhead4657]

I have no issues bringing Canyons in to local dealers for service here in socal. Maybe because Canyon USA is in Carlsbad, employs a lot of local people, many of whom used to work in local bike shops, and you see Canyons everywhere. Do bike shops really make 30% profit on bikes? I thought it was lower. Anyway now that every brand he sells is also consumer direct maybe he will stop whining about Canyon pricing.

[@Livitt351]

@@jarhead4657 here in Europe if you didn't buy your bike from them they don't want to service you! I do all the work on my bikes myself so it doesn't bother me. I've been told by a LBS mechanic I ride with that the margin was 30 percent but has dropped dramatically in the last year, but the shop he works for insist on a bike fit which always involves a new saddle, pedals and drop bars at full retail plus labor and cost of fit for a new bike

[@cup_and_cone]

The issue is brick and mortar Scott dealers are now on the hook for warranty or troubleshooting issues with these bikes, which will cost them money. The online retailers get to sell Scott risk free, and if there's an issue, they will just tell customers to go to their local Scott dealer to get it sorted because it is an easier solution for them.

[@RohamBroccoli]

A few showrooms and ordering directly from the web. Everyone benefits from it. The shop owners obviously have to find a new job. That's the saddest part.

[@kenschwarz8057]

The irony is that KZbin content producing dealers are enabling hyper-educated customers who don’t really need dealers so much anymore.

[@GCPerformance18]

Yea it is the truth. Literally any type of content influencer out there instagram Facebook KZbin they all have KZbin channels they all have new product launch equipment and everything out there for the consumer to study

[@kenschwarz8057]

@@GCPerformance18 It’s the how-to videos that are so empowering. Once you know how to pick compatible parts and assemble them correctly, you can confidently buy direct and do the services yourself. Kinda like building your own computer. People who are afraid of building the bike wrong or choosing parts that won’t work together well are much more dependent on the full-service shop. There are a lot of fine points, as you well know, but enthusiasts willing to learn from the KZbin masters and their own mistakes can do it.

[@ACMEpowersports]

Short term money saving move. It’s always ego and control. Then they won’t give the same pricing and service to their retailers to drive them to their site. Rinse and repeat. Fuck the dealers.

[@GCPerformance18]

Yea it seems like a old inventory dump

[@Tughill1699]

no offense, but besides stuff being little over priced the biggest problem is that most bike shop employees suck or the shop as a whole sucks-this is the reason they cant get people to come in for repairs etc and than get drawn or feel good about to waste money on bikes -i mean i grew up on bike (nothing fancy) and did all my repairs becsuse thats how it was-now in my adult life id much rather pay someone and would def spend money if i make to the shop often for little thing-point is its always some kind of bullshit at the shop or lock of knowlege etc or lack of some kind custom service if needed or wanted. i had the same problem with my other hobbie and ended up setting shop and then now up doing same for the bike. this is not just now it started like 10-15 years ago. they make all the shit in china or whatever -cant even make a frame here what a fucking shame ,besides all they make is s frame than put stuff on it -if it were not for shimano looks like bikes would cost like 30 -50 k now ,this people have no shame

[@GCPerformance18]

I do not take any offesnese peopel have been syaing this for a while and obviously there is a market for it

[@deadreckoner5276]

FYI eBay is direct to consumer.

[@AlexSquared]

your opening line sounds like youre saying "juicy pornz here back with another video...." lmao

[@Datboyvideo]

Companies like Canyon dont make any money on their frame sets. They sell them at cost, while making their money off wheels and groups. Thats why you can’t buy frame only from Canyon, because they can’t price them in a way that’d make any sense without essentially giving it away for free. Direct to consumer doesn’t matter if companies don’t move to a “just break even” business model on frame sets. Which they won’t.

[@liquidSpin]

Tbh I thought this was going to happen eventually with almost every major brand. Online sales reach more people. Shops are not open 24/7 and I would assume consumers are always trying to avoid the bike salesman Also, going direct to consumer means lower price. It won't be long before other major brands follow suit

[@GCPerformance18]

I think it will be interesting to see what happens to the brick and mortar bike shops if every company starts going direct to consumer.

[@liquidSpin]

@@GCPerformance18 tough to know. The big brands know they need bike shops to build up and maintain bikes. They shouldn't put bike shops in a bad place. Hopefully Scott understands this.

[@Raymond-Farts]

I don't care. I'm not buying any more bikes from the brands. Only custom frame builders are getting my orders from now on. Enjoy the party.

[@TheThedynamitekid]

Scott bikes were always terrible value for money and ridiculously heavy at the lower end.