Giant USA says they plan to lure new customers to bike shops by promoting entry-level bicycles under $500, according to Bicycle Retailer and Industry News. Giant USA Executive Director of Sales JT Thompson says, “We have to do a better job of attracting new customers who want quality, well-built, IBD-serviced, lower-priced bikes.” IBD shops — that is, “Independent Bicycle Dealer” or the local bike shop — continue to lose market share to online and mass retail outlets even as margins climb at the high end.

The new pricing for these entry level bikes comes in the form of lower wholesale prices to retailers, with rebates offered to retailers with existing inventory.

For more, read the BR&IN –> Giant USA targets sub-$500 bike consumers with new campaign.

See also the accompanying survey and survey results in which retailers are asked if they plan to stock more sub-$500 bikes in 2014. As of this writing 28% of responding retailers say they don’t offer bikes under $500, while 56% say they want more bikes in that price range.