'Bicycle prices fixed'

[Redbaobab]

Just my quick 2cents...

Firstly, a big up to the government for doing something, don't let it be said that they're useless - we could all learn something from them - we asked for action and now we have it, the question is what are we going to do with the results?!?

 

What surprises me most, in all of this, is that no one has decided to contact the international companies represented by the distributors and pushed them to revoke exclusive distribution rights on the basis of all this?!? Sure the SA market is just a drop in the ocean, which is exactly why they want an honest representative that will protect the more important aspect of their business, the brand power, which is valued far higher than the simple little market share... but remember our drop is a very important drop... How much do we think that the manufacturers value their image in the country that has recently held the MTB world cup and could very well hold it again? They spent a fortune on exposure and all that value is very quickly going down the drain. Have they even heard about these developments in the industry?

 

I guess the big question here is what needs to change and where are the revolutionary thinkers in our country that can take the lead and make the changes a reality? There were none in the food industry, are there any in the cycling industry??? All it takes is one open-minded, forward-thinking, and honest LBS to change the industry forever... only one thing left to do... wait and see.

[Nettie R]

I guess Morewood is not local, or part of the Proudly South African group?

Sorry, I should've included parts manufacturers as well. Unless you're going to start making bike chains and derailleurs in your back yard,there's no reason why duties on imported goods should go up.

[GrumpyOldGuy]

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.

 

Its possible Johan,they can apply, but its doubtfull they will succeed and I will tell you why.

 

SA, like most Western countries, and a few Eastern ones as well is a free trade zone, in other words as a businessman you can buy and sell where and when you like, you are only obliged to pay the relevant SA taxes and Duties.

Of course I am not talking about lines like firearms etc, just standard products we all use.

 

Generally Tariffs (Duties) are determined based on international standards and then adjusted to protect local manufacturing business operations, it is highly doubtfull (I have never seen it) where tariffs will be raised to protect retail trade. Importers do little for a countries economy, SARS see this as money LEAVING the country with little or no local benefit in the form of Job creation or export.

 

To raise a tariff there is a very long and lengthy process to go through, one would have to prove substantial losses (like the clothing industry), that your losses are the result of unfair trade (like dumping)and these losses will significantly affect the economy of the country in the form of jobs and revenue.

 

Quite simply, this is not the case in the cycling industry,as far as I know there are no unfair trade practises like dumping,it employs too few people, there is no manufacturing of any significance, imports are largely bona fide and theres no loss of duties and taxes to the government and as there is limited manufacturing, there is little chance of foreign income.

 

Folk have to remember the aim of tariffs is not to protect or give advantage to an embattled or uncompetitive industry, market forces dictate the outcomes here, some will survive and prosper, some wont.

[GrumpyOldGuy]

Denmark recently introduced 80% import duties on CRC. Australia banned CRC, dont know if its still in effect though. SA will soon have a few systems in place too. The list goes on.

 

Please show verifiable proof of this JacoCMC, otherwise its just hearsay.

[GrumpyOldGuy]

Grumpyoldguy, both me and the other guy posting running costs on shops, did it to explain why prices cant always drop as low as we would like. This is not actual running costs or profits from our shop, and i dont think his either. So stop missing the point, and read what we are trying to expain.

 

I have read it and I still dont see your point.

 

All business owners have overheads,explain how you are any differant.?

[Omlette]

Dont have links. Its info i got directly from SRAM. Ill see if i can get them to forward e-mails to me. Dont know if its confidential.

does not look like they banned from Australia to me!!!

http://www.chainreactioncycles.com/PostageInformation.aspx

[Guest Big H]

Its possible Johan,they can apply, but its doubtfull they will succeed and I will tell you why.

 

SA, like most Western countries, and a few Eastern ones as well is a free trade zone, in other words as a businessman you can buy and sell where and when you like, you are only obliged to pay the relevant SA taxes and Duties.

Of course I am not talking about lines like firearms etc, just standard products we all use.

 

Generally Tariffs (Duties) are determined based on international standards and then adjusted to protect local manufacturing business operations, it is highly doubtfull (I have never seen it) where tariffs will be raised to protect retail trade. Importers do little for a countries economy, SARS see this as money LEAVING the country with little or no local benefit in the form of Job creation or export.

 

To raise a tariff there is a very long and lengthy process to go through, one would have to prove substantial losses (like the clothing industry), that your losses are the result of unfair trade (like dumping)and these losses will significantly affect the economy of the country in the form of jobs and revenue.

 

Quite simply, this is not the case in the cycling industry,as far as I know there are no unfair trade practises like dumping,it employs too few people, there is no manufacturing of any significance, imports are largely bona fide and theres no loss of duties and taxes to the government and as there is limited manufacturing, there is little chance of foreign income.

 

Folk have to remember the aim of tariffs is not to protect or give advantage to an embattled or uncompetitive industry, market forces dictate the outcomes here, some will survive and prosper, some wont.

 

Not impossible that this could be accomplished by bribing the correct people.

 

Would it not be verrrrry interesting if further wrongdoings by unscrupulous parties could be uncovered.

 

By singling out a "few" companies who run successfull retail outlets selling bicycling spares would point to even more unfair practics would it not???????

 

Surely this needs to be a public process and the respondents names would be made public??????

[Headshot]

You are missing the point im trying to make.

If you think it is such a good idea-why is it not manufactured that way; and

Why dont you sell your services/ideas to the manufactures.

 

"Clever ideas ussually get a lot of publicty" /*If you need some friends*/

They must have good reasons why they do things the way they do it.

 

PS. If you dont like a product or its design dont buy it and then complain about it!

Dobby are you just terminally thick or deliberately trying to miss the point? And since when did manufacturers always do the best thing for consumers - its what is cheapest for them to manufacture and touches like this does not gain them bling points so why bother. Also JB was not complaining about the product, just offering a way to improve. Go away and think about it before replying again.

[Lucky Luke.]

At the end of the day it is very simple....... some LBSs got greedy (read want more money with out improving service) and now they are going after the competion (read CRC and other local Bike shops).

 

We will buy at LBSs that gives good service, after sales service, isn't arogant, rude, phones back when they say they will, treat a guy riding a 3K bike like he is riding a 60K bike.

 

Totally agree. I think CRC is mostly a problem for the big stores that find it hard / expensive to adapt to the new online market forces. Smaller shops don't have to suffer as long as they offer a good shopping experience and cracking service. Found this on another forum, a positive take on the CRC effect, which pretty much sums up how I feel:

 

1) It forces stores to compete with quality service, not price. Stores who attempt to compete with CRC type online stores will lose. These stores disappear leaving a higher standard of retailer, ones who understand the NEEDS of their customers and provide quality services and advice. All you bike riders out there are then more likley to visit and trust a bike shop if it is less likley you will have a bad experience.

 

2) CRC gives more value to the services that good bike shops provide. A large number of people who buy from CRC realize they don't know how to fit the part, and when they can't, they come to see us. For a charge, we fit the part properly, and give solid advice on how to use it. The customer now knows the value of the service our shop provides. They then return for that service, knowing they can't get it anywhere else. The shop no longer has to struggle to defend their higher prices, and doesn't have to discount just to get sales.

 

3) bike shops sell a shopping experience. CRC sells bike parts. These are two very different products. Shops who define themselves as a place to buy bike stuff, will struggle against CRC and discount online retailers. Good bike shops understand they are in the busisness of selling the cycling experience, part of which involves providing people with a hassle free means to enjoy one of the greatest pleasures in life, Riding a bike.

[Caerus]

So what have we all learnt from this?

[agentorenge]

So what have we all learnt from this?

if CRC is banned in SA I will eat a deraileur. That would be anti competitive. Why on earth would any economy want to protect reseller margin. Dutes an bans are to protect local manufactureing and toprevent dumping wich kills jobs.

[agentorenge]

dog there is some shite being sprouted here. I Sugest that we all review "marketing" on the internet before we spew forth such drivel as we are now seeing on this site.

[Pappa Bear]

So what have we all learnt from this?

 

Customer is king

[Caerus]

if CRC is banned in SA I will eat a deraileur. That would be anti competitive. Why on earth would any economy want to protect reseller margin. Dutes an bans are to protect local manufactureing and toprevent dumping wich kills jobs.

 

 

Even if it was banned im sure there are ways to get around it. This is Africa, where anything is possible. I will still refuse to buy from my local bike shop.

 

Im sure there must be enough people on this site that could look at setting up a business bringing in parts where everyone is happy. Cant we all put our heads together, and instead of just complaining, make things happen.

 

Any ideas???

[rouxtjie]

Totally agree. I think CRC is mostly a problem for the big stores that find it hard / expensive to adapt to the new online market forces. Smaller shops don't have to suffer as long as they offer a good shopping experience and cracking service. Found this on another forum, a positive take on the CRC effect, which pretty much sums up how I feel:

Very true, the two places(online vs lbs) sell very different things...the one sells a relationship and the other discounted items. It's like my 87 year old granny that refuses to go to dischem and always gets her medicine from the local pharmacy where they greet her by her name as she walks through the door, chat about grandchildren and the weather, gets her medicine and cosmetics and goes home. She will not change to dischem even if she could save quite a bit every month or even better order via telephone and get it delivered to her door. Bottom line...she want that people interaction. Now maybe its just me but I have never had that "warm" feeling walking into the shops mentioned, but I did get it from Josh at CyclistsWorkshop that personally phoned me to ask how a part is performing I got from him....or chris from cwc to ask if I found the left over yellow rim tape from his workshop in my package I begged him to find for me since I couldn't get any in JHB, and he didn't even charge me for it. Maybe that is why I am prepared to only buy items through them and or use their services.

 

Have the bigger retail outlets become too big and in the process lost that "loving feeling". my 2c

[agentorenge]

I think that pricefixing is great, but it all depends where you fix it. You should be able to buy the same thing all over the world at a similar (note similar) price. That way the competition lies more with the manufacturers and how components compare. There are a lot o bike shops that cannnot keep their head above water because they are crap businesses and crap businessmen. Just becaue somebody knows about bikes or can fix bikes suddenly becomes an entrepreneur or bussinessman.

 

The plumbing industry is also full of plumbrs that think they can run a bussiness when they can not run a greasy stick up a dogs arse