Coolheat - Supply chain debate

[Slowbee]

got told my new saddle would be R400, the new stock comes in R895!! Thats just madness !

[TCRCARBON]

Well inflation is pressing 7% now you know, so if you're really really really bad at maths, that seems about correct.

[markStockton]

 

STEVE

BACK TO PRICING CAN YOU CLARIFY WHY WE ARE PAYING SO MUCH IN SA AND THAT IT IS OFTEN CHEAPER TO BYPASS THE LOCAL AGENCY AND BUY OVER SEAS.

 

I AM SURE THE AVERAGE PERSON WOULD NOT HAVE AN ISSUE OVER A FEW RAND YET IS SEEMS THAT IT IS MORE OND MORE WORTHWHILE TO HAVE THE DELAYS' date=' SHIPPING COSTS ETC ETC BECAUSE THERE IS SUCH A PRICE SAVING TO BE MADE OVERSEAS.

 

[/quote']

 

Steve, I would agree. It would clear up a lot if you respond to TCR.

 

[steven]

TCRCARBON thanks for your questions regarding pricing.What i have learnt of recent is that in Europe many companies supplying cycle parts and equipment are in fact sourcing these components thru either a manufacturer which are destined for assembly on complete bikes where by the manufacturer either has no orders for complete bikes and is in financialdificulty thus dumping components in order to get cash.I have also learnt of another method which i cannot put in writing on the Hub as its on a more sensitive note and would cause an absolute stir.Then again there are some sources which buy thru the correct channels but have specials or work on low mark-ups.

I have said this before on the Hub, advertising is an invitation to do business,which means you can advertise low prices to attract attention

and invite business. I have noticed some consumers are not aware of the latest model numbers which are referred to as XTR at low prices but if you look more carefully they are old models which have been discontinued and

flushed out in the market.There is nothing wrong with old models and they work 100%.

 

Getting back to the question you ask about pricing in the SA market i would like to inform you as follows.

 

Our currency the Rand has devalued by over 60 % against the Japanese Yen and approx 40 % against the Dollar and Euro of recent. The Japanese Yen was Y16 to the Rand 1 year ago and on a good day is now Y9.50 to the Rand. This has affected prices of New Imported goods which we distribute only.We have stocks of products which are also older models at old prices and there are many bargains to be had.

 

I recently was asked why ST1056 Sti levers were avaibable at CRC for R1350.00 and a dealer quoted R3000 for the same levers.After checking CRC didnt have stock and the model quoted was in fact discontinued as its been replaced by the new model ST1056L which is all black.I am sure all countrys are affected by the rate of exchange and its a matter of time before they are affected.

 

I have just returned from a Shimano Factory Tour to Japan, Singapore,Malaysia and Batam Island where Shimano have huge facitlities

producing parts and wheels etc. Its not as easy as everybody imagines to produce even a Crank Set which Shimano produce by Cold Forging which means a piece of Alloy gets 100 ton press on it which it then forms into a crank.Just think of the cost of the tooling and special equipment needed to design and produce the die cast .I learnt alot on this Tour and you will only appriciate what goes into it and the R & D and testing done to each product as the Shimano have very strict safety requirements,as can you imagine if a Crank snaps how much damage you can do to yourself.On Shimano Chains they are rated to 9000 Newton Metres of Torque before breaking. A small car delivers about  200 Nms of Torque.An Sti lever takes up to 20 people to assemble from small parts and special tooling to the finished product.

 

South Africa is a smallish market with high inflation rates, high interest rates,high shipping costs etc.As the distributor of any agency you have to take into account warranty, spares back up etc. I beleive that we and other distributors offer a fair price to the Trade whom offer you the consumer service and backup.

 

If i can be of any further assistance please contact me accordingly

 

stevem

 

www.coolheat.co.za

 

 

 

 

 

 

[intern]

 

Steven - always like your measured tone and sensible answers to sometimes hectic heckling and abuse. Well done, respect.

intern2009-01-15 11:39:33

[steven]

Thanks Don appriciate your remarks.

rgds sm

[masood]

Steven another question: Why wont you guys supply a local online retailer?

[Dibles]

I had an issue yesterday which Steven promptly and very professionally dealt with. Thank-you Steven. Excellent customer service.

[steven]

Mark thanks again for the apology and i think you would also be well received if you sent an apology to the shop whom when i discussed this issue with the person in question mentioned that you were even offered the useage of a loan bike whilst your derailer was being sorted out but you declined the offer.

 

Life is short and burning bridges is the wrong way forward.

 

rgds steve m

 

www.coolheat.co.za

 

[GFishy]

Batam is Indonesia

 

 

Nice to ride there...the 6 bridges...

[markStockton]

 

Mark thanks again for the apology and i think you would also be well received if you sent an apology to the shop whom when i discussed this issue with the person in question mentioned that you were even offered the useage of a loan bike whilst your derailer was being sorted out but you declined the offer.

 

Life is short and burning bridges is the wrong way forward.

 

rgds steve m

 

www.coolheat.co.za

 

 

Hi Steven

 

I appreciate the comment, as I've said before I hope the mistake was innocent (however I do have my doubts) and you are quite correct that the proprietor did offer the use of his own 'dale Rush to race on Wednesday night. 

 

However in the words of the Dixie Chicks, "I'm not ready to make nice". 

 

Cheers

 

Mark

 

[steven]

Masood can you imagine how many on-line shops we would have to supply as anybody with a computer would be classified as an on-line shop.

RGDS SM

 

www.coolheat.co.za

 

[markStockton]

 

Masood can you imagine how many on-line shops we would have to supply as anybody with a computer would be classified as an on-line shop.

RGDS SM

 

www.coolheat.co.za

 

 

Steven, there is no denying that "online shops" have a big future. Maybe you need to look at a different set of criteria as I also understand what you say. Possibly setting a minimum initial order threshold is an option.

 

[Wyatt Earp]

Mr. Meltzer

 

 

 

 

Summit Cycles2009-06-07 22:46:32

[Weekend_Warrior]

Mark i am surprised that you were not assisted with spare parts ............For your information we have over 8000 small parts in stock and can assist most claims that we are informed about .You are more than welcome to call our offices or email ................

rgds sm

www.coolheat.co.za

 

 

 

I was looking for a small part the other day it was the adjuster for the rear brake cable on a Sora groupset that i am selling.  I was informed that you dont have that part and that i need to go to Flandria which i did they supplied me with one that comes off a Raleigh so what i have since assumed is that Raleigh can supply me with the small spares i require and CoolHeat cant.  

 

Maybe that small part is just not part of the 8000 small parts you carry at coolheat

[madmarc]

Masood can you imagine how many on-line shops we would have to supply as anybody with a computer would be classified as an on-line shop.

RGDS SM

 

www.coolheat.co.za

 

 

From a sales perspective thats a bit short sighted. Any company should welcome outlets for their product which are legit and secure. Or maybe it's because the agents are scared or what the reaction would be from the LBS's. Allowing cutomers to dictate sales policy to the supplier by threatening to stop buying should be the first sign to drop the customer and move into other and newer markets.

 

The cycling industry is ripe to have someone come in and turn it on it's head. For this I cannot wait.