BikeBiz Bicycle and cycling retail news
Velocite distributor Red Cloud is to reveal a new distribution strategy at The Bike Place Show.
The new scheme will see Velocite distributing direct to consumer, but unlike many other direct sell brands, Velocite are seeking retailers to partner with and earn commission revenue with little or no stock investment required.
With reduced retail prices to the consumer, the scheme has been designed to offer retailers the option of selling the brand on a level price point to many of the existing online only brands. Each sale will earn a percentage and all partners will receive marketing support and 24/7 account management by the Red Cloud team.
In addition to the commission schemes for sales, the brand is seeking service partners to carry out free to consumer first services with each partner paid by Red Cloud for their time.
Red Cloud MD, Mark Almond said: “Consumers are becoming more and more price driven, even for premium performance products like Velocite, whilst retailers are also getting squeezed by online competition and consumer demand.
“This scheme offers consumers online pricing with IBD contact and customer service levels. It also allows them to test ride the bikes before buying” he explains
Test Centres will feature in Velocite advertising.
Retailers will have three levels of involvement to choose from. These being:
Tier 1: Velocite Service Partner. This will be the normal free 1st service check that most retailers are already accustomed to and Red Cloud will pay for each service with the consumer directed to their nearest partner to have the work carried out. Thereby generating additional workshop business for the retailer.
Tier 2: Velocite Retail Partner. This will include the 1st service provision as above with commission also being earned on all sales achieved via the retailer. Velocite will encourage the partner to advertise the brand on their own websites and in store and to treat it very much as one of their stocked brands. At this level, a small stock investment of Velocite components and/or wheels would be required with full dealer margins available on these products.
Tier 3: Velocite Test Centre. This would include everything mentioned above with the added requirement of demos to be bought by the shop at preferred trade pricing points. Commission levels for each sale would be higher than those for a Retail Partner.
There is also an option to arrange bike fittings at partner stores for those retailers who offer this service.
Velocite is to launch a new website in March and the commission scheme will begin as soon as February.
To register for the Bike Place Show, click here.
Red Cloud: 01938 810873.
