SIBEX Sports (SIBEX stands for Siberian Express) operates three price levels: wholesale, pro-deal and retail.
"The basic idea is that we protect our buyers at the shop. We sell to them at a great price so that they can beat our retail price," said Scott Mares, president of SIBEX Sports.
"We will not sell a product that they can not match or beat our price. Also we, will only ship frames to bike shops. The reason is that the consumer will need the frame built up or prepped and the shop will make its margin on the build."
The Pro deal is for club purchases and IBDs have to order a set number of frames to become a reseller.
"The advantage is that [IBDs] don’t have to buy inventory and they will make the difference between their cost and the pro deal. We want everyone to benefit in the relationship."
Why couldn’t IBDs go to Chinese suppliers of ti kit and cut out the middleman?
"They could go to a ti supplier. They don’t have the time."