Imported parts prices

[Grease_Monkey]

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.

100% right. And it is a model that works well, the consumer is the one that benefits most at the end of the day. It's also the model I now follow (with Origin and other small businesses I am involved in).

[PhilipV]

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.

I don't agree.

If distributor X in Country Y only takes 1000 units a year, then they get price Z.

But distributor B in Country A (ships everywhere though) takes 1500 units every month, and from 17 other product lines as well, het gets a much lower price than Z. Distributor B may be less profitable per unit, but he is great for cash flow, and because of the sheer volume that B buys he is more profitable in total than X. It makes business sense to look after B, he is a better client after all. I think this is what you are pointing towards when you say a quantity price, but the quantity that CRC and Wiggle et al buys is so massive that I don't think shimano really cares about coolheat (SA shimano distributor.)

 

SRAM did go so far as to forbid the euro online stores from shipping to SA. It is bit of a pain in the ass, as it effectively protects the local supplier, at the cost of the consumer.

Sram pricing is sky high compared to crc, so now we have to jump through hoops to get it shipped to SA. But I promise you people are still bypassing local SRAM supplier.

 

At the end of the day it's business in a dog eat dog world, and someone will lose along the way, sometimes it is the local distributor, other times its the consumer. But there is always a choice, ie change from SRAM to shimano, or buy overseas.

[Heel Drop]

100% right. And it is a model that works well, the consumer is the one that benefits most at the end of the day. It's also the model I now follow (with Origin and other small businesses I am involved inI 

I really like this Jeff Bezos and I can see why he is where he is. His passion was the customer -His business model was based on the customer 

[FrikkieMeyer87]

I started importing stuff when Suzuki quoted me R600 and a 6 week shipping period from Japan for parts I ended up getting from ebay for R180 and a 7 day shipping period. The choices for international sources have really grown exponentially over the past 10 years with the simplification of secure payments and international tracking, etc (if you import, you'll know 17track.net).

 

I now have the AliExpress app on my phone which I use so source just about anything at silly prices. Yes, there is a degree of risk, but I've never lost large or expensive parcels and if you do your due diligence when picking a provider, the product is usually satisfactory. An example of this would be the awesome carbon bits I've got heading my way, and I paid the grand total of R750 for a 3K carbon saddle, handlebar, stem and seatpost of which the quality is exceptional (saddle arrived, rest of the bits are in JHB at the moment en route to CPT). The only other catch is of course time... I ordered these parts in May already: The hidden cost of free shipping.

 

All that being said, I don't just blindly buy stuff from overseas. I weigh up the local prices and if the difference is negligible or the warranty is particularly important to me, I opt to pay the extra bit for the sake of having the items immediately or being able to return it when it fails. This usually only applies to larger and/or more expensive items, but I've seen people buy- and excessively use entire carbon frames from overseas with great success.

[GrumpyOldGuy]

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. 

Absolutely, world wide every manufacturer is trying to get closer to his target market, having a long convoluted and expensive supply chain defeats this objective completely. 

 

The old manufacturer / Importer / distributor / retailer supply chain is history, it worked well then, but the world has moved on, today people are more mobile and with the internet they have far more choices, no longer do they have to shop at the local corner store, indeed the world is their oyster, some manufacturers have seen this and embraced it with worldwide warranties, excellent international back up and so on and have reaped the benefits, Garmin, Sony, Tag Heuer etc are leaders here and it can be seen even on this forum how people rave about their service, Garmin, in cycling terms especially.  

 

Others, well, they seem to be looking backwards and raising the big stick to try and hang on, no where in marketing history has that ever worked and as the old saying goes, "gaining an increasing share of a decreasing market is the quickest way to bankruptcy." - soon you will own everything, with no one to sell it to.

[Sepia]

 

Agree 100%.

 

Wish Rush Sports had read this.  

They got  middlemen involved and got even further away from their market?

 

(Hat, coat.....)

[daniemare]

For physical stores to survive, they have to me more service oriented and we have to value labour more.

 

2 Examples:

Bought a Bottom Bracket from CRC and had my LBS fit it, their price for the Bottom Brakcet - 3 times I paid (hence I imported), Price for fitting, R50. 

 

Top up of Stans at LBS in Outshoorn, was charged equivalent of 2 bottles at ChrisW prices for tip up, and R20 for labour. Now that left me with such a bad taste in the mouth I will never return to that shop, but if he chraged me a reasonable price for the Stans and a proper labour rate like R200 for the job, the price would have been similar, and I will not feel ripped off.

 

I feel LBSe can get to the same "profitability" by forgoing the easy money of a "moerse" markup, but charge appropriately for the labour.  Most people do not service their own bikes, but most can start importing due to the ease of the internet age

[RiverInTheRoad]

Online shops especially CRC have always treated me better than brick and mortar. If I have a query they answer my mail. If they say they will have an item within 2 days thats exactly what transpires. All my LBS's have gravely disappointed me for a variety of reasons. I import or buy from Oom Chris. The local guys can wash my bike.

[GrumpyOldGuy]

For physical stores to survive, they have to me more service oriented and we have to value labour more.

 

2 Examples:

Bought a Bottom Bracket from CRC and had my LBS fit it, their price for the Bottom Brakcet - 3 times I paid (hence I imported), Price for fitting, R50. 

 

Top up of Stans at LBS in Outshoorn, was charged equivalent of 2 bottles at ChrisW prices for tip up, and R20 for labour. Now that left me with such a bad taste in the mouth I will never return to that shop, but if he chraged me a reasonable price for the Stans and a proper labour rate like R200 for the job, the price would have been similar, and I will not feel ripped off.

 

I feel LBSe can get to the same "profitability" by forgoing the easy money of a "moerse" markup, but charge appropriately for the labour.  Most people do not service their own bikes, but most can start importing due to the ease of the internet age

Indeed, right there is the answer.

[plane^driver]

.

[Johnny Lawless]

I have been thinking about setting up something as discussed above. A international buying services.

 

I have the pleasure of living overseas, in the country that does not charge duties or vat and a postal system that works! For example, I ordered something the otherday from the USA and it took 5 days to get delivered and that was USPS not even courier.

 

So I was thinking about setting up a monthly or weekly buying order, which would then be sent to me and then I would then send to you the end buyer in SA. I would use Fedex as I get 75% discount with my staff card. I could also then make a "special invoice" if you so wished. Obviously I couldnt honor any kind of warranties as I would only be a handling agent.

 

Anyway, just an idea for now and would appreciate some feedback if this is something you would consider.

 

"Special invoice"...isn't that admitting to setting up a crooked business. No thanks, enough corruption and fraud in this country as it is. Anyone partaking in this is no better than our corrupt government IMO. 

[plane^driver]

"Special invoice"...isn't that admitting to setting up a crooked business. No thanks, enough corruption and fraud in this country as it is. Anyone partaking in this is no better than our corrupt government IMO.

 

Hens the reason I said if you so wished. Your choice... all ideas and options, just trying to help if I can.

[deanbean]

Agree 100%.

 

Wish Rush Sports had read this.

They got middlemen involved and got even further away from their market?

 

(Hat, coat.....)

Ditto, I was most dissapointed. Now I source my bearings and seal kits elsewhere. It's a pita dealing with them via lbs. Particuarily as lbs are not as good as me ordering bits.

[BigDL]

I have been thinking about setting up something as discussed above. A international buying services.

 

I have the pleasure of living overseas, in the country that does not charge duties or vat and a postal system that works! For example, I ordered something the otherday from the USA and it took 5 days to get delivered and that was USPS not even courier.

 

So I was thinking about setting up a monthly or weekly buying order, which would then be sent to me and then I would then send to you the end buyer in SA. I would use Fedex as I get 75% discount with my staff card. I could also then make a "special invoice" if you so wished. Obviously I couldnt honor any kind of warranties as I would only be a handling agent.

 

Anyway, just an idea for now and would appreciate some feedback if this is something you would consider.

And I bet you complain about government corruption. Crime is crime China

[Robrider]

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. 

 

I don't know if this has been covered, but for a full bike for example, do you pay the ~32% on the shipping costs as well?

[GrahamS2]

I don't know if this has been covered, but for a full bike for example, do you pay the ~32% on the shipping costs as well?

No, on the invoice value only. Shipping is billed separately and is normally free if you shop around.