Wahoo Price Discrepancy in SA

[KnavishStream]

I am in the market for a bike computer, I have been deliberating between the Garmin Edge 530 and the Wahoo Elemnt Roam for quite some time now. 

 

This is more of a question on Wahoo South Africa's pricing than opinions between which is better (I am however still open to suggestions!)

 

In South Africa, the Edge 530 (*listed at R6000) is nearly R2000 cheaper than the Element Roam (listed at R7999), fine.

When observing UK prices. the Garmin Edge comes in at R5499 (at a R21.15 - GBP exchange rate), making it an 8% price increase in SA to UK.

The Element Roam is listed at R6345 in the UK (again, at a R21.15 - GBP exchange rate), making it a 21% more expensive on the SA shelves. The Bolt, listed at R5499 here in SA, is priced at R3912 in the UK (difference of 29%).

 

Long story short, why does Wahoo have higher markup prices when comparing SA to UK than Garmin? Would it be because Garmin has a greater presence in the country and therefore able to turn more stock over?

 

Just found it interesting more than a complaint.

 

*Just wanted to note that prices were taken from official website listings - the Garmin unit however is listed at R6949 on their official website - but have only seen it listed at R6000 on most of the popular sites. 

 

 

[Rocket-Boy]

Literally everything is more expensive in SA.

Im almost surprised that Wahoo didnt offer some for of incentive on pricing locally because they are the small player in a field dominated by Garmin.

Its not to say that they cant gain market share, if I think back to the days when Nokia controlled the cellphone market and Samsung was trying to gain traction. Samsung offered so many incentives that they managed to take a massive chunk from Nokia.

Granted they have more financial power than Wahoo but sometimes you have to be aggressive to get somewhere.

[DR ◣◢]

Couple of points to not. 

 

Retailers / importers have to add a buffer for fluctuating interest rates. Even if you forward book forex you still get a higher rate than the current rate (my experience in the past)

 

Then also factor in duties, vat, shipping etc. Again something that isn't always a constant and will affect retail price. See comment about buffering. 

 

8% isn't that bad to be honest. Try importing the item and you'll quickly see a much higher landed price.

[TNT1]

I am in the market for a bike computer, I have been deliberating between the Garmin Edge 530 and the Wahoo Elemnt Roam for quite some time now. 

 

 

Completely off topic, but the Rox 12.0 beats both of those hands down anyway. (and at nearly half the price)

[Super Sywurm]

Why not this one?

 

https://community.bikehub.co.za/topic/186265-lezyne-gps-value-for-money/page-4?do=findComment&comment=3689466

[KnavishStream]

Couple of points to not. 

 

Retailers / importers have to add a buffer for fluctuating interest rates. Even if you forward book forex you still get a higher rate than the current rate (my experience in the past)

 

Then also factor in duties, vat, shipping etc. Again something that isn't always a constant and will affect retail price. See comment about buffering. 

 

8% isn't that bad to be honest. Try importing the item and you'll quickly see a much higher landed price.

Fully agree, Not disputing the sole price variation between SA and UK as I do understand that they do not trade at the going FX rate, and there are import duties to cater for.

 

My question was more around why the Wahoo computers are retailed at a MUCH higher markup (+/-25%) to it's Garmin counterparts (+/-10%) when comparing UK pricing to SA pricing. ie. the markup discrepancy across brands between respective countries.

 

I think it may be due to the fact that Garmin has more of a presence in SA. 

[KnavishStream]

Completely off topic, but the Rox 12.0 beats both of those hands down anyway. (and at nearly half the price)

 

Will have a look at this, thanks!

[Danger Dassie]

Fully agree, Not disputing the sole price variation between SA and UK as I do understand that they do not trade at the going FX rate, and there are import duties to cater for.

 

My question was more around why the Wahoo computers are retailed at a MUCH higher markup (+/-25%) to it's Garmin counterparts (+/-10%) when comparing UK pricing to SA pricing. ie. the markup discrepancy across brands between respective countries.

 

I think it may be due to the fact that Garmin has more of a presence in SA. 

Higher price but not necessarily a higher markup. Also different supply chain can be a factor. 

Similar thing happens across all markets, look at Sony/Nikon vs Fuji/Canon similar products with bigger pricing variations. 

 

What are you looking for though?

Functionality wise there are a few alternative options to consider that are well priced and as good, if not arguably better.

 

Lezyne

Sigma Rox/Roxio

Giant

Bryton (may not be local importers though)

[KnavishStream]

Higher price but not necessarily a higher markup. Also different supply chain can be a factor. 

Similar thing happens across all markets, look at Sony/Nikon vs Fuji/Canon similar products with bigger pricing variations. 

 

What are you looking for though?

Functionality wise there are a few alternative options to consider that are well priced and as good, if not arguably better.

 

Lezyne

Sigma Rox/Roxio

Giant

Bryton (may not be local importers though)

Yeah higher price but can get the Wahoo for much cheaper in the UK, whereas Garmin price difference between SA and UK is negligable. 

 

Having a look at the other Brands at the moment. So many options!

[Danger Dassie]

Yeah higher price but can get the Wahoo for much cheaper in the UK, whereas Garmin price difference between SA and UK is negligable. 

 

Having a look at the other Brands at the moment. So many options!

This thread may be of help. 

 

https://community.bikehub.co.za/topic/186265-lezyne-gps-value-for-money/page-1

[Frosty]

Why not this one?

 

https://community.bikehub.co.za/topic/186265-lezyne-gps-value-for-money/page-4?do=findComment&comment=3689466

This thread may be of help. 

 

https://community.bikehub.co.za/topic/186265-lezyne-gps-value-for-money/page-1

[Andreas_187]

Couple of points to not.

 

Retailers / importers have to add a buffer for fluctuating interest rates. Even if you forward book forex you still get a higher rate than the current rate (my experience in the past)

 

Then also factor in duties, vat, shipping etc. Again something that isn't always a constant and will affect retail price. See comment about buffering.

 

8% isn't that bad to be honest. Try importing the item and you'll quickly see a much higher landed price.

The units aren't manufactured in the UK so they also have shipping costs. They also have 20‰ vat so they should at least be the same price here. I always buy off amazon.co.uk when I'm there... rip off prices over here

[ChrisF]

Garmin allows free and fair competition .... prices fluctuate with axchange rate, and decent specials are available every so often ....

 

 

Wahoo .... maybe somebody can explain the subtle differences between their South African business model and price fixing to me ....

[DieselnDust]

Couple of points to not. 

 

Retailers / importers have to add a buffer for fluctuating interest rates. Even if you forward book forex you still get a higher rate than the current rate (my experience in the past)

 

Then also factor in duties, vat, shipping etc. Again something that isn't always a constant and will affect retail price. See comment about buffering. 

 

8% isn't that bad to be honest. Try importing the item and you'll quickly see a much higher landed price.

 

 

Garmin, being a much bigger company covering more segments of the GPS market is better able to distribute supply chain costs across their entire range of products.

Wahoo is a pretty small player by comparison.

Garmins pricing is therefore much more stable as a result e.g. A Edge 1030 has been R12K for ages despite the ZAR depreciating by 25% give or take.

 

Garmin also has the discovery vitality program partnership that accounts for a large chunk of their sales. Wahoo has been trying to get in on that game for over a year. 

[Danger Dassie]

Yeah higher price but can get the Wahoo for much cheaper in the UK, whereas Garmin price difference between SA and UK is negligable. 

 

Having a look at the other Brands at the moment. So many options!

This is also pretty informative and gives a decent overview... 

 

https://www.cyclingnews.com/features/best-cycling-computers/

[Christian van Zyl]

Garmin allows free and fair competition .... prices fluctuate with axchange rate, and decent specials are available every so often ....

 

 

Wahoo .... maybe somebody can explain the subtle differences between their South African business model and price fixing to me ....

 

Hello Chris, 

 

Some serious allegations, but I'm happy to answer on this in a DM.