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Opinion: BikeBiz editor Daniel Blackham reacts to Cyclescheme’s update to its retailer agreement
Last Week, Cyclescheme announced a major change to its retailer agreement in a move it referred to as “ensuring fairer pricing for customers”.
The change, effective from December 22, will see Cyclescheme ask retailers to commit to a policy of no additional fees and offer full availability as advertised when a customer redeems a certificate.
In a statement, Adrian Warren of BHN Extras, said: “This update to our retailer agreement ensures that Cyclescheme customers are being met with consistent and transparent pricing, reducing confusion for retailers and participants, and aligning with regulatory guidance. With a shared goal between retailers and Cyclescheme to get more people cycling, these changes will create a more positive and fair experience for all participants.”
Unfortunately, I have to disagree with Mr Warren on his final point.
This does not create neither more positive or experience for bike shops.
It’s no secret that the majority of new bikes being sold in the market throughout 2023 are already discounted on the RRP, by anywhere up to 50%.
Once all commission/fees have been paid, the retailer can kiss goodbye to any profit margin before the bike has even entered the workshop for a PDI.
This is neither positive or fair.
Cyclescheme’s update refers to recent FCA regulatory requirements and compliance policies as one of the reasons behind this decision.
According to the FCA’s website, the purpose of the FCA is to ensure that financial markets are “honest, competitive and fair”.
In this case, I believe it aims to protect consumers from bad conduct.
Any retailer that I have personally witnessed charging extra fees to cover their costs has been completely transparent with the customer about why they are doing it.
I believe it’s fair to say that most decent people understand and are happy to cover the uplift to keep a local businesses above water.
In short, this is good conduct.
Is there a quick solution to this? Potentially, but we know the easiest way out is unlikely.
Communication is key when making decisions like this and I personally feel an email update sent to more than 2,600 retailers was the wrong way to go.
Cyclescheme can be traced back to an independent bike shop in Bath.
I would advise it revisit those roots or take the time to reconsider its definition of “positive and fair”.
