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PRICE FIXING


Kings Cycle

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Don't know much about Merida's policy on recommended retail and discounts LBS's are allowed to give and whether or not they have threatened Henlo. What I would say is before giving the Merida importers grief' date=' consider that they have kept their prices lower than most brands.

If you compare their bikes to Raleigh equivalents, you will see that the new reduced Raleigh prices in many cases are still slightly higher than Merida's long standing 2009 prices. Not trying to take a stab at Raleigh, but what I am saying is Merida have kept the prices reasonable in 2009. Raleigh's new pricing is good especially on the Carbon HT's.
That is at their RRP's. At present the best value for money bikes I have come across.

On the Henlo topic, I think he probably ruffled a number of retailers feathers by advertising his stock of DS Merida's at such a low price. You got to ask are his margins sustainable, or is he just trying to attract attention to his shop and messing with the market.
[/quote']



So what if he is "messing with themarket"? It's a free market not a regulated one and any strong arm tactics to get the retailer in line is anti competitive and therefore illegal.

selling a genuine product for below its market value is not a crime. Thats just poor business practice and not sustainable but it's a great mechanism to get people through the door.

 

 

OK, kom ek stel my saak... Ek is 'n fietswinkel en ek sit in Vredendal (300km vanaf Kaapstad)(ReCYCLE) - VER weg van alles!!! Ek het my mark hier soos enigeen op die platteland.... Hoekom nie my vlerke so bietjie sprei nie? Die internet maak dinge vandag net soveel makliker!

 

Wat Merida aan betref, hulle het nie eers 'n RRSP soos baie ander verskaffers nie, net 'n aanbeveele wins persentasie. So... hoekom kan ek nie hulle fietse bietjie goedkoper adverteer nie? Dit maak immers dat hulle hulle produk verkoop bo al die ander verskaffers in SA.

 

Kom ek se julle waaroor dit gaan... Sekkerlik is daar BAIE fietswinkels BAIE groter as ek, so hulle bel net vir Merida SA & se hulle gaan nie meer by hulle koop as hulle aan my verskaf nie... So, wat staan Merida te doen? Hulle wil nie R1 000 0000/jaar (van groter fietswinkels) se omset verloor & dit teen 'n paar fietse wat ek by hulle koop nie...

 

Die vraag is nou, wie is die verkeerde party???

Fietswinkels sal se, EK is verkeerd want ek maak die mark dood, bla bla bla...

Maar wat se die publiek?

 

 
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Maar wat se die publiek?

 

 

 

Die enigste manier hoe ek die groot winkel enigsins meer kan boycott is deur hulle af te brand. "Hulle" het daai tyd gedryg om hulle advertensie in die tydskrifte ook te stop as die tydskrifte CWC se advertensies plaas.

 

 

 

DAMN THE MAN! SAVE THE EMPIRE!!!

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Henlo, I can't say I agree or disagree with what you have to say, I am not involved in cycle retail, but what I do know is even at the prices that Merida's sell for at most shops, they are the best value for money bikes I have come across. Hence my statement initially was people shouldn't get uptight with the Merida importers about this situation.

 

From what you have explained, it's a no brainer that Merida would react to phone calls from larger bike shops.

 

To those who believe they are marketing wizards, I think it is short sighted to try undercut the market or reduce spending in a hope to decrease prices. In the short term it will work, but slowly smaller shops may need to close their doors and only the Big expensive guys will survive. Even worse some importes may close hence limiting brands and competition. Prices will again climb and the cycle will continue. Just looking at the other side of what may happen. Economics is not just Supply and Demand, that is just a simple concept in the greater world of economics.
Daxiet2009-05-22 02:37:03
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Maybe the big retailers will send

you a year supply of

20090522_031738_hobo-soup.jpg

for the winter. THE SCUM BAGS!

 

 

Henlo, atleast you tried.Clap 

 

O well, back to CRC we go.
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Alas I agree with your post' date=' besides the importers telling me what to do, I use my own discretion to what we do in our shop.[/quote']

 

Clap Thank heavens you do Wink
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Sound like "The Tail wags the dog" if an importer is forced to cut you out of the supply chain due to a bigger dealer threatening them.

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Alas I agree with your post' date=' besides the importers telling me what to do, I use my own discretion to what we do in our shop.[/quote']

 

?

 

Clap?Thank heavens you do Wink

 

 

 

and if the distributor comes to you and say you have to increase your prices because the human powered vehicle research facility feels you are taking business away from them, otherwise they're gonna stop supplying you the 5 bikes a month seeing that the other shop orders 20. What will you do then?

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Alas I agree with your post' date=' besides the importers telling me what to do, I use my own discretion to what we do in our shop.[/quote']

 

Clap Thank heavens you do Wink


and if the distributor comes to you and say you have to increase your prices because the human powered vehicle research facility feels you are taking business away from them, otherwise they're gonna stop supplying you the 5 bikes a month seeing that the other shop orders 20. What will you do then?

 

Knowing Boris I reckon he'll tell them to go suck eggs LOL
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My 2c!...

 

CWC haal groot geld uit en koop groot heveelhede Merida fietse. Spandeer geld om die hele reeks op die vloer te vertoon!Of enige winkel in die land

 

Fietswinkel langs die weskus erns adverteer fietse wat hy nie op die vloer het nie, en teen goeie pryse...

 

Wie gaan vir wie kwaad word?? smiley7.gif

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Alas I agree with your post' date=' besides the importers telling me what to do, I use my own discretion to what we do in our shop.[/quote']

 

?

 

Clap?Thank heavens you do Wink

 

 

 

and if the distributor comes to you and say you have to increase your prices because the human powered vehicle research facility feels you are taking business away from them, otherwise they're gonna stop supplying you the 5 bikes a month seeing that the other shop orders 20. What will you do then?

 

It's happened to me before on a fairly popular brand,I told them to shove it.

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And that is why I sell Campagnolo Products brand new with all the warrenties at prices below what the shops ask for it.

 

I paid for it so I can sell it at my price.  

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Alas I agree with your post' date=' besides the importers telling me what to do, I use my own discretion to what we do in our shop.[/quote']

 

?

 

Clap?Thank heavens you do Wink

 

 

 

and if the distributor comes to you and say you have to increase your prices because the human powered vehicle research facility feels you are taking business away from them, otherwise they're gonna stop supplying you the 5 bikes a month seeing that the other shop orders 20. What will you do then?

 

It's happened to me before on a fairly popular brand,I told them to shove it.

 

I recall a story from my LBS about a popular brand that demanded a certain % of floor space (and quite a big one at that) or they would cut off supply. LBS told them to get knotted, and are doing quite well for themselves without said brand.

 

 

 

smiley32.gif smiley32.gif

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I think it sucks although in a Free Market economy Merida should be able to sell to whom they please. If i was Henlo i would tell them to get stuffed and sell something else.

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Na die episode sal ek nie Merida koop nie. Nog minder sal ek n sekere winkel in die Boland ondersteun. Henlo se winkel is ouer as die een wat gekla het, so mark koop is dit nie. 

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I just can't wait for the Competition Commission to see this. I am just getting popcorn and I will be back.

 

In the Internet age distributors can't get away with this sort of thing any more.

 

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