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Manufacturer support of racing


ChrisH
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One thing that strikes me about cycling in SA is that it is the small LBS that promotes the sport and these are the guys that always seems to be the sponsors of local racing and rides.

 

Where are the events that are backed by the importers and manufacturers. Where is the 'Raleigh Crater Cruise' or the 'Trek Bicycles Argus MTB race'. Why not the 'GT Cycles National MTB series'. The only exception I can think of is the Scott Night Series and that is a silly niche event aimed more at wannabe adventure racers.

 

In motor racing the car manufacturers sponsor rallies such as the Toyota dealer rally and the Nissan 400 Off road event. I think the bike importers should put something back into what to them must be a very lucrative sport.

 
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Apparently they have to save for the big court cases against the BIG threat of internet/grey importers!

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Apparently they have to save for the big court cases against the BIG threat of internet/grey importers!

 

It was that thread that prompted this one. 

 

As cyclists we passionately support our own 'brand' of bike even though it is highly likely that it is the very importer of that brand who is forcing prices of parts and spares up.

 

I don't begrudge anyone else a fair living, but don't rip the arse out of it.
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It would be nice if we could see their financial statements and get some idea of their profits.  Maybe we need to pity them?!  Not sure, but it is true that we need companies who want to invest in the country and help cycling.  Not just milk the cycling consumer.  Anyone got some useful info on bike/gear importers?

 

We all love the sport and would like to support the people who do most for SA and cyclists.  I just have no idea!
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Getting their (bike manufacturers) financial statements will be more difficult than getting the truth about Luke Watson!

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here i can talk out of exprience i saw a lbs's stock sheet. a frame costs +/- R15000 to land in the shop and the gets slammed a price of R 25000, because thats the way it is done. now i ask you if i can import the frame from europe for R15000, why must i buy from xuz shop and fork out that extra 10 k.  with that i can purchase a group set top spec nogal and have change  FINK ABOUT IT

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Jou lbs doen die moeite om dit te doen en doen dan 'n mark up op die raam. Dit is normale besigheids praktyk. Die vervaardiger sal moontlik die markup persentasie enforce.

Die lbs doen dit want jy het nie genoeg grys goed om dit self te doen nie.

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smiley36.gif Die meeste mense dink jy is 'n groot poepol maar ek reken as mens verby die sarkasme en ander nonsens lees dan het jy ook nog een aktiewe breinsel oor .

 

Ek het Woensdag 'n baie lang gesprek gehad met 'n fietswinkel eienaar en hy het net bevestig wat ek reeds weet , hulle is nie daar om ons (die meeste anyway) te rob van ons sente nie . Hulle het net so groot passie vir die sport maar moet ook vir hulle vrouens/GF sorg !!!

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My issue is not with my LBS, but with the local wholesalers and distributors!  I don't like supporting THEIR girlfriends as well!!

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My issue is not with my LBS' date=' but with the local wholesalers and distributors!  I don't like supporting THEIR girlfriends as well!![/quote']

Exactly. Although I am happier to support their girlfriends if they would support cycling events.
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Ek het Woensdag 'n baie lang gesprek gehad met 'n fietswinkel eienaar en hy het net bevestig wat ek reeds weet ' date=' hulle is nie daar om ons (die meeste anyway) te rob van ons sente nie . Hulle het net so groot passie vir die sport maar moet ook vir hulle vrouens/GF sorg !!![/quote']

 

Een manier om wel kostes te sny is om "overheads" te sny. Okay, die flashy down lights en espresso masjien is nice, maar wys my 'n rak waar die skoene, helmet, ligte is en ek is tevrede. Meeste van die uistal rakke word anyway deur die agente verskaf.

 

 
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The days of the middle-man are coming to an end.

 

Only major economies like the USA and a united Europe can afford this luxury - small importing countries like SA can not.

 

The cost of importing is almost doubled using a middle man (compound cost structures) and I predict we will soon see official importers opening their own retail outlets, where they will simply sell direct to the consumer at (now) trade / wholesale price.

 

 
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Widget - correct.

 

 

 

But sometimes it is not the wholesaler who is to blam but rather the manufactures.

 

 

 

South Africa currently does not build any bike and therefor cannot get OEM price.

 

 

 

Europe does and they do get OEM prices which can be as high as 50% off the manufactures after market price and this is why their are sometime huge diffrences in price.

 

 

 

Some people have managed to tap into this OEM price for after market. Thus sometimes huge price differences!

 

 

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Yes and on what scale - how many frames per year?

 

 

 

Remember for OEM on Shimano and Mavic you order 5 months in advance and if done through the correct channel IE Cool Heat you need to provided a deposite (I think 50 %)on the order on the time of ordering.

 

 

 

For Dura Ace the minimal order for OEM from Japan is 50 groupsets. This is the smallest amount. For Mavic the smallest order is 300 wheelsets of 1 kind ie for example ES.

 

 

 

 

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Yes and on what scale - how many frames per year?

Remember for OEM on Shimano and Mavic you order 5 months in advance and if done through the correct channel IE Cool Heat you need to provided a deposite (I think 50 %)on the order on the time of ordering.

For Dura Ace the minimal order for OEM from Japan is 50 groupsets. This is the smallest amount. For Mavic the smallest order is 300 wheelsets of 1 kind ie for example ES.

 

I think what you are really saying Icycling is that Importers here are not able to buy direct from the actual manufacturers (ie)drop shipment of branded lines direct from the manufacturer - due to quantity limitations and costs.

So they have to buy direct from the official company or an official wholesaler .

 

For eg - Brand "joe soap" is based in New York but manufacturers in Taiwan.

SA importers can not buy "joe soap" branded lines on drop shipment from Taiwan due to quantity and cost prohibitations, so have to buy from the New York office at a much higher cost due to the cost of shipping to NY, tax implications, extra profit margins etc which are added to their cost and of course this cost compounds down the line.

 

If so, Yes of course you are right.

Raliegh here has proved this, top quality products direct from the manufacturer at a fraction of the price.

So even with a handsome retailer margin the product is still cost competitive.

 
widget2007-05-18 04:23:49
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