'Bicycle prices fixed'

[Nettie R]

Unless you asked CRC to add something to parcel and not declare it, I don't see a problem? CRC are straight arrows anyway.And if your clearing agent places it under the correct tariff heading.

They can alert as many SARS and customs officials they want. Customs have bigger fish to fry than to stop a small parcel of cycling goods arriving in the country through the correct channels. So they stop a parcel, it gets delayed a day or two. We still get the goods.

[gummibear]

Here is the real kicker for me, I got better service, attitude and overall experience from the internet(cwc) than from the walkin shops so how can they justify asking more....

 

Must agree with that and you got pretty good service from the Hub

[Overlord]

If they fines these parties where does it leave us as the customer that got shafted?

 

We had to pay these prices as they "fixed" it for us to pay. Do we have recourse for legal cases against these "guilty" parties?

[Christopher Brunsdon]

Unless you asked CRC to add something to parcel and not declare it, I don't see a problem? CRC are straight arrows anyway.And if your clearing agent places it under the correct tariff heading.

They can alert as many SARS and customs officials they want. Customs have bigger fish to fry than to stop a small parcel of cycling goods arriving in the country through the correct channels. So they stop a parcel, it gets delayed a day or two. We still get the goods.

 

My understanding was to create suspicion. And as many hubbers have found out lately with the SWC, these delays can be a tad longer than 2-3 days.

 

And that for me is a problem.

[Christopher Brunsdon]

Loyalty schmoyalty my arse!!!!!!!! Not even your dog is loyal to you when a bitch in the neighbourhood is on heat!!!!!!!! Where do you live ..... Never Never Land!!!!!!! Say hi to Captain Hook, Peter Pan!!!!!!!..... but you leave Tinkerbell............ alone she is my girl!!!!!!!!!

 

Agree with that and when your LBS acknowledges that he has to compete against CRC for your business, its amazing how much better service you start getting.

 

But funny that 3 LBS in my area have lost my business due to their bad service (two of them are starting to get back into my good books). The only LBS to retain my support, eddmeister, offers excellent prices and a smile.

[davem]

Well, not totally. I tried to start a online bicycle parts shop. Phoned Shimano overseas, they put me in contact with the local distributer, Cool Heat. The local distributer said "No way hose!". The reason was that an online shop will kill the local shops and that online shops cannot provide "club rides".

They would only supply me stock if I had my own "walk in" bicycle shop. Erm, the point of an online shop is, well... to be online.

 

Nothing like killing competition he?

 

 

Justin

 

This is price fixing / anti competitive behaviour, exactly what the Competition Commission are trying to stamp out.

 

They refuse to supply someone who will create competition. Do you have documentary proof of this? If so I am sure the CC will love to hear from you.

[Daft Vader]

If any of these LBS think that they can influence the customs treatment of CRC supplied goods, they will have a hard time doing it. The only way customs can black-flag an international supplier is to issue what is called a value determination. This is however only issued where the supplier and the importer have a relationship which may influence the price of goods imported.

 

Therefore, as CRC sells goods to all and sundry, there is no way in hell that anyone will be able to question that their prices are not at arm's length, and therefore no reason for a VDN (other than the obvious fact that unless your father is the owner of CRC, there is not relationship which to question in the first place.)

 

However, should a sole agent have restrictions on the disposal of any imported goods that would influence the price paid for those goods on importation, this would be a very different matter. So, if hypothetically, a component manufacturer uses a sole distribution agent, and places restrictions on how the goods may be sold by that agent and that has an influence on the price, then that agent would not only have a Comp Comm issue, but an impending customs valuation issue too.

 

Insofar as the comments regarding the classification of goods is concerned. The onus to correctly classify goods on importation is the importer, and not the supplier. So yes, if you instruct a clearing agent to clear goods under a certain heading and thereby avoid duties, you are committing an offence. If your clearing agent clears the goods and you benefit, you are still st risk, however you could potentially dispute the penalties against the clearing agent. Long story.

 

As for the postal clearances, customs officials actually make what is called a site clearance of the goods, which means that they take documentation from the packages and clear it, and may choose to inspect the goods to verify the classification if they think it's necessary. So therefore, if you say that postal clearances are incorrectly declared, you are actually saying that the customs officers are not doing their jobs. (I will leave that conclusion to you.)

 

All I am saying, that importers in glass houses should maybe not throw stones...

[Guest Big H]

If any of these LBS think that they can influence the customs treatment of CRC supplied goods, they will have a hard time doing it. The only way customs can black-flag an international supplier is to issue what is called a value determination. This is however only issued where the supplier and the importer have a relationship which may influence the price of goods imported.

 

Therefore, as CRC sells goods to all and sundry, there is no way in hell that anyone will be able to question that their prices are not at arm's length, and therefore no reason for a VDN (other than the obvious fact that unless your father is the owner of CRC, there is not relationship which to question in the first place.)

 

However, should a sole agent have restrictions on the disposal of any imported goods that would influence the price paid for those goods on importation, this would be a very different matter. So, if hypothetically, a component manufacturer uses a sole distribution agent, and places restrictions on how the goods may be sold by that agent and that has an influence on the price, then that agent would not only have a Comp Comm issue, but an impending customs valuation issue too.

 

Insofar as the comments regarding the classification of goods is concerned. The onus to correctly classify goods on importation is the importer, and not the supplier. So yes, if you instruct a clearing agent to clear goods under a certain heading and thereby avoid duties, you are committing an offence. If your clearing agent clears the goods and you benefit, you are still st risk, however you could potentially dispute the penalties against the clearing agent. Long story.

 

As for the postal clearances, customs officials actually make what is called a site clearance of the goods, which means that they take documentation from the packages and clear it, and may choose to inspect the goods to verify the classification if they think it's necessary. So therefore, if you say that postal clearances are incorrectly declared, you are actually saying that the customs officers are not doing their jobs. (I will leave that conclusion to you.)

 

All I am saying, that importers in glass houses should maybe not throw stones...

 

Bribing allows you to fit tinted bulletproof glass!!!!!!!

[Swart Skaap]

it is shocking that there are cycling shops wanting to ban CRC - they are afraid of competition!

 

 

Which shops want to ban CRC? First time i hear this.

[gummibear]

Bribing allows you to fit tinted bulletproof glass!!!!!!!

 

To a Porsche!!

[Rich.Carbon]

I wonder if Supersport will continue to give Mr Mclean and his cronies continued exposure?

 

Where else has this been published?

[Icycling]

I have heard people say why not start our own version of CRC in RSA / a local link to CRC! Has anyone consider how much it would cost to do this? Anyone got he buck to do it on the hub?

 

I happy to partner with a financial partner - most of the times my prices are far better than CRC price but I also only have so much money to play with (over R2million)! Even thought my supply chain is excellent!

 

If you have money that you want to invest email me icycling1@gmail.com.

[Guest Big H]

Which shops want to ban CRC? First time i hear this.

 

Jaco Jaco Jaco..... so collusion is STILL in existence!!!!!!!

[firewolf]

Got quoted R255 at westlake cycle lab for Look keo cleats (grey). Bought them from Olympic cycles for R155. Point not if that was good or bad second price but that one shop can have such a huge mark up over another shop. Maybe it was because I called cycle lab on a sunday?

[live2ride]

What happens in this story if you substitute "sugar cane machine" with "cycle wholesaler" or as Julias would say "bloody agent"?

 

The sugar cane machine

 

A small island grows sugar cane. Many people harvest it, and one guy owns the machine that can process the cane and turn it into juice.

 

Who wins?

 

The guy with the machine, of course. It gives him leverage, and since he's the only one, he can pay the pickers whatever he likes--people will either sell it to him or stop picking. No fun being the cane picker. He can also charge whatever he likes to the people who need the cane juice, because without him, there's no juice. No fun being a baker or cook.

 

But now, a second machine comes to the island, and then three more. There are five processors.

 

Who wins?

 

Certainly not the guy with the first machine. He has competitors for the cane. He can optimize and work on efficiency, but pretty soon he's going to be in a price war for his raw materials (and a price war for the finished product.) Not so much fun to be the factory owner.

 

And then! And then one cane processor starts creating a series of collectible containers, starts interacting with his customers and providing them with custom blends, starts offering long-term contracts and benefits to his biggest customers, and yes, even begins to pay his growers more if they're willing to bring him particularly sweet and organic materials, on time. In short, he becomes a master of the art of processing and marketing cane. He earns permission, he treats different customers differently and he refuses to act like a faceless factory...

 

Who are you?

[Muddy]

Interesting little story that happened some time ago in the motorcycle industry just to illustrate what is possible and what is not-

 

a few years ago some guys with money figured that the bike shops were ripping people of so they started what is called parallel import of bikes. This is the exact same product from the exact same factory but not imported via the official agent (not grey import). They started selling at prices WAY below 'official' bike shops. So guess what? Yes the official imported approached all the retail shops and insurance houses with the following:

 

- No insurance if the vehicle was not imported by an official importer

- To buy any parts from a retailer the VIN number must be provided. If it is not on the 'official' list no parts and/or no repair.

 

Bottom line was that they were trying to stamp out the competition. Did it work? HELL NO! The demand for fair prices were just to great and the outsiders were not prepared to lay down so they upped the stakes witb factory warrantees etc. There are still some retail shops (most notibally kawa) who stick to their no parallel import rule but in general other don't give a **** any more.

 

So the conclusion - Yes it is possible for the 'official' guys to try and put the screws on and YES it is possible for the outsider to give them the middle finger if they have the support.