'Dale Posted June 8, 2012 Posted June 8, 2012 Whatever the situation is, it cannot be cool for the bike shop to lose selling a brand.
petatodd Posted June 8, 2012 Posted June 8, 2012 I don't think CWC really care, with their parallel importing I'd suggest they don't particularly like being dictated to by the official importer. Reading between the lines of the gossip posted in this thread, presented with an "or else" scenario they chose the or else. Probably not expecting it to come to that. I personally think a combination of parallel and legally imported goods in a store is bad for the consumer. While it technically should lead to lower prices we have yet to see any real evidence of this. However I have found the warranty environment is complicated by the distributor not being willing to immediately honour the warranty when CWC is mentioned as selling dealer. This does mean having to return to CWC to sort out issues which is not always possible.
TheV Posted June 8, 2012 Posted June 8, 2012 (edited) This is nothing new or unique to Probike/CWC or even limited to the cycling industry... Most SA distributors want to operate @ 20-30% margins, and expect their dealers to pass this on to customers... When the dealer then add their 40-50% margin the end user price, things gets silly. What inevitably happens is that this then creates an unrealistic retail price... allowing for the opportunity of parallel imports or direct internet shopping... If distributors were making their 10-15% and retailers their 25-30% then there would be no room for this. However, distributors usually carry massive the risk (stock/exchange rates,etc), has to offer crazy credit terms to dealers, market and build the brands, and then also support the warranties and returns, manage stock, etc etc.... Dealers again dont forecast correctly, pay their accounts badly, dont invest in training or good sales people, and show very little commitment to the distributors... so it's a crazy chicken and egg thing... Edited June 8, 2012 by TheV craig82 1
The Ghost Posted June 8, 2012 Posted June 8, 2012 I'm not sure I understand what you mean by "parrallel importing" - can you elaborate? Nice to finally get some good talk on this.
TheV Posted June 8, 2012 Posted June 8, 2012 I'm not sure I understand what you mean by "parrallel importing" - can you elaborate? Nice to finally get some good talk on this. CWC apparently bought "some" Scott products directly from other sources vs. buying ONLY from the official Sole Importer&Distributor of the products in SA.
awesme Posted June 9, 2012 Posted June 9, 2012 Does Scott or probike import tyres, Seem to remember something on their Facebook wall bout local imported complaining when they admitted they brought stock directly in.We still chirped if it makes the local importer stay honest good for us.G
Shebeen Posted June 9, 2012 Posted June 9, 2012 Does Scott or probike import tyres, the bikes are not made in mzanzi if that's what you're asking. like 99% of bikes out there, they're from the far east.
PhilipV Posted June 9, 2012 Posted June 9, 2012 I can understand a distributor pulling the plug if the store also imports their goods. If I need to spend money on advertising, stockholding, warrantee obligations and other business principals, and the water get muddied because someone else imports my brand and piggybacks off my ad spend etc, I'll send them packing. Wether this is the truth in this case I don't know. I think it might be the BBB stuff that CWC has. Probike is the agent. Might be way off the mark though. But I also think CWC don't worry too much. Any brand can be replaced. If I was a distributor dealing with CWC, I would have it in our terms of trade that they cannot import any of my brands themselves. On the other hand CWC pulled the plug because of Probike's service levels and them never having stock, I also wouldn't be surprised.
Overlord Posted June 9, 2012 Author Posted June 9, 2012 If indeed Probike decided to withdraw the product I say to bad. The Probike site has very little in the form of what they do sell and import. Stock also always seems to be a problem and the waiting period is sometimes just unacceptable. Cutting out the middle man is not always such a bad idea either. Outsurance is good example. If the shops can offer better prices to the consumer why not? Everybody is for always bitching and moaning about high prices for everything. Now that a bikeshop decides to do something about it everybody is still bitching and moaning!! I say kudos to CWCycles if that is indeed the case.Many of the people on this forum buy of the net. So what happens to the so called sole importer and distributor of said products bought overseas? And do not tell me it is just one person as you guys regularly advertise to get people and then chip in to make a CRC order big enough to make sure no other payments are necessary. Some food for thought.
petatodd Posted June 9, 2012 Posted June 9, 2012 Everybody is for always bitching and moaning about high prices for everything. Now that a bikeshop decides to do something about it everybody is still bitching and moaning!! I say kudos to CWCycles if that is indeed the case.But even with parralel importing by CWC we can still buy cheaper with courier fees from CRC? No problem a bike shop importing their own stuff but when I buy I want to know that the stuff I buy is covered locally by a warranty and is geniune which is why it costs more than the private import. Buying expensive parts and getting them in a plastic bag with no labelling and no instructions in this day and age of counterfeit products is too risky for me. Java001 and akneethling 2
Wasbeer Posted June 9, 2012 Posted June 9, 2012 Mabe got to do with price regulations and cwc not sticking to there Prices that they Have to sell the stock??
SoloPower Posted June 9, 2012 Posted June 9, 2012 Easy...you buy from Pro Bike a few items, import 80% of the stock yourself and expect that the wholesaler provide backup if something happens to the product. Not good business practice and not trading honestly. Bottom-line...if you cannot backup the product you going to import do not bring it in, simple. Online business competition is getting stiffer so more online businesses will take shortcuts or measures to save money. I am not aiming direct at CWC but this is what is happening all over...expect other wholesalers to follow. Spez has already done it. Sandro, Danger Dassie and TheV 3
gummibear Posted June 9, 2012 Posted June 9, 2012 Bottom-line...if you cannot backup the product you going to import do not bring it in, simple. Online business competition is getting stiffer so more online businesses will take shortcuts or measures to save money. +1
Caerus Posted June 10, 2012 Posted June 10, 2012 Does Probike have sole distribution rights for Scott Bicycles?
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