Grey imports

[Super]

What is the serial numbers for?

[Canaris]

At the risk of making myself very unpopular with you lot' date=' I personally am opposed to parallel imports, grey imports, or whatever you want to call them.

 

Generally, acquiring the distribution rights for a product in a territory requires significant investment.  The product manufacturer would often require the following:

- specific training of the distributors staff - be it sales or technical training.  This is funded by the distributor.

- Marketing and sales investments.  Advertising the product etc to create brand awareness and market penetration.

- Significant investment is stock and spare parts to ensure the availability of the product.

- Support for warranty replacements, etc.

 

So, along comes a guy who hasn't had to fund any of the above.  Buys the product through a parallel channels and significantly under-prices the official distributor.  As a consumer, that's great!  You get your cool product at a much cheaper rate. 

 

Unfortunately that parallel importer has no liability to the product manufacturer.  Doesn't really care if the product's good name get's tarnished because he may not honour the manufacturers warranties, carry the appropriate spare parts etc.  If the product's names get's trashed, next week he'll be selling some other product, no skin off his nose, but he'll leverage the financial commitment that the official distributor has make in sales and marketing - for free.

 

As consumers you lot all pat yourselves on the back and congratulate yourselves on fighting the good fight.  But then you complain as soon as a certain part isn't immediately available.  Well, why should the distributors fund a stock room full of spare parts when everybody is just going to by the stuff online anyway?  Why should they pay to have their staff trained on the product?

 

I'm sure you guys will flame me plenty, but I really think there is another side to this story!

[/quote']

 

What you say is 100% correct, however, with globalisation people are travelling more and buying stuff in other countries, import regulations are becoming more lax, online businesses will deliver world wide.  IT all leaves the question of whether the distribution business model is still viable.

[Scalpel]

...The product manufacturer would often require the following:

- specific training of the distributors staff - be it sales or technical training.  This is funded by the distributor.

- Marketing and sales investments.  Advertising the product etc to create brand awareness and market penetration.

- Significant investment is stock and spare parts to ensure the availability of the product.

- Support for warranty replacements' date=' etc.

 

[/quote']

 

Bruce, I agree with what you are stating, but is the legitimate Mavic distributor coming to the party with above requirements?

 

Bruce I agree 100% with you on this one!

 

I am not up to date with Mavic in South Africa, but didnt the distribution change hands awhile ago? Maybe this is the reason that they do not have stock of all the older wheelparts?

[KDEE]

Bruce has a real point, a general point. It wont apply to all who import and of course it would apply in reverse to those official distributors who do not give back up.

 

Im not referring to CWC at all in this post. Bruce, perhaps this kind of post should stand on its own as a new debate.

 

To others, read Bruce post carefully and see if there is merit in what he is saying..

 

[Thug]

 

From a business perspective, I agree 100% with you Bruce !

 

 

 

 

edit: my spell checker went awol

The Thug2008-10-16 07:04:16

[Hog_]

 

You guys have never seen a prices like the ones you are going to see soon. I will also make sure that you will get the best prices on wheels as well as on other stuff that we import direct.

Watch our specials next week. Hier kom GROOT Chrismas specials!!!

Remember that we do garuntee all the stock that we sell.

Thanks for your support!

Chris Willemse Jnr

 

And this is why I love CWC! Instead of bitching about the people who are trying to ruin his business, he gets up and fights back where it hurts them the most.

 

Chris, I salute you.

 

 

 

[Super]

Me too!

[Bike Mob]

Bruce I'm with you 100%.

 

This not only damaged the New market prices (competition is fine) but also the 2nd hand market. We are all keen for a bargain, but somewhere someone else is paying the price. as Bruce explained in this case it is the Official Distributor.

 

If you take a scenario like this you 'll see why it's damaging:

 

Joe walks into official shop and buys official product for 9K

Je uses the product for a year and wants to upgrade. Say, for arguements sake, he should lose 30 percent to depreciation.

 

He wants to sell for R6K.

But Jimmy Grey Boy has them new for 7K.

 

Joe now has to lose even more money to sell his wheels and why would he want to? So he either keeps them or takes a huge knock.

 

Grey importing does not just affect the first time buy or new price...but all the trickle down sales as well...

[Cornelis]

It's a antiquated business model that has no place and can't be enforced, lack of serial numbers are completely different story.

We had this discussion a few weeks ago, about what the relevant distributors obligations were in regards to imports etc.

Almost all producers have a international warrantee that covers that product if bought from a registered dealer. It never says a dealer has to buy the product from the applicable countries importer/distributor, that is a company contract, not law! you pay your taxes and levies and you can import ANYTHING you want.

Lack of serial numbers makes this a problem, seeing that the Mavic importer has no responsibilty to service or honour the warrantee seeing that the product can't be traced to see if it was bought from a registered dealer, locally or abroad.

 

Give me the net and a credit card.

[PPWTF]

 

 

Bruce I'm with you 100%.

 

This not only damaged the New market prices (competition is fine) but also the 2nd hand market. We are all keen for a bargain' date=' but somewhere someone else is paying the price. as Bruce explained in this case it is the Official Distributor.

 

If you take a scenario like this you 'll see why it's damaging:

 

Joe walks into official shop and buys official product for 9K

Je uses the product for a year and wants to upgrade. Say, for arguements sake, he should lose 30 percent to depreciation.

 

He wants to sell for R6K.

But Jimmy Grey Boy has them new for 7K.

 

Joe now has to lose even more money to sell his wheels and why would he want to? So he either keeps them or takes a huge knock.

 

Grey importing does not just affect the first time buy or new price...but all the trickle down sales as well...

[/quote']

 

Sorry but this argument is exactly the same as major international motor manufacturers made when charging UK customers UK prices that where typically 5000UKP more per new car than offered the EU customers. Government got involved UK prices where forced down, and second hand prices went through the floor..... second hand prices are a fair reflection of true value, against marketing driven value of new - how else do you explain a 30% loss as soon as the product leaves the show room? That 30% loss is effectively 'ego' value, being the first owner of an overpriced product, something which manufacturers are all to happy to charge, and some fools all to happy to pay............

PPWTF2008-10-16 07:13:45

[101SCC]

 My two cents worth,

 

Bought some Crossmax SLR's from Chain Reaction (Brilliant Price Obviously). Free Delivery in 4 days...Brilliant. CWC never has what I want, so rather shop at a really great Internet Site.

 

Had a crash, wheels where out of true, took 'em to LBS and had a new rim fitted and wheel rebuilt, Wheels run great and the LBS scored the repair and I guess Dragon supplied the RIM (Serial Numbers, Warranty what a load of RUBBISH) I'm happy, LBS is Happy I don't care about a really poor Importer...Global Village.

 

Personally, I love it.

 

[Willehond]

Bruce I'm with you 100%.

 

This not only damaged the New market prices (competition is fine) but also the 2nd hand market. We are all keen for a bargain' date=' but somewhere someone else is paying the price. as Bruce explained in this case it is the Official Distributor.

 

If you take a scenario like this you 'll see why it's damaging:

 

Joe walks into official shop and buys official product for 9K

Je uses the product for a year and wants to upgrade. Say, for arguements sake, he should lose 30 percent to depreciation.

 

He wants to sell for R6K.

But Jimmy Grey Boy has them new for 7K.

 

Joe now has to lose even more money to sell his wheels and why would he want to? So he either keeps them or takes a huge knock.

 

Grey importing does not just affect the first time buy or new price...but all the trickle down sales as well...

[/quote']

 

So the grey market makes new and used wheels cheaper?!  Wow, sounds good to me.

 

Cycling goods are expensive toys that loose their value incredibly fast.  If you bought them as investments or for their resale value, you should have your IQ tested.

[wheels]

Well Done Chris. Bring us that Chrismas specials. I am trying to get hold of Luke. I want him to puke on my wifes Giant. Chris dont worry about the few wholesalers. Think about the mass cyclists out on their bikes. We are the ones that is supporting you and will keep on supporting you.

 

Sis on you GIANT. Now who will get the most out of this.

 

CWC will get the most adverstising out of this investigation.

 

1st post at 11.39 . now it stands on 2236. Clever boy. No advertising is bad advertising. Poor wholesalers.

 

LONG LIVE CWC. Just bring me that special.  

wheels2008-10-16 07:16:45

[Hog_]

Also, I think it's pathetic to come and start a thread on a forum likes Puzzler did. What do you have to prove? That you can have stock confiscated? Are you telling the other shops not to f*ck with you profits?

 

As long as I have been a member of the Hub, there's always been some or other distributor trying to knock CWC, and they always end up with egg on their faces. Why not try to fight CWC where they are kicking your asses? With good service and even better prices?

 

 

 

 

[Jackes]

 

1st post at 11.39 . now it stands on 2236. Clever boy. No advertising is bad advertising. Poor wholesalers.

 

 

 

So what your saying is that Mr Puzzle is actually CWC's advertising agent ? 

[Johan Brits]

Well said Bruce and Tarmac - but some people just dont care - good products for cheaper is better - no matter who or what suffers, ( not pointing fingers ) I love bargains,