But we can go out there in our van and bring along some accessories … That’s where the relationship will begin," he said. “Some people are just too busy to come pick up a bike. In addition to the online purchase program, the site will add a new feature that allows consumers to see if nearby shops have specific products available for in-store purchase.Īll Trek dealers will participate in the online sales program, but they can opt out of the delivery service if they choose, or they can specify to what distance they are able to deliver.ĭavid Sanborn of David's World Cycle in Orlando, Florida, said he loved the idea of delivering bikes that were bought online. It will offer live chat consultations on bike fit and selection. The redeveloped website will combine Trek’s and Bontrager’s sites, which are currently separate. Trek will ship them at the same level of assembly as other bikes shipped to dealers. The bottom line? Retailers will receive roughly 80 percent of their normal margin on these new sales.īurke said the bikes would all be shipped from Trek's warehouse to fulfill each order, and would not be taken from a dealer's existing inventory. That includes the cost of carrying the inventory, shipping, and sales. The chosen retailer will receive a service commission equal to their normal margin (which varies depending on the size of the store’s business with Trek) minus an estimation of the costs that Trek shoulders (and the retailer avoids) in making the online sale. Consumers will not be able to choose “none of the above.” Burke began his presentation by showing slides of e-commerce sites including Chain Reaction, Wiggle, Performance and Canyon Bicycle.Īs part of the check-out process, consumers will be asked to choose the local Trek retailer who they want to service their order. But they said it’s clear that consumers want to shop 24/7 for bicycles, just as they do for other products. In addition to mechanic and service manager training, Trek will offer dealers help with service department displays, fixtures, tools and systems that will lead to some stores being designated as Trek Certified Service locations.īurke and other Trek executives said they are not planning for a huge volume of online bike sales immediately. It expects to train about 1,000 service personnel next year. Trek is building a 5,000 square foot service education center at its Wisconsin factory and will begin classes in January.
I've never seen a store that did a lot of service go out of business," he said. "I've seen stores that sold a lot of products go out of business. So increasing the volume of service business is a clear path to increased profitability - and survivability, Burke said. Burke said service currently accounts for only 7 percent of revenue for most shops, but produces nearly a quarter of gross profits for those shops. Trek is expanding its business management education programs, and will offer new marketing tools including comprehensive seasonal promotions with store displays tied to quarterly print catalog mailings.Īnd - in an announcement that drew applause from the dealers - Trek is launching a service department education and certification program. Trek will offer tools to help dealers increase sales to women, which Burke said will amount to half of all bike shop sales within five years. Now it’s time for us to play.”īurke cast the online sales program, called Trek Connect, as part of a larger investment in increasing the profitability of the brand's U.S. “One of my father’s business maxims was, ‘we play offense.’ So, we sat around and watched the online thing and that’s been OK - it’s been a great learning experience. “It’s been a massive investment,” Burke said, then referred to his father, Dick Burke, the co-founder of Trek. He said the plan had been in development for about two years and called it the “largest investment Trek has ever made.” Trek president John Burke revealed the plan Monday evening to several thousand Trek retailers at the company’s annual Trek World dealer meeting here. Trek will deliver these products direct to consumers, but local retailers will also receive a service fee. Trek also will begin online sales of parts & accessories from its own brands, including Bontrager and Electra, as well as other bike brands including Park Tool, Garmin, Finish Line and Burley. Bikes will be shipped to the brand's retailers - not direct to consumers - for assembly, and retailers will receive a service commission on each sale. bike brand, Trek Bicycle will begin sales of complete bikes to consumers via its website in late September.