Crazy Accident

Mike Jacoubowsky wrote:

Nate: There's more profit to be made if the shop sells a bike to a
*different* customer than twice to the same one. The guy who had the bike
destroyed isn't going to be coming back in for all manner of accessories etc
twice as much, just because he had to buy a second bike. And the shop
selling the bike "twice" as you believe... they still have to pay to have it
assembled, carrying costs (finance charges), freight, etc etc. And if it was
a desirable bike that's tough for them to get, they might lose a sale to
somebody else who comes in. Ultimately, it comes down to what the shop does
with its money. There's only so much of it to go around; money spent on
inventory can't be used for something else. Missed opportunity costs, as
they teach in economics.

And finally, given that this isn't the shop's fault or the customer's, why
in the world would you want the person responsible for such an accident to
get a break at someone else's expense? This will hopefully be a matter for
an insurance company, and that insurance company darned well better be
willing to pay up pronto, and in-full.

The bike shop's responsibility in this case is to help coordinate things
with the insurance company to get the guy back on a bike as quickly as
possible. And I imagine they will.

I guess I should know that. The owner of my favorite shop use too help
people out when **** like this happened, and he went out of business 10
years back. Just sucks.

-Nate

Bad Idea wrote:
Fault and insurance have nothing to do with anything. All for-profit
businesses are just cash piles for the public to dip into at their
convience.

It is a matter of providing the greatest pleasure for the greatest
number of people. I, for one, would love to see a bike shop owner torn
apart by a pack of rabid suicidal squirrels. I am sure that many would
agree. So, let's get to it!

-Mike

In article .com,
says...
Friend of a friend bought a ~$2000 Specialized bike at a bike shop. He
walks out to his car (the Audi in the pictures) turns around to see a
car jump the curb at high speed (flying at him about waist level -- no
joke). He drops the bike and dives for cover. The car (The Chevy) hits
his bike and barrels into his car. This all happens in the bike shop
parking lot ~20ft from the front door.

As long as the driver was insured and didn't do it on purpose, his
insurance should cover everything. (If he did it on purpose, his
insurance most likely excludes coverage for intentional acts. Then
your friend's insurance would cover the damage and go after the
driver in subrogation.)

Bike shop said, "You bought the bike and walked out the door, not our
problem."

Any thoughts? Sure, it's not the shops fault, but I thought the shop
should help out a little - at least give him a new bike at cost. From
what I hear we have yet to see what the insurance will do.

The driver's insurance should pay the full cost of replacing the
bike, no reason the shop should have to cut a lower price on it.

--
is Joshua Putnam
http://www.phred.org/~josh/
Books for Bicycle Mechanics and Tinkerers:
http://www.phred.org/~josh/bike/bikebooks.html

none wrote:
... I, for one, would love to see a bike shop owner torn
apart by a pack of rabid suicidal squirrels. I am sure
that many would agree. So, let's get to it!

-Mike


Many do agree, not me. The headlines document the results of your
fellow "rabid suicidal squirrels" actions (Jordan). You should emulate
them in an open field far from humans and valuable property.

On 11 Nov 2005 14:39:35 -0800 in rec.bicycles.tech, "Llatikcuf"
wrote:

Any thoughts? Sure, it's not the shops fault, but I thought the shop
should help out a little - at least give him a new bike at cost. From
what I hear we have yet to see what the insurance will do.

are you kidding? IT WAS THE DRIVER'S FAULT. the shop had
nothing to do with it. he needs to go after the driver's
insurance company.

Llatikcuf wrote:
Friend of a friend bought a ~$2000 Specialized bike at a bike shop. He
walks out to his car (the Audi in the pictures) turns around to see a
car jump the curb at high speed (flying at him about waist level -- no
joke). He drops the bike and dives for cover. The car (The Chevy) hits
his bike and barrels into his car. This all happens in the bike shop
parking lot ~20ft from the front door.

http://www.bicyclecenter.com/accident/

Bike shop said, "You bought the bike and walked out the door, not our
problem."

Any thoughts? Sure, it's not the shops fault, but I thought the shop
should help out a little - at least give him a new bike at cost. From
what I hear we have yet to see what the insurance will do.

-Nate

I don't think the bike shop has any obligation at all. This is a job
for insurance companys. The bike shop works at low enough margins as it
is...

Llatikcuf wrote:
Why on earth should the shop pay for some idiot's actions.......

I suggested the shop help him out and give him the same bike AT THEIR
COST! The shop pays/loses nothing.

-Nate

Ahhh, the ignorance of the customer. Any time the shop sells anything
for less than the recognized price margin to keep the lights on, they
lose money...Selling at cost means they lose money.

Llatikcuf wrote:
Clarification to previous post:

I am not suggesting the shop give him a new bike at the cost of the
shop, that is ridicules. I am suggesting that the shop offer him a
replacement discounted to the shops cost. The shop made the profit for
their sale, why should he pay it twice? Is this such a crazy idea?

Because they lose the margin that they could have had by selling to
another 'customer'.

I've
seen shops offer a crash replacement program, what's the difference?

Because these are supported financially by the manufacturer.


I guess if the insurance is pays it does not make much difference
though.

-Nate

"Qui si parla Campagnolo" wrote:

I don't think the bike shop has any obligation at all. This is a job
for insurance companys. The bike shop works at low enough margins as it
is...

Exactly. As about a hundred others have said, the bike shop has no
obligation to make it easier on the insurance company. Maybe they can
throw in a nice pair of shoes or shorts as a "thank you" when the
customer picks up the new bike.

Or maybe body armor would be more appropriate for someone with the
customer's luck...

Mark Hickey
Habanero Cycles
http://www.habcycles.com
Home of the $795 ti frame

Qui si parla Campagnolo wrote:
Llatikcuf wrote:
Clarification to previous post:

I am not suggesting the shop give him a new bike at the cost of the
shop, that is ridicules. I am suggesting that the shop offer him a
replacement discounted to the shops cost. The shop made the profit for
their sale, why should he pay it twice? Is this such a crazy idea?

Because they lose the margin that they could have had by selling to
another 'customer'.


I'm surprised that no one, especially the numerous shop owners who've
contributed to this thread, have mentioned the potentially greater
profit inherent in creating an incredibly loyal customer.

No one's suggesting that the shop sell the bike for their invoice
price. Shop cost includes things like assembly.

For the sake of argument, let's assume a similar scenario but one where
there's no potential insurance payment involved. Factor in a
reasonable $$ amount to cover the overhead, sell the bike to the poor
guy at a reasonable price and create tremendous goodwill and
word-of-mouth advertising.

It's so much easier to keep a customer than to get one, so why lose one
who may have (make that 'most likely would have') brought you others?