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Coolheat - Supply chain debate


markStockton

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markS' date=' how does one break that mould then ?

 

i am sitting here thinking of people like Kiwi, Token, Shamus, etc

 

what if they had an "oulet" that people could feel the equipment? and buy it without worrying and fit it themselves if they want - but for an extra fee have it fitted in the shop?

 

[/quote']

 

Check out one of Kiwi's posts today. He is opening a "Touchy Feely" within the next coupla weeks!

 

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markS' date=' how does one break that mould then ?

 

i am sitting here thinking of people like Kiwi, Token, Shamus, etc

 

what if they had an "oulet" that people could feel the equipment? and buy it without worrying and fit it themselves if they want - but for an extra fee have it fitted in the shop?

 

[/quote']

 

I believe that Kiwi and Token have broken the mold, I'm not sure about Shamus, I believe he is a wholesaler / distributor and does not retail directly (I may be wrong here).

 

I can say that there is a fair amount of support for both Kiwi and Token, I think a lot of people are looking at their products first before going to the LBS. I can say that when my son starts winning races regularly, he will probably become the proud owner of a Planet-X carbon frame, probably with Token wheels. Cry

 

I also believe Kiwi does have a premises where you can look at and collect products. Again I could be mistaken, but I think it is in Kensington. I can report back when I go and buy the Planet X saddle for my 'dale.

 

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markS' date=' how does one break that mould then ?

 

i am sitting here thinking of people like Kiwi, Token, Shamus, etc

 

what if they had an "oulet" that people could feel the equipment? and buy it without worrying and fit it themselves if they want - but for an extra fee have it fitted in the shop?

 

[/quote']

 

Check out one of Kiwi's posts today. He is opening a "Touchy Feely" within the next coupla weeks!

 

can you pls point me TiBones cant find it.

 

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cake sisters, markS, thats one long drive from here to Kensington.

 

need something in CT -  but wondering how one would

 

a.) get inside Coolheat to get them to follow the Coke model in SA &

b.) how cycle people in CT would respond to a shop with bicycle parts - but no bicycles &

 

c.) would a bike shop for the lower end market work in an informal settlement area? (thinking of the thread that was posted with kids sitting at that guys bike shop. cant find the blinken thing)

 

 

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cake sisters' date=' markS, thats one long drive from here to Kensington.

 

need something in CT -  but wondering how one would

 

a.) get inside Coolheat to get them to follow the Coke model in SA &

b.) how cycle people in CT would respond to a shop with bicycle parts - but no bicycles &

 

c.) would a bike shop for the lower end market work in an informal settlement area? (thinking of the thread that was posted with kids sitting at that guys bike shop. cant find the blinken thing)

 

 

[/quote']

 

Doesn't CWC fit the bill?

 

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markS, am thinking of CWC, but they also have hassles. But not sure if they buy directly from Coolheat and other suppliers in SA, or if they buy outside SA.

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markS' date=' how does one break that mould then ?

i am sitting here thinking of people like Kiwi, Token, Shamus, etc

what if they had an "oulet" that people could feel the equipment? and buy it without worrying and fit it themselves if they want - but for an extra fee have it fitted in the shop?
[/quote']

 

You see if the people above had an outlet simply selling components that would be the basis of their business. But lets say one now starts fitting the components they would be adding value and possibly attract more customers than the others, but his costs would be higher, so he would have to charge an installation fee. The others might follow suite (thats the nature of how competition works) but maybe they just happy selling components and don't want to bother with fitting!! their added value could be a lower price on components. customers now have choices. I can buy and fit myself cheaper than bying and letting the bike shop fit them. Or i can't be bothered fitting the component so i'll just opay someone to do it for me.

 

I could buy my groupset @ 10 000 ronds from MIDAS and phone 5 or 6 bike shops to price fitting and tuning and take the best price or the best workshop and pay them 900 ronds for fitting. Instead of going to the bikeshop and paying 15000 ronds (because they ripped tha ass on the profit) and then claim their value added is free fitment.

 

I don't think there is a mould to be broken.

 

When one starts a business you have a business plan, which dictates how you are going to run and manage it to be successfull. Allowing outsiders to dictate would damage your brands and stagnate the business.

 

By having sound, workable & ethical sales strategies will allways put you on top and nurture groweth. Allowing customers to run your business????? why not just give them shares and management rights!!!!! 
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markS' date=' am thinking of CWC, but they also have hassles. But not sure if they buy directly from Coolheat and other suppliers in SA, or if they buy outside SA.

[/quote']

 

There pricing on Shimano would tend to make me think they source else where.

 

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Yes they do, and they have a very well equipped workshop with good mechanics, I would have no probelms with them working on my Campy equipped Colnago (but i do all my own fitting and repairs) Once again it's a value added part of their business. If they only sold components i wold still buy from them even if i did not do my own fitting and repairs.

 

Another aspect of so called LBS ethics.

What do the agents of say Shimano have to say to LBS who buy complete bikes which are not represented by the same agent and strip them down and sell Shimano groupsets and shimano spares at dirt cheap prices. The shimano bits were not bought via the agent so he got no benefit, but lost the business. The agent can't control this, and has to live with it. (even worse, he has to back up the products warranty) But this same LBS is then telling the same agent how and where he can sell his products.

A win win situation!!!!!! I think not. So if the LBS can do as they please in the business enviroment to make money (which is why they are in the business) then the agent should be in a position to do as they please to make money, in the same enviroment.
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This scenario is been played out all over the world.

 

Worldwide (and dont let anybody tell you differant) manufacturers are trying to get CLOSER to their customer base, many open concept stores (similar to Adidas, Nike etc here) so that they have their finger on the pulse of whats happening and can showcase all the latest products.

 

SA appears to be moving in totally the opposite direction with distributors doing their level best to not deal with clients ( I crashed and broke an STI some time back, took it to the shop and was told the Shimano distributors only sell pairs not singles) so I phoned coolheat, they treated me like a pariah  - so I spent 10 minutes and bought on-line ex USA.

 

Sorry, Steve, but those are the facts - anyway, water under the bridge, the fact is it wont be long before distributors will be forced to sell to clients direct through channels like concept stores or on-line, the local market is in recession and as prices climb customers will look for cheaper alternatives, the attrition in the Cycle business will start comes winter, only the strong businesses like Cajees, Solomans and the like will weather it with a smile, but I predict few other boutique stores will survive. 

 

I spend 5 months a year travelling internationally, SA is still clinging to the old supply chain of manufacturer / wholesaler - distributor - retailer, this is as old as the dinosaur, today distributors / wholesalers all over the world are selling direct - I see it happening here sooner rather than later.   

 

 
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Guest Agteros

 

Question to Coolheat / Steve:

 

Do you sell single items to bike stocks shops?

 

If so, what prevents me from walking into your office / warehouse with a bit of cash (ONLY LEGAL TENDER IN RSA) and purchasing something.

 

Any arrangement you have with anybody else that prevents me from buying from you is surely anti-competitive and smacks of collusion to control the market?

 

So, can we, the public, buy directly from Coolheat, or not?

 

Agteros2009-01-16 15:21:35

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Question to Coolheat / Steve:

 

Do you sell single items to bike stocks shops?

 

If so' date=' what prevents me from walking into your office / warehouse with a bit of cash (ONLY LEGAL TENDER IN RSA) and purchasing something.

 

Any arrangement you have with anybody else that prevents me from buying from you is surely anti-competitive and smacks of collusion to control the market?

 

So, can we, the public, buy directly from Coolheat, or not?

 

[/quote']

 

jyyys laaaaik, what a good question at 23h30 !, actually a good question at any time of the day.Clap

 

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Do Solomons do any fitting?

 

Yes they do and have a fully equipped workshop. I am on my way there now. The Flight Deck on the new Tandem is not working properly and they have to repair it.
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