Distributors what they do for us

[AndreZA]

Well that is why Specialized open their own store in Melrose Arch.

 

But they will not be cheaper then the other shops that sells their stuff. Why, because they, the shops, will b!tch and moan that they take business away from them. So they have a bigger profit margin.

[TriGuru76]

LBS has no loyalty in SA.

They usually tell the distributor that if you want me to stock your goods you need to give me a bike. have a look, the LBS owner only stock what they ride.

So they only stock those bikes of distributors willing to give them something.

 

BRIBERY AND CORRUPTION lives on in SA, VIVA!

[eggsovereasywithteandtoast]

LBS has no loyalty in SA.

They usually tell the distributor that if you want me to stock your goods you need to give me a bike. have a look, the LBS owner only stock what they ride.

So they only stock those bikes of distributors willing to give them something.

 

BRIBERY AND CORRUPTION lives on in SA, VIVA!

 

Your answer should be : "No problem !"

"here's our standard reseller agreement with the discount structure vs volume and also our incentive targets which not only include one free bike, but if you sell reallly well, then you could get a few free bikes, that you could ride or rent or sell !!" "please sign and give me an opening order"

[AuctionLamb]

donner maar julle klomp kan moan!!!!

[Guest coenie]

donner maar julle klomp kan moan!!!!

Huh? So you want eveyone to accept the kind of service we get in this country? If we want better service we need to make it known.

 

BTW LePeloton started doing manual orders yesterday...It took a customer to give them a call in order for lots of LBS to start getting their stock.

[vanniri]

So you think SA is bad - see Brazil´s take on VAT and the collection thereof below:

 

Effective on January 1, higher mark-up values used to calculate the VAT tax (ICMS) under the tax-in-advance system (Tax Substitution) were adopted in the state of São Paulo.

 

Under the Tax Substitution regime, the ICMS of the entire supply chain is collected in advance by the manufacturer, and is calculated by assuming a mark-up or value-added margin until the sale to the final customer, multiplied by the tax rate.

[AuctionLamb]

Huh? So you want eveyone to accept the kind of service we get in this country? If we want better service we need to make it known.

 

BTW LePeloton started doing manual orders yesterday...It took a customer to give them a call in order for lots of LBS to start getting their stock.

 

and you got sorted out. What I am talking about is this topic went from your issue to middle man to online shops to LBS to service your own bike to....

 

Just hope 2011 will be more positive...we can already see that some wholesalers is coming to the party, giving better prices so that the LBS can be MORE competitive.

 

I just think in general (diving, cycling, cars) if the wholesalers refuses to drop prices or pick up their service levels in line with other competitors they will not survive in the near future.

[Guest coenie]

BTW still not sorted....still waiting for the shoes

[kandui]

In theory all distributors should have updated their pricelists for 2011 and if you apply their tired old excuse of the "strong Dollar,Pound and Euro", prices should be coming down this year. Or am I being naive! The Rand has been strong for at least 2 years now, so when do we get to see some of that reflected in the prices we pay here?

Bought a Rotwild RGT2 Trail MTB online in Germany middle of last year. Carbon frame, XT throughout,Fox fork, DT Swiss Carbon Shock,Formula Disc brakes,Fizik Tundra saddle. Marked down from €4500 to €2400. On exportation I got back the 19% VAT due in Germany as well. Total cost at the rate of exchange at the time, just under R20000.

Brought back the 2011 S-Works shoes from Germany in November. Off the shelf, not online. Cost me R2000 after the Vat refund.

Economies of scale don't justify South African distributors charging high prices. The bulk of bikes are made in Taiwan and shipped to their respective markets directly, not via the Giant or Specialized Head Office. Hence logistics may even cost less to SA than to Europe.If all distributors have the same mark ups , where does the difference come from?

Fact is that the exclusivity agreements signed with the mother companies and us being so far south of where it's all happening allows the distributors to behave the way they do and treat the customer like a piece of crap.

Why is it that we can bring back goods to the value of R3500 on the plane, but only R300 worth through the post?

[The_Break]

I think the solution is simple really. Keep buying from places like CWC and CRC. Learn to build and service your own bike and pool your resources and purchases with friends.

 

I think that more and more online shops are fiding their way into SA and whilst LBSs will remain pricy, even as they have in Europe (will all the online sjops there too) due to an ever present need for non-techies to have their bikes built and serviced.

 

Bottom line is, SA is a very expensive place to live when it comes to cars, bikes and any luxury product as importers will always be making a fat mark-up due to one simple fact. They want to make money and there are not enough bikes going out of their warehouses for them to be happy with the profit if they sell them cheaper.

[Slowbee]

what ever happened to the competition commission and the meeting ?

[Guest coenie]

In theory all distributors should have updated their pricelists for 2011 and if you apply their tired old excuse of the "strong Dollar,Pound and Euro", prices should be coming down this year. Or am I being naive! The Rand has been strong for at least 2 years now, so when do we get to see some of that reflected in the prices we pay here?

Bought a Rotwild RGT2 Trail MTB online in Germany middle of last year. Carbon frame, XT throughout,Fox fork, DT Swiss Carbon Shock,Formula Disc brakes,Fizik Tundra saddle. Marked down from €4500 to €2400. On exportation I got back the 19% VAT due in Germany as well. Total cost at the rate of exchange at the time, just under R20000.

Brought back the 2011 S-Works shoes from Germany in November. Off the shelf, not online. Cost me R2000 after the Vat refund.

Economies of scale don't justify South African distributors charging high prices. The bulk of bikes are made in Taiwan and shipped to their respective markets directly, not via the Giant or Specialized Head Office. Hence logistics may even cost less to SA than to Europe.If all distributors have the same mark ups , where does the difference come from?

Fact is that the exclusivity agreements signed with the mother companies and us being so far south of where it's all happening allows the distributors to behave the way they do and treat the customer like a piece of crap.

Why is it that we can bring back goods to the value of R3500 on the plane, but only R300 worth through the post?

Would you mind telling me which shop and how do you get the vat back? Did you travel there or can I order from there also?

[Christopher Brunsdon]

My wife is in the hair salon industry and she has the same schit as my local LBS's - not enough reps/distributors care about their clients or even their products.

 

But those that do, well their products excel as we can always keep them on the shelf and at better prices. Its not just a cycling thing, its the entire retail chain in this country.

[leet22]

In the hospitality sector we get some reps looking for business and some that dont care to hoots. I have dropped companies that were making $$$$$$ from us and not one phone call to find out why or even a rep popping around. I have some reps that even though I buy $ I still see once a month but most suppliers dont even care. Really sad

[The Guy in Pink]

I'm certainly not defending some prices around here. But check what that you admit to the size of the retailer. These guys probably sell 100 units for every 1 sold here. They are in a position to negotiate on volume and secondly on total order value per annum. No LBS take the initiative nor do they have the capital nor do they have the market to negotiate these order volumes. Its not comparing apples to apples.

 

 

Ok Let's compare aples with apples.

I imported some bike Shimano XT equipment from CRC and landed it at my door all costs taxes and delivery paid for about 20% less than CoolHeat supplies my LBS at. My LBS must still pay for the delivery from coolheat on top of that. Remember I bought that from a retailer (CRC) who have all the usual retail market costs plus packing and distruibution costs. My LBS now also brings in stuff from CRC, so that he can lower the gap between himself and CRC for his customers.

[101SCC]

Ok Let's compare aples with apples.

I imported some bike Shimano XT equipment from CRC and landed it at my door all costs taxes and delivery paid for about 20% less than CoolHeat supplies my LBS at. My LBS must still pay for the delivery from coolheat on top of that. Remember I bought that from a retailer (CRC) who have all the usual retail market costs plus packing and distruibution costs. My LBS now also brings in stuff from CRC, so that he can lower the gap between himself and CRC for his customers.

 

Bearing in mind CRC also buy from wholesalers. They have the same number of links in the chain (so to speak) as we have here. The only thing that makes any sense would be smaller mark up along the way I guess?