Felt Bicycles Joins the Direct Sales Movement
Felt Decree, 2018
In a press release launched on BRAIN today, Felt Bicycles announced a hybrid direct-to-customer marketing program, with a twist. Online buyers will be able to click on a "Buy Local Now" link to check stock and purchase their bike remotely from the shop, or choose to buy directly from Felt. Either way, the bike will arrive at the nearest Felt dealer for assembly, where the customer can pick it up.
Felt plans to credit the participating retailer with a commission for any online sale they deliver and, also, all online sales will count against that dealer's annual quotas or pre-season orders.
Felt international sales manager Tyler Meyers, who reportedly assisted Felt in preparation for the Customer Connect roll-out, told BRAIN:
 | Customers vote with their dollars. The fact [is] that they're researching the product online, and if they choose to purchase it online, we don't want to say, 'You can't.' We want to have a program and operational support to deliver the bike consistent with their expectation. ...It's removing barriers to access, but also saying, 'We want you to work with the retailer because that's where you get the best fit, or if you have questions or need service.' |
Felt's entry into consumer-direct, online sales marks another influential brand that has come to terms with the fact that online buyers are here to stay. The question is: "Does Felt's dealer-delivered strategy offer adequate insulation from retail pressure to keep online buyers comfortable?" Trek has dabbled in dealer-linked online sales with some success. Felt's Customer Connect is more aggressive than Trek's, but falls short of Intense's new customer-direct model. Time will soon weed out the winners, but we can be sure that Felt's bid will be closely watched by every other brand that is heavily invested in brick and mortar stores.
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If they do I predict they’ll be the top two component manufacturers in no time.
I’ll throw my two cents in and say that the first tire company that goes direct sales is going to kill it. I’d ride Nobby Nics if they were $15/tire
NNics Evo are $52 CAD @ CRC
Cheap enough for me
this is why leakage of grey stock (OE) into aftermarket is not a concern, as long as the factories are getting paid by the real customers (95% OE).
Of course its killing the IBD network as trade pricing is higher than on-line sale pricing, but small fish...
Intense understood this and did it right.
They have some nice bang-for-the-buck models in their catalog. But as a brand I would put them in with the likes of Fuji--some totally decent road/tri/cross bikes, but the MTB selection has always seemed a bit "roadie designed". I agree with the sentiment that they seem like they are treading water as of the past few years based on the changes they have been attempting with their business model. While their MTB offerings aren't even in my top 10 (or top 20?), I wouldn't hesitate to ride any of their mid to high end road/cross stuff. It's nice stuff.
The reality is that the industry will likely set its prices so that in the not-too-distant future, direct bike sales won't save you much, even compared to brick and mortars with higher overhead. The more players in the direct seller game, the more that these companies will rely on their increasing brand value to sell product, in contrast to simply offering lower prices. Lower pricing only works if they sell even higher volumes, or if the company is trying to establish a strong market presence in the early going, transitioning to pricing that rivals the competition once they have established themselves.
When the goal is to maximize profits, do you really believe that the proliferation of direct sales will mean cheaper/better bikes for everyone in the long run, or will it kill the local bike shop, the way that Wal-Mart, and now Amazon have done/will do to countless brick and mortar retail stores. Do we accept this change to the retail bike sale landscape?
Why would a company lower a retail price if they can create a healthier margin and still sell through their total inventory?
(YT owner by the way).
But you could already do that.
I mean Clicking buy and giving your credit card information then waiting for the bike to be delivered to the shop is only marginally different than browsing their current website and give a call or drop an email to your bike shop to order it. People have been doing that for years.
I mean I've never bought a bike that was in stock at my LBS. I always had to order it to get the desired spec/size anyway.
I’d never let that company have another penny of my money.
Side note: as someone who was never a huge Felt fan, I was surprised when I rode a few of their bikes for the first time this year and was totally blown away by how well they rode. These guys are on the up in the MTB world...
Either way brand managers should put almost zero stock into opinions from discussion forums and comment sections. You have no background data on these potential buyers.
TL/DR - Felt bikes are nice and people should ride them before posting bullshot opinions
Side note: as someone who was never a huge Felt fan, I was surprised when I rode a few of their bikes for the first time this year and was totally blown away by how well they rode. These guys are on the up in the MTB world...
I wouldn’t let too many mountain bikers know that...