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Pre-Season Dating: Who Wins, Who Loses, And Who Gets Screwed In Our $125 Million 3-Card Monty Game.

By Rick Vosper

Posted: July 20, 2010

One CEO of a top-ten bike brand tells me that as a very rough estimate, he thinks financing in all its various elements ends up representing as much as 10% of his wholesale pricing. 10% of the approximately half of all BPSA bikes pre-seasoned last year means cyclists (consumers) ended up paying almost $125 million (at retail) to support wholesale finance costs in 2009.

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26 Comments for: Pre-Season Dating: Who Wins, Who Loses, And Who Gets Screwed In Our $125 Million 3-Card Monty Game.

Mark Riedy says
July 28, 2010 at 10:09 am

In my role of doing communications for Giro I wanted to offer a clarification of the Giro/Easton Bell Sports position: Namely Giro does not make ski gloves and they DO offer pre-season programs. Giro has worked to create a preseason program that rewards retailers that partner with them as opposed to other brands that penalize retailers who do not. For example if a retailer only wants to buy Giro their program allows for that. However if they also buy Bell Blackburn and Easton they will get a better price as well as other support and incentives. This is a subtle but significant difference from other companies that take an all or nothing approach. It’s also important to note that preseason programs help manufacturers forecast production which improves availability and helps control costs. This is a benefit to retailers as well. Thanks for hosting this discussion Rick. Mark Riedy
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