Cyclescheme reduces commission to 8.33% exc VAT, 0% above first £3,000

Cyclescheme has today announced that it will reduce its commission taken down to 8.33% excluding VAT on all bikes, accessories and helmets.

With the cap of £1,000 now a thing of the past, Cyclescheme will likewise now take no commission after that taken on bike sales north of £3,000. This change will take place from November 1st.

It is unlikely many commuter sales would fall north of this bracket with the bulk of cycle to work scheme sales falling below £1,000 all in.

The statement came this afternoon in tandem with the news that the Bicycle Association has been acting as an mediator in conversations between Cyclescheme and four industry brands that have taken the retailer’s corner, advocating for lowered commissions in order to help retailers with margin retention.

The Cyclescheme statement in full reads: “We are pleased to announce a reduction in Cyclescheme retailer commission rates.

“At Cyclescheme, we recognise the challenges The Bike Shop has faced over the past 12 months, such as the removal of the £1,000 limit and unprecedented stock issues following UK lockdown. We have never had the intention of adding to these.

“In response to these challenges and your feedback, over several months Cyclescheme has been working in partnership with bike brands and retailers to review our commission rates. This includes Giant, Raleigh, Trek and Specialized, impartially facilitated by the Bicycle Association. The discussions have focussed on how to build trust and support for the scheme, and how fairly reflect the value and costs in the commission structure.

“As part of our ongoing commitment to unify our network and ensure value for all, Cyclescheme is going back to its roots. We were born in a bike shop and remain passionate supporters of the high street and independent businesses. As such, we’re pleased to announce a new commission structure.”

In CyclingIndustry.News annual report 46% of bike shops reported that they had handled less cycle to work scheme trade year-on-year, while 31% said the volume had increased.

CI.N is soon to launch its 2021 study of the retail market and welcomes sponsorship enquiries here.

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