TCRCARBON thanks for your questions regarding pricing.What i have learnt of recent is that in Europe many companies supplying cycle parts and equipment are in fact sourcing these components thru either a manufacturer which are destined for assembly on complete bikes where by the manufacturer either has no orders for complete bikes and is in financialdificulty thus dumping components in order to get cash.I have also learnt of another method which i cannot put in writing on the Hub as its on a more sensitive note and would cause an absolute stir.Then again there are some sources which buy thru the correct channels but have specials or work on low mark-ups. I have said this before on the Hub, advertising is an invitation to do business,which means you can advertise low prices to attract attention and invite business. I have noticed some consumers are not aware of the latest model numbers which are referred to as XTR at low prices but if you look more carefully they are old models which have been discontinued and flushed out in the market.There is nothing wrong with old models and they work 100%. Getting back to the question you ask about pricing in the SA market i would like to inform you as follows. Our currency the Rand has devalued by over 60 % against the Japanese Yen and approx 40 % against the Dollar and Euro of recent. The Japanese Yen was Y16 to the Rand 1 year ago and on a good day is now Y9.50 to the Rand. This has affected prices of New Imported goods which we distribute only.We have stocks of products which are also older models at old prices and there are many bargains to be had. I recently was asked why ST1056 Sti levers were avaibable at CRC for R1350.00 and a dealer quoted R3000 for the same levers.After checking CRC didnt have stock and the model quoted was in fact discontinued as its been replaced by the new model ST1056L which is all black.I am sure all countrys are affected by the rate of exchange and its a matter of time before they are affected. I have just returned from a Shimano Factory Tour to Japan, Singapore,Malaysia and Batam Island where Shimano have huge facitlities producing parts and wheels etc. Its not as easy as everybody imagines to produce even a Crank Set which Shimano produce by Cold Forging which means a piece of Alloy gets 100 ton press on it which it then forms into a crank.Just think of the cost of the tooling and special equipment needed to design and produce the die cast .I learnt alot on this Tour and you will only appriciate what goes into it and the R & D and testing done to each product as the Shimano have very strict safety requirements,as can you imagine if a Crank snaps how much damage you can do to yourself.On Shimano Chains they are rated to 9000 Newton Metres of Torque before breaking. A small car delivers about 200 Nms of Torque.An Sti lever takes up to 20 people to assemble from small parts and special tooling to the finished product. South Africa is a smallish market with high inflation rates, high interest rates,high shipping costs etc.As the distributor of any agency you have to take into account warranty, spares back up etc. I beleive that we and other distributors offer a fair price to the Trade whom offer you the consumer service and backup. If i can be of any further assistance please contact me accordingly stevem www.coolheat.co.za
