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

[fanievb]

Truth is, though, is that the Comp Comm's case in this had been flimsy from the start.

 

like most of them

 

*construction *fertilizer *bread

 

at the end of the day the consumer kaks off, no matter how you look at it

[Kalahari Vegmot]

I don't know where most LBSs order stock, but someone is definitely making a killing.

Just don't know whether it's bike shops or manufacturers...

 

Suspect it's the latter

[JXV]

Concealing a crime is of itself a crime....

 

So attending a meeting and remaining silent means concealment and therefore guilty.... of something anyway....

 

But the consumer will pay the fine in the end... the local distributors rip the ring out of pricing... In a big way... local prices are sometimes 60% or more higher than international prices... including shipping... kind of hard to explain that... my eagle xo1 upgrade cost me r9930.... local price over 15k when you add a chainring - even on special....

If they attempt to recover the penalties by simply raising prices they will be less competitive and we will buy elsewhere.

 

Sent from my SM-G935F using Tapatalk

[Kalahari Vegmot]

If they attempt to recover the penalties by simply raising prices they will be less competitive and we will buy elsewhere.

 

Sent from my SM-G935F using Tapatalk

True. A lot of 'new' online shops have also popped up lately, adding to the mix

[Malpiet]

Wonder when Shimano "online offshore competition" will be eliminated as Sram did tried?

Many ways to get shimano into the country especially via malaysia.

 

Sram on the other hand is a bit of schlep but guys can get them in although not in quantity.

 

Truth is most high end bikes are insured these days so it makes it easier to claim if you have a fault hardly anyone is really worried about guarentee if they know they buying a legit product yet saving 20-30%.

[gtr1]

Seen some markups on bikes and about 50%. Give or take a bit of rounding.

 

R123k to LBS and recommended retail R180k

[Hairy]

Seen some markups on bikes and about 50%. Give or take a bit of rounding.

 

R123k to LBS and recommended retail R180k

with that sort of percentage mark-up on bikes, no wonder some bikes shop's are pushing ebikes so hard on the floor. ......

[Jewbacca]

Seen some markups on bikes and about 50%. Give or take a bit of rounding.

 

R123k to LBS and recommended retail R180k

RRP was 45 to 50% on complete bikes and 64% on bits and spares....

 

It really is ridiculous.

 

Makes having 1 or 2 versatile bikes a whole lot more attractive that a fleet. 

[andydude]

with that sort of percentage mark-up on bikes, no wonder some bikes shop's are pushing ebikes so hard on the floor. ......

RRP was 45 to 50% on complete bikes and 64% on bits and spares....

 

It really is ridiculous.

 

Makes having 1 or 2 versatile bikes a whole lot more attractive that a fleet.

Would be nice to see actual financial statements for my analytical minded brain.

 

I assume those margins are gross, therefore excludes all other expenses like rent, salaries, etc.

 

If the net margin is about 20 to 30% I would assume people would be more comfortable? Large listed companies very roughly aims for 15 to 20% net margin / return on capital, therefore you would expect higher for a small cycling shop which is more risky?

[Patchelicious]

Funny how we love margins when we share in the profits.....

[BigDL]

Would be nice to see actual financial statements for my analytical minded brain.

 

I assume those margins are gross, therefore excludes all other expenses like rent, salaries, etc.

 

If the net margin is about 20 to 30% I would assume people would be more comfortable? Large listed companies very roughly aims for 15 to 20% net margin / return on capital, therefore you would expect higher for a small cycling shop which is more risky?

True

 

Those mark-ups are pretty reasonable for a retailer. 50% mark-up equals a 33% gross margin, which will be eaten quickly by costs. Would be surprised if the nett margin is more than 10 or 12 percent.

[andydude]

True

 

Those mark-ups are pretty reasonable for a retailer. 50% mark-up equals a 33% gross margin, which will be eaten quickly by costs. Would be surprised if the nett margin is more than 10 or 12 percent.

Suddenly the whole picture changes!

 

Except for being the owner and drawing a salary, I would definitely not invest equity in a bicycle shop with expected returns of 10 to 12%!

[Hairy]

Would be nice to see actual financial statements for my analytical minded brain.

 

I assume those margins are gross, therefore excludes all other expenses like rent, salaries, etc.

 

If the net margin is about 20 to 30% I would assume people would be more comfortable? Large listed companies very roughly aims for 15 to 20% net margin / return on capital, therefore you would expect higher for a small cycling shop which is more risky?

decent kick back on a 150K bike

[Jewbacca]

The workshop earns the money. The retail pays for itself.

 

Your margins purely on retail are very different to doing 20 services in a day per mechanic for 20 days at 350 zar per pop ex parts.

 

That mechanic pays for himself in 2 days.

 

So, retail shops are good for bringing in customers, but an efficient workshop is where the guts of the industry is

[Patchelicious]

The workshop earns the money. The retail pays for itself.

 

Your margins purely on retail are very different to doing 20 services in a day per mechanic for 20 days at 350 zar per pop ex parts.

 

That mechanic pays for himself in 2 days.

 

So, retail shops are good for bringing in customers, but an efficient workshop is where the guts of the industry is

All the more reason to have kept your shops name off that list.