Buying overseas vs supporting local

[Patchelicious]

People throw CPA around more loosely than dolus eventualis during the Oscar trail. ????????????

 

The CPA is there to protect consumers, it's not meant for consumers to bully businesses.

 

"I said no pickles and onions on my burger FFS I'm telling the CPA!!!"

[GrumpyOldGuy]

I was wondering what hubbers felt on this just this morning.

Powertap C1 > CRC incl our VAT R10,000 (after Zuma's idiocy overnight) and from Bicyclepower.co.za its R13,000. Now that is 30%

 

My question was more about WHY than a worry about warranty.

CRC is a retail shop, like Bicyclepower and any LBS. from a Value Chain point of view both will order from the supplier, via a distributor or 2 and the actual shipping will happen directly from China.

 

So why these extreme differences? Can any local guys comment. What are we missing. I can see how CRC might demand some volume discounts and shipping China-South Africa will be a little more than China-UK, but can this add up to these huge price differences. Remember that the SA guy pays less in wages and rent.

 

And yes, with the Rand's impressive recovery, why are we not seeing decreases. Yes, you biught some stock at prices you fixed a couple of months ago, but why does that then not hold when it goes the other way?

 

Until I understand valid reasons why, I will buy online and pay for fitting if I cannot donit myself

I cant speak for cycling products, but in general shipping from China requires volume, now, what happens in low volume environments is that the "brand" will distribute to this market from their home base.

Now what in effect happens is - the product is made in China, shipped at the Brands expense to New York (for example) held in their store and shipped out to SA (for example) in small volumes. 

 

Now, obviously there is a considerable extra cost (ie) in getting the product first to the USA, which is added to the the base price the SA importer pays, then the brands "local margin" is added, which would be higher than a direct import where they are not involved, then there is the cost of shipping it from NY to SA added in, all of which then has to be recovered by the local importer, so his costs, because he is in a low volume environment, are considerably higher.

 

On the other hand many brands will allow direct purchases from their appointed manufacturer by their distributors with only a small additional margin for themselves, obviously, many costs are then eliminated and this allows the importer to be far more cost competitive,.....but,.. only if he can deal with the larger volumes he would be required to purchase, and for many, its not an option, so they are stuck paying the higher cost buying small volumes from the brands warehouse home  base.

 

I dont know the cycling market but I am pretty sure a 40ft container of say multi-tools would take the importer 50 years to move in SA, so even though he would get them at a ridiculously low base price, its not viable to sit on, so he buys 100 from the brand names warehouse store when he needs them, at of course, a considerably increased base cost price.

 

Its really all to do with volume and logistics, but thats another button on the dress, and has nothing to do with the imported versus local warranty issue. 

[Captain Fastbastard Mayhem]

Great post, grumps

[daniemare]

Buying online from CRC et al, is as much as buying 2nd hand, a calculated risk.

Is the savings in money worth the risk should something go wrong?

Yes? Buy it.

No? Pay the full price.

Surely a brand new product does not pose the same risk as a used item. But I get your point.

 

Question is still, should you be over charged by these ridiculous high prices if the only reason, as you hold, is convenience of warranty claim. I say convenience as your CRC purchase still have recourse, which many here have successfully used.

 

I am sorry, this one reason is not value add enough for me

[Abercrombie]

I think Garmin is a perfect example of a company that got this right. I bought my first Garmin overseas because it was cheaper, much cheaper. I broke it and Garmin SA treated me so well I have since bought every other Garmin locally because the value is greater, even if the price isn't.

 

Agree entirely, same scenario. Bought overseas, had an issue and was blown away by the good service. So with that I've bought two more Garmin locally since then

[Patchelicious]

Surely a brand new product does not pose the same risk as a used item. But I get your point.

 

Question is still, should you be over charged by these ridiculous high prices if the only reason, as you hold, is convenience of warranty claim. I say convenience as your CRC purchase still have recourse, which many here have successfully used.

 

I am sorry, this one reason is not value add enough for me

Just because an online store with surplus stock can sell something relatively cheaply, does not mean that your local guys are over charging you.

[daniemare]

Just because an online store with surplus stock can sell something relatively cheaply, does not mean that your local guys are over charging you.

Yes it actually does. Based on the effect in my bank account.

 

Fair market price is the price agreed between a willing buyer and a willing seller. So if one seller is willing to sell at x price, regardless of his reason, that is the market price, everyone else is ovepriced at that point for me as the willing buyer.

[Patchelicious]

Yes it actually does. Based on the effect in my bank account.

 

Fair market price is the price agreed between a willing buyer and a willing seller. So if one seller is willing to sell at x price, regardless of his reason, that is the market price, everyone else is ovepriced at that point for me as the willing buyer.

Regardless of reason??? Oh cool, well if I can buy a stolen Epic Sworks for R10k, seeing that it is an agreed price by a willing seller and a willing buyer I trust that Spez adjusts their global prices to the new market price set by this transaction.

 

Look, obviously the above is an exaggeration, but saying that the lowest available price, disregarding all other factors, sets a new baseline and therefore anybody charging more than that is blatantly over charging, is not a solid argument.

 

Over charging implies that somebody is intentionally inflating prices, and this is where I'm calling BS.

 

If I import a bunch of Shimano stuff for R100 per unit and sell it at let's say R130. Then tomorrow CRC runs a special at R100 for the same item as they got a container of it, that does not mean I am over charging you. You might not like my price, but it's a valid price, it's not an inflated one and your bank balance had no bearing on how I arrived at it.

[Eugene Brown]

I really like going into the local retailers, browsing around, and looking for that extra something. Unfortunately, most of them have the same/similar lines, at same/similar prices, and nothing that really flicks your hair back. So that is one motivation for me to look around, buy on sale locally, or import.

Something even worse for me is when you buy product x from your local shop, a piece of ot fails, and you cannot get the replacement part because the local distributor don't carry parts. Now that really fkn grinds my gears.

Pricing and selection are key drivers, but also after-sale support is far too often neglected by the SA importers/distributors. Aa mentioned before, a sharp company would sort out their support structures first, and then focus on winning customers based on fair pricing AND super support.

[daniemare]

Regardless of reason??? Oh cool, well if I can buy a stolen Epic Sworks for R10k, seeing that it is an agreed price by a willing seller and a willing buyer I trust that Spez adjusts their global prices to the new market price set by this transaction.

Look, this can go on and on. You cannot sell something you do not own. You never own a stolen bicycle so you are not a willing seller.

 

So without debating economics to much further, continue buying what you deem is a fair price, and I will continue to buy what i think is fair.

[Jurgens Smit]

I have done some research and spoken to a few LBS who can do a damn good deal. +- within 5k of Evans price. All you need to do is ask 

 

Also, if you have a good insurance, they will cover overseas bought goods and allow you to claim for faulty or broken units.

[Patchelicious]

Look, this can go on and on. You cannot sell something you do not own. You never own a stolen bicycle so you are not a willing seller.

 

So without debating economics to much further, continue buying what you deem is a fair price, and I will continue to buy what i think is fair.

Thank you for only responding too, and selectively quoting the part of my post that I specifically stated was an over exaggeration.

 

So now there are reasons stated that must be considered (after you stated "regardless of reason").... ok if ownership is your concern. I'll sell you a Coke for 1c that I legally bought and own, but then you must please go around and list everybody who sells it at "normal" price as people who intentionally inflate their price to rip us off as my price is the new market norm. Can you not see how ridiculous that argument is??

 

Look, you can buy from who you want, I would never oppose your right to do that, honestly I also look for the best price readily available. But I don't run around accusing people of inflating prices simply because they happen to have a similar item listed at a higher price than what I was able to find. And the cheapest possible price is NOT automatically the new global baseline.

[GrumpyOldGuy]

Agree entirely, same scenario. Bought overseas, had an issue and was blown away by the good service. So with that I've bought two more Garmin locally since then

Yah, Customer loyalty........ it just shows what good customer service can and does do for a product, few folk who have experienced the Garmin culture of customer service will purchase another product brand, irrespective of price, and its simply because they feel valued and supported by the brand.

[Slowbee]

Yes it actually does. Based on the effect in my bank account.

 

Fair market price is the price agreed between a willing buyer and a willing seller. So if one seller is willing to sell at x price, regardless of his reason, that is the market price, everyone else is ovepriced at that point for me as the willing buyer.

Blinken woolies is ripping me OFF!!

 

Gatiep on the corner is selling a bag of 8 avo's for R20, woolies is selling 1 (ONE) avo for R25 bucks. I DEMAND (!!) an explanation of this pricing model. Woolies is fleecing us, what a disgrace.

 

Ja right. Here is the other leg.

[daniemare]

So now there are reasons stated that must be considered (after you stated "regardless of reason").... ok if ownership is your concern. I'll sell you a Coke for 1c that I legally bought and own, but then you must please go around and list everybody who sells it at "normal" price as people who intentionally inflate their price to rip us off as my price is the new market norm. Can you not see how ridiculous that argument is??

 

At that point in time, as I said, the market price is 1c. And if you can keep supplying at that price, the market price will remain 1c. Now if you can stay in business (good luck) then, yes, everyone selling at a 100-300% higher price is ripping you off.

 

Blinken woolies is ripping me OFF!!

 

Gatiep on the corner is selling a bag of 8 avo's for R20, woolies is selling 1 (ONE) avo for R25 bucks. I DEMAND (!!) an explanation of this pricing model. Woolies is fleecing us, what a disgrace.

 

Ja right. Here is the other leg.

Ah avos, like a SRAM Level Brakes, the Woolies version is exactly the same as the Gatiep version when it comes to quality, freshness etc. And if you feel it is, then yes, Woolies is ripping you off and you should buy from Gatiep on the corner. And you can demand to understand why. There is blogs for that too. And if Woolies is willing to answer, you might receive one.

 

Just like here, one can ask, and so far one seller was willing to offer an explanation regarding financing of transactions.

 

Again, whilst ripping of is not illegal (unless you price fix which has never happened in the cycling industry) you can continue buying at those rates, while others will look elsewhere. The good thing about choice isn't it?

[Slowbee]

At least you can speak to Gatiep. These other big companies, not so sure.

 

What intrigues me in this entire process is who is protecting the wholesalers? Given the current world this seems to be a dying business model. Unless of course you pull a SRAM and refuse to allow imports. Then Gatiep is really going to do well.