Cycle Lab in Hot Water

[Tumbleweed]

thanks bergbok. do you view thehub by oldest or latest post?

[Jules]

This is all quite amazing. Despite the fact that South African Law is based on the principle that you are innocent until proven guilty' date=' 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.

 

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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.

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Well both Fritz and Andrew have entered the debate on the hub. Fritz's post and his e-mail published by Holy are unambiguous. He was attempting to orchestrate an organised increase in prices.

 

 

 

Are hubbers expected to sit on the fence until the Competition Tribunal comes up with a decision?

 

 

 

I'll sit on the fence, balance my laptop on my knee, and point my browser in the direction of Chain Reaction Cycles, thanks

 

 

 

 

 

 

[butafly]

just a quick off the cuff response to FP's email where he states that retailers are not making enough profit. ideally - a business should generate enough income to meet its cost of sales and expenses and this includes the owners salary. profits are not necessarily cash in the pocket of the owner. it could be invested in stock, debtors (they shouldn't have these) , cash in bank or fixed assets (how many shops own their own buildings?)

 

so how much profit does FP or Cyclelab want to make? my lbs has stated that there are not enough margins in bikes so he thereore only sells spares and services bikes as that is where the real money is. i don't shop at FP or CL but maybe that is what they should focus on - service , service service and keeping the customer that buys the bike. 

[GFishy]

If you don't want to pay the price a shop gives you on a part/bike, go to another shop or buy online.GFishy2009-03-07 07:40:02

[vanniri]

I support lbs whereever I am. Especially the small shops have a unique cycling passion which I share. The larger shops have lost some of that, but you need them to promote cycling on a larger platform.

Btw outside West Europe and North America most cycling products I find to be expensive. In Eastern Europe I have been to shops selling only new stuff from the previous years production batches at very reasonable prices - if I ever open a bikeshop in SA I will do just that and call it "No-bling".

 

Whatever the reasons (tax, logistics, volumes) South Africa is not unique, get creative or die.

[vanniri]

Just checked my invoice from Cyclelab from my last visit to SA - ZAR 8000.

How much could I have saved?vanniri2009-03-07 07:31:23

[wheels]

I am aware of certain dealers that went to these meetings where this new price margins were discussed and where they said that one of the things that they want is to inforce the wholesalers not to supply dealers who do not stick to the suggested retail prices.

 

Dealers that were mentioned is CWC , Cajees and Solomons. It was also mentioned that J and J , Shimano wholesaler  { Coolheat I think ] and the Giant and Mavic wholesaler have already stop supplying CWC due to his online and discount prices.

 

Now do we for one moment think that the commission would not be aware of these wholesalers not supplying dealers who is discounting their products. I think that it is not only Cycle Lab and Fritz who is going to be in the hot water . We are going to see some wholesalers also getting dragged into this investigation.

 

Good luck. May we as cyclists open our eyes and hope that we will get better prices from our local LBS. If not , then drop him or her because they are most probarly part of this new FAT mark up.

 

Now let me go and shave my legs because my big yearly Argus is here. Have a nice ride and who knows maybe we will  see each other on the road or at the finish . 

[The Hawk CT]

Had a problem with my bike yesterday and took it to the shop to fix (just before the Argus). I ask the owner what is the real story is or if he knows anything about price fixing... He made it clear that they wanted to fix the prices!!! He told me that he was also invited to this meeting and turned it down! He said what he was told by the mighty man (or organiser) is that they want to get the wholesalers to increase there recomended retail price (not decrease or make it more affordable) and kinda force retailers to stick to it. Marginal discounts would be discussed. If they dont stick to it then the wholesaler or distributer should stop suppling that bike shop.

Then he tells me that "Mega" stores like CycleLab have huge fixed cost and why should he not discount prices to give the customer a beter deal where shops like the Lab cannot discount there prices for those reasons.

 

interesting!~!

[Im Tiered]

You're right! They have huge fixed costs. It's called PORCHE 4X4's and BMW 4X4's

[The Hawk CT]

You're right! They have huge fixed costs. It's called PORCHE 4X4's and BMW 4X4's

 

LOL

Thats also another way of looking at it and i am sure thay are pushing the premiums through the business account and hidding it in the Income Statement. Hope the auditor dont pick it up

[Newlands]

Seems like AM was in a real hurry today to finish the Argus ... me thinks he couldnt waste any time because he had other meetings line up ..... with his co-price fixing conspirators and with his lawyers! well done AM

[Skye]

 

Seems like AM was in a real hurry today to finish the Argus ... me thinks he couldnt waste any time because he had other meetings line up ..... with his co-price fixing conspirators and with his lawyers! well done AM

 

Low blow Newlands!. Have the balls to contact AM "he is very approachable" and say what you have to say to his face instead of hiding behind your computer. 

 

[Captain Fastbastard Mayhem]

well said Skye. 

[jagwil]

WELL DONE Skye for trying to be the voice of reason amongst the mob who just want a public hanging.

[The Hawk CT]

well said Skye. 

 

what is important is that we should not loose sight of the fact that these guys wanted to or tried to fix prices also putting "presure" on certain wholesalers not to supply certain stores.

 

so i agree we should not personally attack these guys, but also not loose sight of what they tried to do. A retailer told me personally that they wanted to fix RRP's higher so that the retailer margins could increase putting pressure on wholesaler not to supply retailer giving "good deals"

 

it must go through the legal channels first though...

The Hawk CT2009-03-08 10:59:59

[Windbreaker]

 

A retailer told me personally that they wanted to fix RRP's higher so that the retailer margins could increase putting pressure on wholesaler not to supply retailer giving "good deals"

well I hope this retailer is willing to give evidence under oath to the competition commission instead of just slagging his competition off to his customers. maybe you should contact the CC with this retailers details and a sworn statement of what he told you?

 

don't get me wrong - I am not minimising what they have been accused of but due process must be followed now and we shouldn't all be jumping on the bandwagon.