I can't believe the prices!!!!

[racman]

I always knew online purchasing was cheaper but not by so much! I have just phoned a supplier to get prices of build packages and unfortunatley was initially given the dealer price first before they realised that it was a private enquiry. I was then given the dealer reccommended price - double the price !!!! 

What a rip-off. It almost pays me to buy a complete new bike just to get the extra value and then use the components to build up my bike!!!

 

SOMETHING IS WRONG HERE !!!! 

 

How can they expect us to support the LBS scene like this?

[Mudsimus]

If I may ask what did you inquire about?

[Overlord]

That is something you should have known a long time ago.In RSA it is a question of how much money can be made of a singular customer.Not even your LBS cares how much money or time you spend in the shop.If they get a chance you will be ripped off and that is the bottomline.

[linnega]

Sounds like standard retail to me.  Your LBS is not your local Pick 'n Pay and cannot afford to only add a few percent to the cost.  Low stock turns mean that prices have to be higher for them to make a profit.  They are not a charity and you may have noticed not many (if any) make bundles of money.

 

For a shop like most local bike shops I would expect the retail price to be in the region of 100 to 150% higher than cost ie a margin of between 50 and 65%.  Would it make you feel better if you knew that Edgars' average margin on their apparel is over 50% (ie selling price is at least double the cost price)? And their stock turn is close to 10 times per year.  Your LBS will turn its stock at between 2 and 3 times unless they keep really low stock levels.

 

The reason you can buy a complete bike with cheaper components is because manufacturers have an OEM cost price that is significantly lower than the retail cost.  This has nothing to do with the our local wholesalers or the retailers as it is governed by the manufacturers.

[widget]

That is something you should have known a long time ago.In RSA it is a question of how much money can be made of a singular customer.Not even your LBS cares how much money or time you spend in the shop.If they get a chance you will be ripped off and that is the bottomline.

 

Hmm - Yes, I think sadly you are right.

 

As an example, one of the youngsters here wanted to buy a bike, he wanted to do some road rides but wasnt sure what to buy.

 

Anyway, off he went with his money in his hand to a very well known shop here in Jhb (and I WONT mention the name) and they sold him a Mountain bike??

 

The reason they told him was, "its a good entry level bike, get some experience on it and then buy a better bike later when you have some experience.

 

Fortunately he seems okay with that, and I am not going to tell him otherwise, however there is still this niggling feeling in the back of my mind that they sold him a M/bike Knowing full well he wanted to ride on the road, and in a short time he will realise he is not competitive on a mountain bike in any race, he will want a road bike and hopefully  THEY CAN SELL HIM A ROAD BIKE DOWN THE LINE.!!!

 

Two bike sales to one youngster.!! - Disgracefull.!    

[ewep]

Doesn't Jo'burg need a CWC as well?  As far as I can deduct they have GREAT service as well.

[Christie]

Buy on-line esp if you want Campagnolo.

[widget]

Sounds like standard retail to me.  Your LBS is not your local Pick 'n Pay and cannot afford to only add a few percent to the cost.  Low stock turns mean that prices have to be higher for them to make a profit.  They are not a charity and you may have noticed not many (if any) make bundles of money.

 

For a shop like most local bike shops I would expect the retail price to be in the region of 100 to 150% higher than cost ie a margin of between 50 and 65%.  Would it make you feel better if you knew that Edgars' average margin on their apparel is over 50% (ie selling price is at least double the cost price)? And their stock turn is close to 10 times per year.  Your LBS will turn its stock at between 2 and 3 times unless they keep really low stock levels.

 

The reason you can buy a complete bike with cheaper components is because manufacturers have an OEM cost price that is significantly lower than the retail cost.  This has nothing to do with the our local wholesalers or the retailers as it is governed by the manufacturers.

 

Hmm, yes sure Linnega, but I think it must be mentioned, Edgars runs an account based book, retail shops like bike shops get cash for their goods.

 

Obviously, on an account based book, prices can be somewhat inflated as the company waits for its money for extended periods.

 

On the other hand, bike shops in SA are probably under financed and the owner runs the operation on a hand to mouth basis with little cream left over at days end.

 

However, this NOT the consumers fault and he should not pay the cost there-of - in todays world we are a Global society and the world is actually very small, if we want to keep our money local, we need to be competitive locally. 

[Prince]

Linnega, got to agree with you. Simple economics.

[AndreZA]

I want to know how the bike shops in the UK can offer bikes on 24 months to pay with no interest.

 

 

[OcTaLL]

It's something like the car industry. A number of years ago a friend's dad worked for VW and at that stage a citi golf cost them R6000 to make, they sold for R50000.

[widget]

I want to know how the bike shops in the UK can offer bikes on 24 months to pay with no interest.

 

 

 

Theres a number of reasons, some not even clever, but mainly the "cost of borrowing money in the UK and other first world countries" is much less than SA.

 

Hense, companies have a far less "cost of sales" to recover.

 

............The shop dos not carry the cost, they discount this sale to a financial company who pays them cash up front and they recover the cost over a period of months - it will never be interest free, the interest (far lower than here anyway)- is just factored into the price.

[Gumpole]

Widget I completely disagree!!

 

"Hmm, yes sure Linnega, but I think it must be mentioned, Edgars runs an account based book, retail shops like bike shops get cash for their goods.

 

Obviously, on an account based book, prices can be somewhat inflated as the company waits for its money for extended periods."

 

This is how these stores make their money! they pay their suppliers late (3 months) and charge there customers interest on any debt - at very incompetitive rates... which is how they make most of there profit!

 

If a bike shop takes 6 months to sell a bike he is still waiting six months for his 'cash'

[linnega]

Hmm' date=' yes sure Linnega, but I think it must be mentioned, Edgars runs an account based book, retail shops like bike shops get cash for their goods.

 

Obviously, on an account based book, prices can be somewhat inflated as the company waits for its money for extended periods.

 

On the other hand, bike shops in SA are probably under financed and the owner runs the operation on a hand to mouth basis with little cream left over at days end.

 

However, this NOT the consumers fault and he should not pay the cost there-of - in todays world we are a Global society and the world is actually very small, if we want to keep our money local, we need to be competitive locally. 

[/quote']

Fair comment but most bike shops will discount the RRP by 10% for a cash sale and many offer interest free repayments to known customers.  Just using Edgars as an example because I did initially, the percentage of credit sales would be in the region of 40-50%, with around half of that being 6 month interest free (ie the cost of debt is carried by Edgars).  In real terms this means they need a margin of between 55-50% (which they have) to get a cash equivalent margin after imputed interest of still above 50%.  Other predominantly cash retailers will have a margin around 45-50% which is similar to what your LBS will make (before giving discount on RRP).

 

I agree with the issue about service though.  You have to pay for the service you get at an LBS and you should expect good service.  Big retailers like PnP, Edgars, Mr Price etc are all largely self-service and the people cost is a low percentage of the total cost of the operation (compared to your LBS).  But the customer has to pay for that additional people cost and should therefore expect better, even expert, service.

[Thug]

I'm all for supporting my lbs but when I can buy parts like Hubs & Cranksets for 60% of the price they sell for locally, the decision is taken out of my hands.

 

Fortunately my lbs is pragmatic and understands.

 

 

 

 

[Ratty]

 

The reason they told him was' date=' "its a good entry level bike, get some experience on it and then buy a better bike later when you have some experience.

 

Fortunately he seems okay with that, and I am not going to tell him otherwise, however there is still this niggling feeling in the back of my mind that they sold him a M/bike Knowing full well he wanted to ride on the road, and in a short time he will realise he is not competitive on a mountain bike in any race, he will want a road bike and hopefully  THEY CAN SELL HIM A ROAD BIKE DOWN THE LINE.!!!

 

Two bike sales to one youngster.!! - Disgracefull.!    

[/quote']

 

I don't know if starting on a mountain bike (with slicks) is such a bad idea.  I did it that way and was perfectly happy.  Yes I bought a road bike a year later but by that stage I was fit enough to survive without the nice easy granny gears that were on my mountain bike.