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


Steven Holmes

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Yeah. I'll continue to purchase grey/gray imports. The system is sick and I'm not interested in being part of it.

FWIW

 

Grey = UK spelling (more often than gray).

Gray = US spelling (more often than grey).

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Maybe the perfect opportunity to pool the purchasing power of Hubbers and develop an app to combine weekly requirements for spares, bulk order from wherever it is the cheapest, save on shipping and distribute to individuals via Mr. Delivery. Like Uber for bicycle parts. 

 

Not even necessary to develop an app, we could just bundle everyone's orders within a set distance and then once it arrives collect/courier to each person. The only issue is after sales service, then again if there's no factory defect its just another wear and tear part you'll be replacing sometime in the future anyway.

 

I've seen the EBIT figures of some of these distributer companies and its sickening. The R4m fine is pocket change.

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Maybe the perfect opportunity to pool the purchasing power of Hubbers and develop an app to combine weekly requirements for spares, bulk order from wherever it is the cheapest, save on shipping and distribute to individuals via Mr. Delivery. Like Uber for bicycle parts.

Bliksem! What a brilliant idea!!

 

Sent from my SM-N910F using Tapatalk

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FWIW

 

Grey = UK spelling (more often than gray).

Gray = US spelling (more often than grey).

 

So 50 shades of Grey/Gray... 

 

We had pooled CRC orders on here for years - worked a treat. The exchange rate though greatly reduced the appeal.

 

Very few people in the industry not tied in with this meeting in some way... some just got burnt a lot more than others. Some also wrongfully so... if you were on the roll call you pretty much got nailed, even if you thought the whole thing was a *** idea.

 

Many lessons learnt I'm sure - and yes, we are the ones who are paying/have paid  :blush:

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I bought an OMNICO bike last year. Can I have some of that 4 bar please?

 you still have the invoice?

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You need a bit more fact and a little less tin foil hat...

 

Singling out Omnico and Coolheat is a little unfair given that most of the industry players were at the fixing meet.

 

Neither Omnico or Coolheat run RRPs.

 

In fact of the ~40 suppliers I have perhaps 6 or 7 have RRPs on their price lists and those are not enforced in any way (just numbers on an excel spread sheet).

 

I have never witnessed any kind of collusion or threat of  "we'll stop supply unless you rip your customers off".

 

Also - how exactly does forcing the retailer to set high prices make sense to the importer? All it'll do is send people towards CRC/CWC... Plus how is it that the shops are the innocent party if they're the ones making tons of cash by being forced into setting prices high?

 

 

My opinion is that this or more a crazy witch hunt with little to no fact rather than a well informed investigation with the public interest at heart....

 

I think you need to look at the verdict in context of the practice pre 2008,then it makes more sense.

It was actually some retailers who wanted price control and got support from distributors . One retailer famously posted the minutes and the other I believe was a large nation wide franchise.

 

I think the verdict is pretty fair based on behavior at the time of the complaint

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According to Wiki, grey is a colour "without colour"

 

Grey or gray (see spelling differences) is an intermediate color between black and white. It is a neutral or achromatic color, meaning literally that it is a color "without color".[2]...

 

https://en.m.wikipedia.org/wiki/Grey

 

I only know Grey. This is because my son is currently in this school :D

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I think you need to look at the verdict in context of the practice pre 2008,then it makes more sense.

It was actually some retailers who wanted price control and got support from distributors . One retailer famously posted the minutes and the other I believe was a large nation wide franchise.

 

I think the verdict is pretty fair based on behavior at the time of the complaint

 

Fair point - the market was way more closed back then...

 

Nowadays the likes of CRC and CWC with their gray products keep the official distributors honest.

 

It is a bit rough to use the terms arrogant and call for the removal of distribution rights when the market is pretty clean and honest now though....

Edited by Eldron
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Flame suit on!

I had a long chat with Kim Johnson on this topic. Basically he says that for his part, he did nothing wrong. I have known Km for many years and quite frankly, I believe him. They were bullied into making a so-called confession with the consequence of further summonses and legal action if they did not. At the end of the day, he went along with it because he was not willing to spend more money on legal costs. This thing hurt him badly.

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Would you say you had ? If you went along with the recommended pricing structure as highlighted is that not wrong ? So all 17 gave confessions under duress ?

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Correct but the only way to bounce back from a R4 mil fine is to increase your profit 

This issue is so old they have been providing for it for years....

 

doesn't stop them from upping the increased RRP though - and hasn't for years...

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I am a serious doubter when it comes to the dealings of the competition commission. I take what they do and say with a very big pinch of salt!

When 11 people sits around the table to discuss the way forward , it is said that they are conniving . If the regime does the same , it is called government.
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Would you say you had ? If you went along with the recommended pricing structure as highlighted is that not wrong ? So all 17 gave confessions under duress ?

Cant speak for the others, I only spoke with Kim Johnson.

 

Duress in a legal sense of duress from a financial perspective?

 

No to Duress in a legal perspective,

Yes to duress from a financial perspective.

 

There comes a point where standing your ground from a legal perspective costs more money than you have. At that point, from a financial survival point of view one needs to make some decisions. He chose not to bankrupt himself.

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I think you need to look at the verdict in context of the practice pre 2008,then it makes more sense.

It was actually some retailers who wanted price control and got support from distributors . One retailer famously posted the minutes and the other I believe was a large nation wide franchise.

 

I think the verdict is pretty fair based on behavior at the time of the complaint

I remember the then owner of said nationwide franchise chatting about this meeting on a certain cycling-related programme, saying it was just a discussion etc.

I remember being somewhat discomfited at the time,

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