Specialized making dealers choose: Cannondale or them!
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  1. #1

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    Specialized making dealers choose: Cannondale or them!

    Specialized is offering dealers who carry both Cannondale and Specialized big perks to stop carrying the brand cannondale. They are doing this in a sort of blitzkrieg fashion to most dealers that carry both as i have collected. Offering them things at first may seem to good to be true. Mainly on the basis that cannondale was bought by pacific and will soon be in performance bike shops. Cannondale completly denies this and went as far to say they will be releasing a memo in the Bicycle Retailer Magazine saying Cannondale will not be in Performance and maintain staying in High End non chain retail stores.

    What is your reaction to this? As a mainly specialized dealer i would hate to not give my customers a choice of product on high end lines at the same time would hate to be cut from specialized because i do not want to become essentially a specialized concept store.

    how does everyone feel about this? and i surprised more dealers are not speading information about this

  2. #2
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    Sounds a bit like anti-competitive practices.

    Cannondale is on the way down and out anyway following its purchase by Pacific.

    I imagine a shop could build a name and cliental for itsself by focusing on smaller brands.
    "It is better to conquer yourself, than to win a thousand battles." -Dhammapada

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  3. #3

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    thing is though the money durell will be dumping into cannondale is deffinetly enough to revive the line, theyr putting 500m alone into advertising along with money in their us manu plants.

    Specialized hasnt said theyr definetly cutting dealers who dont go along with this but said its also definetly a possibility.

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    I would tell specialized to take a hike! There are a lot better brands out there to replace them with. If they came into my business and told me it was them or else...I'd choose else! Specialized has always been overrated in my book anyway...just my opinion though
    "I'm not known for my patience. Patience is a polite quality and often appropriate, but it rarely gets things done. Impatience, however, is the hunger for results and intolerance for excuses and delays. Impatience got me over countless mountain passes..."
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  5. #5
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    Specialized sure has come a long way from a hippie selling campy parts off the back of his bike.
    Quote Originally Posted by the_dude
    these are better than i was expecting, and my expectations were already rather high.

  6. #6
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    I'm not a dealer, or in retail at all, but I don't like the sound of it. I agree with velodoc. Let 'em take a hike. If C-dale is going to do a lot of advertising, it would be in your best interest to keep them. Plus, there are a lot of other brands as good as Generalized, at the same price point. I can't imagine there are a lot of customers walking into your shop saying they will only buy a Spec'd.
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  7. #7

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    your definetly right, just to think if i do stick with specialized and cdale goes to performance ill be kicking myself in the ass over the wrong choice.

  8. #8
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    Its done all the time. Have you ever seen Giant and Trek in the same store?

  9. #9
    jd3
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    One of my bikes is a Specialized. The LBS where I hang is a Specialized / Trek dealer. I do feel like Specialized is the big bully of the bike industry. I was schocked at what a Specialized dealer has to go through to be a S-Works dealer. They seem to have alot of controll over thir dealers.

  10. #10
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    Quote Originally Posted by JohnnyTooBad
    I can't imagine there are a lot of customers walking into your shop saying they will only buy a Spec'd.
    That statement would probably apply to Cannondale also.

    Unless you're going to have a wide range of bikes, namely a lot of cheap ones, I'm not sure why either brand is vital.
    "It is better to conquer yourself, than to win a thousand battles." -Dhammapada

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  11. #11
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    Have you ever seen Giant and Trek in the same store?
    Yes, I have.
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  12. #12

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    the speed of Specialized move is what is concerning though. like i said intially its almost like a blitzkrieg tactic since theyve seen a small hole in cdales armor(buyout by pacific).

    Just tough for a store that carries both but does majority of dealings with specialized, but wants to maintain a true IBD standing and give a choice to customers. Through the grapevine it seems this is more a personal vendetta between the heads of specialized and cdale in general or a powerplay if you will.
    Last edited by independentdealer; 02-27-2008 at 01:56 PM.

  13. #13
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    Quote Originally Posted by Pablo
    Sounds a bit like anti-competitive practices.

    Cannondale is on the way down and out anyway following its purchase by Pacific.

    I imagine a shop could build a name and cliental for itsself by focusing on smaller brands.
    I don't know about that. Dorel is telling IBDs that they're not going to dilute cannondale like they have with mongoose, schwinn and to a lesser extent GT. that and they're apparently leaving the personnel in place so this could help cannondale in the relatively short term. They needed scrilla and they got it.
    regarding the big red S, this doesn't surprise me, they've always seemed somewhat cutthroat to me.

  14. #14
    jd3
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  15. #15
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    Quote Originally Posted by blackhat
    I don't know about that. Dorel is telling IBDs that they're not going to dilute cannondale like they have with mongoose, schwinn and to a lesser extent GT. that and they're apparently leaving the personnel in place so this could help cannondale in the relatively short term. They needed scrilla and they got it.
    regarding the big red S, this doesn't surprise me, they've always seemed somewhat cutthroat to me.
    I get that, but Cannondale, as a brand, seems to have lost something special by being bought out, sort of like when gary Fisher and Bontrager and Lemond were subsumed by Trek.
    "It is better to conquer yourself, than to win a thousand battles." -Dhammapada

    "Fact is only what you believe; fact and fiction work as a team." Jack Johnson

    "A true cyclist sometimes has to bite the dust before he can reach the stars.” Laurent Fignon

  16. #16

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    Its very tuff for us because weve always been dedicated to both. Just so happens in the past few years specialized has really out sold cdal and theyr line is amazing. From assembly to design i really cant knock them. But the bulling there is a very public example about a premier S dealer in san diego being ruined by them. And i feel like theyve gotten away with things like this so thats why they are pulling this stunt. I know for afact the 2 nearst S dealers turned them down flat due to their other lines sales. I feel like a donkey with a carrot dangling infront of me but it could be a fake carrot!

  17. #17

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    Guess wot one of the perks are

  18. #18

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    When youve been with a brand for so long and surrounding shops have other brands you have your niche. Just so happens cdale and specialized are our high end sales niche brands.

  19. #19
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    Quote Originally Posted by independentdealer
    When youve been with a brand for so long and surrounding shops have other brands you have your niche. Just so happens cdale and specialized are our high end sales niche brands.
    so keep both lines? really unless specialized is offering to make you a concept store and throw tons of money at you tell them to get bent.

  20. #20

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    well the threat is being terminated by them.....and with a large order in at any given time and with their procedures as i understand is accelerated payment on outstanding orders, it could be tough on a fella. right now im hanging back as long as possible, but tell you one thing they seem way to eager to give things out, as for being a concept store isnt that what an IBD is pretty much opposite of...

  21. #21

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    If you're making more money selling specialized, then I'd go that way. OTOH I don't think C/dale is washed up at all. They finally have some capital, backing. Their latest bikes are way cool, imo. We have a dealer in my area that sells both giant and trek (and specialized, too - sold me a toupe gel saddle that has made me a spec. fan for life!]. The local roadies go for trek and the mtb riders like giant - go figure. As a retailer though you have to stay ahead of the market or you go out of business. This just sounds like good old fashioned competition to me. I would not get involved in some company's marketing problems on principle. I think your plan to ride it out is wise.
    Last edited by RoyIII; 02-27-2008 at 04:30 PM.
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  22. #22
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    Quote Originally Posted by independentdealer
    well the threat is being terminated by them.....and with a large order in at any given time and with their procedures as i understand is accelerated payment on outstanding orders, it could be tough on a fella. right now im hanging back as long as possible, but tell you one thing they seem way to eager to give things out, as for being a concept store isnt that what an IBD is pretty much opposite of...

    they're not going to terminate your acct. their largest US dealer is also a cannondale dealer.

  23. #23

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    interesting, and cdale seems very willing to match some of the more "personal" perks if you will aswell for just staying with them during this. always been in good standing with both companies as long as ive had them and hard to see anything drastic, but it was said.

  24. #24

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    read my reply to blackhats post i think im going to ride out the perks and take their bluff on termination like he said their largest us dealer is a cannondale dealer aswell.

  25. #25
    Shirtcocker
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    the local Performance has been selling Cannondales for years.
    "I regard the brain as a computer which will stop working when its components fail. There is no heaven or afterlife for broken down computers; that is a fairy story for people afraid of the dark." -S. Hawking

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