A few of my meaningless thoughts on the interesting comments made... Why are SA employees any more important than CRC's employees (and they employ lots more ppl because of our support). This is a stupid, meaningless South African view on justifying bad business practice and should never be used in an educated debate. This whole debate on margins, profits etc with someone explaining why it is so difficult for bike shops: You have concluded that the average bike shop owner makes R8k per month profit, surely they would sell the shop and become a mechanic rather if this really was the case? If you honestly believe that k@k then, once again, you should not be involved in an educated debate. Furthermore, if they aren't making a reasonable profit then it means the supply is exceeding demand and a few shops should be failing and closing their doors to improve the industry as a whole. I completely agree it isn't the shops fault in all cases, the existence of a middle man is a major cause of the problem (and I guarantee they are not putting 7 - 8% mark-ups on their products!). On the whole issue of shipping, import duties, VAT etc., as someone who imports bike parts, I promise you they pay lower costs than you would to import from online shops around the world. There is no possible way that the cost to the local importers can be materially higher than those paid by European/American etc. importers. They will get slight quantity discounts, but that's about it. I also seriously don't care about distributors being able to sponsor riders and events, those are marketing costs which every company incurs, it is not about 'giving back to your customers'. If your product is doing exceptionally well, you possibly have even less incentive to spend on marketing. It's also great to say we should know the prices before going to a shop, but how do the 99% of cyclists whose only knowledge of bikes is what their LBS tells them know what a fair price is? How do you justify them getting nailed just because they didn't know they should have checked CRC before going to buy new tyres for their kids bikes? And to put it all in a real-life scenario which will be very difficult for these economists to explain:- I should hopefully be landing a product here next week which I am aiming to sell for R1100 (including what I consider a fair profit margin). I saw the exact same item in a shop on the weekend for R2500. Please can one of these pro-LBS economists explain that to me!? Retail price - R2,500 Mark-up - 50% (as claimed in the article) Cost - R1,650 (rounded) Distributors cost - <R1,100 Distributors mark-up - > 50% I don't know if it's the shops or the distributors, but it appears to be a lot more than the figures mentioned by the pro-LBS people either way.