porky Posted May 22, 2009 Posted May 22, 2009 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. Would somebody not have to bring it to their attention Serendipity, I doubt they read this forum on a regular basis.
Christopher Brunsdon Posted May 22, 2009 Posted May 22, 2009 I was in the bed industry for 3 years and worked for the 2 largest retailers in their respective fields. In the first company we had the problem of floor space and positioning. Sealy (made 100% by edblo) use to complain when I would move their products to the back of the shop - use to threaten us if we gave out written quotes for below R2999 on a posturepeadic too - it was to protect their market. I left this company to go work for a factory store. The owner of the new company started off making a few cheap mattresses when he was still a retailer. The likes of Sealy (edblo/slumberland) use to give him grief and in the end he threw all their products out and went big time with his factory. End of the day, edblo are loosing over R2 million a month (cost price) in purchases in Cape Town alone because they tried to protect their market. And now he is opening more than 2 dozen factories throughout the country.
GoLefty!! Posted May 23, 2009 Posted May 23, 2009 merida dictating the shop discount is not legal. although discounting is not always a sustainable strategy there are far more factors that determine the success of not. A distributor or retailer can either decide to buy market share through; -undercutting the opposition, then slowly raise prices or reduce discounts. or they can offer superior services to draw customers to the shop. As much as we Saffa's loe to talk about how much me want service, we don't actually care. We need something to complain about so we tend to gravitate toward the lowest price and then find something to complain about either about the shop we bought the bike from or other shops who were more expensive, weird really... i digress. A retailer must be able to charge what they feel is a suitable for the market where they are situated. A distributor needs to decide which areas it is likely to achieve the sales it needs to move stock and position the product correctly in the overall market place. One cannot dictate to the other. That is verkrampt, nationalist behaviour
Jeepdude Posted May 24, 2009 Posted May 24, 2009 if i may add my 2 cents worth ..... um sorry have to round it off to 5 cents.. we all want to buy a bargain yet we all want to make money cause thats what makes our lives more comfortable... so why mention that useless info... let the bikeshops be.. if you reckon your paying too much bugger off and spend the money elsewhere.. our south african cycle market is not even a drop in the world wide ocean of sales hence our ridicolous component prices..... hence why i get slightly annoyed with buyers going to crc and jenson etc.... yes the prices you are paying online is cheaper than the cost it gets landed here by the distributors but if we supported our local market our suppliers can order more and get better deals bla di blah di blah.... i'm all for giving the best prices on bikes but hell everybody needs to make a living......
Recycle Posted May 25, 2009 Posted May 25, 2009 if i may add my 2 cents worth ..... um sorry have to round it off to 5 cents.. we all want to buy a bargain yet we all want to make money cause thats what makes our lives more comfortable... so why mention that useless info... let the bikeshops be.. if you reckon your paying too much bugger off and spend the money elsewhere.. our south african cycle market is not even a drop in the world wide ocean of sales hence our ridicolous component prices..... hence why i get slightly annoyed with buyers going to crc and jenson etc.... yes the prices you are paying online is cheaper than the cost it gets landed here by the distributors but if we supported our local market our suppliers can order more and get better deals bla di blah di blah.... i'm all for giving the best prices on bikes but hell everybody needs to make a living......
AndreZA Posted May 25, 2009 Posted May 25, 2009 ...if we supported our local market our suppliers can order more and get better deals bla di blah di blah.... i'm all for giving the best prices on bikes but hell everybody needs to make a living...... And untill then, my contribution help them put their children in private schools while mine goes a public school.
AuctionLamb Posted May 25, 2009 Posted May 25, 2009 ...if we supported our local market our suppliers can order more and get better deals bla di blah di blah.... i'm all for giving the best prices on bikes but hell everybody needs to make a living...... And untill then' date=' my contribution help them put their children in private schools while mine goes a public school.[/quote']
porky Posted May 25, 2009 Posted May 25, 2009 The "everyone needs to make a living line" is just silly, it holds no water. It assumes we "OWE" a business a living. We dont. A business (any business) survives mainly because they are competitive, priced correctly, offer something we need and do it efficiently - no other reason. I owe nobody the favour of shopping with them so they can "make a living" - however, I will support them if they fulfill all the requirements of a purchasing need I have, if they dont, I wont support, simple. This dos not apply only to the cycle industry, but to all business operators, I spend 30 hours a week quoting on contracts, nobody owes me those contracts so I can make a living, I need to be better than the opposition or my customers will go there - same in cycling.
AndreZA Posted May 25, 2009 Posted May 25, 2009 This dos not apply only to the cycle industry' date=' but to all business operators, I spend 30 hours a week quoting on?contracts, nobody owes me those contracts so I can make a living, I need to be better than the opposition or my customers will go there - same in cycling.[/quote'] and I bet your suppliers don't tell you for how much you have to sell their stuff.
Jeepdude Posted May 25, 2009 Posted May 25, 2009 The "everyone needs to make a living line" is just silly, it holds no water. It assumes we "OWE" a business a living. We dont and neither did i suggest customers OWE bike shops anything... assumption is the root of most evil......a bike shop is not a charity and neither are you.... your profit keeps you in business and thus alive....
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