ASG The Store! Happy Hour Sale

[Pikey]

Spot on. I also ordered these as it was too good a deal to miss out on. In the end they couldn't deliver and have frustrated the heck out of me. They were quick to deduct the money from my account and keep it for a week, but after their boo-boo I still have to wait 3 days for a refund: the frustration hasn't ended yet.

I have no interest in supporting any of their future offerings: products or events. Once bitten.....

I would feel really pissed if after all this i didn't get my shoes.

 

Why 3 days to refund that's also BS

[Pikey]

And any sale item they still making profit . That's for sure !

[Karman de Lange]

How is it possible they have 50% profit in a pair of shoes , that's ridiculous !

Talk about getting shafted !

If had bought a pair for R7000 and they have 50% off a week later , I'll be really pissed knowing what we know now .

 

Clothing stores makes >1000% markup (T-shirt cost about R15, sell R 450). 

Normal retail stores  (checkers/pnp/etc) make 50% markup  (33.333% of the retail price is profit(Margin)).

 

Most accessories and spares the margin is 70% (% of retail price is profit).  (200% markup).

 

This is normal retail industry standard ... Car industry is even worst.

 

So you not really getting screwed.  

[Simon Kolin]

I'm still waiting for my shoes that I ordered too. Stupid ASG!

[L46]

Clothing stores makes >1000% markup (T-shirt cost about R15, sell R 450). 

Normal retail stores  (checkers/pnp/etc) make 50% markup  (33.333% of the retail price is profit(Margin)).

 

Most accessories and spares the margin is 70% (% of retail price is profit).  (200% markup).

 

This is normal retail industry standard ... Car industry is even worst.

 

So you not really getting screwed.  

 

Yes we are.

 

Your examples just makes it clear that we are being screwed in more than one way.

 

2 wrongs doesn't make a right.

[Cyclewizz]

Actually, that's 100% profit (double the price). And that's assuming there was no markup on the sale price.

 

If you think that ASG never made money off the sale price you need to think again.

Even with the  50% off they made a nice profit.

 

Aren't they the sole distributor for Sidi (etc) in SA ?

[Jase619]

Yes we are.

 

Your examples just makes it clear that we are being screwed in more than one way.

 

2 wrongs doesn't make a right.

 

The mark up and profit margin don't equal profits though, this goes solely towards overheads. So it's not like they making a 1000% profit per sale, maybe at the end of the day they get to pay there expenses and make 10-20% if that much.

 

Just speculating on actual amounts, just saying don't take the mark up as what they make on a transaction.

[PhilipV]

I don't get the hate towards profit margins.

ASG bought the items up front, paid for it, carried shipping, import taxes, warehousing, transport, and whatever other costs involved.

But according to the cyclist they may not make a decent profit of it, Nee meneer, they must sell it at a minimal margin and do it for the love of the sport.

Freaking socialists, I assume you all work for a salary and have never tried to buy/sell anything.

 

The best way to protest the margins is by not buying it. Free market economy and all that..m

[Patchelicious]

How is it possible they have 50% profit in a pair of shoes , that's ridiculous !

Talk about getting shafted !

If had bought a pair for R7000 and they have 50% off a week later , I'll be really pissed knowing what we know now .

Please man, stop thinking you are the victim here, its free market, if somebody was screwing you another shop would pop up and undercut them. Don't let your emotion blur logic.

 

And any sale item they still making profit . That's for sure !

Not necessarily. If you take the extra overheads into account, its probably not paying for itself, but they would rather loosen the cash tied up in that stock than let it sit forever, or even cross count for it as marketing.

[Patchelicious]

The mark up and profit margin don't equal profits though, this goes solely towards overheads. So it's not like they making a 1000% profit per sale, maybe at the end of the day they get to pay there expenses and make 10-20% if that much.

 

Just speculating on actual amounts, just saying don't take the mark up as what they make on a transaction.

100%

 

Absolutely, but bet your bottom dollar somebody is going to argue with your numbers.

 

Funny how people think they are always being over charged and screwed, until your boss starts questioning your cost to company and asking if you are over charging him/her.... then the tone changes very quickly.

[Patchelicious]

And just be logical about it, if ASG was over charging for R7000 shoes, they wouldn't sell in the first place, and they would then need to sell a ton of stock at marked down values later, thereby screwing themselves. So they would much rather shift that stock at a reasonable margin in the first place than get into position where they need to dump it at a net loss. Trust me, they have thought about this.

[Karman de Lange]

I don't get the hate towards profit margins.

ASG bought the items up front, paid for it, carried shipping, import taxes, warehousing, transport, and whatever other costs involved.

But according to the cyclist they may not make a decent profit of it, Nee meneer, they must sell it at a minimal margin and do it for the love of the sport.

Freaking socialists, I assume you all work for a salary and have never tried to buy/sell anything.

 

The best way to protest the margins is by not buying it. Free market economy and all that..m

 

 

Yes we are.

 

Your examples just makes it clear that we are being screwed in more than one way.

 

2 wrongs doesn't make a right.

 

Don't take this wrong way.. and this really off topic.

 

Go do business plan for any retail business.  You will be surprised how much profit you will need to add to your product to pay the simple things like salaries, rent, electricity, water , interest etc.. 

 

 

Example:

Take salary of  R50k.  To cover that company must sell 150k of goods at 50% margin. (100 pairs of shoes at R 1500 per pair). So that's 5 pairs of shoes PER day to just cover 1 persons salary. 

 

It used to be that a person  cost about double his salary to employee (admin(HR), Desks, Equipment, coffee, xmas lunch etc), might be more these days.  So the 50k salary is in reality R100k to the employer. That works to R15k/day of sales to cover 1 person. 

 

Now normal place have at least 3 staff. So that's R45k of sales PER day just to cover salaries.  and you have not even bought and stored any stock as yet. Forget about advertising, Warranties, free repairs etc. etc.

 

There is a reason why 98% of companies fold in first 2 years.  They don't realise how much money you need to keep the doors open.  (Been there done that ... 3 times)

 

I would just say.. be grateful for clearance sales and take advantage of it!

[Jase619]

Don't take this wrong way.. and this really off topic.

 

Go do business plan for any retail business.  You will be surprised how much profit you will need to add to your product to pay the simple things like salaries, rent, electricity, water , interest etc.. 

 

 

Example:

Take salary of  R50k.  To cover that company must sell 150k of goods at 50% margin. (100 pairs of shoes at R 1500 per pair). So that's 5 pairs of shoes PER day to just cover 1 persons salary. 

 

It used to be that a person  cost about double his salary to employee (admin(HR), Desks, Equipment, coffee, xmas lunch etc), might be more these days.  So the 50k salary is in reality R100k to the employer. That works to R15k/day of sales to cover 1 person. 

 

Now normal place have at least 3 staff. So that's R45k of sales PER day just to cover salaries.  and you have not even bought and stored any stock as yet. Forget about advertising, Warranties, free repairs etc. etc.

 

There is a reason why 98% of companies fold in first 2 years.  They don't realise how much money you need to keep the doors open.  (Been there done that ... 3 times)

 

I would just say.. be grateful for clearance sales and take advantage of it!

 

That's why the original point of the complaint, the delay in delivery and selling stock that's not available, is very valid. However, bitching about prices and mark ups and so forth is a bit of a waste of time. They can either charge these prices and stay open, or close the doors and we will have to import ourselves and deal with returns and customs and our wonderful postal service.

 

For most and myself included it's worth it to pay that company for the luxury of paying in Rand or even going to a physical store and trying before I buy. 

[BigDL]

The mark up and profit margin don't equal profits though, this goes solely towards overheads. So it's not like they making a 1000% profit per sale, maybe at the end of the day they get to pay there expenses and make 10-20% if that much.

 

Just speculating on actual amounts, just saying don't take the mark up as what they make on a transaction.

10 - 20 % nett in retail would be huge. Lots of retailers would bite your arm off for those type of profits. Many retailers are working on 5-8% Nett, with bigger ones often less.

[BigDL]

Don't take this wrong way.. and this really off topic.

 

Go do business plan for any retail business. You will be surprised how much profit you will need to add to your product to pay the simple things like salaries, rent, electricity, water , interest etc..

 

 

Example:

Take salary of R50k. To cover that company must sell 150k of goods at 50% margin. (100 pairs of shoes at R 1500 per pair). So that's 5 pairs of shoes PER day to just cover 1 persons salary.

 

It used to be that a person cost about double his salary to employee (admin(HR), Desks, Equipment, coffee, xmas lunch etc), might be more these days. So the 50k salary is in reality R100k to the employer. That works to R15k/day of sales to cover 1 person.

 

Now normal place have at least 3 staff. So that's R45k of sales PER day just to cover salaries. and you have not even bought and stored any stock as yet. Forget about advertising, Warranties, free repairs etc. etc.

 

There is a reason why 98% of companies fold in first 2 years. They don't realise how much money you need to keep the doors open. (Been there done that ... 3 times)

 

I would just say.. be grateful for clearance sales and take advantage of it!

Well articulated

[Jase619]

10 - 20 % nett in retail would be huge. Lots of retailers would bite your arm off for those type of profits. Many retailers are working on 5-8% Nett, with bigger ones often less.

 

This is true, however I decided to exaggerate it a bit as we were comparing it to apparent markups of 1000%. . .  So if I had said 5% it would not have been so believable.

 

But I do agree, very doubt retail profit margins often stray in to the double digit territory