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Two wholesalers in bicycle price-fixing charges get R4m administrative fines each


Steven Holmes

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They will have to recover the 4mill, so guess what, the rand dollar will be to blame for the next price increases........

Euro prices have already increase over the last few weeks so that'll also be trickling down[emoji10]

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Please explain?

 

Well by posting here we support the system so what's the answer?

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Please explain?

 

This site serves the commercial interest of the cycle trade. By participating were part of the system so how do we change the system of we feel so hard done by by those who have behaved in an uncompetitive manner?

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Gotcha. As with anything commercial, vote with your wallet. Alternatively draught a petition to the likes of Shimano and Cannondale asking if they are condoning said behaviour with their current distributors?

Like I said, I am very honest about buying parts online or grey imports.

 

This site serves the commercial interest of the cycle trade. By participating were part of the system so how do we change the system of we feel so hard done by by those who have behaved in an uncompetitive manner?

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Guest notmyname

Shouldn't the brands be massaged into reconsidering the rights to distribute. Theft is theft regardless of what you disguise it with... Why is this any different? These individuals raped this countries industry. 4 bar is peanuts and what recourse do the consumers get?

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Technically 4 mil is only 20 Cannondale scalpel si's. must be pocket change for them.

 

Depends how much you make on each one and what your other costs are.

 

6% of turnover as net profit before tax is not unreasonable, so that would be selling R75m to cover it.

 

R4.5m penalty for attending a meeting & not answering questions after is quite steep as well as the reputational damage. I'd expect to get fired if I brought that on any of the companies i've run.

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Depends how much you make on each one and what your other costs are.

 

6% of turnover as net profit before tax is not unreasonable, so that would be selling R75m to cover it.

 

R4.5m penalty for attending a meeting & not answering questions after is quite steep as well as the reputational damage. I'd expect to get fired if I brought that on any of the companies i've run.

 

If each distributor make a net profit of R100 out of every Cape Argus participant, then they they are ~ back even. Dont see it as a problem - just mark it up...

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Hopefully this will give Canondale and Shimano leave to cancel the agency agreements with these distributors and hopefully award more than 1 agency each in SA. On the bright side, this little indiscretion probably opened the door for Oom Chris and Chris Jnr. It is great that some saw an opportunity where others saw an obstacle.

Edited by GLuvsMtb
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Let's hear all those shop owners tell us how hard done by they are and how there is no money?

 

Some will speak today im sure, some will silently watch this thread.

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Hopefully this will give Canondale and Shimano leave to cancel the agency agreements with these distributors and hopefully award more than 1 agency each in SA. On the bright side, this little indiscretion probably opened the door for Oom Chris and Chris Jnr More Golf. It is great that some saw an opportunity where others saw an obstacle.

 

Fixed

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Those who fessed up early :The tribunal previously confirmed settlement agreements with Cytek Cycle Distributors, DBS Distributing trading as Thule Car Rack Systems, New Just Fun Group, Tridirect SA, Le Peloton, Mailot Jaune Trading, West Rand Cycles, Bowman Cycles, Pedaling Dynamics trading as Dunkeld Cycles, Moneymine 88 trading as Hotspot Cycles, Salojee’s Cycles, Summit Cycles, Dynamic Choices Two trading as Bester Cycles, Johnson Cycle Works, Melody Street 18, Pedal-On-Marketing trading as Maverick Cycles and Albatros Fishing and Cycling, previously named Winners Cycles.

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