Jan 032012
 

Congratulations! If you’re reading this, chances are you survived 2011 (or you’re one of those new sentient but heartless AI lifeforms that only pretends to enjoy answering our stupid questions while plotting the death of all humans). Either way, “Well done!” I say, “Welcome to 2012. Was that last year a bag of shit or what!”

Personally, I’d hoped to be done with this blog entirely, but things didn’t work out for my Rockabilly project (artistic differences, though we’ll remain friends, and I’ve agreed to keep feeding him, if he agrees not to kill me in my sleep).

At any rate, 2012 was off to a bang the second Lady Gaga’s head dropped, and I find myself here in 2012 thinking things are looking much better. Sure, earthquakes are rattling Japan again, and it looks like the fracking companies have figured out how to create man-made earthquakes in my part of the world, and yes, it’s looking like the corporate assholes who bought VeloNews have finally broken its back (not to imply that all corporations are assholes, only that there’s a particular subset of corporations that actually specialize in being assholes–believe me), and well, OK, our government is still absolutely owned by only a handful people hell bent on putting all of us in bread lines . . . but I’m optimistic.

No, seriously.

One of the things I’m most optimistic about is the Internet. Yes, the same place that daily causes us to lose all hope for humanity is also pretty great. It’s great because we’ve largely kept the tentacles of corporations and governments out of it, making it one of the last places where people can actually be free to think, do, and share things, and because some are willing to defend the shit out of that freedom. I think the cheesy way to put it is that it empowers people.

You actually can use the Internet to create new things that connect people, work to solve the world’s problems, or especially–what interests me–sell stuff. Just about anyone can start a little retail business without a whole lot of money, earn customers with hard work, and make something.

Inevitably, this upsets some people.

Back in the world of bicycles, a lot has been made of a letter Specialized’s founder Mike Sinyard recently sent to Specialized dealers. I’d offer a brief synopsis of the letter, but it’s impossible to describe without making it sound petty and stupid, so here it is for you to read yourself, as pasted from BikeRumour:

Dear Specialized Dealer,

Is your store a fitting station for your online competition?

Amazon.com recently launched a free app called Price Check that allows consumers to use brick-and-mortar shops for research, then easily buy many cycling products online right from their mobile device.

Here’s how it works: when in your shop, consumers simply scan a bar code, type in the product name or take a picture to see the product and prices from a variety of online retailers. After ensuring they have the right fit by trying on the product in your store, and talking to your staff, they can buy it from somebody else with the press of a button.

Participating brands include Pearl Izumi, Shimano, Louis Garneau, Giro, Bell, Fizik, Sidi and CatEye.

Who loses in this situation? Certainly not Amazon. And, at least in the short term, not the cycling brands selling through bike shops and Amazon. But what about you?

By buying product from brands that severely undercut you, you are supporting your competition. Why finance your own demise?

Please investigate for yourself by downloading the free Amazon app.

Amazon is clearly interested in the cycling space, and is hiring talent from the bike industry (including from Specialized).

In related news of brands that leverage the IBD while simultaneously undercutting them, Easton-Bell Sports dropped the fruitless suit it filed against Specialized before Interbike. Was this legal maneuvering just carried out for publicity?

Whether the current news is mobile device apps or lawsuits, the underlying issue remains the same: some suppliers support the IBD and some do not. For the sake of your business, examine your suppliers’ strategies and vote with your dollars. The entire bike industry is watching.

Click here to see how Amazon’s Price Check App works in store (Video here)

Thank you for your continued support.

Sincerely,

Mike Sinyard
President & Founder
Specialized Bicycle Components

Of the many amazing things about this letter, the standout for me has to be the general lack of respect this shows for Specialized’s customers, the dealers. I love that Sinyard writes, “For the sake of your business, examine your suppliers’ strategies and vote with your dollars.” Why thank you, Dad. As a business owner, it never occurred to me to pay any attention to what my suppliers do. Since we’re being so patronizing to IBDs, I’ll go ahead and add: remember to change the toilet paper in your bathrooms and lock your doors at night. Oh, and while you’re examining those supplier strategies, you might want to ask yourself whether being forced toward selling only one supplier’s products is good for your business. Anyone honestly taking Sinyard’s advice would have to agree that his relationship with Specialized is far from ideal. No doubt there are dealers so happy to have Specialized that they’re content to be one brand’s bitch. Good for them. Their owners usually have no idea what a Pivot or a Santa Cruz are, let alone how the bikes they’re selling compare to those brands. But given all the sugary garbage I’m reading about “outstanding customer service” these days, I’d like to point out it’s shops that work to earn customer loyalty instead of just drinking the Specialized Kool-aid that genuinely put the customer first. Why? Because they tend to offer choices. I love that Sinyard’s advice to earning customers and keeping them from shopping online is to limit his dealer’s choices. By all means, drop Easton and Bell products, and sell only Specialized. Just don’t claim you’re still putting the customer first.

Bonus points for the ominous threat he ends with, too: “The entire bike industry is watching.” Sometimes, Dad has to get out the belt. Other times, he just scares the shit out of you without lifting a finger. The thing about monopolies is that they work. For the company with the monopoly, I mean. Not the consumer.

But the Internet has a way of ruining things for those in power.

And that applies to Amazon as well as Specialized. I’ll get into that tomorrow.

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