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US
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Edited Date/Time
3/22/2019 8:12pm
I received an email from a shop owner last week about Specialized going direct and he had some thoughts about it in his podcast, I had seen numerous google ads from Specialized with a "buy it now" message, but now the news is official via a press release sent out by the brand that they're sort of going direct with their click and collect program.
For Immediate Release
SPECIALIZED LAUNCHES USA NATIONAL CLICK AND COLLECT PROGRAM
Specialized Integrated Marketplace allows rider to purchase online and pick up in store.
MORGAN HILL, Calif., March 15, 2019 – Today Specialized announced the roll out of a national Click and Collect program. Beginning March 15th, available to all Specialized retailers is the option to join a program that connects Specialized purchases made online to pick up in their store. Riders will have the option to purchase both bikes and equipment on Specialized.com as well as select which retailer will receive the order for in store pick up. This is the next step of Specialized’s Integrated Marketplace Strategy—working together with its retailers to create a seamless rider journey.
“Today, with over 50% of the purchase journeys initiated online, we have to evolve and adapt the ways we work together with our retailers to serve the rider,” said Jeff McGuane, USA Market Leader. “Over the past 3 years, we have invested significantly into technologies that enable our marketing to drive more riders into our retailer’s doors.”
The first part of the strategy was implemented in January 2017 with the launch of S-connect & Find Nearby. This allowed riders to have visibility to retailers’ inventory directly through Specialized.com. Since its launch, S-connect & Find Nearby has had over 2 million users and continues to drive riders to retail with the intent to purchase knowing product is in store and available. The addition of Click and Collect is a huge step forward for Specialized and they are confident it will drive riders to IBD partner stores.
“Our rider-facing marketing is the strongest it has ever been, and the ability to offer the rider the convenient option to “buy now, pick up in-store” alongside “find nearby” will deliver more convenience to the rider resulting in a seamless experience,” said Charles Bisaillon, Global Sales Operations Leader.
The roll out of Click and Collect has been well received by Specialized retailers. Matt Ford, owner of Rock N’ Road, a multi-location IBD in Orange County, CA said, “Click and Collect is a sign of our times! We are glad that Specialized has adopted this feature and is giving us the opportunity to reach new customers. We look forward to building strong relationships with all our Click and Collect customers and adding this new revenue stream to our business."
Alongside investments in Brand and Innovation, the cornerstone of the Integrated Marketplace Strategy at Specialized will be maintaining a strong working relationship with Retail Partners. Over the next 12 months, Specialized will continue to invest in new digital solutions to drive increased awareness and create new leads for retail partners. Already, additional investments in digital and social networks have helped connect and boost Specialized’s combined reach to over 1.6 million riders across the nation.
“Ultimately, our desire is to earn the position of brand of choice and for our retailers to think of Specialized as the growth platform for their business,” said Jeff McGuane, USA Market Leader.
About Specialized:
Specialized was founded in 1974 by riders for riders. Based in Northern California, we focus on the rider’s need for functional and technically advanced products that provide a performance benefit.
Visit: www.specialized.com
For Immediate Release
SPECIALIZED LAUNCHES USA NATIONAL CLICK AND COLLECT PROGRAM
Specialized Integrated Marketplace allows rider to purchase online and pick up in store.
MORGAN HILL, Calif., March 15, 2019 – Today Specialized announced the roll out of a national Click and Collect program. Beginning March 15th, available to all Specialized retailers is the option to join a program that connects Specialized purchases made online to pick up in their store. Riders will have the option to purchase both bikes and equipment on Specialized.com as well as select which retailer will receive the order for in store pick up. This is the next step of Specialized’s Integrated Marketplace Strategy—working together with its retailers to create a seamless rider journey.
“Today, with over 50% of the purchase journeys initiated online, we have to evolve and adapt the ways we work together with our retailers to serve the rider,” said Jeff McGuane, USA Market Leader. “Over the past 3 years, we have invested significantly into technologies that enable our marketing to drive more riders into our retailer’s doors.”
The first part of the strategy was implemented in January 2017 with the launch of S-connect & Find Nearby. This allowed riders to have visibility to retailers’ inventory directly through Specialized.com. Since its launch, S-connect & Find Nearby has had over 2 million users and continues to drive riders to retail with the intent to purchase knowing product is in store and available. The addition of Click and Collect is a huge step forward for Specialized and they are confident it will drive riders to IBD partner stores.
“Our rider-facing marketing is the strongest it has ever been, and the ability to offer the rider the convenient option to “buy now, pick up in-store” alongside “find nearby” will deliver more convenience to the rider resulting in a seamless experience,” said Charles Bisaillon, Global Sales Operations Leader.
The roll out of Click and Collect has been well received by Specialized retailers. Matt Ford, owner of Rock N’ Road, a multi-location IBD in Orange County, CA said, “Click and Collect is a sign of our times! We are glad that Specialized has adopted this feature and is giving us the opportunity to reach new customers. We look forward to building strong relationships with all our Click and Collect customers and adding this new revenue stream to our business."
Alongside investments in Brand and Innovation, the cornerstone of the Integrated Marketplace Strategy at Specialized will be maintaining a strong working relationship with Retail Partners. Over the next 12 months, Specialized will continue to invest in new digital solutions to drive increased awareness and create new leads for retail partners. Already, additional investments in digital and social networks have helped connect and boost Specialized’s combined reach to over 1.6 million riders across the nation.
“Ultimately, our desire is to earn the position of brand of choice and for our retailers to think of Specialized as the growth platform for their business,” said Jeff McGuane, USA Market Leader.
About Specialized:
Specialized was founded in 1974 by riders for riders. Based in Northern California, we focus on the rider’s need for functional and technically advanced products that provide a performance benefit.
Visit: www.specialized.com
Poll
Curious to see how many more purchases this will lead to vs. going to or simply calling a shop to place the order with the exact same shipping times, but I guess this is where the retail environment is headed and they're obviously doing it for a reason.
If its anything like Giant do in the UK its a super easy sale for shops and in the case of Giant the same margin too.
Albeit Spec' are only giving 75%, but that's not unfair. Plus if the shop is any good they'll gain a long term customer too and building bikes from a box is not hard (especially for mtbs)... But you should never chastise as customer for where they buy. If they come into your shop charge them for fitting parts they bought online and give them reasons for using your services again.
I think the use of 'direct sale' here is misunderstood. The customer does not get the bike shipped to them. Click and collect still requires them to go in to a store to finalise the purchase.
The problem with this model is that they are still not price competitive with Canyon or YT. Bike shops will naturally migrate to lower end bikes because those buyers need assistance in sizing, style, and level of bike. For the high end there is very little value in a shop for most buyers. They have enough experience and a large enough network to figure out what they want and or need.
1) Specialized DOES NOT pay shops to build any bike.
2) Yes, higher end Specialized bikes are coming as what they call "Shop Built" meaning it's a frame and a kit and about a 3 hour build for a mountain bike built well.
3) It is not 'zero risk' to the retailer. If the customer orders the wrong bike or simply decides they don't want it, the shop gets paid $75 to send it back. That's $75 to build, set-up with customer, manage the return, and re-box the bike. That's at least 5 hours of shop time. For $75...
4) Yes, they are issuing account credits. That is like getting paid late for work that has already been done. 'I'll gladly pay you tomorrow for a hamburger today'. No thanks.
5) Shops are not just 'watching the sales roll in'. We're taking a credit of 75% of our regular margin--anywhere from 28-35 points. Do the math on the build and delivery time. It's a wash in a lot of cases to take this margin reduction.
I've managed a shop which carries Specialized for about 10 years. In theory, yes a dealer would have to hold less inventory, but in reality, companies like Specialized require a very large pre-season buy in from dealers every year regardless of clink-and-collect type programs.
I absolutely think there is a place for this model of delivery, but the math needs some tweaking.
We do full strip, clean and rebuild in that time (minus fork/shock service and brake bleeds). Barring anything unforseen, its super achievable target. (for reference, thats service work... not new build)
In my company 3hrs would be considered slow for the kind of build you mention. If we factored in every potential problem and worried about them we'd never build any bikes... there's got to be a limit to planning for snafu's and if you're getting the same issues every bike then you should to be kicking arse with your suppliers.
I regularly have to trim brake hoses from new and its super rare to need to bleed the brake after. And worst case a lever bleed takes no time.
A decent and practiced mechanic can be (and should be) super efficient, the only real things that can add time are the little 'can you just do...' requests by the customer.
4) Unless a shop either has cash flow issues or is planning on ditching Specialized the next year, a credit in this case offers nearly the same value as any account receivable.
5) Except they are... sort of like those glorious moments when a customer walks in already knowing exactly what they want and pulling out their credit card. But even better. And with Spec. covering tax/ some other fees and shipping that 75% is worth more than just 3/4 of your standard margin.
As easy as it is to have negative opinions about the brand, I just don't see how this isn't only a positive little opportunity for everyone involved. Unless it leads to a shitshow of outstanding circumstances I guess but we'll see how it goes.
I don't have a negative opinion about the brand. They make great product and support their dealers. I just think the math is off on this model. I also think many consumers have no idea about the margins shops work with and think bike shops are raking it in. If you've ever worked in a shop, you know this isn't the case and that any margin reduction is a challenge.
It's not a perfect scenario for the shop owner, but the only "perfect" scenario would be the absence of any online sales presence by Specialized. Doing that in 2019 is like giving away market share on purpose.
It is not shoddy in any way. Ever. If it was, I would not be in my position.
Most cases will be: shop receives the order, builds the bike (and yes, standard builds should take under an hour for an experienced builder), customer picks it up, spend the typical 15 minutes setting sag and fitting. Beyond that is the opportunity to cross-sell and then establish a new relationship because they will be back. Receive closer to 80% of the usual margin without a minute spent on the sales process. I've worked in shops for a while and currently a Spec. dealer, but I'm prepared to eat my shoe if I'm wrong of course. Mostly I'm curious to see how many of these actually happen.
All this really does is give the consumer another way to get a bike, and the shops don't get hung out to dry...
Just getting everything out of the packaging and setting up a clean work area to start assembling is going to be 10-20 minutes.
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