I started selling parts online in 1995. The local bike shops didn't appreciate my efforts, and made me feel like an outsider. Many wholesalers refused to sell to online retailers. Thankfully, I found a few that worked with my venture. Overall the market seemed anti-competitive, I didn't understand the dynamic. Regardless I kept doing my own thing. Then in 2006 I purchased a booth at Interbike the biggest bike dealer show in the world ( at the time ). I hired models, brought in staff, and had plenty of bikes. I wanted it to work so I provided 40% margins to dealers...30-35% was standard at that time. Our bikes were retailing for about $300, well below the market average. I only signed up a handful of dealers, so the show was a failure. However one dealers comments stood out. He was very positive and said, 'wow I love your bikes, wow I love your retail prices, wow 40% margins are amazing". I assumed we could sign him up as a dealer. I asked him for his contact information to become a dealer, and he said he didn't want to be a dealer. So I asked, "do you like the bikes?", he said, "they are awesome". Then I asked about prices, he said they were wonderful, and the margins were great too. So why don't you want to become a dealer??? He said no one else was that competitive. Customers might expect the same from other brands, if he brought in our bikes. He could not risk his customers knowing about our efficiency. He refused to help us, just like all the other bike dealers.

Wow....I mean wow. I essentially gave up on dealers right then and there. My industry has been full of price fixing schemes. I will write multiple articles on this topic.