Team Deals, Worthless for Shops...

If you work in the Bicycle Industry, or have been a part of one of the many cycling clubs around the country, you're probably familiar with "Team Deals" and how they work.

Right now it just happens to be that time of the year... Interbike is just around the corner, the 2010 season is basically over, new product is coming out, and most local amateur teams are getting ready to plan for next year. That means securing sponsors, riders looking to make a move, and lining up a shop/bike sponsor.

If you don't know what I'm talking about, it's unlike any other amateur sport out there, and I don't mean that in a good way. Unless average weekend warriors (cat 5, 4, 3's) thinking they're pros is somehow good.

Anyway, depending on where you live and the size of the racing community, bike shops compete against each other in order to "partner" with clubs as a sponsor. To put it more simply, a shop will offer bikes (or frames), components, accessories, etc. at significant discounts during team buy-in periods. While these team buy-ins are approved by the individual companies (ie Cannondale Bikes) and are great for team members, usually the only benefit a shop or company gets out of it is a name on a jersey/bibs... I know what you're thinking, so what?

So why is it that a bunch of average riders (in the grand scheme of things), think they're entitled to get "pro deals"? Even if you're a Cat 1 or 2 locally doesn't mean much. If you were a good rider you'd be racing alongside Guy East and if you were really good, you'd be Chad Beyer.

Who's fault is this though? If you ride a bike and belong to a cycling club, why wouldn't you want to get a smoking deal on a bike you'd otherwise be paying a lot more for? If I wasn't able to take advantage of industry discounts I certainly would want to take advantage of team buy-ins. It's simple: product A costs $100 which you can buy for $50 if you belong to Club/Team X. Ok, so I get why the riders and clubs push for this.

What about the bike shops/brands? What's in it for them? If I own a bike shop, and sell bikes near my wholesale price, how is that of benefit to me? "Well", says the club President, "there's a lot of people riding the bike that you sell and your name is on the side of our Club/Team X's jersey!". You mean to tell me that a bike that otherwise I could have made an extra $X, I can sell for less and you get to wear a jersey with my name on it? Is that supposed to be a good thing??? Who goes to the races by the way? Is it not a bunch of other racers that belong to a team and get "team deals" as well? How does this marketing strategy work then?

The point of all this is not to blame it on the consumer. Until brands such as Cannondale, BH, Colnago, X, Y, Z, etc. and bike shops don't quit doing this, the whole industry is going to continue to work this way. These consumers aren't dumb, they know they get to use a bike/frame for a season and then flip it on Craigslist or eBay to make their money back. The problem is, this floods the market! So when companies complain that you're not ordering as much as you used to... just let them know, they've made their bed, now they've got to lie in it.