FLO Cycling – Why Selling Consumer Direct to International Customers Keeps Pricing Low

Our international customers often ask if we sell our products through international distributors or bike shops.  The quick answer is no. We are a consumer direct brand for many reasons.  Keeping the cost of our wheels lower for our consumers regardless of where they live is one of the biggest reasons.

Some “consumer direct” companies manage domestic shipments themselves but will use an international distributor for international shipments. This is a hybrid model, which raises the cost of products. Our Definition of Consumer Direct Sales is a bit different.  We believe in a pure consumer direct model and ship directly to the customer regardless of their location.  Our Import Guide covers all questions for our international buyers.  

So, how much money do you save when you buy consumer direct?  The two examples below compare consumer direct costs vs. buying through an international distributor and bike shop.  You may be surprised by how much you save.  

Assumptions
1.  Our retail pricing is equal to the wholesale price of companies who sell through the standard distribution model.  (This is actually true).
2.  Markup for an international distributor and bike shop is typically around 40% (but we’re going to show you what it looks like at 40% and 20%)

Example One – Consumer Direct Cost
FLO Wheels Bought Directly from FLO (consumer direct): Front FLO 60 and Rear FLO 90 Carbon Clinchers: $1,148 USD
Shipping Charges: $78.50 USD
USD to GBP Currency Conversion Rate: 0.81
Import Country: United Kingdom
Import Duty Rate: 4.7%
Value Added Tax (VAT) Rate: 20%
Import Method: CIF


Total Consumer Direct Cost: 1,248.19 GBP

Example Two – International Distributor and Bike Shop Cost
Wheels Sold to an International Distributor: Front FLO 60 and Rear FLO 90 Carbon Clinchers: $1,148 USD
International Distributor Markup: 40%
Bike Shop Markup: 40%
USD to GBP Currency Conversion Rate: 0.81
Import Country: United Kingdom
Import Duty Rate: 4.7%
Value Added Tax (VAT) Rate: 20%
Import Method: CIF


Total Consumer Cost at 40% Markup: 2,289.85 GBP


If we were to use 20% markup instead of 40%, the cost would be the following.  

The Total Consumer Cost at 20% Markup: 1,682.35 GBP.  

Conclusion

Compared to a typical markup for an international distributor or bike shop (40%), buying consumer direct saves you 1,041.66 GBP! 

Even if markup was only 20%, consumer direct still saves you 434.16 GBP. 

Let us know if you have any questions regarding how consumer direct saves you money or about importing wheels to you country.  

Ride safe,

Jon