Accell Presents Dealer Focused Omni-Channel Set-Up in US
KENT, USA – Accell North America has presented a new omni-channel distribution set-up which is offering dealers various options in the fulfilment of online orders. This is reported by US trade journal ‘Bicycle Retailer’. The new set-up is based on creating equal pricing in all distribution channels for eliminating dealers concerns on high discounts advertised by webshops.
In order to tackle disruptions caused by high discounts advertised by webshops, Accell North America is changing its price policy from Manufacturer’s Suggested Retail Pricing (MSRP) to Minimum Advertised Pricing (MAP).
Equal ‘advertised’ pricing
Minimum Advertised Pricing is the lowest price a retailer and/or webshop can advertise the product for sale. Not the lowest price they can sell it in their store, but the lowest they can show in print and/or online in an advertisement. It means that a bike MAP priced by for instance Accell at USD 999 distributors like dealers and webshops are not allowed to advertise it (on or off line) for sale lower than USD 999. US antitrust statutes regard this legal as Minimum Advertised Pricing only relates to ‘advertised’ pricing and does not tell a retailer what they can sell it for in their store. It also offers protection for manufacturers in particular as ‘advertised’ highly discounted prices brings brand erosion. To enforce equal MAP prices in all distribution channels Accell makes use of a third-party price monitoring service named Oris.
According to the report by Bicycle Retailer Accell North America’s new omni-channel program offers dealers three options. The first and most basic one is targeted to non-stocking IBDs that agree to assemble a bike sold online by Accell for an assembly fee of USD 80 and a 3 to 7% margin on the retail sale price.
Second option is for dealers that want to stock a minimum amount of bikes from Accell North America on their shop floors worth about USD 5,000. These dealers are offered a 25% margin for fulfilling an online bike order.
The third option Accell is offering North America IBDs is the opportunity to buy a Beeline mobile service franchise. Beeline is partly owned by Accell through a significant but minority shareholding. According to Accell the combination of a mobile and brick-and-mortar business is stronger than either on its own.
The HQ of Accell Group based in the Netherlands adds to the report that this omni-channel business model is specifically targeting the North American markets and is not suited for the European markets which are much more dealer orientated.
Omni-channel related reports.