SA Pricing - flogging a dead horse

[Headshot]

Not a rant so much as an observation. I have become very price conscious over the last few years. There is a price that in my mind is reasonable eg R200 for Shimano brake pads - as they used to be.

 

I check prices online against local stores regularly. Brake pads need replacing and have just forked out R240 for 2 sets of Quaxxar semi-metallic pads for my Guide 4 piston brakes. The equivalent pads from SRAM go for R359 - 365 depending on the store. 

 

Interestingly, the R120 Quaxxars are about 7 E online while the SRAM pads are 14E. The price of the Quaxxars here is almost spot on the online price while the SRAM price is about 8E more expensive. 

 

I am sure this plays itself out with other spares and brands too. I have seen Shimano cleats online for 9E or R144.00. Here they are more than R100 more expensive. 

 

Looking at our rather large cycling population and the spares sales that must flow from that you have to wonder why our big brand prices are so out of kilter with overseas prices. Especially when lesser brand products like my new pads  are  pretty much the same price as overseas. 

[BikeisLife]

www.reformcycling.co.za... Thank me later, although not lots of small stuff on there, as yet 

[Li Mu Bai]

 

Looking at our rather large cycling population and the spares sales that must flow from that you have to wonder why our big brand prices are so out of kilter with overseas prices. Especially when lesser brand products like my new pads  are  pretty much the same price as overseas. 

Ehrm.

Our market is tiny. A drop in the ocean.

A single store in the usa can turn over more than the entire SA.

SRAM couldnt give a damn about our market, they dont need to be competitive here.

Why do you think that several brands have negotiated blocks to overseas online companies shipping goods here. As uncompetitive as it may be, its the only way the local distributers  are able to survive.

Edited April 15, 2019 by Li Mu Bai

[MrJacques]

Middlemen, lot's of them. Import tax, distributor markup, etc.

[pista]

Just have a look at the lifestyles, houses and cars of the importers and distributors in SA.The bubble will burst some stage.

[ChUkKy]

Not a rant so much as an observation. I have become very price conscious over the last few years. There is a price that in my mind is reasonable eg R200 for Shimano brake pads - as they used to be.

 

I check prices online against local stores regularly. Brake pads need replacing and have just forked out R240 for 2 sets of Quaxxar semi-metallic pads for my Guide 4 piston brakes. The equivalent pads from SRAM go for R359 - 365 depending on the store. 

 

Interestingly, the R120 Quaxxars are about 7 E online while the SRAM pads are 14E. The price of the Quaxxars here is almost spot on the online price while the SRAM price is about 8E more expensive. 

 

I am sure this plays itself out with other spares and brands too. I have seen Shimano cleats online for 9E or R144.00. Here they are more than R100 more expensive. 

 

Looking at our rather large cycling population and the spares sales that must flow from that you have to wonder why our big brand prices are so out of kilter with overseas prices. Especially when lesser brand products like my new pads  are  pretty much the same price as overseas. 

 

Here in SA you have "Agents" which 90% of the time have zero stock and when they do have stock the shops eventually get it...

The agents add cost and no value.

 

Im one of the pissed off few that dont like the fact we cant buy Shimano from CRC anymore.

 

I wanna save myself the frustration in asking them if they have any of these XTR crank bolts for me:

 

Need them for my M-970 crankset as I have one cap thats stripped:

 

 

DO I even bother.....

[Patchelicious]

Just have a look at the lifestyles, houses and cars of the importers and distributors in SA.The bubble will burst some stage.

They might post pictures of their fancy cars and boats, but it seems the cant even pay for their Emma letters. Edited April 15, 2019 by Patchelicious

[gummibear]

Here in SA you have "Agents" which 90% of the time have zero stock and when they do have stock the shops eventually get it...

The agents add cost and no value.

 

Im one of the pissed off few that dont like the fact we cant buy Shimano from CRC anymore.

 

I wanna save myself the frustration in asking them if they have any of these XTR crank bolts for me:

 

Need them for my M-970 crankset as I have one cap thats stripped:

 

 

DO I even bother.....

Try bike24

 

https://www.bike24.com/p2145931.html

[DieselnDust]

Different supply chain complexity.

E.g qaxar is factory brand supplied direct to distributors

SRAM or Shimano is factory to distribution centers to distributors. There is a build up of transport costs and warehousing costs as well as associated duties

[Headshot]

Different supply chain complexity.

E.g qaxar is factory brand supplied direct to distributors

SRAM or Shimano is factory to distribution centers to distributors. There is a build up of transport costs and warehousing costs as well as associated duties

No doubt there are differences in the supply chain. Seems the big guys have set themselves up to be over priced by building in the margin sucking agents in SA. Imagine if any shop could order direct from Shimano or SRAM  - there'd be a healthy price war unlike the artifically fixed prices we have now. 

 

Restricting overseas retailers to their own countries hasnt led to hoped for lower prices in SA by the look of it either. 

[Headshot]

Ehrm.

Our market is tiny. A drop in the ocean.

A single store in the usa can turn over more than the entire SA.

SRAM couldnt give a damn about our market, they dont need to be competitive here.

Why do you think that several brands have negotiated blocks to overseas online companies shipping goods here. As uncompetitive as it may be, its the only way the local distributers  are able to survive.

Do you actyually have figures for our market?

 

They do more than survive by all accounts and from what I have seen. 

 

The local shops were surviving pretty well despite overseas online bargian hunting. Their core customers haven't changed - thats fairly well off people who don't like working on their own bikes. Those guys never shopped online anyway.  

[DieselnDust]

No doubt there are differences in the supply chain. Seems the big guys have set themselves up to be over priced by building in the margin sucking agents in SA. Imagine if any shop could order direct from Shimano or SRAM  - there'd be a healthy price war unlike the artifically fixed prices we have now. 

 

Restricting overseas retailers to their own countries hasnt led to hoped for lower prices in SA by the look of it either.

 

If any shop could order direct from Shimano or sram then yes they would cut out some cost but they would add a lot of complexity whereby they would be dealing with a lot of smaller order quantities. This would only add cost to the end user and would lead to stock piles when demand slows.

Then when demand picks up there’s a lag in availability and hence frustrated end users. Distributors are like shock absorbers if managed correctly

[dave303e]

It cost me R340 for 4 brake pads for my Pajero, and they last like over 20 000km and they stop a heavy vehicle in mud, rain, rivers etc. So R200 for mtb brake pads is a rip off.

 

A Dunlop or michelin tyre for my CRF250 costs less than a maxis crossmark 29er tyre, and there is a lot more rubber involved.

Edited April 15, 2019 by dave303e

[Shebeen]

Here in SA you have "Agents" which 90% of the time have zero stock and when they do have stock the shops eventually get it...

The agents add cost and no value.

 

Im one of the pissed off few that dont like the fact we cant buy Shimano from CRC anymore.

 

I wanna save myself the frustration in asking them if they have any of these XTR crank bolts for me:

 

Need them for my M-970 crankset as I have one cap thats stripped:

 

 

DO I even bother.....

I'm with you on this one.

 

people will say "support local"

 

BUT if they are not adding any value then they are just a middleman. An efficient market will weed out middlemen.

A widget for your bike is going to be a widget no matter what channel it arrives.

 

The only value add a local channel can add is stock/availability, warranty, advice.

if not then you go and buy whoever has got it at the best price.

[Headshot]

It cost me R340 for 4 brake pads for my Pajero, and they last like over 20 000km and they stop a heavy vehicle in mud, rain, rivers etc. So R200 for mtb brake pads is a rip off.

 

A Dunlop or michelin tyre for my CRF250 costs less than a maxis crossmark 29er tyre, and there is a lot more rubber involved.

Yes, true but I could have paid SRAM's pricing of  R720 for 2 sets as opposed to R240,00 so it is a relative bargain. It is mind boggling though. 

[Thermophage]

Middlemen, lot's of them. Import tax, distributor markup, etc.

Zero import tax though on mtb brake pads..