CWC becoming local partner for CRC

[bontie]

because then they'll be selling all(some) of their stock to CWC, doubt it would be on consignment, then it would be CWC problem to offload to us.

That way CRC have a guaranteed buyer, CWC get their stuff Cheaper.

Nah, CRC will not supply cheaper than current CWC suppliers...doubt this statement is true.

[Captain Fastbastard Mayhem]

FFS... Does nobody here know how business works?

 

I sell 1 item to you for R 10 (ex vat) and my margin is R 4 per item. If you're prepared to buy 10 of said item at once, I will charge you R 7.50 per item instead of full R 10, as a result of the bulk purchase. I would still have made R 1.50 per item, giving me a total profit of R 15 for the sale. My profit is still more than I would have made, as the buyer is convinced to buy more due to the discount structure.

 

Shipment for 10 items is cheaper than shipment for 1 item.

 

Even if shipment = 10% of item cost (75c per item in this case) And Vat = 15.4% (calculated on cost Inc shipping) = R 1.27 per item therefore total cost per item to CWC = R 9.52 (landed) and RRP (ex vat) is R 10 per item, I still have R 1.04 (R 10 + 15.4% VAT - R 9.52) that I can add to the sale price of each item to get the same price as you would have been charged at CRC directly.

 

That means that I still make R 1.04 profit per item, and you still get it cheaper as the freight charges to me (using bulk carriers and large shipment amounts) is far lower than the freight cost to you.

 

Does that make it easier to understand how an agency arrangement such as this would work?

[Big H*]

FFS... Does nobody here know how business works?

 

I sell 1 item to you for R 10 (ex vat) and my margin is R 4 per item. If you're prepared to buy 10 of said item at once, I will charge you R 7.50 per item instead of full R 10, as a result of the bulk purchase. I would still have made R 1.50 per item, giving me a total profit of R 15 for the sale. My profit is still more than I would have made, as the buyer is convinced to buy more due to the discount structure.

 

Shipment for 10 items is cheaper than shipment for 1 item.

 

Even if shipment = 10% of item cost (75c per item in this case) And Vat = 15.4% (calculated on cost Inc shipping) = R 1.27 per item therefore total cost per item to CWC = R 9.52 (landed) and RRP (ex vat) is R 10 per item, I still have R 1.04 (R 10 + 15.4% VAT - R 9.52) that I can add to the sale price of each item to get the same price as you would have been charged at CRC directly.

 

That means that I still make R 1.04 profit per item, and you still get it cheaper as the freight charges to me (using bulk carriers and large shipment amounts) is far lower than the freight cost to you.

 

Does that make it easier to understand how an agency arrangement such as this would work?

 

I am now sure you are Junior as a double poster!

[Captain Fastbastard Mayhem]

I am now sure you are Junior as a double poster!

Who the hell is junior? Seriously though? No dbl posting for me... I bring enough mayhem as it is...

 

Edit - that junior! Rofl! Not me! Ask pain or shine, Capricorn , chubba, the wes, admin etc. I sure as hell ain't Chris jnr!

Edited September 14, 2011 by cptmayhem

[Big H*]

Who the hell is junior? Seriously though? No dbl posting for me... I bring enough mayhem as it is...

 

Chris junior, ya know way too much! Ya is suspect for nw untill proven innocant. Admit ya are Junior and all will be over! Spit out ya evil plot and stop all the quessing!

 

Thy protest too much!

Edited September 14, 2011 by eccentric1

[fastbike]

FFS... Does nobody here know how business works?

 

I sell 1 item to you for R 10 (ex vat) and my margin is R 4 per item. If you're prepared to buy 10 of said item at once, I will charge you R 7.50 per item instead of full R 10, as a result of the bulk purchase. I would still have made R 1.50 per item, giving me a total profit of R 15 for the sale. My profit is still more than I would have made, as the buyer is convinced to buy more due to the discount structure.

 

Shipment for 10 items is cheaper than shipment for 1 item.

 

Even if shipment = 10% of item cost (75c per item in this case) And Vat = 15.4% (calculated on cost Inc shipping) = R 1.27 per item therefore total cost per item to CWC = R 9.52 (landed) and RRP (ex vat) is R 10 per item, I still have R 1.04 (R 10 + 15.4% VAT - R 9.52) that I can add to the sale price of each item to get the same price as you would have been charged at CRC directly.

 

That means that I still make R 1.04 profit per item, and you still get it cheaper as the freight charges to me (using bulk carriers and large shipment amounts) is far lower than the freight cost to you.

 

Does that make it easier to understand how an agency arrangement such as this would work?

 

 

Lets just hope spinnekop gets the picture, otherwise you have to draw a picture for him.

[duringd]

Hijack On

 

I've found a site called Bike24,My link , they seem to have stock of the 2012 XT brakeset, at the same price as CRC - Happy Days I know you were looking at the new XT or SLX brakeset

 

Hijack Off

 

They dont seem to ship to South Africa

[Capricorn]

jeepers, 6 pages. seems we are convinced this is actually going to happen, or still theorising how it would all work?

[Caerus]

They dont seem to ship to South Africa

 

Off Topic

 

I sent them a mail , they ship to Oz & New Zealand so hopefully they can ship to SA , will let you know what they say.

 

 

You can now order from them, you need to register as Ausralian, then send them an email and they will change all your personal details, it costs the same postage as to Oz as it will to SA.

 

They are also going to sort it out that South Africans can now register and get parcels sent, they gotta change their website first, I'll keep you further updated if required. Another place to shop,

Edited September 15, 2011 by Caerus

[GrumpyOldGuy]

FFS... Does nobody here know how business works?

 

I sell 1 item to you for R 10 (ex vat) and my margin is R 4 per item. If you're prepared to buy 10 of said item at once, I will charge you R 7.50 per item instead of full R 10, as a result of the bulk purchase. I would still have made R 1.50 per item, giving me a total profit of R 15 for the sale. My profit is still more than I would have made, as the buyer is convinced to buy more due to the discount structure.

 

Shipment for 10 items is cheaper than shipment for 1 item.

 

Even if shipment = 10% of item cost (75c per item in this case) And Vat = 15.4% (calculated on cost Inc shipping) = R 1.27 per item therefore total cost per item to CWC = R 9.52 (landed) and RRP (ex vat) is R 10 per item, I still have R 1.04 (R 10 + 15.4% VAT - R 9.52) that I can add to the sale price of each item to get the same price as you would have been charged at CRC directly.

 

That means that I still make R 1.04 profit per item, and you still get it cheaper as the freight charges to me (using bulk carriers and large shipment amounts) is far lower than the freight cost to you.

 

Does that make it easier to understand how an agency arrangement such as this would work?

 

Umm.......depends.!

 

Your theory is based on the premise there are no other factors in the supply chain.

 

Unfortunately there usually is.!

 

Lets say you sold those 4 at R1.50 profit instead of your usual R4.00, then before you replace the stock, the supplier has a 10% increase, then the rand drops 10%, now you have a knock on increase in shipping say 5% so where your replacement cost of that product was R6.00 its now R7.60 and you effectively made a loss on that sale of 4 items.

 

Think that doesn't happen..........think again, the rand collapsed to 7,45 yesterday, if you bought your last order four weeks ago you would have paid R6.80 odd, you already have a 10% loss factor to replace.

[brad890]

Umm.......depends.!

 

Your theory is based on the premise there are no other factors in the supply chain.

 

Unfortunately there usually is.!

 

Lets say you sold those 4 at R1.50 profit instead of your usual R4.00, then before you replace the stock, the supplier has a 10% increase, then the rand drops 10%, now you have a knock on increase in shipping say 5% so where your replacement cost of that product was R6.00 its now R7.60 and you effectively made a loss on that sale of 4 items.

 

Think that doesn't happen..........think again, the rand collapsed to 7,45 yesterday, if you bought your last order four weeks ago you would have paid R6.80 odd, you already have a 10% loss factor to replace.

 

 

hmmm i was thinking last night how things might benefit who and who would loose out.

 

what i was thinking is say you want a pair of bibs from crc, they will cost you R1000. then there is duty and vat, lets forget about postage for now because you made a total order over (R4000). so when the bibs land this side they slap you with 67% vat and duties. so those bibs cost you R1670

 

 

now lets say cwc gets the bibs at 20% less then sticker price from CRC, just a guess i dont know how much margins etc, and how much discount for bulk etc. so it costs CWC R800 for the same bibs, then with the 67% duties it takes the number to R1336.

 

so that will leave a difference of R334

 

like that CWC can add a R334 profit they make some money, your not out of pocket because it still costs you the same to order direct from CRC with duties

 

OR

 

CWC could charge less then R344 and hope to work on the more sales less profit story and still make money. in that way say rather charge R1500, they make R167 on the bibs and you save R167 on the bibs.

 

 

But like said above there are many factors to take into consideration. if the rand suddenly becomes stronger then the buyer gets screwed and if the rand suddenly gets weaker then the seller gets screwed. so yeah its anyones guess how things are going to work out lol

Edited September 15, 2011 by brad890

[GrumpyOldGuy]

 

 

But like said above there are many factors to take into consideration. if the rand suddenly becomes stronger then the buyer gets screwed and if the rand suddenly gets weaker then the seller gets screwed. so yeah its anyones guess how things are going to work out lol

 

Indeed, a fluctuating currency is the worst think for an importer or an exporter, there are mechanisms to try and smooth the curves but they are also expensive and tie up you capital for long periods. If you speak to anyone involved with import and export they will tell you they dont mind where the rand settles at, as long as its constant.