New benefit for member retailers to be offered in conjunction with Ensure Protect
IRVINE, Calif. - - The National Bicycle Dealers Association (NBDA), the nonprofit organization that leads bicycle retailers to excellence, has launched a turnkey extended warranty and service program for its members called "RIDES". The name is an acronym for Ride It Daily Extended Service, and the program is offered in partnership with Ensure Protect, a national third-party administrator (TPA) headed by Frank McMillan.
"With RIDES, our member shops can give customers added value and more peace of mind, while earning revenue on the up-front premium payments, driving business to their own service departments, and being fully reimbursed for their labor," said Brandee Lepak, NBDA president. "There's no cost to our members, and it gives them a terrific value proposition to offer customers. It's a win-win."
RIDES, which is offered as a one-time purchase to the customer at the time of a bike sale, functions like AppleCare plus and similar protection packages. Program premiums, based on a bicycle's sale price, start at $4.99 and are shared 50/50 between shops and Ensure Protect, creating a pure profit revenue stream for participating dealers.
Three coverage options are available through RIDES: a replacement plan that covers the one-time replacement of a bicycle, a repair plan that covers 100% of parts and labor, and a repair and maintenance plan that covers 100% of parts, labor and scheduled maintenance.
The plan terms of either one or two years begin when the manufacturer's warranty ends. Customers can bring their bikes to any participating RIDES shop in the country for service under their plans. RIDES reimburses each participating dealer at full shop rates for repairs and maintenance. The plans are convenient, transferable, and renewable.
Ensure Protect will oversee the program's administration and regulatory compliance and implement a rollout plan in conjunction with the NBDA. The program start date is slated for September 15, 2019. More information is available at www.nbda.com.
"Our data confirms that 20% of people always buy extended service attachments, and 50% of people buy them some of the time," summarized Ensure Protect's Frank McMillan. "So, the RIDES program not only makes it possible for dealers to satisfy and retain their customers, it creates two new revenue streams: the premium, and the service work."
For more information about RIDES and to sign up, please visit https://www.nbda.com/articles/rides-ride-it-daily-extended-service-pg518..., and for more information about the NBDA, please visit www.nbda.com.
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About the National Bicycle Dealers Association (NBDA)
The National Bicycle Dealers Association (NBDA) has represented specialty bicycle dealers in the United States since 1946. The non-profit association offers numerous programs for dealers, with an emphasis on leading retailers to excellence through education, research, communication and advocacy. Some of its programs include: Profitability Project (P2), a mastermind group for bicycle shop owners and the America's Best Bike Shops credentialing program.
NBDA member benefits include credit card processing and POS system discount programs, access to an online dealers' forum, and the Outspokin' newsletter. The NBDA additionally has forged partnerships with customer survey, payroll, and website service providers. Annual dues are $195 for retailers; $125 for mobile bike shops; $850 for companies associated with the bicycle industry with over $500,000 per year in sales; and $550 for smaller companies and industry sales representatives.
