Bike retailer cartel

[Guttersnipe]

 

 

Of course it is relevant. I should have made myself clearer. Based on the history of his posting on the subject I felt as if he were acting as a pr for the industry, rather than applying basic journalistic tools of analysis and suspicion. Climbing off my high horse now.

 

 

[butafly]

This just in...


Competition Commission enquiry - Cycle Lab response
 

In the recent enquiry made by the Competition Commission' date=' it has been alleged that the cycling industry met to discuss possible price-fixing schemes on cycling equipment and collusion to ?drive up? margins. Cycle Lab, as one of the attendees of this meeting and as a leading retailer in the industry, would like to respond as follows:
 

Late last year over 40 of the country?s cycling wholesalers and retailers were invited to gather in Johannesburg at an open conference to discuss the state of the industry. The aim of the forum was to generate solutions to overcome the effects of the economic recession, with the objective of helping all SA retailers develop a sustainable business.
 

This meeting was not an attempt to fix industry pricing, as alleged by the Competition Commission, but rather assessing the cycling industry and establishing ways to align the South African market with current international trends. All parties present debated possible solutions.
 

It has come to our attention that the minutes captured at this open forum were inaccurate and, based on this document, the Competition Commission felt compelled to launch an enquiry into the matter. However, all members present will attest to the actual intent of the meeting and, to ensure the matter is resolved, have undertaken to sign legal affidavits to this effect.
 

As an attendee of the meeting, Cycle Lab believes that the conference was aimed at providing positive outcomes for the entire industry ? wholesalers, retailers and consumers ? and that, once the Commission has completed its enquiry, they will find that this meeting was held with the best intentions for all involved.  As one the country?s leading cycle retailers, we would like to re-affirm our commitment to our consumers.
 

Andrew McLean,
 Cycle Lab Director
[/quote']

 

this is becoming more hilarious by the hour - do you really believe yourself, that you want to help all retailers achieve a sustainable business. come on pull he other one.

 

International trends??? you are chasing us into the arms of importing from CRC. enough said.

 

Will Fritz Pienaar be signing an affidavit.

[Serendipity]

No amount of spin will stop this one I'm afraid. If Tiger Brands with very high power and priced attorneys could't spin their way out of it, I fear the parties concerned here will find it tough to get out of this one.

 

It is imo best to say you are sorry and promise not to do it again. That way you may get off with a slap on the wrist.

 

What irks me about this reply is that

"As an attendee of the meeting, Cycle Lab believes that the conference

was aimed at providing positive outcomes for the entire industry ?

wholesalers, retailers and consumers "

 

How can fixing a price increase in that range be to the advantage of consumers? Pull the other one it's got bells on.

 

[Dr Drey]

PLEASE HELP ME. HOW THE HELL DO YOU FIX A PRICE ON FINISHED GOODS AND SPARES?

SURELY YOU BUY THE PRODUCT FROM A WHOLESALER, SLAP ON A MARK-UP, AND OFF IT GOES TO A CUSTOMER. IF THE RETAILER CHOSES TO TO PUT ON THE SAME MARK-UP AS EVERYONE ELSE, THEN WHO IS ACTUALY GUILTY?

[The Hawk CT]

Yee-hah! Fun and games. This is why I support Cycle Factory Store. No BS...just damn good prices.

 

how many of these distributors and retailers wanted CWC in hot water trying to give good prices to the public...

The Hawk CT2009-03-06 14:20:10

[leet2269]

Easy . In a free market if shop A buys a tube for R10 and sells it for R12 the he has R2 profit. Shop B comes along buys same tube for R10 but either overheads are lower or he wants to generate more turn over he sells for R11.50 cause h can. In fixed they wont undercut a price. Same way in a fixed market shops wont bargin for your mony.

[Dr Drey]

BUT THEN EVERYBODY IS GUILTY!

THEY ALL AGREE NOT TO UNDERCUT.

HOW DO THE "RING LEADERS" ENFORCE THESE PRICES?

[The Hawk CT]

BUT THEN EVERYBODY IS GUILTY!

THEY ALL AGREE NOT TO UNDERCUT.

HOW DO THE "RING LEADERS" ENFORCE THESE PRICES?

 

the guys that start the cartel will get to do the inspections at shops checking sales prises recorded... then earn some maney on that front as well...

[Dr Drey]

BUT THEN EVERYBODY IS GUILTY!

THEY ALL AGREE NOT TO UNDERCUT.

HOW DO THE "RING LEADERS" ENFORCE THESE PRICES?

 

the guys that start the cartel will get to do the inspections at shops checking sales prises recorded... then earn some maney on that front as well...

 

SO WHAT ARE THE IMPLICATIONS OF SELLING AT A LOWER PRICE!

-A PUBLIC FLOGGING-

[jagwil]

This is all quite amazing. Despite the fact that South African Law is based on the principle that you are innocent until proven guilty, the majority of the hubbers out there have acted as prosecutor and judge and have pronounced these bike shops "GUILTY" without having heard all the evidence and without having afforded the bike shops the opportunity of having a fair hearing.

 

 

It is actually quite frightening to see how quick most people are to judge other people and to cry for their blood without having all the facts.

jagwil2009-03-06 21:06:25

[GoLefty!!]

Jagwil, head sand out of take.

retailers meet. Pricing is discussed. Some **** says those undercutting should not be supplied by distributors in future. action will be taken against thos who do.

 

Thats Anti competitive.

 

In every price fixing scam participants always use the following excuses;

 

" was a seminar"

"We just met for a coffee"

 

Followed by;

"we'all sign an affadavid that says we're innocent"

 

in your world, there is no crime anywhere is there.

[Tumbleweed]

Pro cycles just as good

 

 

 

will tell ian he got a good mention

[Tumbleweed]

No amount of spin will stop this one I'm afraid. If Tiger Brands with very high power and priced attorneys could't spin their way out of it' date=' I fear the parties concerned here will find it tough to get out of this one.It is imo best to say you are sorry and promise not to do it again. That way you may get off with a slap on the wrist. What irks me about this reply is that "As an attendee of the meeting, Cycle Lab believes that the conference

 

was aimed at providing positive outcomes for the entire industry ?

 

wholesalers, retailers and consumers "How can fixing a price increase in that range be to the advantage of consumers? Pull the other one it's got bells on.

 

[/quote']

 

 

 

i spoke to andrew last night, and i'm sure he won't mind me sharing the gist of the conversation. he's ready to stand in front of the commission. i've heard him out on the issue, and i'm not qualified to judge what happened. i have my own opinion on it. i thought he wouldn't have wanted to speak to me in the wake of this week's announcement. i was suprised by his answer. he said that he would've done the same with the minutes if he was in my position. holy roller2009-03-07 19:18:02

[Jules]

BUT THEN EVERYBODY IS GUILTY!

 

THEY ALL AGREE NOT TO UNDERCUT.

 

HOW DO THE "RING LEADERS" ENFORCE THESE PRICES?

 

?

 

the guys that start the cartel will get to do the inspections at shops checking sales prises recorded... then earn some maney on that front as well...

 

?

 

SO WHAT ARE THE IMPLICATIONS OF SELLING AT A LOWER PRICE!

 

-A PUBLIC FLOGGING-

 

 

 

What's been alleged is that if you do not put the required markup on your products, the wholesalers will do one of two things: 1) stop supplying you 2) supply you at a higher price.

 

 

[jagwil]

GoLefty,  Head was never in sand. I am aware just how much crime there is out there.

 

I am still amazed at how quickly people judge and condemn others.

[idrive]

Bottom line: If we are going to win any war against crime, then all crime must be investigated and action taken.

 

Even if it is your domestic stealing a pair of jeans or your neighbour letting off fireworks or a taxi stopping on a yellow line ....... and so the list goes on!!