Cycle to work schemes: Which return the bike dealer the best value?

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In recent months new entrants to the cycle to work arena have brought forward fresh propositions for the bicycle dealer. CyclingIndustry.News catches up with some new and old faces on the scene to compare and contrast the services now on offer…

Rob Howes, The Green Commute Initiative rob howles

What percentage does Green Commute take on a sale?
The Green Commute charges just 5% reseller commission.

What’s the spend ceiling for the end-user?
There is no upper limit. As a result thus far 80% of our
trade has been electric bike sales.

Which businesses or authorities are your larger contracts?
Heathrow Airport and the City of London would probably be the key contracts. However, we have new employers signing up daily.

How quickly can the bike dealer generally receive their money?
It’s a same day service, unless there is some sort of special arrangement of which the reseller will be aware.

What promotional work do you undertake for your scheme?
Social media, direct marketing and we’re working with local authorities to target employers. In mid-June we’re launching a really powerful reseller direct sales product.

How can a dealer begin working with you?
Just drop us an e-mail and we’ll send all the information needed to get started.

Other than the aforementioned points, why should a dealer ultimately choose the Green Commute Initiative?
We’re the best value scheme for bike shops and give them much higher average order values. We don’t have the end of scheme 7% sting, so employees are happier and want to handle repeat business via the scheme. Furthermore, employers love us because everything’s electronic so they have no administration. We’re also authorised and regulated by the Financial Conduct Authority.

Adrian Warren, Cyclescheme adrian warren

What percentage does Cyclescheme take on a sale?
We do not discuss contractual information publicly, but we are happy to confirm that we can offer market leading rates.

What’s the spend ceiling for the end-user?
Cyclescheme clients tend to have £1,000 limits, this is unless they have FCA authorisation in which case the limit can be set at any level the employer wishes.

As part-founders of the Cycle to Work Alliance, Cyclescheme contributes significantly to lobbying exercises in Whitehall with policy makers and Government. With this our aim is to widen the scheme’s reach and ensure all workers can access bikes for work at appropriate limits.

Which businesses or authorities are your larger contracts?
As the largest cycle to work provider we reach over a third of the working population in the UK and our client list includes most of the UK’s biggest businesses. Over 45,000 employers have signed up to Cyclescheme

How quickly can the bike dealer generally receive their money?
We pay retailers the same day redemptions are made and handle all the administration on behalf of retailers.

What promotional work do you undertake for your scheme?
We’ve quite an extensive list of promotion, including weekly, monthly, seasonal and annual campaigns which include offers, competitions and opportunities to engage with cycling.

Our social media audiences reach in excess of 160,000 users which we engage with daily. Add to that digital newsletters, standalone offers and localised event mailers and we’re hitting some large figures.

When it comes to physical events we coordinate and execute approximately 600 employer events annually. Bolstering those appearances with consumer show visits, we attend the Cycle Show, The London Bike Show and The Employee Benefits Show, to name a few.

Finally, we also coordinate and deliver the UK’s leading cycle commuter campaign in Cycle to Work Day. 2016’s achievements included 675,622 miles ridden, 1,029 employers signed up and 1,047 retailers signed up. BBC TV and Radio, ITV and Channel 5 gave the event coverage. We think the event totaled 168 items of coverage, as well as Twitter trending at top spot for the UK.

How can a dealer begin working with you?
Dealers can simply email us via retail@cyclescheme.co.uk and we’ll be in touch.

Other than the aforementioned points, why should a dealer ultimately choose the Cyclescheme?
Cyclescheme has 11 years’ experience within UK benefits and we are the most credible and authoritative business in this space. Our speciality is in employee benefits, not selling bikes, this means we generate the highest footfall and levels of spend for retailers, not our own shop floor.

Cyclescheme has the breadth of choice the modern consumers demands, offering any bike, any brand and via any channel.

Finally, it’s worth mentioning that Cyclescheme invests in the sector. We’re founder members of the Cycle to Work Alliance, we launched Cycle to Work Day and we support British Cycling (including Breeze and #ChooseCycling), Sustrans, Cycling UK and the LCC and many other advocacy organisations.

Eric Craig, CEO at Free2Cycle free2cycle

What percentage does Free2Cycle take on a sale?
A retailer will earn the majority of what they do with a regular sale. Furthermore, we will be encouraging additional sales with servicing and reward vouchers, all while improving customer loyalty. The combination of upfront margin and ongoing income funded by Free2Cycle should exceed most shop’s current earnings and profits.

What’s the spend ceiling for the end-user?
The Free2Cycle offering has a funding ceiling of £1,750. This is funded by pedal power alone, but customers will be free to make an optional contribution lifting this to £2,750. These figures will be reviewed on an ongoing basis.

Which businesses or authorities are your larger contracts?
Due to confidentiality agreements we are unable to share these details at present.

How quickly can the bike dealer generally receive their money?
An efficient supply chain is key, so both parties will be paid within a week of bike handover.

What promotional work do you undertake for your scheme?
The customer focused campaign will be launched this summer and we’ll be sharing further details in due course.

How can a dealer begin working with you?
Dealer registration is a simple online, no cost process. We have already received a substantial number of requests.

Other than the aforementioned points, why should a dealer ultimately choose the Free2Cycle?
Up until now, the UK cycling market has been fiercely competing for a slice of the action of around 3% of the regular use or commute market. We plan to open up a far larger market of latent demand which currently remains untapped. Free2Cycle hopes to unlock this potential for the benefit of cycle industry suppliers, retailers and related service providers alike.

(It is worth noting that some dealers choose to entirely forego a partner and have created their own schemes. If time, resource and know how is on your side this may prove the most profitable option for the long-term.)