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a 1.5-inch diameter lower bearing), completely redesigned S- Works FACT carbon crank and S-Works Barmac, we shaved the With most of the 2007 model year behind us, I look back and realize more than ever that, whatever success we at Specialized enjoy, it would be impossible without the support of all the inde- pendent retailers like you—a key part of our extended family.
Our engineers have spent countless hours working in the MIT Thank you for your continued support and the chance to earn windtunnel and with our top professional riders like 3-time Ironman World Champion Peter Reid, to make the all-new S-Works Transition the absolute fastest bike possible for time tri- Due in large part to the close bond between us, our business is als and multi-sport events. With a host of proprietary features growing, our financial positions are solid and our direction is including a full Specialized FACT carbon chassis, FACT integrat- clear. We continue to invest 100% of the profit that Specialized ed crank, fully integrated brakes and a four-position Pave carbon generates back into our business because the future has never seatpost, the Transition is without question the fastest bike been more exciting and more rewarding.
we’ve ever made. Thanks to the same comprehensive approach to ergonomics that we used when designing the Roubaix, the Transition is also the most ergonomically advanced time trial Our vision is to be the Best Cycling Brand in the World. For 2008 I am most excited about a handful of truly innovative prod- ucts and novel services that I believe will help us to humbly pur- sue that vision while growing both our businesses and helping you realize more profitability than ever: We have been working hard to develop bikes and equipment that fit women and the way they ride. You have embraced our Designs for Women bikes and equipment to the point that it rep- resents our fastest growing category. Thank you. Just like our Totally redesigned for 2008, the new Stumpjumper FSR is the road families, the mountain bikes now have independent, expe- lightest, most efficient and best handling 120mm travel XC Trail rience specific families that allow for even further frame and bike in the world. Highlights include the addition of a new FACT specification tuning--just for women. As the Ruby and Dolce IS (Integrated Structure) carbon frame and our integrated have been free to develop exclusively based on the needs and FutureShock fork and AFR shock with FlowControl Brain. At wants of women, the 2008 Designs for Women mountain bikes about 3-pounds, the 120mm FutureShock fork offers mind blow- have been created from a clean sheet of paper so they fit, per- ing performance thanks to a unique 1.5/1.125 carbon form and ride as well as possible for women. As those of you crown/steerer assembly, proprietary ‘Buddy System’ (the spring who have invested in the women’s market know, our Designs for and damper in one leg) and FlowControl Brain technology. Hit Women Bikes, Body Geometry saddles, shoes, apparel and other your favorite trail on the new S-Works Stumpjumper FSR and I gear are part of what has helped bring a whole new group of rid- think you’ll find that it offers the best combination of comfort, control and efficiency available anywhere.
The 2D is the lightest helmet to ever exceed the most stringent Our sponsored riders like Paolo Bettini (Quick Step—Innergetic) testing standards in the world! How did we make the all new 2D and Davide Rebellin (Gerolsteiner) pushed us to make our nearly 30% lighter than our already light Decibel? The 2D fea- Tarmac even better. Our team of designers and engineers creat- tures a patented dual-density EPS construction, Carbon Inner ed the new S-Works Tarmac SL2--the most efficient (“stiffest”) Matrix internal structure and 4X DryLite straps to trim vast and best handling road bike on the market. To trim the SL2’s amounts of weight without compromising safety. We’ve also frame weight down to just 900-grams we were driven to utilize made the 2D the best fitting helmet with the addition of our new a new manufacturing process—FACT IS (Integrated Structure), Pro Fit 360 retention system, which features horizontal and ver- which combines cutting-edge manufacturing methods to create tical adjustment for a truly customized fit. The 2D also features an optimized structure that is incredibly light, unbeatably stiff a refined version of our proprietary 4th Dimension Cooling tech- and super strong. By integrating all critical components of the SL2’s design including the S-Works FACT carbon fork (which has High-performance XC riders--people that like to cover more Launched last summer, the Specialized Riders Club is an incred- ground and still find the flow over a range of terrain--are going ible way to build a community with your dealership at the cen- to love our new 1,400-gram Roval XC Race wheels. Just as with ter. In order to fill the club with enthusiastic new members, we our cutting-edge road wheels, we’ve used a complete systems have implemented a program that allows you to reward anyone design to make the XC Race one of the lightest on the market, purchasing a bike over $1,200 with a free annual membership in yet we’ve maintained the precise handling, incredible efficiency the club. Because the success of everything we do depends on and excellent durability that all Roval wheels are known for. full integration with you, we’ve also created a program that allows you to sell annual memberships to the club at full key- stone margin. Ultimately, the Specialized Riders Club will further differentiate your dealership and allow you to sell more high-end In conjunction with our close partner Dr Andy Pruitt EdD, PA, we continue to refine and improve BG Fit Integration Technology (BG F.I.T.), a system that integrates bike fit training, bike geome- tries, key components such as our adjustable stems and wide As we look toward the 2008 season, I want to thank you for your range of handlebars, as well as key equipment categories like support of our broad range of products and services. Your early shoes, saddles, apparel, gloves and bar coverings. The BG F.I.T.
investment is what makes our innovation and investment in the intensive dealer fit training program through SBCU has been a market possible. As we prepare for the upcoming season, I am great success, with over 400 technicians completing this power- more excited than ever about the future of our partnership and ful course. This summer we will launch an exciting new website the success that we can enjoy together during 2008 and well that will explain BG F.I.T. to consumers and drive them into trained dealers for one-on-one fit sessions and Body Geometry products. By working with you as partners to provide a complete program of education, exciting merchandising, ergonomic bikes and medically proven equipment, we can help you become the W E L C O M E F R O M J O H N T H O M P S O N
An increase in sales driven by focused product selection I hope this note finds you well and your business thriving.
2008 represents another great opportunity for the entire team at Specialized to share our strategy for success. That strategy includes; passion, technology, innovation, strong service, time- ly delivery, industry leading marketing, the best fill rates, a gain A well-focused dealer gives the buyer a clear idea of which in market share, higher profits and lot's of fun. Together we can products the professional bicycle retailer believes in and rec- ommends. Because we are committed to distribute our prod- ucts solely through the IBD channel, we need to work with It is essential that we clearly communicate the vision that dealers who are equally committed to featuring our products.
drives the development of everything we do including our When we work collectively, the outcome is more riders on great bikes and superior business performance. The Specialized brand vision is to be the best cycling brand in The fact is that we have less distribution than any of our major competitors. In most markets, Specialized provides more opportunity for our dealers to have a dominant position with Our corporate mission is to be the product of choice for the our brand, allowing them to sell on value and experience rather discerning customers and dealers, and the supplier of choice than price. In return, we ask that you partner with us to logical- ly offer your customers a choice while maintaining a healthy and profitable inventory mix, one that features Specialized as Our vision and mission are what guide us in every aspect of While no company in our industry can offer 100% fill rates, business. The industry has seen many changes and we have Specialized has delivered better than any other manufacturer.
maintained our leadership position by devoting 100% of our By committing early to our suppliers, we have been able to profits to researching and developing the most cutting-edge maintain fill rates over 90% for the past four years running. The bicycles, equipment and services. I can assure you that, with absolute key to this success is that you have helped us by com- every new model year, you will see one-third of our product mitting 50% of your annual business during the critical pre- line completely redeveloped to drive this innovation. This is book period. If we are to continue this amazing success, we accomplished by returning 100% of our profit into product need you to continue your early show of support. We don't believe that any other brand offers the breadth of product and support that contribute to your bottom line. Yes, We depend exclusively on you, our retailers, to represent the some other brands appear to offer better gross margins, but bicycle and equipment products that we design and distribute.
how do they perform for the cyclist? Do their products turn at We are committed to the independent bicycle dealer as our the rate of Specialized? Will they help you convert the recre- only point of distribution, so selection becomes a critical path ational cyclist into an enthusiast? What value do they deliver for Specialized: if you don't display our products in your stores, in quality and function? Are their products found in discount we are literally out of business for those products in your mar- houses and self-serve big box stores? Are you being under- sold by these discounters, mail order and the internet? As an independent bicycle dealer, you must strategically man- One of the byproducts of our limited distribution strategy is age your resources, including inventory dollars and retail floor the issue of brand recognition. All brands are constantly per- space. Simplifying the sales process is the most efficient path forming a balancing act between sufficient and excessive dis- to superior customer service, customer loyalty and profitability. tribution. We've chosen to restrict our distribution by partner- ing only with the right dealers; those who can appreciate the quality and value our brand offers and seek to maintain their Specialized is also the first bicycle brand to invest in its dealer Thanks for giving the Specialized Team the opportunity to earn base by building and staffing a full-scale training facility. Now your business. We are positioned to win together! in its 4th year of operation, our SBCU program has been devel- oped to train your staff to identify customer experiences, relate As always, I want to extend an open invitation for you to call.
those experiences to specific products and close the sale. The My personal phone number is 408-779-6229 (x2497) or you results of this investment by both Specialized and you, our can email me at [email protected].
retailers, have been nothing short of incredible. Participating dealers have reported higher than average unit prices, increased aftermarket sales and a greater overall sell through.
Our SBCU facility is undergoing a major expansion and renova- tion. We're building a new BG F.I.T. Studio and expansive new We are primed for excellence in 2008 and beyond. We have the best dealers, best products and strongest consumer demand. We are grateful for the successes you've shared and look forward to continued growth and innovation.

Source: http://www.specialized.nl/media/whatsnew/WelcomeLetters.pdf

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