American Bicycle Group Drops Preseason Dating Programs -
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Published on: 3/6/2006
Last Visited: 7/1/2006
Glen Harston, group vice president of sales, said the program helps dealers increase turns and manage their cash flow.The program also gives ABG,s Chattanooga factory more control over its raw material inventory and smoothes its production and staffing schedule, which helps bolster dealer margins.
Harston said many suppliers front-load dealers with inventory early in the season.Dealers then face a significant bill in late spring, often before selling through their inventory, crimping cash flow.
And if certain models fail to sell, dealers are forced into unprofitable markdowns to clear inventory, he added.ABG also has its own accessory brand, Real Design, which sells carbon fiber and aluminum wheelsets, stems, forks and handlebars.
,Listening to dealer feedback on our initial presentations helped us strengthen the program and ensured that we were providing a program that enables us to be a business partner,, Harston said.
ABG based the program on timely dealer payments and a unit commitment that dealer are comfortable with, Harston said.
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Glen Harston