gogo@ Posted October 6, 2009 Posted October 6, 2009 QUOTE=Mud Dee]You'll be surprised to know that bikes shops make a very very small margin on Polar products. I'm not -- but that's still price fixing - by the distributor... I don't know about thisstuff but to me it would seem they need to be hammered - not CWC, CL,FPC (etc) - or my LBS which died because the recession turned the tapsoff...what are the big bike shops/chains doing about this? I asked one and was told "yes, lots of people ask us that" but that's as far as it went. cough up or shut up.until somthing changes, people WILL use CRC or similar - I don't like shopping "blind" over the net, but I don't have much option either - it's 120km to the nearest retailer and then, 9x /10 they don't have my size or the item in stock.where's the vision to grow the cycling market? some people have it, but many more seem happy just to grind a hole in my pocket
techguy Posted October 6, 2009 Posted October 6, 2009 The whole industry is in turmoil, and instead of helping one another out (wholesaler to retailer to consumer) everyone wants a peice of the pie and not willing to budge on their small share. Everyone seems scared of competition...?
AndreZA Posted October 7, 2009 Posted October 7, 2009 The whole industry is in turmoil' date=' and instead of helping one another out (wholesaler to retailer to consumer) everyone wants a peice of the pie and not willing to budge on their small share. Everyone seems scared of competition...?[/quote'] it's because every manufacturer/distributor says that "my product is worth it's price and if you want it, you will pay for it". And if your product is cheap, people think it is crap.
porky Posted October 7, 2009 Posted October 7, 2009 I dont know anything about Polar and the prices locally, but in terms of the SA competitions act of 1998 States -"Minimum price resale maintainance" is prohibited, and parties in a vertical relationship are prohibited from engaging in such practices. In normal english it simply means, that firms WILL BE REGARDED as having engaged in resale price maintainance where it is agreed or dictated to resell goods AT OR ABOVE a set price floor. "Minimum resale price maintainance" is unlawfull "per se" which means that NO DEFENSE CAN BE RAISED for engaging in such conduct. Obviously, the rationale behind this law is to enhance competition between companies, but I think a lot of price fixing is going on in SA in all areas, witness the recent spate of convictions in construction, automobile spares etc, its not just in one industry like perhaps, cycling. porky2009-10-07 00:53:50
gogo@ Posted October 7, 2009 Posted October 7, 2009 so what is it then if everyone sells at the "RRP" - recommended retail price???
porky Posted October 7, 2009 Posted October 7, 2009 so what is it then if everyone sells at the "RRP" - recommended retail price??? Yah, well, the act do's allow the manufacturer or supplier to recommend a sale price to the reseller of their goods providing they comply with two conditions. 1)The supplier must make it CLEAR that the recommendation is NOT binding, in other words the reseller can NOT be penalised if they sell below the RRP. Furthermore there must be a clause in the suppliers agreement with the reseller stating this in not binding to comply with the act. 2)If the price is printed on the package, the words Recommended Retail must appear next to the price. Its a bit of a grey area in my opinion, because if everybody sticks to the RRP without waver, it could be argued that it then becomes "Minimum Price Maintainance" which is illegal, but proving that is the difficult point. The act just hopes really that the resellers of the goods know their rights, and will sell at the price which they feel comfortable with (lower or higher than RRP) and promote fair competition.
WillemT Posted October 7, 2009 Posted October 7, 2009 maybe there is too many bike shops and not space for them all? I mean is there really space for 4 bike shops in stellenbosch?? Some of them will just die down, and maybe with people buying more stuff over the internet bike shops will have to look at playing a different role than just selling parts and bikes. And that's where the bike shops with good knowledge and good machanics will survive...
porky Posted October 7, 2009 Posted October 7, 2009 ooo. pure pwnage there porky... - youve lost me bud.?
porky Posted October 7, 2009 Posted October 7, 2009 maybe there is too many bike shops and not space for them all? I mean is there really space for 4 bike shops in stellenbosch?? Some of them will just die down' date=' and maybe with people buying more stuff over the internet bike shops will have to look at playing a different role than just selling parts and bikes. And that's where the bike shops with good knowledge and good machanics will survive...[/quote'] Good point, and I would say overtrading is a big part of the issue.There are just not enough customers to go round. Its not pleasant to see anybody put up the "out of business" sign, but realistically this is a very small market, its heavily overtraded, its very price sensitive, its, to a certain extent "seasonal", most shops are independant and dont have a big cash cushion to fall on in lean times, and quite often, good cyclists dont necessarily make good businessmen, I think its a very tough market to play in and the rewards, for most, are probably marginal, its quite surprising to me that they stick it out at all.
Capricorn Posted October 7, 2009 Posted October 7, 2009 pwnage = laying down the smack with fact. brilliant 2 ?previous posts..
jayz Posted October 7, 2009 Posted October 7, 2009 HI I'll give you two examples i have encountered. 1.A local bike store in our town was selling a bike for x and told me the supplier said that is the price. I went to a larger shop in the city and the bike was 3g cheaper and he offered me a good trade inn. NEEDLESS to say who got the business. when I went back to small shop the owner got upset and set the other guy was under cutting and basically cheating. I PUT him straight and told him there can be no dictation of retail price.(I never went back) another shop I use for servicing etc also did the same thing when a customer walked in and asked if he could get discount if he bought 2 bikes and the owner said the manufacturers dictate the price so no discount.CUSTOMER left no sale.to all you shop owners out there DO YOU THINK WE ARE STUPID. CRC fan
porky Posted October 7, 2009 Posted October 7, 2009 pwnage = laying down the smack with fact. Hey,..... well I learned something too Capricorn, I spent a good 10 minutes wondering what this "pwnage" was. Who says you cant teach an old dog new tricks hey?
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