TEMPE, Ariz. (BRAIN) — Fixie and singlespeed brand State Bicycle Co. has rolled out a three-tier system for its dealer network, offering enhanced benefits to key retail accounts.
State recently completed an audit of all of its retail accounts and found that the ones who were stocking the largest number of bikes were having greater success than dealers ordering in low volumes, said Mehdi Farsi, one of the company’s co-founders. Based on those average stock levels, 50 percent of the brand’s dealers fell into the top two tiers — “Premium” and “Dealer” — qualifying for new benefits. Other dealers are dubbed “Wholesale Access,” with a new minimum qualifying order of $1,200.
“Before, we were treating all dealers the same,” Farsi said. “This (new program) was spurned on by our dealers coming to us saying, ‘I’m on the dealer locator and so is my competitor down the street. I have 20 bikes on my floor and he has no bikes. What can I do about this?’ ”
State’s new benefits for qualifying retailers include free shipping, lower thresholds for volume discounts and enhanced listings on the online dealer locator. Additionally, a new Dealer Rewards Program allows retailers to accrue reward points that can be used for future purchases.
“We wanted to make significant changes to our wholesale program to better support those retailers who have a vested in the State Bicycle Co. brand,” said Adam Mayo, manager of State’s wholesale division. “Additionally, we took great efforts to understand some of the factors which led to retailers being successful with our brand and created a tiered wholesale program which incentivizes retailers to strive for the highest level of success, but that still allows for any independent bicycle retailer to have access to the State Bicycle Co. catalog.”
Retailers benefiting from the new program include San Antonio Bike Shop, where owner Clay Williams said: “State Bicycle has been very supportive and a wonderful partner in growing my business. With the new changes to the wholesale program it will only increase our profitability, which is great.”
State Bicycle Co. has 400 dealers worldwide, including about 250 in the U.S. It also sells consumer direct through its website. For more information, visit the company’s website.
