MEC's new bike line: happy customers, angry bike shops

Whie, whine, whine.... sigh

Shame on you, Pete Lilly. You don't even bother to cover up your reasons for complaining about MEC. Their only wrongdoing is selling good bikes at reasonable prices and thus taking away some of your business. Well, this is not wrong. This is called free market competition. Get used to it.

There is nothing sacred about a "mom and pop" store. If it provides better prices or better selection or better service or community spirit or whatever- something that people actually need and want and that bigger places lack - it will have its share of the market. But if it is inferior on every count but claim that that the "mom-and-pop" status alone is enough to justify its existence and to guarantee prosperity, then it deserves to go bankrupt.

I think the reason bike shops are concerned is precisely because MEC is NOT behaving like Wal-Mart by offering the better bikes more serious cyclists are interested in. In Canada, at least up until now, a LBS was the only way to go if you wanted a better bike.

I've browsed MECs offering online, and they seem like a pretty well spec'd line of good bikes. If I owned a bike shop I wouldn't be pleased either, but comparing a Co-op like MEC to Wal-Mart is like comparing a Commune to the Army.

I've always liked MEC. I have been a member for a very long time. Rarely do I have encounter ANYTHING there that isn't of good quality and a reasonable price.

I was disappointing when a few years ago Park Tool stopped selling to MEC. It was the best source of a great bike tool line. The tools that replaced them, though much cheaper are of a lower quality. Why did Park Tool stop selling to MEC? The bike stores complained that they couldn't sell Park Tools because they'd be making no money off of them. The prices of these tools at local bike shops is insane! In fact, I have confirmed that the price of some tools online in the USA is lower than the cost from the Canadian Distributor for those tools. That's after shipping and exchange. It's literally cheaper in some cases for a store to buy the tool retail online in the US then from the distributor here in Canada.

And there is the big problem. It's not MEC who should have the ire of the local bike shops, it's the distributors. Companies like Lambert (http://www.cycleslambert.com), who have an exclusive stranglehold on a lot of what bike stores need to carry. These companies jack up the price for Canadians making it very difficult for stores to compete. I can get things online in the US for half the price of what I can get at a local shop. And yes, that is after shipping, duty and exchange. I can understand paying a premium to support a local shop, and would like to. But twice the price is too much.

I recently emailed Race Face, the Canadian parts manufacturer referenced in that article from the globe. They actually directed me to two US based online retailers to buy the product I was unable to order from the 10 or so shops I tried in the GTA. How screwed up is the biking industry in Canada that I have to buy a Canadian product in the US?

I just bought my wife a bike, and I wish we'd known that MEC carried bikes. We would have got something better than the CRAP they sell at Walmart, without paying $800+ for a decent bike, maybe.

There's a reason the local bike stores don't like this news. Because it's FABULOUS news for those of us who want to buy a non-crap bike. Now we don't have to pay the 100% markups the local bike-stores impose, and we have another choice of places to buy our bikes from.

Okay maybe it's only an 80% markup. But still.

W

The small indepandant cycle shops that carry big brand bikes can't compete with MEC on such a narrow margin of retail mark up, and thus their existence may be placed in serious jeopardy.

It is in fact, similar to the Wal-Mart effect.

I've been a member of MEC for 20 years, and have bought tons of stuff from them. Back in the 90s, they had (in my opinion) the best combination of service hours, return/exchange policy, selection, and pricing for bike accessories, including for stuff like the MEC produced panniers that were unavailable anywhere else. Other places may have had better selection for some stuff, but for somebody who just wanted to keep an older bike on the road, it was provided a hassle-free experience to get that stuff at pretty good cost. I loved the catalog including pricing, and a phone number you could call to check they had stuff in stock (which was hit and miss, and continues to be so).

Back then I wished that they would sell a couple of bikes (specifically at least the type of bike I wanted at the time). I figured that the prices on a couple of quality bikes would also be excellent, and the hassle-free purchasing experience would be good.

Anyway, I've been becoming more disappointed with MEC since then. Selection on stuff that interests me is not getting any better (mourning Kryptonite and Park), and prices seem to have gone up faster than inflation. They also always seem to be out of stock on some stuff. I'll still go there for some bike stuff, but local shops have plenty of opportunity to keep much of my bike "business".

I'm not too impressed from what I've seen online with regards to the bike lineup. I don't think that independent stores have too much to worry about. Perhaps MECs ethical sourcing, intended "top 25th percentile retail wages" for their large staff, green roofs, donating to the 'environment', and building large airy stores in expensive parts of cities will prevent them from pricing bikes to the point that "mom and pop" shops will really have to worry. I'm not presuming that smaller stores don't treat staff fairly, by the way. I know that some stores also "give back" to the community.

But maybe they do have something to worry about. Lots of people actually seem to ENJOY shopping at MEC. Likely different people than those that like to hang out at bike shops.

For me, my next bike's more likely to be purchased via Craigslist or a specialty retailer than at MEC, but I'm glad to know they are selling bikes.

We are all supposed to support our LBS (local bike store) over MEC, right? Well, why?

Labour Conditions? MEC pays their staff as well or better, has some level of benefits for them, whereas the LBS' have none.

Expertise? I have known more than any staff I have spoken to in most bike stores in Toronto, from my own experience and online, with the exception of a few people at Urbane (not all!), who are encyclopedic.

Fair prices? Not if most of it is going to the distributor (Lambert, et al.) or the silent owner. Also, since MEC staff are not on commission, I have never been up-sold to something I don't need: like a carbon fibre dentist bike for commuting. You want some amusement, go over to Europe Bound and see what high-altitude wonder the know-nothing is going to try to sell you for car-camping.

Curbside and Urbane have unique products, and have little to fear. If an LBS is in fear of MEC, they probably suck.

We pay an one-time membership fee of five bucks since 1971 to buy at MEC. Some people pay an annual fee to buy at Costco hoping to enjoy the low pirce for big volume groceries, not exactly the same but similar mindset. The fact of the matter is, we consumers have a choice.

You probably know Costco can operate only by collecting the annual membership fees plus grinding their suppliers for a rediculous 90-day payable, which is why the products can be kept at a lower than mom and pop shops price . This is why MEC works better then some sub standard LBS. Lambert should know about this but the owner has probably gone out for lunch...

Paul you are RIGHT ON.

Speaking from within the retailer realm, I have to say that the distributors are crippling their own industry, and hurting the LBS and ultimately, the real world cyclist.

Distributors have been playing the game for so long, they have become dinosaurs in the industry. Things are changing, whether they like it or not.

Luckily, I believe their days are numbered. What that means to us local shops, I can't say for sure, but what I do know is that most of us are small enough that we can change with the times - and riders will forever appreciate a friendly local shop. Any "LBS" who are nothing more than a glorified middle man will not last.

What kills me about Lambert (and some other distributors) is this attitude that they can make or break a shop based on whether they agree to sell to them. In the current playing field this is somewhat true - but for people like Lambert, their strength is in the brands they carry - not their own name or service. Nobody is going to choose a shop based on the 3rd party distributor they work with. Nobody puts Lambert on their shop sign, because customers don't care.

We live in a direct-to-consumer world. From the sounds of it, Raceface seems to be willing to sell directly to independent shops as long as they place an order of reasonable size. The more manufacturers that are willing to sell directly to LBS, the better off we all will be (LBS and riders alike).

Regarding MEC, I welcome their continued plunge into cycling - it will mean more cyclists on the road, which is better for all of us - riders and local bike shops!

One thing that bothers me is that I've been reading posts where people have already said they will buy a bike from MEC because of better pricing and better product. I recently compared two styles of bikes, an internal gear commuter and a cyclocross, at different LBS and MEC. In no way did MEC have the better product or pricing on these bikes. I found both their Hold Steady and Cote to be no cheaper than other offerings from Rocky, Brodie, etc. In fact, the Hold Steady was almost $400 more than the Rocky Metropolis. Granted, it had a nicer fork and slightly better brakes, and maybe this matters to some people. The point is that it was absolutely no better in terms of bang for buck, and certainly an upgraded fork is not a requirement for hassle-free commuting. So will MEC sell bikes because they have a better product for less money? Absolutely not! Will they sell bikes because of better service? I have no complaints with the LBS that I use, so I say no to this. Ultimately they will sell bikes because of their buying power and size.

If LBS's want to be angry at someone then they should be angry with the canadian cartel of bicycle distributors and their strong arm tactics and ridiculous price markup. If LBS's want to be more profitable they must become more competitive in a global market place where currency is not static but fluid. To do this they should start to seek direct relationships with bike/parts companies. Then prices might begin to reflect a fair market value and people will be more inclined to support the LBS instead of having to look for other alternatives to being gouged 20 to 30%.

Funny, how little rumours get blown out of proportion. MEC pays taxes and wages - it doesn't pocket all the "cream and honey" profit for itself like a traditional LBS. If excess profit is taken by years end MEC pays out a dividend to members. Can LBS owners find something else to complain about?

cbc article

I am the owner of a bicycle shop. I have complained about MEC. I have gotten really emotional about the entire deal. For me, working with bikes has been an obsession since the mid '80s. I have always taken pride in sharing my passion for bikes and trying to help customers experience all the great things cycling has been for me.
The fear of what MEC would do to my shop was soul destroying. My soul has recovered. My shop continues to grow. My customers continue to travel great distances to shop in my store and we continue to strive for a shop worthy of those customers. The reality is that MEC has a good product at a fair price - certainly not a great price or at a price that makes the bikes in my store harder to sell. The hardest part of this is that MEC's membership is enormous and MEC is a sophisticated, intelligent marketer. After members hear that MEC sells bikes, those members may go directly to MEC and avoid my shop. They won't realize that I have a wider selection of bikes, that my staff are better paid than those at MEC and in return I offer a higher standard of service.
All the LBS guys out there who are complaining should focus their energies inward. An LBS is small, can react quickly and has the opportunity to create one-on-one relationships with customers. We can give back to cycling in the area where we live and make a positive impact more so than MEC. As a small independant business us LBS owners know what bikes work best in our particular area, we can buy from a dozen different suppliers to fit our customers needs. 10% of consumers will buy based solely on price - those same consumers tend to have no appreciation for how they're treated, have toxic attitudes and really suck to deal with. If the perception is that MEC has cheap, quality bikes and they end up attracting that 10% of the consumer base all I can do is feel sorry for the employees at MEC.
After reading many of the posts on this forum, the one thing that I find most concerning is that some people seem to have had consistently bad experiences with bike shops. This is really sad. Those bike shops that have treated customers so poorly are the reason MEC has been able to enter the bike market - so shame on those bad-guy LBS. All LBS are not created equal - some of us truelly care, have piles of experience, give back by building trails/supporting cycling groups and just want to make a decent living while sharing our love or bikes.
Lastly: one thing that doesn't get mentioned anywhere here is that the Canadian Government's protection of a non-existent bike manufacturing trade in Canada plays a role in what is happening. If it weren't for the structure of import duties and tarrifs on bicycles, our bike prices wouldn't seem so high compared to those in the USA and bike shops would not be held hostage by Canadian Distributors. Bike Shops could have access to a broader range of bikes at better prices if the Canadian Government would quit taxing the hell out of bikes produced outside of Canada that haven't been funnelled through Canadian Distributors.

I have lived in Vancouver for more than 35 years and have done business with virtually every Local Bike Store in Vancouver in that time. I have also been an MEC member for about that long. I own 10 bikes and do my all my own work, so (I thought) support from an LBS wasn't so important. I decide where to buy primarily on price/performance and MEC bikes don't especially impress me in that regard - at least they do not undercut the competition as far as I can tell.

But I did buy a cheap folding bike down the street from MEC, and when the frame broke 10 months later, I got no support from the vendor or the offshore manufacturer. The LBS in question refused to give me a new frame, much less a new bike, according to the terms of their warranty. They demanded that I completely strip the broken frame, return it to them and then they would perhaps give me another bare frame that I would have to reassemble myself (presumably they would have been glad to do that reassembly in their shop for the price of a new bike!). I bought another (better) folding bike from another LBS and am happy with it.

I believe that LBS service and even assembly quality of the typical LBS is questionable. I have certainly been disappointed at many shops. On the other hand MEC service has always been outstanding. I would have bought my new bike from them but the folding model they sell is not the one I wanted. I wish they did stock more models and certainly applaud them competing head to head with LBSs. In fact it is overdue.

Adding to my above post, buy where you like the people and the service. I made the mistake of buying one bike at a shop that seemed quite indifferent to my purchase, the sales guy suggested I did something wrong when shifting gears when indeed the shifter was faulty (they exchanged it), and the mechanic started yelling when I asked for a seatpost on a new bike that was not all scratched up. The were also not selling any seats for women. The whole experience was weird. I never went back, not even for the free 1-year service. Since then I have bought at bike stores that have good customer service and good mechanics. If you live in a city there will always be a good bike store that sells the bike brand you like.