CWC becoming local partner for CRC

[GrumpyOldGuy]

It would be cheaper for smaller things because you wouldn't have to pay delivery from the U.k.

But remember CWC will be paying VAT on everything that is bought + they'll want a bit of profit.

So obviously it will be a little more expensive.

 

But in terms of convenience and time-wise, it will be much faster.

 

Doesn't matter, the Vat is just passes on to you, SARS will prefer it as I think many small CRC orders fly under the radar when they come through the post and Vat is sometimes not charged.

 

An agent works as normal, you still pay CRC as usual, the agent is just the local mouthpiece and postal depot for redistribution, they get a financial benefit by a small kickback from the supplier monthly.

[Falco]

But in terms of convenience and time-wise, it will be much faster.

I don't think so. I keep a careful track of delivery time, from moment of payment until it is delivered to my office.

So far, my CWC orders have taken 43 - 70 hours to arrive, and my CRC orders have taken 68 - 74 hours (via DHL).

No major difference really, and CRC is definitely cheaper provided only non-duty items are ordered.

[Zac.A]

Doesn't matter, the Vat is just passes on to you, SARS will prefer it as I think many small CRC orders fly under the radar when they come through the post and Vat is sometimes not charged.

 

An agent works as normal, you still pay CRC as usual, the agent is just the local mouthpiece and postal depot for redistribution, they get a financial benefit by a small kickback from the supplier monthly.

 

Thats what I was saying. That it will be more expensive than the CRC price advertised on the website.

 

I don't think so. I keep a careful track of delivery time, from moment of payment until it is delivered to my office.

So far, my CWC orders have taken 43 - 70 hours to arrive, and my CRC orders have taken 68 - 74 hours (via DHL).

No major difference really, and CRC is definitely cheaper provided only non-duty items are ordered.

 

Not everybody couriers their items...

And still, if there is a local business that the items are being delivered to, maybe they will get cleared through customs faster.

[Nimby]

It's not so difficult.

 

 

Both parties do a collective analysis of all items purchased from SA customers through both websites and stock-up accordingly - I.e. bulk shipments to Cape Town - saving money on shipping (remember CWC carry the shipping cost for all orders > R2,570). Continue to replenish weekly / monthly based on incoming orders - pricing better due to bulk. Items not on the standard stock list have a slightly longer lead time.

 

 

CWC then deal with all customer-facing operations - especially the messy ones, like returns. More cost savings for CRC.

 

CWC pay CRC a licence fee / royalty for the use of the brand in SA and the rest of Africa.

 

 

Both parties score while the price to the consumer in SA remains the same but customer service improves. If I was one of the other major retail brands / distributors in SA I would be worried...

[Captain Fastbastard Mayhem]

I like it. It would open up s far easier channel for local purchases, and will enable us to use a local point of contact for CRC as well. In addition, we'll be supporting a south African business, which is, in my mind, a good thing. As to the guys who say it will be more expensive than ordering direct - nonsense. CRC will no doubt enter into a n agency-type charging structure with CWC, enabling them to get orders at a discount to what we would be charged as consumers. In addition, bulk discounts on shipping costs - the price per kilo / cubic metre decreases as you go higher. Therefore, the price that they would charge us should be more or less equal, if not cheaper, than the equivalent landed cost that the consumer would be charged when ordering direct from CRC.

 

As for an extra day for ordering from CWC - nonsense. You hear stories of guys in Stutterheim who receive shipments by the next business day. And Stutterheim isn't exactly a business centre, now is it?

 

Even if there were a 1 day lag time for ordering through CWC... I'd glsdly take that on in return for a local point of contact, a local business and somewhere where you can take your items back to personally without having to ship them back to CRC...

 

Bring it on, Chris Jr!

[splat]

Its an interesting idea and would love to know more details.

 

There are several fantastic things about CRC.

One of them is the amazing range of products and brands that they have.

I dont think it will be possible for CWC to do the same though.

So I see it as a CRC lite.

[CAAD4]

Is there enough margin for another middle man? I reckon a few CRC exclusive products will come through CWC i.e. Vitus bikes etc...

[Slowbee]

if a deal were to go ahead, would CRC, prevent folk from buying direct? Possibly load the prices of items being bought from a south african ISP ?(not really sure how these things work)

[Captain Fastbastard Mayhem]

Is there enough margin for another middle man? I reckon a few CRC exclusive products will come through CWC i.e. Vitus bikes etc...

 

With agent pricing structures, definitely. Bulk discounts will enable CWC to price the same as CRC, and will enable them to continue with the same profit margins, or maybe SLIGHTLY reduced margins. However, I'm sure they deal with CRC quite proliferately at the moment, so this relationship would just be the formalization of a pre-existing business channel.

[Captain Fastbastard Mayhem]

if a deal were to go ahead, would CRC, prevent folk from buying direct? Possibly load the prices of items being bought from a south african ISP ?(not really sure how these things work)

 

I wouldn't think so.. I reckon they'd just redivert to a back-end CWC website, and ship the stuff there as soon as you put your location as South Africa. All items would include the cost of VAT (or maybe not even) and the purchase order would be sent through to CWC as well as CRC so that it could be tracked efficiently. Not that difficult, in all honesty.

[Big H*]

With agent pricing structures, definitely. Bulk discounts will enable CWC to price the same as CRC, and will enable them to continue with the same profit margins, or maybe SLIGHTLY reduced margins. However, I'm sure they deal with CRC quite proliferately at the moment, so this relationship would just be the formalization of a pre-existing business channel.

 

They will surely not carry the stock. They will order as the "new" CRC orders come in. We will pay more as on the CRC website as CWC will add their profit.

 

I really hope CRC will now not block South African purchases directly from them. I will then take my business elsewhere. Not that my business will affect them, nor will any of the South African busines affect them, it is a mere drop in the ocean of their European sales.

 

If there is monetary benefit for me in the CRC - CRC marraige I will divorce from both companies, and continue to promote my new Internet Shop.

[Cassie]

This is all rumours??? Where did it all start??

 

 

In any event: it will be the death blow for local agents and most LBS....

 

I say - bring it on - More power to the consumer!!

[Captain Fastbastard Mayhem]

They will surely not carry the stock. They will order as the "new" CRC orders come in. We will pay more as on the CRC website as CWC will add their profit.

 

I really hope CRC will now not block South African purchases directly from them. I will then take my business elsewhere. Not that my business will affect them, nor will any of the South African busines affect them, it is a mere drop in the ocean of their European sales.

 

If there is monetary benefit for me in the CRC - CRC marraige I will divorce from both companies, and continue to promote my new Internet Shop.

 

That's a pretty big leap in terms of assumptions, Eccentric. Agency pricing structures and bulk discounts will negate any sort of "inflation" that might occur as a result of having a 3rd party involved.

 

Yes, margins might be lower than what they're currently getting. But the volumes will be bigger, as a result of getting the south african business which is currently going straight to CRC. This will mean that the overall arrangement is still in our favour. Who knows? Maybe the move to a bigger store was as a direct result of putting this agreement into place. You surely don't believe that the talks only BEGAN at Eurobike?

[Let's Ride]

[MAESTRO's]

Firstly the two entities are completely different. CWC caters for the local market, CRC are world wide in a big way. The big manufacturers like Shimano, Sidi, Mavic etc will insist that CWC buys their stock from the local importers, just like CRC do....CRC buy from the UK importers and not through their connections. There is no ways that these big manufacturers will turn their back on the local importers and ship their goods via CRC to CWC. Sure, there are products that CRC carry that do not have local representation. That is different and this possible merger will be great in that respect.I can almost guarantee you that if CRC were to ship big ticket items to CWC, the big manufacturers would stop supplying CRC immediately. It's their way or the highway.

[Captain Fastbastard Mayhem]

Velo, it's the local importers that insist on CWC buying from the local importers. CWC go direct to the supplier, or through other channels.