Breaking News: Cycle Lab Acquires Chris Willemse Cycles

[eddy]

If they can retain the CWC business model, perhaps step up own brand, keep grey import channels open, and work on rolling out the best of each business into the other, I think there is a good chance of growth.

 

 

 

Therein lies the rub.

 

The only strategic reason for buying CWC is to shut the grey channel down. Nothing else makes sense as the grey channel was the biggest threat to the CL margins and its model.

 

I am sure that CL had seen what their "price match" guarantee was costing every time someone came in with a screen-grab of the CWC website, and did the sums. 

 

CWC was a disrupter (there are others but he was the gorilla) and with him inside the tent, they can out compete the small fry trying to pi$$ in.

[Cookie88]

Therein lies the rub.

 

The only strategic reason for buying CWC is to shut the grey channel down. Nothing else makes sense as the grey channel was the biggest threat to the CL margins and its model.

 

I am sure that CL had seen what their "price match" guarantee was costing every time someone came in with a screen-grab of the CWC website, and did the sums. 

 

CWC was a disrupter (there are others but he was the gorilla) and with him inside the tent, they can out compete the small fry trying to pi$$ in.

Would this not be an opportunity for an EvoBikes or BuyCycle to start up their own grey channel themselves - or is it not that simple?

[karma]

Maybe Oom Chris is pursuing his real passion after all these years.

[eddy]

Would this not be an opportunity for an EvoBikes or BuyCycle to start up their own grey channel themselves - or is it not that simple?

 

 

It is in the sourcing expertise and business relationships with sellers abroad. Not as simple as sending an e-mail to Shimano.

 

Andrew Steer earlier spoke about the channel that CW had established. Therein is the value and if I am right, it won't be the first time a dominant player has bought out a business with a disruptive model only to shut it down.

[Slowbee]

All you naysayers .... I bet if you stick your head into CL this weekend you will see long queues and tills happily ringing.... especially as it is their annual sale!!

 

I find it funny that people think the bikehub has influence in what is said, when in fact is the minority with regard to the cycling masses.

 

The only thing CL misses is that it is not really an LBS so their parts and sundries department is rather lacking.  They have based their model on complete bike sales, financing and items to supplement this selling model.  Their model is not really spares and this is where CWC cornered the market for guys who like to tinker, build up and upgrade.

 

Maybe CL will keep the CWC model for this, but until the mud has cleared and I know how this will go forward I will reserve judgement.

 

As for shopping, I have bought at CL (will continue to do so), and at CWC but not for a long time as I can get better prices and in my hand quicker from Solomons..... and I reiterate what I said earlier... cash/price is king!!... so will shop wherever gives me the best deal !!

A quick look on forum page shows about 10,000 odd views and some 147 replies.

 

Will ask the boss if it is possible to see the number of IP's on the thread.

[Alastair_S1D]

I think my heart just broke, this is the most terrible news.

[shaper]

A quick look on forum page shows about 10,000 odd views and some 147 replies.

 

Will ask the boss if it is possible to see the number of IP's on the thread.

How many are those views from the 147 replies who keep coming back multiple times to read further every time a new comment is posted?

[scotty]

Besides online prices, Brick and Mortar CL beat all the other LBS for marked prices on most items in my area yet people will still claim they are way over priced and a rip off. If I'm looking for a tube or bomb i can walk in CL without shopping round and know I'm not been ripped off. 

 

Having said that I can and do get items cheaper from other LBS at less than the marked price from having a good relationship with them. For me its a chat and coffee with LBS like Finish Line or Bicycle Line, something I do not want nor expect from CL. 

[Danger Dassie]

Not my go to retailer, but good for them and CWC.
If I set emotions aside, the reality is that they employ a fair few skilled people at an equitable salary who put food on the table and support families. They also introduce many new people to the sport through their club, trade ins and association with Wesbank etc. As far as the pricing goes they are comparable to anyone else out there. In fact quite a few LBS folk complain about being undercut due to the Lab’s policy on matching any quote.

For CWC Chris Willemse says the staff and structure will all be looked after. Ultimately time will tell.

Failing that, there are plenty options out there for both online or brick and mortar.
 

[MTB-More]

So dont know if this information has been posted yet but I spoke to a source at CL and he told me that CL cannot compete agains CWC in thie shimano market. The "merger" if you want to call it that will be for back office only to share buying channels thus making CL pay less for Shimano components and potentially bring it to market cheaper by sourcing it through CWC's channels.

 

CWC will then again be able to leverage the CL channels that they have locally to source alternative producs to expand their product offering.

 

From what was said CWC and CL will in essence remain the same with their own pricing models and pricing values. This is purely to expand contract part sourcing and making it more affordable.

 

NOW... If all of this is true or will happen that way is yet to be seen but thats what I was told when I asked the questions. Considering I was just at CL and used CWC pricematch to lower 2 prices. So far nothing has changed and we will wait to see how this unfolds without throwing stones in the air randomly... they might just come down and hit you yourself. 

[Edge_Design]

Therein lies the rub.

 

The only strategic reason for buying CWC is to shut the grey channel down. Nothing else makes sense as the grey channel was the biggest threat to the CL margins and its model.

 

I am sure that CL had seen what their "price match" guarantee was costing every time someone came in with a screen-grab of the CWC website, and did the sums. 

 

CWC was a disrupter (there are others but he was the gorilla) and with him inside the tent, they can out compete the small fry trying to pi$$ in.

 

I'd bet it is the exact opposite.

 

I'm guessing they don't know how CWC gets stock at the price they do - with that buying knowledge and CL's buying power they might be working towards the objective they had many years ago (long before MoreCycle) of trying to compete with the likes of CRC. With enough cash, and some effort, that model can be achieved - you just need to have the financial resources to build your own OEM channel which is easier said than done.

 

I would guess every single Fondriest frame that was sold arrived in SA with a full build kit in a box at OEM pricing that was sold separately. Buy the frame from Fondriest and agree that they will pass on the build kit at cost or something along those lines. Subsequently that beat down the local wholesalers to supply at more reasonable margins.

 

I'm purely speculating - have no genuine knowledge.

[PhilipV]

I'll raise my hand as a capitalist pig. Also known as Entrepreneurs or Businessmen.

I for one can't help but admire CWC for the way they grew and disrupted the market. And if this is CW Snr's exit strategy to be out and retire, then it was a pretty good one.

 

I also have to doff my hat to AMC as to how he grew cyclelab. And with access to the CWC braincorp, CL can access the Grey import channel, and get their online shop running better (they suck at the online game.)

[karma]

I think my heart just broke, this is the most terrible news.

You'll be OK. Promise.

We're here for you.

Be strong.

[C2_X2]

I never liked CWC - I've never had a good experience or service in-store, despite their great prices online. From what I've read in this thread the most likely scenario going ahead is that those prices will also now slowly vanish.

 

I'll continue to support Evobikes as local option.

[Shebeen]

I never liked CWC - I've never had a good experience or service in-store, despite their great prices online. From what I've read in this thread the most likely scenario going ahead is that those prices will also now slowly vanish.

 

I'll continue to support Evobikes as local option.

local option. at the end of the day you are buying the same widget. You can try and put a value on a warranty built in, but it's a hard thing to quantify. To support someone just because they are local is just really adding a middleman to the system - if they don't add any value then it doesn't make sense.

 

 

As an example for myself I took something random but ubiquitous. a 10speed Shimano mtb chain, XT/HG95. This is just a snapshot and doesn't mean that across a basket of goods the results would be the same. 

 

here's who stacked up for this particular item.

 

R390 - https://bike-addict.co.za/products/shimano-hg95-10-speed-xt-chain-116-links R 520

R399 - https://www.easybike.co.za/shimano-xt-chain-cn-hg95-10-speed.html R699

R420 - https://www.cwcycles.co.za/product/shimano-xt-10-spd-chain-hg95 R600

R425 - http://www.olympiccycles.co.za/shop/chain-shim-hg95-116-10sp-2/

R450 - https://www.evobikes.co.za/shimano-xt-hg-95-10-speed-chain.html R595

R549 - https://www.buycycle.co.za/mountain-bike/shimano-xt-chain-hg-95/

R619 - http://cyclelab.com/shimano-hg95-10-speed-1116-chain/

 

Where indicated I put the RRP in BOLD look at the variance there - do not trust the RRP at all when shopping.

 

Going over our borders, this is the list price without shipping and taxes for simplicity. but with the knowledge that a month ago this would be ~10% less than today

 

 

R279 - http://www.chainreactioncycles.com/za/en/shimano-xt-hg95-sil-tec-10-speed-chain/rp-prod108762

R283 - http://www.wiggle.co.uk/shimano-10-speed-cn-hg95-mtb-chain-116-links/

R299 - https://www.merlincycles.com/shimano-xt-hg95-10-speed-hgx-chain-49366.html

R328 - https://www.bike24.de/1.php?content=8;product=60620;menu=1000,2,83

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