Chain Reaction / SkyNet Non-Delivery

[daniemare]

Just received my CRC package today via DHL

 

I mailed them at order time and pleaded with them not to use Skynet.

 

They promptly sent GBP270 order with DHL, all and all a week.

 

But they sent 4 brakepads via Skynet. Don’t know why they broke up the package just for the pads. I emailed them and said I will not be collecting R120 of pads for a R200 clearance fee and I hope Skynet charge them demurage

 

So I can’t tell whether they are back with DHL or not or if value determines it

 

PS, did not pay for upgraded shipping

[Traveler]

As long as they are with Skynet, they will not see my business. There are plenty other options.

[Help.Me.]

O sh_t there goes my Brooks Saddle.....also no info on searching the parcel.......

[blinx]

I would have thought South African retailers would have grabbed this opportunity and service cyclists locally so we don’t have to buy overseas but clearly they also don’t care. Opportunity lost

[Grease_Monkey]

I would have thought South African retailers would have grabbed this opportunity and service cyclists locally so we don’t have to buy overseas but clearly they also don’t care. Opportunity lost

Chain Reaction sells items at less than out LBS's cost price. It's the distributors in ZA that shaft us, not the shops.

[PhilipV]

Chain Reaction sells items at less than out LBS's cost price. It's the distributors in ZA that shaft us, not the shops.

Actually, CRC's cost is closer to our Distributor's cost price than our retailer's cost price.

[kosmonooit]

I would have thought South African retailers would have grabbed this opportunity and service cyclists locally so we don’t have to buy overseas but clearly they also don’t care. Opportunity lost

 

Traditionally its been more about big mark-ups and ant-competitive collaborative retail pricing

[MORNE]

Chain Reaction sells items at less than out LBS's cost price. It's the distributors in ZA that shaft us, not the shops.

yes but then i sometimes wonder why some of the many "online only" stores in this country, which obviously don't have all the overheads like full retail stores would have, sell items at the same price as walk in stores.

They are obviously making alot more % wise per item then since most of those places literally make a make a phone call and just ship your crap directly from distributors...basically just a middleman.  It is not always the case though but it most often than not.  

 

We used to bring in some stuff for other interests we have, mostly since we were racing ourselves so it was for own use...but if people wanted to buy, we had no issue to sell. We sold stuff to cover our import and shipping costs +10%...and that still came in at about only 60-75% what local distributors of the same items were charging....so in some case it seems theywere making 30-50% proffit. Needless to say...we actually sold plenty and made up the difference in volume.....and that was in an infinitely more niche segment than bicycling... 

[Dirkitech]

yes but then i sometimes wonder why some of the many "online only" stores in this country, which obviously don't have all the overheads like full retail stores would have, sell items at the same price as walk in stores.

They are obviously making alot more % wise per item then since most of those places literally make a make a phone call and just ship your crap directly from distributors...basically just a middleman.  It is not always the case though but it most often than not.  

 

We used to bring in some stuff for other interests we have, mostly since we were racing ourselves so it was for own use...but if people wanted to buy, we had no issue to sell. We sold stuff to cover our import and shipping costs +10%...and that still came in at about only 60-75% what local distributors of the same items were charging....so in some case it seems theywere making 30-50% proffit. Needless to say...we actually sold plenty and made up the difference in volume.....and that was in an infinitely more niche segment than bicycling... 

I also wonder and can only think that it is because people are too dumb or lazy to bother fighting being overcharged. Those that do disagree with the ridiculous pricing in South Africa are the ones happily importing for own use. 

 

Correct me if I'm wrong, since I'm aware of making some assumptions, but isn't that tax evasion, importing to sell for profit (covering costs included as profit) without declaring?

[MORNE]

I also wonder and can only think that it is because people are too dumb or lazy to bother fighting being overcharged. Those that do disagree with the ridiculous pricing in South Africa are the ones happily importing for own use. 

 

Correct me if I'm wrong, since I'm aware of making some assumptions, but isn't that tax evasion, importing to sell for profit (covering costs included as profit) without declaring?

 

 

usually when the items reach a certain amount...can't recall the number, i think it used to be around 25k and over back then, you are required to have an import licence since SARS then automatically assumes you are going to sell those goods. it has changed recently i think....the amount you are able to bring in per year before it is not considered for personal use/gifting purposes. also....I'm not even close to being an expert but pretty sure there are lots of creative ways to show close to zero profit for a 'small business' and therefore minimise losses to SARS.

[Grease_Monkey]

yes but then i sometimes wonder why some of the many "online only" stores in this country, which obviously don't have all the overheads like full retail stores would have, sell items at the same price as walk in stores.

They are obviously making alot more % wise per item then since most of those places literally make a make a phone call and just ship your crap directly from distributors...basically just a middleman. It is not always the case though but it most often than not.

 

We used to bring in some stuff for other interests we have, mostly since we were racing ourselves so it was for own use...but if people wanted to buy, we had no issue to sell. We sold stuff to cover our import and shipping costs +10%...and that still came in at about only 60-75% what local distributors of the same items were charging....so in some case it seems theywere making 30-50% proffit. Needless to say...we actually sold plenty and made up the difference in volume.....and that was in an infinitely more niche segment than bicycling...

Common misconception that online stores do not have overheads, they are different overheads, but overheads none-the less. Your rent is less, BUT you have to cover shipping if you want to be competitive, and the big cost is marketing. It is not free to get people on your website, google advertising is expensive. You pay as much as R30 to R100 per click to get people to visit your site - and if 1 in 10 people buy that conversion cost is pretty high (oh and 1 in 10 is a very optimistic number - you need a good amount of stock to achieve that).

 

And no, the good online stores do not ship directly from distributors. Many distributors have minimum "stock on hand" rules for online stores and do not allow online stores to advertise stock they do not have on hand. How do you think something gets to you next day with the stores stickers/packaging/logos if it is just shipped from the distributor.

 

Sure there are middlemen - but they don't stick around for long. Online stores are not the joke overyone thinks they are to run.

Edited November 8, 2018 by Grease_Monkey

[HairyLegs]

Interesting read about YuppieChef's online vs stores:

 

https://www.businessinsider.co.za/this-startling-statistic-shows-why-yuppiechef-is-moving-into-your-local-mall-2018-11

[Grease_Monkey]

Actually, CRC's cost is closer to our Distributor's cost price than our retailer's cost price.

To be fair, CRC pretty much cuts out a step in the process. If I have it correctly (and I speak under correction) they buy many items directly from the makers, getting distributor pricing and selling direct to public thus making a bigger profit than the normal bike shop and giving the customer a better deal. It's the future, I predict in a couple of years the majority of distributors will have online stores themselves...

[EssBee]

I am going through a similar process right now. The tracking number provided shows it was despatched...on 12th October...then it is Bermuda triangle. I have contacted them several times and they made me wait it out to 31st October. Then on 1st November I contacted them to update. On 2nd Nove they replied saying that I have to give them a WEEK to launch their investigation. I am so disappointed...or pissed off is probably a more appropriate description. Thank goodness it is a mere handlebar stem and nothing else. 

Ok, my one week is over and no delivery plus no word from them. Mailed them this morning, let's see what happens. Seriously ticked off now.

 

I used to use CRC quite a bit in about 2006 - 2008 and never had any issues....just saying.

[stefmeister]

Common misconception that online stores do not have overheads, they are different overheads, but overheads none-the less. Your rent is less, BUT you have to cover shipping if you want to be competitive, and the big cost is marketing. It is not free to get people on your website, google advertising is expensive. You pay as much as R30 to R100 per click to get people to visit your site - and if 1 in 10 people buy that conversion cost is pretty high (oh and 1 in 10 is a very optimistic number - you need a good amount of stock to achieve that).

 

And no, the good online stores do not ship directly from distributors. Many distributors have minimum "stock on hand" rules for online stores and do not allow online stores to advertise stock they do not have on hand. How do you think something gets to you next day with the stores stickers/packaging/logos if it is just shipped from the distributor.

 

Sure there are middlemen - but they don't stick around for long. Online stores are not the joke overyone thinks they are to run.

A few things I've ordered recently were shipped directly from the distributor. 

There's another online shop that hardly stocks any of the items they list on their site. Every inquiry so far have been met with the same response that the item is in stock at their supplier, and that they can order it if I want to proceed with the order.

[Grease_Monkey]

A few things I've ordered recently were shipped directly from the distributor.

There's another online shop that hardly stocks any of the items they list on their site. Every inquiry so far have been met with the same response that the item is in stock at their supplier, and that they can order it if I want to proceed with the order.

Hopefully they don't stick around for long. I don't like that sort of way of doing business. I had an online store for a while, and my golden rule was I don't advertise what I don't stock - it means better customer service and you are not just playing middle man!

 

If someone called and asked for something specifically that my distributor had and I didn't have in stock I would order it for them though...

 

I was involved in another online store a while back (non cycling related) which was basically a catalogue store - it was a nightmare - distributors often didn't have what you have just sold (not their fault), and the customer was always the one inconvenienced.