Imported parts prices

[Sepia]

Please could somebody explain in a simple way as to who is making the money here?  As a real example:

 

I purchased a single Shimano part for R1700 landed in SA.  No side deals so I did pay the courier and import taxes etc.  This was all above board from a once off, small individual buyer like myself.

 

I tried to get the very same part locally and not all shops stock it.  The one shop in the Cape who always has “specials” is selling the same product for R2300.00.  One shop here in Durban sells the product for R2800.00 and another for R3200.00.  Any reason why should I have purchased from them?

 

So, who is not making the purchase of parts affordable in SA and why? 

It pays me to shop out but I am not happy with this as some shop owners are my mates but I do not earn the type of cash they think I do.

 

I see the Coolheat rep is putting up posters at the shops saying they will not honour any Continental product which is not purchased in this country.  This is rich coming from a company who does not stock a decent range of tires at a decent price.  (Has the quality not gone off lately?) I also overheard something about them closing the ability of SA online shoppers to shop at overseas shops.

 

But they continue to raise the prices and force individuals like myself to shop out of the country?  Shooting themselves in the foot somewhat?

 

Or am I wrong?  Please would somebody explain the method to this madness I do not understand?

 

Thanks

[JA-Q001]

I must say. As part of my work I also order tyres for vehicles. I buy between 10 to 30 at a time.

 

I get a quote from the importer which is a special price for our company, seeing as we buy large quantities from them. I also ask for quotes from some dealerships, because I need 2 to 3 quotes sometimes for the ordering process. Somehow the dealer can get the same tyre for 2/3rds of the price that the wholesaler/importer can give it to me for.

 

This makes me ask HOW? How is he still making money if its below the wholesalers price? Or is it that the wholesaler makes such a huge profit? I mean, say that dealership makes only 10% markup in order to try and get the order, this means that the wholesaler is asking us almost 100% markup on the wholesale price for the dealer, meaning the wholesaler still makes profit out of the wholesale price to the dealer. 

 

So for the Normal public, they pay almost 400% markup on the cost to company price of the wholesaler. 

 

But thats probably how a free market works, willing buyer and all...

[bikebloke]

sole territorial agency agreements = less market competition = higher prices and less product choice

paraphrased from economics for dummies  

 

keeps CRC merlin etc in business  

[Sepia]

sole territorial agency agreements = less market competition = higher prices and less product choice

paraphrased from economics for dummies  

 

keeps CRC merlin etc in business  

supply vs demand, I understand that but I am not an actual "demand" and market competition is from the internet hence the stuff you attitude from some retailers.

 

We should all import bulk and get into bed with CWC.  The mere fact they import in bulk from Europe and sell at a much higher price than what I, as an individual,can get it for.  This worries me.....

 

Lots of snakes in the grass me thinks.

[LOOK695]

I don't feel guilty ordering from over seas. My money, I choose where I get best price and service

[cadenceblur]

Don't see why a system cannot be set up whereby people state the parts they require from a given overseas retailer, order is then Coordinated and paid for, with shipping costs split fairly ? Would this work? Obviously would help if members are in same province.

[Letum911]

This has been discussed in the past.

 

If memory serves short version was: Buy International if you choose, normally cheaper, but it is at your risk. If you buy local you have the benefit of having the item immediately, or delivered within a day or 2, the local guys carry the risk of "dead stock" on their shelves but also they assist in support for the item as well as honoring the warranty.

 

Personally, I opt for local if there's only a 10%-15% difference. More than that and I shop best value for money.

[bertusras]

If you buy local you have the benefit of having the item immediately, or delivered within a day or 2

 

Well I've had orders from CRC arrive faster than most of our local guys managed, unfortunately.

[Letum911]

Well I've had orders from CRC arrive faster than most of our local guys managed, unfortunately.

This is true, have had it where I placed an order with CRC and it was delivered within 3 days, however my last order took just short of 2 weeks (think it was about 7 working days if memory serves). Local guys I have recently used was CWC ordered Sat morning delivery was the Tuesday and Rapide was under 24 hours.

[Thermophage]

Don't see why a system cannot be set up whereby people state the parts they require from a given overseas retailer, order is then Coordinated and paid for, with shipping costs split fairly ? Would this work? Obviously would help if members are in same province.

do this with mates all the time

[Sepia]

do this with mates all the time

Should set up a monthly account. 

It is much cheaper and even cheaper still if the shops have real "specials".

 

FWIWP:  Ordered a frame from the Uk and within seven days I was riding the bike.

[Thermophage]

Should set up a monthly account. 

It is much cheaper and even cheaper still if the shops have real "specials".

 

FWIWP:  Ordered a frome from the Uk and within seven days I was riding the bike.

Ya if you use the DHL option from CRC I've never waited longer than 4 days.

And man you really can't beat their specials...I mean 50% discount on their already low prices happens pretty damn often. I'm sure that's less than cost price for a lot of stuff in RSA.

[Sepia]

Ya if you use the DHL option from CRC I've never waited longer than 4 days.

And man you really can't beat their specials...I mean 50% discount on their already low prices happens pretty damn often. I'm sure that's less than cost price for a lot of stuff in RSA.

Exactly what I am saying.  Tired of getting ripped off.

I have now experienced the savings which can be made, legally.

Proud importer I am of now!

[voel die veld]

I've been looking at prices from a shop in Europe and seems like a few good deals,but concerned about customs charges: what could I xpect to pay on bicycle parts?.
Say for instance ordering for R20000 (130 uk pound)  

Thanks.

 

[Captain Fastbastard Mayhem]

I've been looking at prices from a shop in Europe and seems like a few good deals,but concerned about customs charges: what could I xpect to pay on bicycle parts?.

Say for instance ordering for R20000 (130 uk pound)  

Thanks.

Parts attract no duties, so just the VAT & ATV which comes to 15.4% over the  Ex Vat cost on the site (need to indicate that you're in SA for that to be reflected)

 

Full bikes - 15% plus 15.4%. And it's multiplicative, not additive. So you add 15% then you add 15.4% to the already increased value

 

Clothing is 40% Plus VAT

 

Helmets are (sometimes) 30% plus VAT - IIRC the country of origin has a lot to do with whether it's duty free or not. 

 

Frames are duty free, so just VAT. 

 

Remember to account for the DHL handling charge as well. Normally R 150. 

[urbanroyal]

The UPS dude told me that we now only allowed 3 international purchases a year. ..thereafter you have apply for an importers permit ...if true do you pay different rates as an importer ?