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Over inflation and trust online.


cycologiist

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Hi Hubbers,

 

So I am foreigner thats now living in SA and spend loads of my time buying online and have done for years even back home.

 

What I see here is that some of your online retailers seem to really over inflate the MSRP and make it a discount to either actual MSRP or slightly under. It's annoying to me and just wondered if anyone falls for it or finds it as frustrating and insulting as I do?

 

I have my trusted stores now like CWC, Bike Mob and 1 or 2 others depending on what my needs are or availability, but in an age where you can do online comparisons with a simple search it seems insane!

 

Anyway, just my 2 SA cents worth and wondered if I was alone or if anyone could recommend anyone else they trust for future purchases.

 

Thanks!

 

John.

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Unfortunately it's standard retail practice across the board. Select the highest available sale price and set that as the MSRP and WHAM! Automatic discount. Makes online shopping just a bit more difficult to navigate, but once you know it's there and that's how it works, you should be able to mitigate against it. 

 

Takealot, Amazon, One Day Only etc etc all guilty of it. 

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Hi John

 

Welcome to SA and welcome to the HUB.

 

It's marketing nonsense. Often retailers will put a product on special for the exact same price as it was before (not only in the cycling industry).

They just want your money and use various methods to get you to give them your money.

Don't let it get to you - life is way too short for that.

 

Like you said, with a few clicks you can have a number of prices for the same product.

Focus on the bottom line price and move on.

 

There are some online guys on the hub, evo cycles, buy cycle. 

Have't had any problems with them.

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Unfortunately it's standard retail practice across the board. Select the highest available sale price and set that as the MSRP and WHAM! Automatic discount. Makes online shopping just a bit more difficult to navigate, but once you know it's there and that's how it works, you should be able to mitigate against it. 

 

Takealot, Amazon, One Day Only etc etc all guilty of it. 

 

Thanks and yes thats what i have done now even with the LBS's and seem to be down to my trusted 2 and I make sure to avoid the corporates like Takealot and the likes as i know last year on Black Friday they burnt my trust with the day before price changes and getting called out on it.

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Hi John

 

Welcome to SA and welcome to the HUB.

 

It's marketing nonsense. Often retailers will put a product on special for the exact same price as it was before (not only in the cycling industry).

They just want your money and use various methods to get you to give them your money.

Don't let it get to you - life is way too short for that.

 

Like you said, with a few clicks you can have a number of prices for the same product.

Focus on the bottom line price and move on.

 

There are some online guys on the hub, evo cycles, buy cycle. 

Have't had any problems with them.

Thanks Cyclewizz. 

Seems that one of those you mentioned are the reason I asked this question though.

I get the marketing, but MSRP (or RRP as its called here i believe) is not really the marketing side, but more dare i say it 'fraudish' by over inflating?

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Thanks Cyclewizz. 

Seems that one of those you mentioned are the reason I asked this question though.

I get the marketing, but MSRP (or RRP as its called here i believe) is not really the marketing side, but more dare i say it 'fraudish' by over inflating?

YES, nail on the head..this should come from the distributors, but I guess it is never set for a season anymore like in the old days with single shipments so is not really a viable marker.

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It's a two headed beast...

 

1) SA retailers love to "inflate and discount".

2) SA consumers LOVE a bargain (which also explains why scamming is so common in SA).

 

Kinda a self feeding dragon.

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YES, nail on the head..this should come from the distributors, but I guess it is never set for a season anymore like in the old days with single shipments so is not really a viable marker.

Agreed, but the big importers/distributors of big brands (like in any industry) can forward cover imports and therefore secure pricing for 3-6months at least. I am in importing of raw materials and we give an MSRP and if the retailer over inflates we call them. It's not only damaging to our brand if they do, but to be honest, makes them look ridiculous. Surely?

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SA doesn't have regulations on advertised discounted sales prices as far as I am aware. In the UK, retail stores (not sure about on-line) to have had advertised at the MSP for at least 60 days before they advertise a percentage discount.

 

Living in London retailers marked up prices a few months before a planned sale knowing the example 30% sale price was actually only 10-15% from that advertised prior to the mark up.

 

Highly annoying but materialistic society is gullible.

 

As the idiom goes, "a fool and his money are soon parted" hence I am poor!

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It's a two headed beast...

 

1) SA retailers love to "inflate and discount".

2) SA consumers LOVE a bargain (which also explains why scamming is so common in SA).

 

Kinda a self feeding dragon.

 

You are not wrong, but like any industry, there are certain felons of this and not all do actually do it. Thats why i was interested in starting the thread and giving my trusted sites and feedback as i received a ludicrous black friday mailer this morning that had something so over inflated and i had just got the same thing from one of my go to online retailers for 3k less that their sale price that was arguably the MSRP.

 

At least from the response here I know i am not alone :D

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Here is a link I use as a distributor to quickly check duties. 

http://www.ftwonline.co.za/customs/tariffs

Some items in SA have bizarre duties... Charge cables 25% / Heart Rate Belts 15% / Phone Covers 30% 

We also now have a 15% "luxury tax if a watch has Bluetooth built in."

I know the frustration on over inflation, but ons some items it is simply unavoidable due to us having to keep the government funded. 

When in doubt, use the tariff tool to check. 

 

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Why do they do it?

Because there are still lots of people who fall for it.

 

Same as these online dating scams where you have people waiting at airports for lovers who they paid flights for only to be left there for hours waiting for no one or the sms you get saying you have won millions and must simply give your account details to claim the funds.

 

As long as people fall for it, they will do it.

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SA doesn't have regulations on advertised discounted sales prices as far as I am aware. In the UK, retail stores (not sure about on-line) to have had advertised at the MSP for at least 60 days before they advertise a percentage discount.

 

Living in London retailers marked up prices a few months before a planned sale knowing the example 30% sale price was actually only 10-15% from that advertised prior to the mark up.

 

Highly annoying but materialistic society is gullible.

 

As the idiom goes, "a fool and his money are soon parted" hence I am poor!

""a fool and his money are soon parted" hence I am poor!" - You are not alone ;)

 

Agreed here and thats the planning part well in advance and the marketing side mentioned above in theory. That said though, surely when you see something that was say R50k and then discounted to R30k, but it has never been R50k ever anywhere its now just BS? 

 

While we are parted you and i with that money, would rather not be a fool and get more for my money at an actual good price with actual good service ;) (Softens the blow of being broke :D

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