BDA responds to Cyclescheme’s reduction in retailer commission rates

The Bicycle Dealers Association (BDA) has responded to Cyclescheme’s recent announcement of a reduction in retailer commission rates.

Effective from yesterday on any unredeemed e-certificate, Cyclescheme commission has been reduced to 8.33%, excluding VAT, for all bikes, accessories and helmets. From the beginning of November, a commission cap will be introduced on Cyclescheme e-certificates above £3,000 RRP, meaning 0% commission will be paid above this cap.

Cyclescheme has recently been working in partnership with bike brands and retailers to review its commission rates, including Giant, Raleigh, Trek and Specialized, impartially facilitated by the BA.

However, the BDA said it does not believe that bike shops were “adequately represented” in the negotiation of the new commission structure. “Meetings with bike brands and the BA have not included representation from bike shops that have been paying for the scheme,” said a statement, “And it appears will continue to do so. There is no acknowledgement of the fundamental flaws in the current Cycle to Work operation, including the hard to justify end of agreement costs for consumers.”

It continued: “BDA is committed to working with all parties to achieve a fairer and more sustainable model for all stakeholders – UK taxpayers, consumers, bicycle retailers, Cycle to Work providers and the UK bicycle industry. The current financial burden, on the shoulders of the UK taxpayer and bike shops, cannot be what the UK Government intended at the inception of the scheme?

“We suggest a more balanced scheme where retailers, manufacturers and the UK cycle industry share the financial burden, based on reduced or capped fees, that benefits from structured Government oversight. We would further suggest that a proportion of the fees contributes to cycling advocacy and sustainable initiatives.”

Read the September issue of BikeBiz below: