Imported parts prices

[Grease_Monkey]

Out of interest, when you buy something "as an importer", do you pay the same price that I can land it from CRC/wiggle/evans, or do you pay a special "importer" price?

 

Well when I say importer I mean I am the SA distributor for the brand, so I do buy directly from the manufacturer at a lower price. CRC/Wiggle will also buy directly from the manufacturer due to their size (unlike other bikes shops who have to buy from their local distributors).

 

So in short, I do get it at a better price than what you can land it from CRC/Wiggle, but only slightly. If I sell it to you from the same price as Wiggle/CRC I make next to nothing in most cases - sometimes not even enough to cover my operating expenses. 

 

EDIT: In order to be the SA importer I obviously have to bring in mass quantities of product at a time and meet minimum order amounts in a year (not always easy the way things are looking in our economy at the moment).

 

That being said, I try very hard to keep my pricing competitive with CRC, so that when you buy from me it is at least the same or less than the landed price you would get from CRC. But... it's not always possible. And because I am the SA distributor I do warranty all products you buy through me (Funn that is).

 

With all products not Funn, I also buy from local distributors for the respective brands, and I can in all honesty say, the margins are very small if you want to be competitive wrt pricing.

[madbradd]

Well when I say importer I mean I am the SA distributor for the brand, so I do buy directly from the manufacturer at a lower price. CRC/Wiggle will also buy directly from the manufacturer due to their size (unlike other bikes shops who have to buy from their local distributors).

 

So in short, I do get it at a better price than what you can land it from CRC/Wiggle, but only slightly. If I sell it to you from the same price as Wiggle/CRC I make next to nothing in most cases - sometimes not even enough to cover my operating expenses. 

 

That being said, I try very hard to keep my pricing competitive with CRC, so that when you buy from me it is at least the same or less than the landed price you would get from CRC. But... it's not always possible. And because I am the SA distributor I do warranty all products you buy through me. 

 

Thanks,

 

I figured it would be something like that. Whenever prices get discussed I find it seems to be implied that the local distributor gets the item at the same price that I can land it from wherever, and then the distributor adds his cut and the LBS then adds his cut. (noticed this on a number of occasions, not specific to your Yx1.3*1.3)

[Grease_Monkey]

Consumers are getting clever and the world is changing - currency is going digital and supply of product and shopping the way we know it is changing - amazon is leading the way. Watch this space - Retail as we know it is at its end and even online shopping is going to change , with it brands , marketing and everything else in the SUPPLY chain. 

 

This is true. And as a consumer I love Amazon, CRC, etc etc, but as a small business it is next to impossible to compete with these guys. Take Taekalot as an example - these guys are still running at a loss with their pricing, but they are doing this to completely capture the market by strangling small businesses - once they have the market they can push prices up again. It's the exact model that Amazon followed with books as well.

 

Awesome for consumer... not so awesome for small businesses. But you are right, the way we shop is changing. What is going to keep your LBS alive at the end of the day is a good workshop and amazing service. We all have to tighten our belt, and as a result businesses must adapt or die...

[Grease_Monkey]

Thanks,

 

I figured it would be something like that. Whenever prices get discussed I find it seems to be implied that the local distributor gets the item at the same price that I can land it from wherever, and then the distributor adds his cut and the LBS then adds his cut. (noticed this on a number of occasions, not specific to your Yx1.3*1.3)

 

No... not the case at all. Any local distributor telling you that he lands it at the same price as you is lying to you. If this was the case he would not have opened the business to start with. I can tell you though.... CRC is getting is for less than your local distributor!

 

When an LBS is telling you that you can land it cheaper than they can, it is most likely truth...

[madbradd]

No... not the case at all. Any local distributor telling you that he lands it at the same price as you is lying to you. If this was the case he would not have opened the business to start with. I can tell you though.... CRC is getting is for less than your local distributor!

 

When an LBS is telling you that you can land it cheaper than they can, it is most likely truth...

 

That's why I said "implied". They always seem to use the price I can land it for as your "Y" when doing a price justification.

[myveonix]

Merlin vs CWC

[Sepia]

Merlin vs CWC

There you go then.  Pays to shop around.

And our local grey import on special is .......?

[CAAD4]

Speaking as an importer myself (Funn Mtb Components), I must say that it is very hard to get my products to clients at reasonable prices.

 

You sit with 2 options:

 

OPTION 1. Import and sell to consumers through dealers - I bring in for Y, I sell to bike shop for Yx1.3, bikes shop sells to customer for Yx1.3x1.3 (I use 30% as an example it is not in reality as much). By the time it gets to the consumer the price is so high that it is not worth it for them anymore. As a result the bike shop has to drop their price, and consequently so do I - as a result I cannot cover overheads.

 

Now here the problem comes in - in order for it to makes sense for the consumer one of two things can happen, bike shops can get directly from the manufacturer (not how it's done but let's just say it is possible), or I must sell direct to consumer. The problem is that bike shops cannot possibly put down the capital to carry all brands, in all varieties, and have reasonable stock levels. So that leaves the option of me selling directly to consumers.

 

OPTION 2. Importer sells directly to consumer (I do follow this model). This allows the importer to drop prices, where the customer gets it at Yx1.3, not Yx1.3x1.3 as with option 1. This does also have it's downsides though - essentially by doing this you are cutting your LBS out of the picture completely, and although that is okay with the sorts of parts I bring in, it is not practical with all parts. You are turning your LBS into a service only centre- bad for you and bad for the bike shop owner. The second downside is that my sales volumes will drastically reduce, resulting in me having to hike prices up to cover overheads.

 

As you can see from my post I am bringing up problems, not solutions - but this is the reality unfortunately. All major manufacturers trade in USD, and for the importers in SA this means that our parts are drastically more expensive than say an importer in the US, or UK.

 

Now, I am not saying that all importers are struggling, there is money to be made, and lots of it. But, people (myself included before I started working in this industry) assume that all manufacturers are coining it by ripping off end users of the products - although sometimes true, this is not always the case.

 

My prediction is that you will see more and more brands such as Rapide and cSixx pop up who manufacture locally. Importers will also start following a direct to consumer approach (as I do), but like I have mentioned this is not possible for all parts and brands - especially when it comes to consumables (tyres, drivetrain, etc.). What we are left with as consumers is the option of paying stupid amounts of money for products locally, or taking our money elsewhere.

 

I suggest we take a middle ground, when something costs exponentially more in SA, take your money overseas, but when something costs a little more, consider spending it in SA and supporting our economy and local businesses. On top of this support companies who manufacture locally, which will invariably result in more such companies popping up - in the end driving prices down.

 

And please... support the guys that give you good service and actually want your business - there are plenty of them in sunny SA.

 

Just my 2c worth.... I don't claim to know what the solution is, and understand the frustration that consumers feel - so much so that I got into this industry aiming to take a different approach - but what I can say, is that changing the status quo look allot easier from the outside than it is in reality.

Rapide Manufactures Locally???

[Primer]

The international manufacturer is also to blame for this mess. They have all these different price structures for different distributors around the world which is wrong. The should be a standard price for the distributor and maybe a quantity price for distributors.

 

How do they expect to do well in a certain market if they give the distributor a cr_p price and then that same distributor has to compete with there big European distributors who are getting way better prices.

 

If they assign a sole distributor for a region then they need to look after him otherwise there brand suffers.

[CAAD4]

Merlin vs CWC

So if you apply Miles' calculations of +15.4% you are a few Bob short of Oom Chris' price. Then there's still the courier fee ( if you chance free Royal Mail to SAPO, you are a gambler) plus the R150 admin fee, well then local seems lekker to me, or is my E(for effort) in maths from 32 years ago kicking in?

[Captain Fastbastard Mayhem]

So if you apply Miles' calculations of +15.4% you are a few Bob short of Oom Chris' price. Then there's still the courier fee ( if you chance free Royal Mail to SAPO, you are a gambler) plus the R150 admin fee, well then local seems lekker to me, or is my E(for effort) in maths from 32 years ago kicking in?

total from merlin incl R400 shipping and VAT is 7841. So still way short of the cwc price shown there

[urbanroyal]

total from merlin incl R400 shipping and VAT is 7841. So still way short of the cwc price shown there

I paid 914 rands to cover the vat and disbursement.... to ups on an order of 6100. ..once the order went over 6k. .I had free shipping....

[Heel Drop]

This is true. And as a consumer I love Amazon, CRC, etc etc, but as a small business it is next to impossible to compete with these guys. Take Taekalot as an example - these guys are still running at a loss with their pricing, but they are doing this to completely capture the market by strangling small businesses - once they have the market they can push prices up again. It's the exact model that Amazon followed with books as well.

 

Awesome for consumer... not so awesome for small businesses. But you are right, the way we shop is changing. What is going to keep your LBS alive at the end of the day is a good workshop and amazing service. We all have to tighten our belt, and as a result businesses must adapt or die...

Amazon have 3 ideas , low cost , del fast and wide variety and be the best at those. I see more people selling online and cutting out dist and retail. It brings the brand closer to the consumer and it makes the product cheaper to buy which means more sales direct to the manufacturer. 

[Tony datoy]

I suggest we take a middle ground, when something costs exponentially more in SA, take your money overseas, but when something costs a little more, consider spending it in SA and supporting our economy and local businesses. On top of this support companies who manufacture locally, which will invariably result in more such companies popping up - in the end driving prices down.

 

And please... support the guys that give you good service and actually want .

This is the model I usually follow, however I have occasionally paid more importing something I really want after exhausting myself kissing local a$$. Some bike shops just aren't interested in quoting or getting items they don't usually have on the shelf.

[Grease_Monkey]

Rapide Manufactures Locally???

As far as I know, but I could be wrong....

 

Either way, they make awesome products at great prices, and their service is very good!

[Grease_Monkey]

This is the model I usually follow, however I have occasionally paid more importing something I really want after exhausting myself kissing local a$$. Some bike shops just aren't interested in quoting or getting items they don't usually have on the shelf.

I have experienced this myself, not just with bike shops - seems some people just do not want your business, and that astounds me! But in that case I don't blame anyone for taking their business elsewhere.