carbon29er Posted February 12, 2016 Posted February 12, 2016 Was an example, like I said, I am not involved in their businesses so I don't know their inner workings...I stand corrected if you want to quote me from my example. Ok so both companies have a warehouse...How big is Easy bike's compared to CWC? that also plays a HUGE part in the costs. Again I am going to use an example (don't take it literally) CWC may have a warehouse the size of a aircraft hanger covering 800sqm and Easy bike may have a converted double garage...which costs less?Best not to use examples with names when you have no idea what you are talking about. The actual situation is very different to what you are supposing. There are online retailers who fill orders direct from the distributor and carry little or no stock, there are online retailers who buy both locally and on the grey market so carry what stock they need and source out of stock items from the local distributor, there are online retailers who only sell grey items so carry there own stock. Which is which is quite well known.
Long Wheel Base Posted February 12, 2016 Posted February 12, 2016 XT equivalent to X01? Have another one, man. X01 is close to XTR & XX. In fact I think it's the same cassette as the XX1. XT cassette should be compared to the GX when it comes to quality. X1/X01/XX1 are all very close when it comes to cassette quality.Are you talking about a dirty movie with all those X's?
jimmycool Posted February 12, 2016 Posted February 12, 2016 A lot of people talk very passionately about these mythical margins that distributors and bike shops charge from both sides of the story but no one ever comes forward with any concrete numbers/percentages. I am sure we all appeciate the fact that people in the bike industry need to make a profit and it is not some super secret hush hush thing that should never be talked about.If people in "the industry" were brave enough to talk some real numbers it would do away with a lot of the misunderstanding/ misconception about overcharging and perhaps people would be more willing to just pay the advertised price.I don't know why so many people think that fellow cycling enthusiasts are out to rip us off. disclaimer : I am not involved in the cycle industry.
Heel Drop Posted February 12, 2016 Author Posted February 12, 2016 A lot of people talk very passionately about these mythical margins that distributors and bike shops charge from both sides of the story but no one ever comes forward with any concrete numbers/percentages. I am sure we all appeciate the fact that people in the bike industry need to make a profit and it is not some super secret hush hush thing that should never be talked about.If people in "the industry" were brave enough to talk some real numbers it would do away with a lot of the misunderstanding/ misconception about overcharging and perhaps people would be more willing to just pay the advertised price.I don't know why so many people think that fellow cycling enthusiasts are out to rip us off. disclaimer : I am not involved in the cycle industry.I think its fair to say - charge what you want , but consumers have the tools to be able to find the best price so I guess the next comment will be to charge a fair price , but if a shop does not and people still buy from them and then well good for them. For sure this large price variations happens in all industries not just cycling. Maybe think about the car industry ( new cars)
Skinnyone Posted February 12, 2016 Posted February 12, 2016 I'll just say this... Big thumbs up to 'grey market' products and their screwing over of ripoff South African distributors.Sure bud, that is exactly why a mate of mine is having to shut his doors of his company... I love this attitude that the SA wholesalers in the cycling industry are tearing the ring (while some may be, others do not) just because you can buy X from www.com for less... Keep up that thinking and perhaps the company you work for hand you a DCM (don't come Monday) as they have to close their doors for a similar reason...
Skinnyone Posted February 12, 2016 Posted February 12, 2016 Best not to use examples with names when you have no idea what you are talking about. The actual situation is very different to what you are supposing. There are online retailers who fill orders direct from the distributor and carry little or no stock, there are online retailers who buy both locally and on the grey market so carry what stock they need and source out of stock items from the local distributor, there are online retailers who only sell grey items so carry there own stock. Which is which is quite well known.Again.. merely EXAMPLES of one company versus another.. no harm meant - I deal with some of these online retailers so I do have an idea of how one runs compared to another, you have repeated my point so you get the idea, I used names - to explain that company C may have bigger overheads than company E...
Shebeen Posted February 12, 2016 Posted February 12, 2016 A lot of people talk very passionately about these mythical margins that distributors and bike shops charge from both sides of the story but no one ever comes forward with any concrete numbers/percentages. I am sure we all appeciate the fact that people in the bike industry need to make a profit and it is not some super secret hush hush thing that should never be talked about.If people in "the industry" were brave enough to talk some real numbers it would do away with a lot of the misunderstanding/ misconception about overcharging and perhaps people would be more willing to just pay the advertised price.I don't know why so many people think that fellow cycling enthusiasts are out to rip us off. disclaimer : I am not involved in the cycle industry.here are some figures, albeit outdated....they've been denied before but hey read what you want into it. http://mg.co.za/article/2009-03-17-taken-for-a-ride
Skinnyone Posted February 12, 2016 Posted February 12, 2016 A lot of people talk very passionately about these mythical margins that distributors and bike shops charge from both sides of the story but no one ever comes forward with any concrete numbers/percentages. I am sure we all appeciate the fact that people in the bike industry need to make a profit and it is not some super secret hush hush thing that should never be talked about.If people in "the industry" were brave enough to talk some real numbers it would do away with a lot of the misunderstanding/ misconception about overcharging and perhaps people would be more willing to just pay the advertised price.I don't know why so many people think that fellow cycling enthusiasts are out to rip us off. disclaimer : I am not involved in the cycle industry.OK so to give an idea and I will mention no names...some mark ups are as low as 15% and then there are shops that will mark up what ever they feel a client will pay....but generally not more than 70%... Now take clothing companies (no concrete proof - just what I have been told) mark up by as much as 300%....
jimmycool Posted February 12, 2016 Posted February 12, 2016 OK so to give an idea and I will mention no names...some mark ups are as low as 15% and some as high as 50%... Now take clothing companies (no concrete proof - just what I have been told) mark up by as much as 300%....Now you see, I am perfectly happy with that. And no one can deny that you have to make money to keep the doors open. What I don't get is the people who imply that the bike shops put eleventy gazzillion percent markup on everything. And then also the industry insiders who say "if only you knew how little we make" -well, that's just it - we don't! I do know however that the jewellery industry uses a standard markup of 400%. That is why they can have a 50% off sale as they still make 100% markup on sale items.
Fr33rider Posted February 12, 2016 Posted February 12, 2016 here are some figures, albeit outdated....they've been denied before but hey read what you want into it. http://mg.co.za/article/2009-03-17-taken-for-a-ride And more recently. http://www.saflii.org/za/cases/ZACT/2013/37.html
Skinnyone Posted February 12, 2016 Posted February 12, 2016 Not long after that article I was involved in the shut down of three major stores...Due to many factors but the main being theft, which left the owner making a decision to put about 20 people out of work because he couldn't afford to fund the businesses anymore from his or his investors pockets any longer...and those were shops that had been around for years. I worked at a shop where the owner shut doors after just 6 months because he had some spare cash and thought " I know I'll open a bike shop!!!" so he did, lost all his investment and ran out of cash flow...Bad management yes, but it can happen sooo quick.
Wez-O Posted February 12, 2016 Posted February 12, 2016 Have you seen their margins?Yes! Ever wondered why CWC can sometimes offer products to the public for less than the cost price that your LBS is buying the product for from the South African distributor?
Wez-O Posted February 12, 2016 Posted February 12, 2016 Sure bud, that is exactly why a mate of mine is having to shut his doors of his company... I love this attitude that the SA wholesalers in the cycling industry are tearing the ring (while some may be, others do not) just because you can buy X from www.com for less... Keep up that thinking and perhaps the company you work for hand you a DCM (don't come Monday) as they have to close their doors for a similar reason...We go to conferences in the States (non-cycling industry to be fair), and American and international wholesalers are shocked at how South African distributors / retailers are screwing the consumer on everything from electronics to clothing. Now maybe you mate was a genuine and honest guy who just had a rough time in the industry, and that's really sad, HOWEVER I'll guarantee you that there and MANY distributors and retailers alike that couldn't give a %&*# about you, me nor any other consumer. By all means, support them and help them buy another new Ferrari though
Spoke101 Posted February 12, 2016 Posted February 12, 2016 Yes! Ever wondered why CWC can sometimes offer products to the public for less than the cost price that your LBS is buying the product for from the South African distributor?Are we talking about SA distributors or the manufacturer markup's ?
Skinnyone Posted February 12, 2016 Posted February 12, 2016 We go to conferences in the States (non-cycling industry to be fair), and American and international wholesalers are shocked at how South African distributors / retailers are screwing the consumer on everything from electronics to clothing. Now maybe you mate was a genuine and honest guy who just had a rough time in the industry, and that's really sad, HOWEVER I'll guarantee you that there and MANY distributors and retailers alike that couldn't give a %&*# about you, me nor any other consumer. By all means, support them and help them buy another new Ferrari though I hear what you are saying, and I agree with the fact that there are guys in any industry who will charge what they want and don't care that the end consumer can't afford the product...and don't get me wrong I would not work for any of those cats.... They are rich and will continue to get richer because they have the means to squash the smaller guys who are just trying to make an honest living...but then you know what they say - good guys finish last. And the big guys honestly do not feel the pinch when you grey import your stuff from CRC because they are too busy packaging the next order to your LBS...
Erroli8a8 Posted February 12, 2016 Posted February 12, 2016 You can't compare SA to the USA. Our industry is small compared. when the industry is as big as the USA then you don't need the margins as the volume is there. In my business I would go under if I have less than 40% margins.
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