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  1. #1
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    Accell Group-North America restructuring (parent company of Diamondback)

    Loss of Dick's contract forces major adjustments at Accell NA | Bicycle Retailer and Industry News

    Big things seem to be underway for Diamondback. Not sure how this will pan out on the consumer's end, maybe better pricing while they try to offload heavy inventory. Maybe now, or soon, is the time to pick up the bike you've been waiting for. The low end stuff is what funds the brand, with the benefits trickling uphill towards their top tier bikes.

    Thoughts?
    I would advise not taking my advice.

  2. #2
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    sad news. not sure about your local REI but the two closest to my home are no longer restocking db bikes for 2018.

    rei.com also only have like a handful of db bikes left (strangely rei.com is selling the 2018 overdrive)

    and i believe their online direct sale margins are razor thin after buying two bikes from them.

  3. #3
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    You'd be surprised. Used to work for a company that made lawn mowers. The formula is basically (cost to make it x 2) = price company making it sells it to retailer for. retailer's price = their cost x 2. So you're looking at a 4x over cost to make (and that's not just parts, that's covering the cost of all of your salaries/building expenses/etc. So yeah they need to spend more because they're "selling" them online and not just shipping huge batches to select locations, but I'm sure the margins are there. Stuff is ridiculously cheap to make these days (especially in China) there's a reason the rich get richer (but that's another story)

    TLDR there should be plenty of profit on these bikes or they're not making them right. I can't image the $200 bikes would have as much profit (though they have the QTY)

    EDIT:

    2 little tidbits/thoghts
    1.our company received a lot of pressure from the retailers we sold to to not go and do online sales on our own. So if DB did this they might have damaged contracts or "understandings" they had with retailers they sold to
    2. Bigger high-end companies (like Giant, GT, or Cannondale) might have pressured their distributors to drop DB since they're getting popular in the high-mid end markets now

    *slides tinfoil hat sitting on desk out of frame*

  4. #4
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    Quote Originally Posted by seattleUpPartner View Post
    You'd be surprised. Used to work for a company that made lawn mowers. The formula is basically (cost to make it x 2) = price company making it sells it to retailer for. retailer's price = their cost x 2. So you're looking at a 4x over cost to make (and that's not just parts, that's covering the cost of all of your salaries/building expenses/etc. So yeah they need to spend more because they're "selling" them online and not just shipping huge batches to select locations, but I'm sure the margins are there. Stuff is ridiculously cheap to make these days (especially in China) there's a reason the rich get richer (but that's another story)

    TLDR there should be plenty of profit on these bikes or they're not making them right. I can't image the $200 bikes would have as much profit (though they have the QTY)

    EDIT:

    2 little tidbits/thoghts
    1.our company received a lot of pressure from the retailers we sold to to not go and do online sales on our own. So if DB did this they might have damaged contracts or "understandings" they had with retailers they sold to
    2. Bigger high-end companies (like Giant, GT, or Cannondale) might have pressured their distributors to drop DB since they're getting popular in the high-mid end markets now

    *slides tinfoil hat sitting on desk out of frame*
    Scenario 1 seems likely to me. When the manufacturer offers their product at a deep discount it makes it hard to compete as a retailer.

  5. #5
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    ^^^ Scenario 1 seems like the name of a Diamondback

    My bet is they stay online, trying to find a niche a little lower price and higher volume than the brands like Canyon or YT, but above BD.

  6. #6
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    the fact that they have lots of layoff doesn't bode well.. without the retail big customers db won't be able to maintain the volumes to get deep discounts from their part suppliers. that means they have less room to play the low price point game.

    i like the fact that db has a whole range of bikes, not just mid-high to high end like yt-industries

    we'll see how it plays out by the end of 2018

  7. #7
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    ANA releases new omnichannel program for IBDs | Bicycle Retailer and Industry News
    Looks like the direct sales thing is biting DB in the a$$, and their "ready ride" master plan has flopped. Looking at all the headaches most recent purchasers of DB bikes have gone through, it doesn't surprise me at all. They are all but begging LBS's to be an avenue for their online sales. Who would've thought that shipping bikes to people with no mechanical skills whatsoever wasn't going to turn out rosy?

    The upside is, maybe we'll finally have a LBS that won't turn their nose up at us when (not if) we have warranty work to be done.
    I would advise not taking my advice.

  8. #8
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    Quote Originally Posted by watermonkey View Post
    ANA releases new omnichannel program for IBDs | Bicycle Retailer and Industry News
    Looks like the direct sales thing is biting DB in the a$$, and their "ready ride" master plan has flopped. Looking at all the headaches most recent purchasers of DB bikes have gone through, it doesn't surprise me at all. They are all but begging LBS's to be an avenue for their online sales. Who would've thought that shipping bikes to people with no mechanical skills whatsoever wasn't going to turn out rosy?

    The upside is, maybe we'll finally have a LBS that won't turn their nose up at us when (not if) we have warranty work to be done.
    I don't think it is the Direct to Consumer model that is failing Diamondback. Seems to be working for a lot of other bike companies and they are sending their bikes to the same kind of people, mechanical skills or not. Diamondback's problem is that they can design and engineer the best bike but when they cut corners on their end of the assembly, it really pulls down the quality of the overall product and causes the issues we see. I really enjoy riding mine, but it is sad to see the lack of detail in assembly. Top of the list for me was the metal shavings in the headset from when they trimmed the steerer tube. Almost all of the major issues we see here could be alleviated with better assembly on their end. But guess that is what we get at the price point they are at.

    Not sure if it plays into things, but both of the Diamondback reps that I have dealt with both had very negative perspectives of the community (namely this forum). Don't know what is going on there, but not being connected and receptive to the community is very toxic for the brand. How do they expect to improve their product line, grow in popularity, and sell more high-end bikes?

    TLDR; Direct to Consumer can work, but all pieces of the puzzle have to be in place. Can't skimp on key steps of getting the product to the customer.

  9. #9
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    Accell North America acquires Beeline Bikes

    Not sure if this deserve it own thread.I own A few Raleigh's and one DB mountain bike I bought from Nashbar.

    Some interesting comments by
    Larry Pizzi. Do not know much about the bike business,but it seems they had A big fall out with many IBD the last few years with their direct to customers sales at some very good prices.



    Accell North America has acquired Beeline Bikes, the mobile service franchiser. ANA has been an investor in the company for several years.
    Our objective is to cover all the major metro markets in the U.S. and Canada



    Accell North America acquires Beeline Bikes | Bicycle Retailer and Industry News

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