RIP Agoura Cycles...

[Bluetree]

I am friendly with the owners of four local LBSs, and I can see the predicament that they're in. Campagnolo, for instance, forces LBSs to maintain a strict pricing structure, lest they be threatened with "removal" from their vendor list. I saw the price lists – even the official cover page forbids the bike shop owners from discussing "other shop prices."

For high-end boutiques – whose clientele is 50%+ Campagnolo – it's a no win situation. European companies are not bound by the laws of forced pricing, enabling them to be more competitive, and in many cases, crushing their North American counterparts.

Take PBK, for example. I bought a bunch of Campy Record chains for $34 (no tax, free shipping). In comparison, my LBS's wholesale cost is $50. Their suggested retail price is $90. It's not fair. And while I try to throw them a bone once in a while (my bikes are serviced more often than need be, admittedly), the savings difference is too extreme to stay domestic.

As much as people harp on a company like Specialized for being heavy handed towards their vendors, their ban on selling the bikes online has saved many an LBS. You are pretty much forced to buy through a dealer, and those Specialized Concept Stores are better off than a lot of independents, who see their online competitors undercut them on almost everything.



P.S. I'm sad to see Agoura Cycles go, but a former employee told me they were hundreds of thousands of dollars in debt to Giant. Bicycles John's, another reputable bike store and a big club/team supporter, is supposedly taking over the place.