The Association of Cycle Traders has contacted CycleScheme on behalf of independent bike shops, calling on the Cycle to Work facilitator to reconsider the recently announced commission rise, industry sources have confirmed to CyclingIndustry.News.
In the wake of what will largely be seen as a strategic move by Halfords to gain ground on cycle to work trade, independent dealers are increasingly frustrated by the difficulties they now face in earning a decent margin on vouchers. Many are now questioning whether the acquisition grants Halfords access to previously unavailable big name brands who may be unable to refuse the business generated via Wheelies and Tredz.
Our source said: “Cyclescheme has been sent a written request from the ACT, on behalf of its members, asking for reconsideration of the rise at a time when dealers could do without the extra squeeze.”
Dealers have until July 10th to sign a new agreement with Cyclescheme. The rise applies to parts and accessory sales, which will now be subject to a 12.5% (15% with VAT) as opposed to a 8.33% charge. Many of those CyclingIndustry.News has thus far spoken to are seeking justification for the rise before putting pen to paper.
At the time of the announcement, Commercial Director Stephen Holt said dealers would benefit from renewed investment in driving their business
“We are always looking at ways to improve Cyclescheme – our next initiative will be an online learning tool to enable retailers and their employees to better understand everything about our offer to grow sales with their customers,” said Holt at the start of May.