This is going to be a bit long winded but it will give some insight into the grey market pricing being practised by CWC. Manufacturers of bicycle components number in their thousands around the world and the fight for market share is fierce. Big volume orders which are awarded to any manufacturer, means the economies of scale kick in and they in turn, can push for higher discounts from their own suppliers of either raw material or finished and semi finished components. Bicycle manufacturers are the best source of big volume orders for component manufacturers as they have annualised production runs of tens, to hundreds of thousands, of units per bike model. Any component supplier winning a contract to supply these bike manufacturers becomes an OE (Original Equipment) or OEM (Original Equipment Manufacturer) supplier. Component manufacturers and suppliers are forced to discount their products heavily to win these contracts. They are prepared to do this in the interests of exposure for their brands in the retail markets of the world. A second important factor is that they are automatically the first consideration for replacement or upgrade by cyclists owning machines with these parts fitted as original equipment. Keeps the wheels turning. The working profit for component manufacturers comes from the retail trade, not from parts supplied as OE at huge discounts. This working profit operates throughout the supply chain and is what keeps the industry alive. We are now talking about the entire profit structure which is essential to keep cycling a going concern. The manufacturer sells to the wholesaler, the wholesaler to the retailer, and the retailer to the end-user. Each of these is entitled to a reasonable profit (they would be dead without it), and market forces, as in everything else, will keep these prices honest. Manufacturers have to factor in warranty claim costs (nothing is 100% perfect), wholesalers have to factor in promotional, advertising, and distribution/delivery costs, and bike shops have their own long list of expenses from stock holding through to rent, staff, advertising, etc. So, how are Chris Willemse and other grey market distributors able to sell goods in their retail shops at prices which are often cheaper (believe it or not) than the importer or wholesale distributor can buy from their own suppliers overseas who are, often as not, also the manufacturers of the components? It boils down to two things. Greed, and unscrupulous business practices. Here's what happens in the main. Bicycle manufacturer ABC calls for contract tenders on a planned production run of 250,000 premium grade bikes. To a wheel rim, or crank, or tyre manufacturer, that means a standing production run in their factory of 500,000 units if their product has been accepted and specced on the bike. Unhappily, saddle or handle bar manufacturers will only get orders for 250,000 units if they win a contract! This is business to die for. There are (say), maybe 5 or 6 manufacturers who can supply the volumes of this size with the necessary quality control measures to ensure the integrity of the brand-name bike being built. These component manufacturers now submit their tender contracts with prices shaved to the bone as the orders are big enough to keep their production lines running for months. They are all in a severe price war where winner takes all. It is under these conditions that the greed and unscrupulous business methods emerge. Let's let's assume ABC Bikes wants to make some quick easy money on the side. Here's what he does. He has actually planned to produce 240,000 bikes, not the 250,000 he's asked for tenders for. He knows that the wheel, or tyre, or group-set manufacturer he awards the supply contract to, has come in with prices which are even lower than those extended to their own distributors around the world. The wheel maker may have gone in at cost plus 10% or 15%. The tyre guys may be looking at 5% or 10% and the group-set maker at 20%, give or take a few percent. Only the huge manufacturing volumes are able to sustain such low pricing. Correcting profits have to be recovered from supplies to wholesale purchasers at normal margins (say 50% mark-up), so the manufacturer can survive. ABC Bikes now cashes in on the extra 10,000 wheels (and cranks, tyres, levers, etc) by selling them off as loose parts for cash at (say) cost plus 20%, to anyone willing to buy them. ABS Bikes may even smoke-screen this by saying they're selling the stuff as OE replacement parts. Brand name products like Mavic, Shimano, Campagnolo, Continental, Michelin, Fizik, etc etc, are generally the hardest hit by this type of marketing because of their status as industry leaders where quality comes at a price which makes these discounts financially rewardable. CWC is doing nothing wrong. He has, in some way, found a supplier or suppliers probably selling under these circumstances and, because of it, has an unfair pricing advantage over local retailers. Great for CWC who advertises retail prices at (or even below), dealer cost in nationally distributed magazines and is regarded (by some), as the saviour of cyclists in South Africa. The situation is false and raises huge negative perceptions in an industry which (on the whole), is a long way from being owned or run by wealthy people. The sad point to the whole scenario is that distrust is developing at all levels in the cycling fraternity. Cyclists think their regular shop is ripping them off. Shops who experience lost business to CWC think their wholesalers are ripping them off. Wholesalers (who's prices are dictated by market competition, not huge profit margins) suspect that their own manufacturing suppliers are profiteering at their expense. The whole thing is destabilsing the cycle trade here and around the world and creating an unhealthy atmosphere of mistrust between suppliers, cycle shops, and cyclists. CWC is not looking after cyclists (as many appear to believe judging by comments now being posted on this forum). He's looking after No. 1 and it's costing him very little. He does not have to carry the costs of nationwide distribution, sponsorship of cycle teams like Microsft MTN, Proline, Neotel, Harmony Gold , or pay for expensive national promotional and advertising programs and campaigns for the products he is importing. The official importers of the brand-name products which CWC pirates carry these costs for him, yet he points a finger at them because these costs have made the goods more expensive. CWC is merchandising brand-name components and accessories without any commitment to things like product loyalty or passion for the brand. He merely makes money out of them and when they are no longer available, he'll move onto something else. And make more money. CWC's confrontational attitude and threats of legal action against people involved in the industry are not going to do it any good. There are precious few bike shops that make a lot of money, and to point a finger at them and their suppliers and say they are rip-off artists is unfair and opportunistic.