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Online stores over charging


Sharkcatcher01

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I bought a wahoo kickr from my lbs at a much cheaper price than anywhere else........

 

 

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What always gets me is the Persian rug stores in shopping malls. They're always 50% off. Does anyone actually ever buy one (and at what discount), or is it just a money laundering scheme. Mall rent is not cheap

Never mind their whingy whiny radio ads where the poor old chap sounds like he's in serious pain...

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The only price that matters is the price you pay. Normal price recommended retail price etc are irrelevant - no reason to even look at them.

But they are good for insurance claims.

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I saw tyre sealant being sold on 'special' for double the price. Not a big thing, but becaue i dont have time to browse at my LBS and check prices out i was wondering what else they are charging those kind of mark ups for. 

Once most of the LBS's have been priced out of the market the online prices can creep up to whatever they want............... just a thought.

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Most SA online stores are actually physical shops that just offer a web service. So, you are still paying shop prices even when you buy online.

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But they are good for insurance claims.

The point of insurance is to put the policy holder in the same position they were in before an incident took place. NOT to score a few extra bucks.

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Once most of the LBS's have been priced out of the market the online prices can creep up to whatever they want............... just a thought.

Did you really think about that before you posted it?

 

Online stores are not motivated to out price and close LBS’s. Their business models allow them to be more competitive on price and therefore LBS’s retail revenue streams will decline as a by product of us consumers buying on price.

 

They can also already set their prices to whatever they want, but they won’t because if their prices are not competitive, in the online space, not even the LBS space, we consumers will simply type in a different URL and buy from the website across the road.

 

Free market is what sets the websites prices, not the LBS’s.

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On the pricing issue, I think that the ASA needs to get involved with our online shops.

 

Far too often an item is listed as “R10k down from RRP R15k, SAVE R5000!!!” When in reality the RRP is R10k.

 

Having recently gone through a substantial smart trainer investigation, I can say that most of our preferred online shops seem to do this in varying degrees.

 

So to answer the OP, I don’t think it’s over charging, I think it’s false advertisement.

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On the pricing issue, I think that the ASA needs to get involved with our online shops.

 

Far too often an item is listed as “R10k down from RRP R15k, SAVE R5000!!!” When in reality the RRP is R10k.

 

Having recently gone through a substantial smart trainer investigation, I can say that most of our preferred online shops seem to do this in varying degrees.

 

So to answer the OP, I don’t think it’s over charging, I think it’s false advertisement.

If I remember correctly the ASA actually took Takealot to task for exactly this. They are a big player, so they were forced to listen and act.

 

The ASA can only act on complaints. Sometimes maybe we should go on a crusade and report all these non-specials to the ASA, maybe some of the charges will stick.

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On the pricing issue, I think that the ASA needs to get involved with our online shops.

Far too often an item is listed as “R10k down from RRP R15k, SAVE R5000!!!” When in reality the RRP is R10k.

Having recently gone through a substantial smart trainer investigation, I can say that most of our preferred online shops seem to do this in varying degrees.

So to answer the OP, I don’t think it’s over charging, I think it’s false advertisement.

Nothing pisses me of more when I buy a supposedly discounted item (online of course ) with a certain % of saving, only to find out the price tag on the item was never what they actually implied it was on there site,but considerably lower .

 

So the actual saving was never what they advertised but generally a fair bit less. Yes you may still be saving but certainly not the saving you got lulled in to thinking it was.

 

Homework ppl,that’s what it’s all about . Don’t believe these sales are “once in a life time “ prices . It’s bollokcs and borderline unethical in my eyes.

 

Feel better now .

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Fraud. Its awesome :-)

Is it fraud if it is the recommend retail price? Surely that is the price I have to use when submitting a claim as this is what it should sell at and the assessor needs to validate if it is correct. Who knows if that special is going to be valid in one or two weeks time.

 

Naturally it also depends on what is insured and for how much. You could find yourself under-insured as well, 

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Is it fraud if it is the recommend retail price? Surely that is the price I have to use when submitting a claim as this is what it should sell at and the assessor needs to validate if it is correct. Who knows if that special is going to be valid in one or two weeks time.

 

Naturally it also depends on what is insured and for how much. You could find yourself under-insured as well,

Yes it is, and it’s why other people who don’t do this end up paying higher premiums.

 

Taking more from insurance companies than you should, is not a victimless crime.

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I had an interesting experience last month. I broke one of my brake levers after hitting a fence. With Sani coming up I went straight to a nearby cycle shop to replace the lever. Mechanic gives me a quote for new Shimano SLX levers and labor cost and I immediately/incorrectly assume I'm getting over charged. I quickly review some popular online stores and to my surprise the 2 online stores I quickly looked at while standing in the shop all had Shimano SLX brake levers on sale with a large discount advertised. The one online store had a banner of "30% off". The funny thing though is that the price for the brakes on these websites and what I was getting charged at the bike shop differed by maybe R100. And that includes the labor to fit the brakes. I asked the mechanic if the brakes were on special and he replied "No. That is our normal price". So I started comparing items in the shop to the same items on these 2 online stores, and the prices for the same products were identical and in some cases cheaper than the online stores. Even though the online stores had "10/20/30% off banner" over the product. It was only then that I saw on 1 of the sites, the marked discount is based on "RRP". So the discount offered or advertised by the online stores is not necessarily a discount on their normal selling price, it is more a discount percentage on some arbitrary recommended selling price of the product. Is this legally misleading or false advertising? Probably not. Is this a clever way to mislead me to drive sales and hype around drawing attention to "40/50/60%" discounts? Yes. 

Come on - Name the LBS and name the Online Stores.

 

I buy most of my stuff online due to price considerations - so if this is true, I will gladly switch to that LBS (if off course its in my area that I am willing to drive)

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Why people use RRP as a benchmark is beyond me.

 

When I am in the mood or need to buy something, I use Chain Reaction Cycle's current price (also not their silly RRP thing) as the benchmark and add shipping and VAT to it.

 

For used Items I then offer 50% of that price

For SA Items I will pay up to 15%-20% more as that is my "valuation" of the warranty and convenience. Regardless of Online or LBS

 

If not, then import from CRC

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Friend was looking at my bike today, and asking the usual questions about what to look for when buying bikes for his family yada yada .....

 

Knowing he is technical guy we walked into the garage and I pointed out the items that comes at the various price brackets.

 

THEN he asked about where to buy ..... had a nice chat about the "big local on-line" store with their daily specials, and how their RRP prices adapts as per the special of the day, and how many times people have posted screen grabs on this site about that practice ....

 

 

I have bought items at my LBS at the "standard price" for way less than the 30% discounted price of that large on-line store .....

 

 

I do use their website to look for items, get an idea of the price range ... then drive to my LBS and mostly find it there for a cheaper price.  Sadly my LBS dont have such a wide range though ....

 

 

 

NOPE, this customer is VERY wary of the local on-line stores !

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