Statement on commission from Adrian Warren, Senior Product Director at Cyclescheme.
Thursday 8th October 2020:
"We are pleased to announce a reduction in Cyclescheme retailer commission rates.
For several months, Cyclescheme has been working in partnership with bike brands and retailers to review our commission rates. This includes Giant, Raleigh, Trek and Specialized, impartially facilitated by the Bicycle Association. The discussions have focussed on how to build trust and support for the scheme, and how to fairly reflect the value and costs in the commission structure.
As part of our ongoing commitment to unify our network and ensure value for all, Cyclescheme has announced a new commission structure for retailers.
Effective from 28th September 2020, Cyclescheme commission is 8.33% excluding VAT for all bikes, accessories and helmets.
Effective from the beginning of November, a commission cap will be implemented on eCertificates above £3,000 RRP.
We would like to thank Cyclescheme retailers for their ongoing support and for helping us create more cyclists."
Monday 21st September 2020:
“Given the recent situation around Covid-19, cycling and cycling to work has seen an unprecedented surge in demand. As well as this, we at Cyclescheme have been instrumental in working with the UK government to remove the £1,000 cap on the value of a bike eligible under the Cycle to Work scheme. This has meant that many more people have had access to a wider range of bikes that suit their commuting needs, including pedal-assisted and adapted bikes. These changes are hugely important to support wider mobility and to make cycling accessible to everyone - something we feel very passionately about.
Over the past 15 years, we have significantly invested in the compliance of our scheme. Cyclescheme participants typically save 23-39% on the cost of cycling equipment – this is inclusive of paying an End of Hire fee. This fee is charged in line with the Department for Transport (DfT) and HMRC scheme guidance to ensure there is no benefit-in-kind liability for participants.
At Cyclescheme, we have historically charged an agreed percentage rate of commission for our services. But we also realise that since the £1,000 cap has been lifted and the price of bikes has risen under lockdown, this means an uncapped commission may not be the best way forward. The last thing we want to do is to treat bike shops unfairly. That’s why we have already been working directly with bike manufacturers and retailers to agree a new commission structure that means we all receive value from bike sales while also working collaboratively to continue to encourage more people to ride bicycles. Talks are ongoing, but we are confident we will have a new commission structure in place in that benefits everyone."
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