Irvine, CA – January 22, 2024 – The National Bicycle Dealers Association (NBDA) Bicycle Industry Retailer and Supplier Best Practices Panel convened on January 16, 2024, to address global supplier and retailer working ways with discussions aimed at fostering methods to maximize industry financial health and profitability. The panel's discussions revolved around Discounts and Online Pricing, DTC Sales and Servicing, DTC Sales Assembly, Set Up and Shipping and finally, Promoting the Value of the Speciality Bicycle Retailer.
The panel, composed of retailers, suppliers and industry advocates, shared viewpoints on these important issues and recognized the importance of forming best practices to give all at stake the best outcome. The meeting concluded with a summary of the extensive discussion and an invitation for more retailers and suppliers to join the next event in April.
Key Highlights of the Panel Discussion:
● Discounts and Online Pricing: The panel addressed the need for a margin share with
retailers on DTC sales, with a full share being optimal. They discussed that advertised
discounting should be in coordination with the Retail channel with an opportunity for
margin re-capture and in-sync sales together. A few comments around big brands seem
to be the least interested in these options, with a reminder that retailers need to
understand their own brand and choose brands to sell that are in line with them.
● DTC Sales - Servicing: To embrace interacting with riders on all levels, the panel explored embracing the lifetime value of all customers, and finding ways to help the DTC consumer. The panel spoke about offering new services, like insurance, as well as having policies in place about what bikes can be worked on. Regarding the companies selling online, there were comments about them providing a portal for DTC ebike owners to have access to willing IBDs for service and ensuring there is readily available contact info.
● DTC Sales- Assembly/ Set Up/ Shipping: Recognizing the unique challenges faced by DTC sales, when it comes to freight fees and assembly/set up costs incurred by retailers the panel discussed strategies to address these challenges. The panel proposed that brands selling DTC should have a best practice of making the consumer aware that assembly is a service that will be charged for, while retailers should be selling their services. A reminder in general that add-on fees are a standard in many parts of our lives. Assembly and Shipping charges should be separate.
● Promoting Value of the Speciality Bicycle Retailer: A consensus was reached recognizing the need to continue to promote the value of a speciality bicycle retailer. The panel explored a thought that consumers agree that SBRs provide value but it's hard to get them to pay extra for that value. The panel concluded that retailers should explore communicating their story and value to their communities, while both retailers and suppliers explore how each and be more valuable to each other.
A recording of the forum is available for viewing on the NBDA YouTube Channel.
The NBDA Bicycle Industry Retailer & Supplier Best Practices Panel, will continue to focus collaborative efforts to formulate best practices that contribute to the positive financial health of both suppliers and retailers on a global scale.
Heather Mason, NBDA President stated, "Our recent panel meeting supported our larger advocacy work to formulate best practices between retailer and supplier. Our goal is to continue to have hard conversations that push us all to improve working ways. I invite the entire industry to participate. "
For further information about the NBDA Bicycle Industry Retailer and Supplier Best Practices Panel and to participate or attend the next panel meeting in April visit here.
About NBDA: The National Bicycle Dealers Association (NBDA) is a non-profit organization representing the interests of independent bicycle dealers in North America. Committed to advancing the bicycle industry and promoting cycling as a healthy and sustainable mode of transportation, the NBDA collaborates with industry stakeholders to address critical issues and foster growth within the cycling community.
