Schwinn did not coerce or bring about the reduction in the wide areas covered by these three distributors. They took this action themselves and generally reduced their sales of other products in a like manner. Schwinn’s action concerning the division of certain borderline or overlapping counties in the territories of these distributors and Guaranty Cycle of St. Louis, Missouri, is discussed under the territorialization issue herein. A study of the problem revealed that there were only three cycle distributors who could be classified as nation-wide distributors.
Over the years, Schwinn has empowered millions of people, earning a special place in the hearts and minds of generations of riders. We have spent over a century building the bicycle industry into what it is today, and we’re not done yet. Schwinn is a great brand for beginners and amateur hobby riders. Sadly, most Schwinn bikes are no longer suitable for more serious riders because they’re made with entry-level components that limit performance.
The more than 200 distributors throughout the United States were not producing sales in the manner that they should. Each of them sold or distributed numerous brands of bicycles and, of course, bicycles were only a small part of their business in many cases. Most sold or distributed everything for young people that rolled on a wheel, whether it was a limousine, tractor, trolley car, wagon, railroad car or a toy tricycle for baby’s doll.
Schwinn 570R is one of the best recumbent exercise bikes you can get for the money. It’s packed to the brim with advanced features but you don’t have to break the bank to get it. Due to its streamlined build, schwinn dealers Schwinn Sting-Ray is intuitive to use, so it’s perfect for kids to practice riding and to fall in love with bicycles. Schwinn Collegiate is a classic hybrid bike with an attractive old-school-cool look.
In addition, eleven of defendants’ witnesses produced their original sales slips showing that they had regularly sold at prices different than the Schwinn suggested prices. Not one instance of a record from the files of a retail dealer who had adhered to Schwinn suggested prices in Missouri or any other free trade state was offered into evidence. The court notes that the plaintiff designated but did not call as witnesses nine residents from Missouri and four from Texas. But the Court inexplicably turns its back on the values of competition by independent merchants and the flexible wisdom of the rule of reason when dealing with distribution effected through sales to wholesalers. In Schwinn’s particular marketing system, this mode of distribution plays a subsidiary role, serving to meet “fill-in” orders by dealers, whose basic stock is obtained through the Schwinn Plan.
When a customer needed repair or parts he sought out such a shop. In the beginning they bought from the mail order houses but soon found that it was better business to buy direct from the manufacturers. Then they found that for small quantities of bicycles and parts they could get quicker and more efficient service, at little more expense, by dealing with bicycle distributors who came to be known as cycle distributors. They found that by dealing with cycle distributors, they could get a variety of brands and interchangeable parts, which are made by other companies than bicycle manufacturers, who are in fact assemblers of bicycles and buy their parts from numerous parts manufacturers. However, the new retail bicycle merchants continued to buy directly from the various bicycle manufacturers, such as Schwinn, Monarch, Huffman, etc. Schwinn sells its products primarily to or through 22 wholesale distributors, with sales to the public being made by a large number of retailers.
It was so popular in fact, that the likes of Ronald Reagan, Bob Hope and Bing Crosby would proudly show off their Schwinns. Schwinn is the American icon that has built some of the best-known and most-loved bicycles of all time. Schwinn models like the Aerocycle, Paramount, Phantom, Varsity, Sting-Ray, Krate, Homegrown and more are forever firmly ingrained in biking’s lexicon. A world leader in technology and fabrication, Schwinn has been an indispensable player in revolutionizing bicycling around the world. We provide the Coon Rapids, MN area with bicycles and bicycle maintenance.
Ergo, a franchise for retailers in such specialty fields as a bicycle is a business necessity. At the same time the mail order houses, such as Sears, Roebuck Co., and Montgomery Ward, began to demand that their own brand names be placed upon the bicycles which they sold. In other words, when Schwinn sold bicycles to Sears, Roebuck Co., the purchaser no longer bought a Schwinn bicycle, but a Sears bicycle. Schwinn had always prided itself upon making a quality product and was not willing to have its product equated with inferior products and to lose its identity with the public. Furthermore, the sale price that mail order houses sold bicycles for was such that Schwinn could only compete by using parts and material and workmanship in its manufactured products of an inferior grade, and by manufacturing a cheaper product. Witness Brandon testified that Forrest, a Guaranty Cycle salesman, called upon him in 1952 and told him that if he did not stop cutting prices he would lose his Schwinn franchise.
So if you want an affordable but powerful Schwinn electric bike to ride to work, to school, around the neighborhood, or on bike paths, the Marshal is all you really need. These mass produced bikes lack the quality and care put into the durability and standard of the Schwinn Signature line. The plaintiff has failed to prove that defendants are guilty of a price-fixing scheme contrary to the provisions of Section 1 of the Sherman Act. It is difficult to see how the dealers were injured and it is not so alleged and there is no evidence that would indicate that to be true.