The Brommie's gone

[RobF]

After some soul searching, I decided it was time to sell my Brompton Nano.

Much as I like it, it was only being used for short journeys, and sometimes being used just to condition the battery.

I didn't 'pop it in the boot of the car' as often as I thought I would, and taking the MH7 in the car instead meant I had a better bike for long distance rides when I reached my destination.

So how to sell the Brommie?

I don't do ebay, and thought about putting it on here, but took the even less hassle option of putting it my local bike shop on sale or return.

They are a Brompton dealer, but I thought they might struggle to sell a Nano.

"No," I was told. "Anything with Brompton written on it won't be here long."

The bike sold yesterday - after about four weeks.

So how much do you reckon?

It was a 2009 six speed with a 2012 conversion, 10ah battery, all documents, all in excellent condition, total cost £1,850.

I got just under £1,000 for it.

Fair to good, I think.

I'm not out to rip anyone, so hopefully the buyer is also satisfied.

I understand the bike has been bought by a lightweight woman for a fair weather four mile each way commute, and slightly longer leisure rides with husband.

It should do that no bother.

The bike has been sold by the shop with their guarantee, but I'd like to think the buyer will get on well with it, so I was pleased to hear her expectations were realistic.

 

[flecc]

Great result for an over 5 year old bike Rob, not too many vehicles sold through a dealer fetch around half the original price at that age.
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[RobF]

Bromptons seem to hold value better than any other bike.

Presentation also helped.

The bike was in excellent condition, and I'm told the buyer's husband - a Brommie owner - was pleased to see the original handbook, Nano instructions, spare fuses for the charger, etc.

 

[flecc]

Wise Rob, those details make all the difference, they give a buyer the impression of a careful owner.
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[RobF]

I suppose Brompton's glacial pace of product development also helps.

A buyer of a five-year-old one doesn't lose a lot compared to new.

They are also known to be fully serviceable, no problems getting spare parts, albeit they can be a few pounds more than bits for other bikes.

 

[flecc]

Yes, they are very highly regarded. Brompton have always been able to give a smaller margin to dealers, simply because it's a product that a serious dealer cannot afford to be without and they sell well anyway.
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[RobF]

Yes, they are very highly regarded. Brompton have always been able to give a smaller margin to dealers, simply because it's a product that a serious dealer cannot afford to be without and they sell well anyway.
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Brompton has also always been able to order dealers around in a way other manufacturers cannot.

A couple of years ago, Brompton insisted every dealer has an up to date demo.

The latest missive is dealers have to stock three or more bikes.

Brompton also successfully ban couriered sales - you can order and pay for a Brommie online, but you have to collect it.

Discounts are very much frowned upon, you won't see any advertised, although some dealers will knock a bit off on the quiet.

Brompton's policies appear to be against the modern free market, which is supposed to be unregulated - resale price maintenance was abolished years ago.

But Brompton seem to get away with it, and it does mean smaller dealers, like my local shop, can compete on an equal footing with the big boys.

 

[jonathan75]

Discounts are very much frowned upon, you won't see any advertised, although some dealers will knock a bit off on the quiet.

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That should in principle attract the attention of (what is now called) the Competition and Markets Authority. Would be interested if you have any further info.

'... and it does mean smaller dealers, like my local shop, can compete... '

Did you mean can't compete?

 

[trex]

the way to get round the wrath of the Competition and Markets Authority is to offer retailers 'merchandising participation funds' - basically offering extra rebates for face to face sales.

 

[RobF]

That should in principle attract the attention of (what is now called) the Competition and Markets Authority. Would be interested if you have any further info.


Did you mean can't compete?

The smaller dealers can compete because they offer the same product and price (roughly) as the bigger dealers.

It then comes down to territory and service.

The customer gains no benefit from buying from a dealer miles away from his nearest one.

I doubt you will find any written evidence of how Brompton operate, but they have their ways of keeping dealers in line.

The dealers probably don't mind, there is a certain fairness about the system.

My local dealer won't stock brands which, as he describes it, the importer allows to be 'thrashed on the net'.

Cannondale is another manufacturer which generally plays ball with the dealer.

There are net sales, but having agreed terms and a territory with a dealer, Cannondale won't supply the bike shop across the road.

 

[jonathan75]

The dealers probably don't mind, there is a certain fairness about the system.

I can see how it might be fair to dealers, but I'm not so sure it's fair to consumers. Guy on minimum wage may take months or a year or more to work up Brompton money out of his disposable. I know he's got Chinese knockoffs available for £120. But it just doesn't seem right that a company is exempt from ordinary market forces.

My only explanation for why they still have a market is that it's largely a Veblen (i.e. 'status') good, i.e. demand rises instead of falls in line with price rises, as with Apple tech. The added utility over a £150 folder can't be worth the extra £700.

I'll be honest - I don't understand most of what you and Trex said, although it's really interesting. I'm just punting back thoughts.

 

[flecc]

Rob is correct, Brompton have always been able to control their marketing and keep dealer margins below the norm, simply because of the uniqueness and superiority of the product. And of course allowing a smaller dealer margin in the RRP is a way of limiting discounting.

Uniquely for a mass produced bicycle, being British made in London is also a powerful selling point both in the UK and certain overseas markets. All in all, serious cycle dealers just have to have Bromptons to sell.

A controlled market like this can have benefits for the consumer. Any purchase is known to be comparable in value to that from anywhere else. The service from the manufacturer and dealers is good. Second hand prices are sustained as Rob has shown.

Consumer law doesn't always have beneficial effects, its free market encouraging high discounting competition with related ill effects on products and product support. Although consumer law attempts to protect consumers against those ill effects, that too often means the consumer having to jump through all manner of legal hoops to obtain their rights. A high proportion of consumers are simply not equipped to cope with that, while others find it impractical for the possible gain. It's therefore often questionable whether consumers really do benefit overall from the legal protections.
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[trex]

RobF got a good price is because:
1) the Veblen effect of the Brompton brand
2) his excellent relationship with his local bike shop
3) other e-bikes in his local bike shop sell for more than this
4) the bike is sold with local bike shop warranty

How much do you think this local bike shop warranty is worth? If you subtract the worth of the local warranty, you'll get to the price that this bike would achieve on ebay. The truth is, the more expensive the bike costs originally, the higher the running cost per mile, in this case, in excess of £1 per mile.

 

[selrahc1992]

I suppose Brompton's glacial pace of product development also helps.

A buyer of a five-year-old one doesn't lose a lot compared to new.

They are also known to be fully serviceable, no problems getting spare parts, albeit they can be a few pounds more than bits for other bikes.

There's a reality beyond that,I've had one for 5 plus year/15000 miles and simply know it could last longer than me with minimal maintenance in ways nothing else I have could