Some straight talk about prices from Criterium’s CFO
April 17th, 2009 - NewsMany customers are hoping for some extraordinary deals on bikes because of the economic slump. In fact, the suppliers cut supplies back hard in January of 2009, and we are seeing shortages of key models. At the same time, the cost of re-orders has risen steadily for the second year in a row. Our dollars are worth less, so prices will go up on the most desireable products. In general, prices go up in challenging economic times.
A big clue came in the summer of 2008, when we received big price increases on tires and tubes. We have worked to find better deals, without sacrificing the quality of the products. We now have bulk tubes (no packaging), a $3 discount for buying 3 tubes, and a 10% off deal for two tires. The tire and tube price increases were caused by increased cost of raw materials, as well as big freight increases. Criterium buys in quantity to reduce freight costs, and we have passed all of this savings on to consumers. Whenever possible, we purchase at discount to hold back the price increases caused by the reduced value of the American dollar.
In general, the best value to the consumer will be on the merchandise that we have in stock today. We will continue to apply mark-downs as we sell through current models. We will always have sale items throughout the season. We buy samples from sales reps, sell off our rental bikes, and look for real bargains for customers. The best way to stretch your purchasing power is to stop in once and month or so, and see what has changed. If you are certain about the bicycle that you want, put it in a no-interest layaway account with us, instead of waiting for a sale. This applies doubly if you need a men’s large, or a women’s medium frame size.
We have ramped up our service department to fast turn-around on repairs this year. If you choose to repair a bike instead of replacing it, we will work to make certain that the repairs are cost-effective for you. Your investment in repairs helps to pay for real American jobs right here in Colorado Springs.
As always, our commitment is to provide the best value for the money. Best Value is different target than Lowest Price. Our time frame is longer than the next-quarter focus of many corporations. We want you to be a satisfied customer for life.
