'Bicycle prices fixed'

[Sharkie 2]

haaaa haaaa, once again ill tell you why. Clever marketing to get the fat ass americans off the burgers & pizza, i swear they have a eating disease. My aunt & uncle bought their bikes for this precise reason. Because they became lazy fat ass, dikgat whatever you wanna call it americans. This living off burger king & macdonalds, not to mention pizza hut.

 

Nothign wrong with the take out food, but that nation just doesnt know what the words - in moderation means

Its got nothing to do with their health its got to do with volumes our suppliers are limited to be able to purchase, our active cyclists in our country compaired to them is obviously lower because we are a smaller country.

[AndreZA]

Somebody has to pay for all the new expensive bikes Andrew McLean is riding........

 

 

He is a good rider so I'm sure he gets sponsored. The Porsche on the other hand is not. But on the other hand, other sports fans get sponsored cars so who knows.

[gummibear]

Some countries have introduced very high import duties on online shops like CRC (up to 80%).

 

What countries are you speaking about?

 

I ordered from them 2 weeks ago and never paid a cent tax or duty and i am in the EU.

[kosmonooit]

A little birdie told me a delegation of local, lets call them stakeholders in line with the current jargon fashion, have approached the DTI to request just that - higher duty on specific imports from specific overseas retailers such as CRC.

 

I don't know enough about the DTI's mechanics to verify this or to know whether or not such a request is put in the public domain. I'm itching to know though.

 

As far as I know, duties are based on Tariff Rulings, which are the nature of the goods, not where they are from or to whom they are going. So I think thats unlikely that there will be heavier duty on goods for consumers from a particular supplier.

 

And as far as increased duties protecting local industry, only really an argument / case when there is a local factory producing the same goods against cheap imports ie clothing from China.

[Caerus]

So when is this whole increase on the duties for CRC supposed to be taking place? Is this a reliable source for this info. Guess Ill just have to get my old LBS in the UK to send them on for me if this is the case.

 

What a bunch of greedy bastards. Cycling has now come full cirlce - an elitist sport. The bottom of the market will fall out as there will be no more people coming into the sport as they cannot afford it.

[epoh]

In light of this, would you still support the bike shops noted in this scandal?

 

I was thinking last night I will not support them anymore but I now am not sure. I forgive, forget and move on very quickly with most things in life. I did not see the Supercycling program but if they openly admitted to be in the wrong then it is certainly a step in the right direction and worthy of my respect.

[Boyee]

http://www.cyclelab.com/default.asp?id=357554&des=article

[BrendonMyb]

http://www.cyclelab.com/default.asp?id=357554&des=article

 

hehehehe, i find that a rather lame short there

 

BTW who are the new owners, whom are not implicated ?

[hansd]

This is indeed a sad day for cycling in SA..... Most people are not happy with one or more LBSs due to bad service, bad customer service etc. and now this.... to find out that we have indeed been screwed with prices aswell.

 

There is a couple of shops that wont see me again (Fritz Pinaar and Cycle lab). So my 10K a year won't hurt them - at least now I don't have to b!tch and moan about them anymore because I wont go there.

 

Has there been any response from Fritz Pienaar or Cycle lab?

 

Hi Pappa Bear, found response from Cycle Lab on their website. See link:

 

http://www.cyclelab.com/default.asp?id=357554&des=article

 

Regards,

 

Hansd

[Caerus]

I wont support any LBS after this, they are all rip off merchants. Ill rather make a plan to buy parts elsewhere and to service myself or an independent mechanic

[BrendonMyb]

As far as I know, duties are based on Tariff Rulings, which are the nature of the goods, not where they are from or to whom they are going. So I think thats unlikely that there will be heavier duty on goods for consumers from a particular supplier.

 

And as far as increased duties protecting local industry, only really an argument / case when there is a local factory producing the same goods against cheap imports ie clothing from China.

 

so if im understandin you correctly, what you are saying is that the LBS will actaully screw themselves over by ordering overseas with higher tariffs. If this catches my mind correctly it wouldnt matter whether myself or the LBS order from overseas. import charges will be equal.thus pushing bike shop prices higher which equals less sales.

 

hmmmm it just doesnt make any logical sense to me or perhaps im just not catching the drift here

 

thus to say the argument is true

[Guest coenie]

I do not think Andrew "admitted" to "price fixing" last night at all...He said that they were discussing 2 options...and that "discussing" the 2nd option ie what the RRP should be was wrong....that is not price fixing...that is talking......

 

What I want to know is why can you only have on or two importers...this whole thing stinks....a Distributer imports...resells to the retailer and with the RRP....what for.....why can each bike shop not bring in what they want? And then sell it for what they want? But NO. That is a grey import....?

 

I say a Toyota is a Toyota does not matter where in the world you bought it.....what if someone immigrates from Australia with their...lets say Giant...and the have a big frame problem....is distributorXXX going to say that you imported it yourself, therefor it is grey? Or will they say "since we did not bring it in thus we do not support it"?

If they are the dealers they SHOULD honour the warranty claim....isn't?

 

If you think about it, the price fixing is at the "agent/distributor" the moment you put a RRP on there have you not "Fixed" the price? HUH

 

 

I fully understand a lot of people getting together with the "agent/distributors" and saying hey we cannot run a business with your RRP's...so either you drop your price or raise your RRP....

 

 

Would any of you want to pay more than the RRP? I would not. But what I would want is to rather have the freedom to shop around and NOT get the same bloody price quoted at every shop.....therefor the BIG shops can ask more and the little ones less.....

 

DO way with the middle man and RRP.....actually I will just shop at CWC...good service and prices...and not RRP bulldust....

[BrendonMyb]

I do not think Andre "admitted" to "price fixing" last night at all...He said that they were discussing 2 options...and that "discussing" the 2nd option ie what the RRP should be was wrong....that is not price fixing...that is talking......

 

What I want to know is why can you only have on or two importers...this whole thing stinks....a Distributer imports...resells to the retailer and with the RRP....what for.....why can each bike shop not bring in what they want? And then sell it for what they want? But NO. That is a grey import....?

 

I say a Toyota is a Toyota does not matter where in the world you bought it.....what if someone immigrates from Australia with their...lets say Giant...and the have a big frame problem....is distributorXXX going to say that you imported it yourself, therefor it is grey? Or will they say "since we did not bring it in thus we do not support it"?

If they are the dealers they SHOULD honour the warranty claim....isn't?

 

If you think about it, the price fixing is at the "agent/distributor" the moment you put a RRP on there have you not "Fixed" the price? HUH

 

 

 

 

I fully understand a lot of people getting together with the "agent/distributors" and saying hey we cannot run a business with your RRP's...so either you drop your price or raise your RRP....

 

 

Would any of you want to pay more than the RRP? I would not. But what I would want is to rather have the freedom to shop around and NOT get the same bloody price quoted at every shop.....therefor the BIG shops can ask more and the little ones less.....

 

DO way with the middle man and RRP.....actually I will just shop at CWC...good service and prices...and not RRP bulldust....

 

I think you are correct in what you are saying & i will retract my prior statement as to the admittance of price fixing. I will amend my post

[I FLY]

As far as I know, duties are based on Tariff Rulings, which are the nature of the goods, not where they are from or to whom they are going. So I think thats unlikely that there will be heavier duty on goods for consumers from a particular supplier.

 

And as far as increased duties protecting local industry, only really an argument / case when there is a local factory producing the same goods against cheap imports ie clothing from China.

 

Your information corresponds to my experience on DTI import tariff protection.

 

At my previous company I was involved in getting the DTI to impose tariff protection against Chinese imports. We were only granted this protection for a period of three years and only because we could prove that:-

 

1. The Chinese manufacturers were selling these items at a much lower price into South Africa than they were into other parts of the world and

2. Our local factory was been in danger of been closed down because of this.

 

When my group started manufacturing in China our imports were subjected to the same high tariffs as our competitors

[Nettie R]

Hubbers at the end of the day LBS's are a business and in business your idea is to make a profit, heck the bike industry has some of the lowest mark ups in the retail industry, the food industry has alot higher mark up go check by how much food prices go up each year. All the other industries also have to be checked in my opinion

And the other industries are being checked. Please go and read a newspaper. As for the profit: 100%+ markup is absurd. Someone in IT said their margin is 5-10%, another hubber said motorcycle sales work on about 10-15%. Cycle shops are not the bottom feeders as you make them out to be. The issue is not running a business - it's the collusion.These cycle shops hated the competition and wanted to play unfair.

Big question: If the issue (acc to Supercycling last night) was about getting past fixed Recommended retail price of wholesalers, why is it that eg. Shimano parts prices differ at bike shops?

[Caerus]

Why would competitors even talk to their oppositon about prices. What happened to competition between shops, Its the same with mobile phones, all prices & services are fixed and they collude with each other. Makes me sick.