FOUNTAIN VALLEY, Calif. (BRAIN) — Pedego, the e-bike brand with over 100 licensed U.S. stores in operation, is testing a program to sell its bikes to independent retailers through a “store-within-a-store” program.
The program requires no licensing fees and includes mutual exclusivity: Pedego bikes are the only electric bikes the store can carry and the store will be given an exclusive territory in areas where there are no Pedego stores. The one-year agreement also includes interest free floor-planning, allowing retailers to keep bikes on the floor and pay for them as they sell.
“There’s no buy-in program,” said company founder and CEO Don DiCostanzo. “We think we should take the risk in inventory, not the dealer.”
Most current Pedego store owners come from outside the bike industry, and DiCostanzo said a few years ago he gave up trying to sell to IBDs.
“We went to Interbike for several years and it never paid off,” he told BRAIN. “Now we’re finding that more and more retailers are getting interested in the e-bike business and realizing there’s an opportunity here.”
Besides the licensed Pedego stores, the company currently sells through a small handful of IBDs, including Straight River Sports in Minnesota and Mr. B’s Bicycle in …read more