Saturday, August 14, 2010

Explanation of prices and Cyclescheme.

I need to try and explain about the cycle to work scheme as an umbrella term and Cyclescheme as the largest of the moneymaking middlemen and my pricing!

The cycle to work scheme itself can be run by anyone and everyone.Many small companies in Cambridge operate it themselves.This means they send a cheque to me for the amount of the bike and equipment.Simple, straight forward .

Cyclescheme is a moneymaking middleman.They make their profit by taking 10% of everything the shop sell to you.So if I sell you a bike for £750 I will loose £75 to Cyclescheme.They are one of the fastest growing and most profitable businesses in the country.

When I offer bikes at fantastic prices (which as you realize I always try to do) it is not possible to take the extra 10% hit if you purchase your bike on Cyclescheme. You need to take my special offer price and divide by 0.9 .

Obviously if I sell a bike at retail price I happily take the 10% hit myself !!

I hope this clears up an issue which for many of you seems confusing.