Thanks for these comments (and for Gerhard's original comment). I post this reply hesitantly because we certainly don't want to start a debate that we cannot finish (and where I cannot possibly list all the factors that play a role) but I certainly want to respond to the comment that ‘South Africa (ASG) is the most expensive in the world’. We take these comments very seriously and take note! For the record - it is our (ASG's) ongoing mission to get pricing on all our brands (AND SOLD THROUGH OUR DEALERS - Bike Stores) down to levels that compete with ‘legitimate’ and ‘reasonable’ online pricing and we will continue to do so (but it is not always as easy or as simple as you may think). We are continuously negotiating better deals with our suppliers and by buying in bulk get effective costs down. As the exchange rate improves and we buy new stock at better rates this certainly helps. On many of our Rudy Project eyewear models (example new SWIFT with photochromic clear lenses- R1290, SIDI shoe models (including new SDS range) - R1290, Pinarello FP2 Carbon with Shimano 105 - R25k inclusive, etc.) we think the RRP is even less than what you can find anywhere online (when comparing 'apples with apples'). To achieve this objective without selling directly or online (and cutting out dealer margin) is something we are really proud off. There are however some reasons (or considerations) why a comparison like the one Gerhard did, does not tell the full story – not criticism, he simply listed some pricing that anyone can find online by typing in ‘Pinarello DOGMA price’ using GOOGLE (and I say this knowing that each client has the right to buy items where and how they want): Our pricing is set on a 6-monthly basis based on purchase cost and ruling exchange rates at the time (we are required to keep adequate stock which means we sometimes lose out on positive exchange rate swings after purchases were made (this was the case in the last 12 months and especially last 2 months) - obviously the reverse is also true which may result in SA being classified as 'cheaper' than the rest of the world 12 months from now?. The upside is that we keep adequate stock (at our risk) on all our brands and can supply most models/sizes/colours immediately (waiting period from Italy is now 3-4 months on a DOGMA!). From our feedback it would seems that most of our stores in SA sell DOGMA frame kits for approx R42k to R45k (it is however true that RRP for a DOGMA frame is R50k incl VAT based on prescribed RRP rates from Italy – some international distributors ignore this and sell directly via online stores). Considering shipping, VAT, duties (complete bikes only), holidays in Italy , I think we are not too far off and you should see another adjustment in the new year if the Rand holds its current strong levels against the EURO. Keep in mind that 12 months ago the same online prices quoted may have sounded expensive at more than R10 to the EURO (R8.90 at the moment). We also have ongoing promotions to try and offer these bikes (through our dealers!) at better value than you can find online - check out some of the 'best of Italy' package deals currently on offer by ASG (advertised extensively in most SA cycling magazines). You may be surprised... I think our clients got some great deals through their bike stores! We are committed to keep selling through our dealers and not direct to the public - this is a decision we made some time ago because we believe it is critical to provide solid service, backup, warranty support, etc through our selected dealer base for the Pinarello brand (something we cannot do from our head office and that no ‘online’ trader located overseas can do). The downside of this decision is that you will always find some guys selling products online from overseas at really small margins because they don’t keep stock and then create the impression that everyone else is expensive. It is easy for them considering they have no upfront stock investment, no insurance, stock holding, storage, advertising and marketing costs, sponsorship costs, etc etc) and order as required (when they get orders online). In the end, anyone is free to buy whatever they want and wherever they want – consumers today are much more informed (especially when buying Pinarello bikes J) - we understand this and are working hard to get all your business by offering competitive prices, warranty support, stock availability, good service, etc. In the end price is a key consideration - our business has grown beyond our wildest dreams in the last 4 years and we would like to think that offering good value and service to our client base was key in achieving these results.
