Indoor trainer price GOUGING during / after lockdown...

[Rigardt@Scott]

 

Supply & Demand like Jewbacca stated.

 

I am quite upset, sold my Kickr Core on the Hub for R10k with a cassette in late of 2019. 

 

Now I miss it but the retail price is now at R18k.

 

I paid R13k for mine.

 

 

I used an "I'll sell the trainer" as a justification for getting a gravel bike frame last year with the missus - it was largely unused back then. I purposely forgot I made that promise, and my wife seemed to as well.... I am so happy I did not sell it now!

 

Using it now has reminded my wife of the promise I made last year though, and I now need to find something else to sell!

[stringbean]

It’s not only the price of goods that’s going to go up but shipping as well.

just spoke to mate of mine yesterday who’s in courier business 

‘with SAA going to **** that direct shipping route that they alone had from USA is gone.

Everythiing from states must now come via Dubai or wherever.

Expect everything to go up at least 30% .

Everyone is fighting for survival as you can see current fantastic online deals from bike suppliers but whenever local stock is replaced from overseas expect to see huge price jumps 

[Darryllk]

This for a new one, still old stock according to the retailer.

 

Share the retailer

[Captain Fastbastard Mayhem]

I used an "I'll sell the trainer" as a justification for getting a gravel bike frame last year with the missus - it was largely unused back then. I purposely forgot I made that promise, and my wife seemed to as well.... I am so happy I did not sell it now!

 

Using it now has reminded my wife of the promise I made last year though, and I now need to find something else to sell!

I hear there's a good market for babies....  

 

But yeah, the dreariness of the IDT is still an important tool in the fight against boredom and insanity. 

[Captain Fastbastard Mayhem]

Share the retailer

WTF for? There's no need to "name and shame". Forward cover on an imported item like this is logical. Demand / supply / exchange rate fluctuations / amendment of profit & loss due to decreased trade etc. 

[Captain Fastbastard Mayhem]

It’s not only the price of goods that’s going to go up but shipping as well.

just spoke to mate of mine yesterday who’s in courier business 

‘with SAA going to **** that direct shipping route that they alone had from USA is gone.

Everythiing from states must now come via Dubai or wherever.

Expect everything to go up at least 30% .

Everyone is fighting for survival as you can see current fantastic online deals from bike suppliers but whenever local stock is replaced from overseas expect to see huge price jumps 

It's a great opportunity for another player in the market to take that slot...

[Rigardt@Scott]

I hear there's a good market for babies....  

 

But yeah, the dreariness of the IDT is still an important tool in the fight against boredom and insanity. 

 

Hahaha haven't thought of that one yet! 

[Cookie88]

Party freight costs are due to MFO spec change. Very Low Sulphur Fuel Oil has been trading at cracks higher than Diesel. Its still higher than Diesel. 

then with ports closed and demurrage costs higher than ever, imported goods are going to be pricey. Durban is already over loaded

 

I have been chatting to a bike shop owner throughout the lockdown - he buys his stock directly from the distributor of a certain indoor trainer brand.

 

Two weeks into lockdown the distributor quoted us RXXX the week before Easter weekend - the stock was 'sitting in Durban harbour' so all sorted and delivery would be able to be made post Lockdown.

 

Surprise surprise (forgive me being skeptical here) the distributor comes back and informs us that the prices have all gone up 20-25%. I am in Asset Management so I have no idea how these things work - in my mind when you place an order you pay upfront for that order of say 300 units, so the price of the goods can't jump 20-25% while the container is on the water. Since I imagine that VAT & duties are charged on the purchase price surely these duties haven't gone up over lockdown?

 

Maybe an experienced Hubber with some insight into Import/Export can shed some light?

[Darryllk]

WTF for? There's no need to "name and shame". Forward cover on an imported item like this is logical. Demand / supply / exchange rate fluctuations / amendment of profit & loss due to decreased trade etc. 

 

WTF is your problem...no mention of "name & shame" here!

 

Why not share the info should there be others not wanting to pay over 10k for IDT

[Captain Fastbastard Mayhem]

WTF is your problem...no mention of "name & shame" here!

 

Why not share the info should there be others not wanting to pay over 10k for IDT

Sorry, it seems I got that completely wrong.

 

I presumed you were asking the OP so that we could name and shame the retailer for adjusting pricing based on exchange rate, availability and forward cover for future purchases. 

 

Some IDT's are more than 10k, some are more than 20k. 

Edited April 21, 2020 by Captain Fastbastard Mayhem

[Darryllk]

I can get a kick Snap 2.0 for R7 700? That a good price, I am still new in the IDT.

 

@ Captain Fastbastard Mayhem...was merely making reference to this hubbers post.

[Cookie88]

I have been chatting to a bike shop owner throughout the lockdown - he buys his stock directly from the distributor of a certain indoor trainer brand.

 

Two weeks into lockdown the distributor quoted us RXXX the week before Easter weekend - the stock was 'sitting in Durban harbour' so all sorted and delivery would be able to be made post Lockdown.

 

Surprise surprise (forgive me being skeptical here) the distributor comes back and informs us that the prices have all gone up 20-25%. I am in Asset Management so I have no idea how these things work - in my mind when you place an order you pay upfront for that order of say 300 units, so the price of the goods can't jump 20-25% while the container is on the water. Since I imagine that VAT & duties are charged on the purchase price surely these duties haven't gone up over lockdown?

 

Maybe an experienced Hubber with some insight into Import/Export can shed some light?

[Rowl]

This for a new one, still old stock according to the retailer.

This is good deal, now.  A Kickr Snap 2 retails on CWC for R9,999. If able to, share the Retailer selling for R7,700.

 

Few weeks before lockdown Cyclelab ran a special for Kickr Snap 2 for R5,999 - how sorry I am I didn't buy one.

 

Rather conflicted with Winter coming up, but hopefully some relief around training will be announced soon.  Once lockdown is lifted, will the market be flooded with smart trainers (taking Winter and economic conditions into account)? 

 

I don't know if I should:

1. Wait for and snap up any Kickr Core (or Snap) for a decent price in the second hard market.  Decent being pre-lockdown, new price, less a R2/1k?

2. Attend Winter spinning classes - if allowed?

3. Be a man and just ride into the cold (and darkness)?

[Jewbacca]

I don't think spinning classes are going to commence any time soon.

 

I love my trainer, but would choose riding in the cold every day of every week.

[Duane_Bosch]

I don't think spinning classes are going to commence any time soon.

 

I love my spinning classes. Really missing those.

[Christian van Zyl]

 

Hi Hubbers

 

As I am sure everybody has been doing, I have been keeping an eye on indoor trainer prices, as the cabin fever is getting to me.

 

A week ago, most online retailers had the Wahoo Kickr 4 at R19 999.

This week, it is priced at R24 999.

 

That is a 5k jump.

 

I understand the R/$ exchange rate and then some, but in the last month (I take it that stock will be ordered systematically), the exchange rate only changed around 12%, and that is far from the 25% on the trainer price jump.

 

16th of March 2020 it was R16.63 to 1$

16th April 2020 it is R18.74 to 1$

 

Seems excessive.

 

Anyone else noticed?

 

Hello NINER_Boy, and readers, 

 

Christian here, managing director at Ikhambi Distribution/Wahoo Fitness South Africa. 

 

Thanks for starting the topic and it is a very important point to answer as the Wahoo distributor in SA. 

 

It was undoubtably the toughest month to make decisions for both myself and my sales management team... Our greatest concern was that we seem to be profiteering due to the demand for trainers. 

 

I would like to take this opportunity to give some background to the past couple of weeks:

 

The week before lockdown we landed some stock at a reasonable exchange rate of R15/usd and with a healthy 150 trainers in the warehouse we were on par with our sales forecasting. Needless to say that as soon as the lockdown was announced these units evaporates into thing air in a single day. 

 

I estimate that if we had 3,000 trainers we would sell every single one in the week the announcement landed. 

 

During the lockdown our next shipment arrived early in April, and became payable in the last week. The assumption that distributors pay months earlier or always take forward cover does not apply to all brands, and with a fast moving product like Wahoo we did not have the luxury of either options. Cashflow is a challenge, many debtors has started to delay outstanding payments since end of March. 

 

We ended up paying at an average of R18,50/USD for our shipment. The compound effect hit us extra hard on shipping line charges and to add insult to injury SARS is not paying additional demurrage charges due to their instruction to not inspect non essential goods. 

 

These costs were mostly unplanned, but has to be absorbed by our business using our dwindling margins. 

 

Our planning the past couple of weeks revolved around how we implement price increases without making it seem like we are price gouging. The best way to view this is to take the US prices and do the conversions:

 

KICKR 4 - $1,200 * R19 (spot rate average) + VAT = R26,220 

This places South Africa below the international price. Even if you take the past 4 months of trade Wahoo South Africa has sold the KICKR 4 at a price in Rand below the direct conversion. 

 

A price increase is even harder since we are not blind to the fact that many cyclists, Hubbers and enthusiasts will not only lose a part of their income, but many will lose their jobs. 

 

If anyone has any questions pertaining to the Wahoo brand, our price increases or even criticism in general please do not hesitate to send me a direct message and I'm happy to answer. 

 

Your local Wahooligan 

 

Christian