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Shimano
- Thread starter martyg
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Have to ship to my brother first then here. Good lobbying..
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Oh the land of marketing and exclusive territories.
Wonder if Shimono ever played with ski bindings? Could be a very interesting fit.
Wonder if Shimono ever played with ski bindings? Could be a very interesting fit.
There was a poster from Spain who had a Marker Rotamat copy, as made by Zeus.
One wonders what Microshift would do.
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You are not smart. Learn first, comment second.
I wonder how Chain Reaction was getting ahold of the parts for so cheap as to enable them to undercut the local dealers?
Turnover volume and turnover speed cover a lot of sins, including warehousing cost per part, capital outlay per part, and cataloging per part.
Gotta wonder what fun they will have on Brexit.
Not so hard to do, when you consider "local dealers" have 100+% margin on those thing, and on sport luxury err.. goods I mean, normal margins are way over 100%
But thing is, in this case it's not really CRC or even British fault, but your own. Your own "local dealers" and local distributes pushed to Shimano to stop CRC "destroying" their sale. But let's be honest, it's not only one. Normally you can,t order Apple or Gopro stuff from US to ship them to Europe, as just 2 examples. Even inside of EU, which is suppose to be 100% open market for all members, there's whole bunch of similar restrictions, when you can buy and ship certain products from certain countries only to certain countries and not all EU countries etc.
But warehousing costs etc come after acquisition costs so the fact that CRC could sell to the public for less than what competitors pay Shimano shows that they were getting a better wholesale price. Why wouldn't Shimano just start ensuring they charge CRC a reasonable wholesale price to even the playing field?
Not so hard to do, when you consider "local dealers" have 100+% margin on those thing, and on sport luxury err.. goods I mean, normal margins are way over 100%
The margin the local dealers charge isn't the issue. The local dealers were complaining that CRC was selling below their wholesale cost so to compete they would have to lose money on every sale. I'm getting how it's my fault? What is my fault and how?
No, they don't. They start as soon as the part is made. By ordering in volume and warehousing at their cost and positioning the product relative to markets, CRC reduce Shimano's costs. Shimano charging biggies like CRC the same as their other dealers would effectively be punishing their best sales and marketing partners.
Except the local dealers don't want to warehouse and they don't want to pay interest on bulk acquisition cost - they simply don't turn product over quickly enough. Shimano then has to do all that - finance production, position the part relative to a market, and warehouse the part until it gets ordered. How is giving equal pricing not a losing deal for Shimano? If they did that, we, the cycling public, would lose everything between Claris 8 speed and Dura-Ace parts, we'd lose yearly range updates and we'd lose the ability to replace parts on any given set 5-6 years after purchase.
@coskigirl if that what local dealers were complaining is really true. I don't know. Might be, might not be. But there's one more thing. It's normal someone buys from you for $10mio/year, gets different price and different discount then someone who buys $10k/year.
As "your fault" I meant if someone would be complaining how British scre**wed up this so you can't get cheap stuff anymore That's what I meant that it's not really British fault, but "US local dealers" fault, if you can call it this way.
As "your fault" I meant if someone would be complaining how British scre**wed up this so you can't get cheap stuff anymore
That's what I meant that it's not really British fault, but "US local dealers" fault, if you can call it this way.
So is it better for Shimano to charge the big retailer the same wholesale (or closer to the same) or not sell to them at all which is apparently what they are doing?
???
Shimano will still sell to both CRC and Wiggle, it's just that US and Canadian consumers will only have access through an additional middleman layer.
No one in the US will benefit from this - there are certainly no US-based Wiggle-level retailers and the Performance/Nashbar debacle proves it. No local dealer will make an extra cent off this.
Ebay and Amazon - they will make money. I can promise you whatever middleman resellers venture into this space will sell on those platforms.
D'oh. Sorry, I missed that part about into NA. I still don't see why one assumes a middleman will get involved enough to support the inventory sales into the US for CRC but it's not worth arguing over.
No argument, promise
I can tell you why I think that: The sentence "We're working with Shimano to be able to sell to you again in the future." is hard to interpret differently.
No argument, promise
See I read that as we're trying to reach a deal with Shimano that will allow us to sell direct again which I think will at least result in Shimano raising prices to CRC. Maybe not to the same level as local dealers but to a level that will force CRC to charge a price that is closer to what US retailers are charging. Always interesting to see how people interpret things differently even if they don't see another way to interpret.
I'm not sure they'll get to sell to the US. There are other companies in the US that will not ship to Canada. We have to drop-ship to a US postal box (shipping holding warehouse) and drive across the border to pick it up. Some things, like bicycle parts (but not assembled items) are duty-free. So it works when you're saving $500 on a frame or something. But they won't enable shipping to Canada because the dealer network here is so weak.
And I still believe pricing in different parts of the world is based on ability to pay. I think some places subsidize other countries to some degree.. So while I hate paying Canadian prices (and yes, 100% markup over middle man/wholesaler price..), I do understand why they do it.
And I still believe pricing in different parts of the world is based on ability to pay. I think some places subsidize other countries to some degree.. So while I hate paying Canadian prices (and yes, 100% markup over middle man/wholesaler price..), I do understand why they do it.
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There's got to be more to it. How much of CRC's business in in North America, 25%?