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Deleted member FN2187
Guest
This is a 2 part question and a bit of a complaint regarding thre state of brick and mortar retail stores in Australia.
1: Why is it that when we mountain bikers buy anything online we immediately look to the big 3(I know there are way more than that) online retailers. CRC, Wiggle and Jensonusa get the lions share of online cycling sales because they are so much cheaper than everywhere else. Economies of scale would dictate that the more individual sales at lower profit margins eventually equal higher gross profit. Why are there no Australian retailers trying to be competitive on a larger scale. Torpedo 7 doesnt count because it is from NZ and I dont find their prices to be terribly competitive except for a few exclusive brands they stock, or superceeded stock items they are selling for marginally less than retail. Pushys sometimes has a bargain or 2 but you have to catch them quick because they dont last long. But most of the time its retail, or close to prices all around.
2: So why is it then that Australian distributers fuck themselves and local bike shops out of sales by setting such high recommended retail pricing. Is it because Import taxes are very high in comparison to other countrys. To that I say CRC is based in Ireland...... A country who's economy is so far down the shitter they're nearly a considered failed state. How is it that Ireland a country with such a low GDP thats currency is the euro$ can import and export while offering free international shipping, can sell for less than someone locally. Does Ireland only tax gross profit? (Questions about Irelands econimic viability are for another time I fear) Or is it the brands themselves setting the pricing? Which to me in a global marketplace is pure madness. So why are there no competitive Australian online retail stores? Our economy is relatively strong, we earn good money and compared to europe, our taxes arent that high.
3: And now for the whinge. I am just as guilty as everyone else of buying from CRC. Who in their right mind would pay twice the price for the same product from a brick and mortar or Australian online website. Unless your national pride was so strong you feel compeled to support local business. I would prefer to shop locally if things were different. Often I walk into a local retail store(a giant dealer, arent they all now days?) here in canberra if I need something and check out the pricing. For example I wanted some new rims and spokes to rebuild my wheelset. Just raw prices, no wheel building necessary, I'll do that myself. The total price for 2 Spank rims and 64 DT Swiss comp double butted spokes....$410. Now I'm no mathematician but assuming the rims are priced at RRP of $120 each that means the spokes are being charged at $2.60 a pop. That is effing mental. So CRC I went and $250 later my Rims and spokes are ordered.
PS: Another thing that burns my chaps is this: When I walk into a bike shop I have an expectation that the person serving me has an actual interest in the products they are selling. I don't think its unreasonable to know the spec of a product or the level of componentry someone would expect to fit to their bike. For example, when I went to said bike shop to get a price for rims and spokes I was asked what sort of bike it was and if I had anything in mind? A good start. I explained that I wanted some 30mm wide rims for my Yeti SB66C because I felt that my Mavic Crosstrails were too narrow and not very stiff. First he recommended Mavic 721's. To be fair a decent rim if not a bit vanilla and too narrow. Then he suggested Alienation rims. WTF. If you don't know Alienation is a BMX company that makes a Ditch Witch copy for dirt jumpers. Not to sound like a total bike snob, But ditch witches on a SB66C? I asked about Spank rims because I have had a pretty good experience with the Spike rims on my DH bike and I know they do a 30mm wide AM rim. In the end it took him half an hour to find them on the internet and confirm if their rep could get them. How do you not know what products are available for your customers to buy? I've even had situations where I've had to tell a bike shop staff member what distributer sells a certain product after being told flat out that it was not available in OZ.
Sure we can throw rocks all day at local retailers and tell them all of the things they are doing wrong. But I know how hard it must be to find good reliable staff to work for peanuts and still make a profit. Pricing is not the retailers fault. Another trend that is huge in Europe and Asia is the Direct sales models we see popping up all the time. Germany has this covered with brands like Canyon, YT, Rose and Bergamont. Only YT and Polygon(Indonesia) sells to Australia. I know our population small in comparison but surely it is a viable option considering the popularity of brands like giant. What do you think? Are bike shops doomed? Are the one make shops like Giant and specialized stores a good or a bad thing? Can Australia have its own direct sales brand?
1: Why is it that when we mountain bikers buy anything online we immediately look to the big 3(I know there are way more than that) online retailers. CRC, Wiggle and Jensonusa get the lions share of online cycling sales because they are so much cheaper than everywhere else. Economies of scale would dictate that the more individual sales at lower profit margins eventually equal higher gross profit. Why are there no Australian retailers trying to be competitive on a larger scale. Torpedo 7 doesnt count because it is from NZ and I dont find their prices to be terribly competitive except for a few exclusive brands they stock, or superceeded stock items they are selling for marginally less than retail. Pushys sometimes has a bargain or 2 but you have to catch them quick because they dont last long. But most of the time its retail, or close to prices all around.
2: So why is it then that Australian distributers fuck themselves and local bike shops out of sales by setting such high recommended retail pricing. Is it because Import taxes are very high in comparison to other countrys. To that I say CRC is based in Ireland...... A country who's economy is so far down the shitter they're nearly a considered failed state. How is it that Ireland a country with such a low GDP thats currency is the euro$ can import and export while offering free international shipping, can sell for less than someone locally. Does Ireland only tax gross profit? (Questions about Irelands econimic viability are for another time I fear) Or is it the brands themselves setting the pricing? Which to me in a global marketplace is pure madness. So why are there no competitive Australian online retail stores? Our economy is relatively strong, we earn good money and compared to europe, our taxes arent that high.
3: And now for the whinge. I am just as guilty as everyone else of buying from CRC. Who in their right mind would pay twice the price for the same product from a brick and mortar or Australian online website. Unless your national pride was so strong you feel compeled to support local business. I would prefer to shop locally if things were different. Often I walk into a local retail store(a giant dealer, arent they all now days?) here in canberra if I need something and check out the pricing. For example I wanted some new rims and spokes to rebuild my wheelset. Just raw prices, no wheel building necessary, I'll do that myself. The total price for 2 Spank rims and 64 DT Swiss comp double butted spokes....$410. Now I'm no mathematician but assuming the rims are priced at RRP of $120 each that means the spokes are being charged at $2.60 a pop. That is effing mental. So CRC I went and $250 later my Rims and spokes are ordered.
PS: Another thing that burns my chaps is this: When I walk into a bike shop I have an expectation that the person serving me has an actual interest in the products they are selling. I don't think its unreasonable to know the spec of a product or the level of componentry someone would expect to fit to their bike. For example, when I went to said bike shop to get a price for rims and spokes I was asked what sort of bike it was and if I had anything in mind? A good start. I explained that I wanted some 30mm wide rims for my Yeti SB66C because I felt that my Mavic Crosstrails were too narrow and not very stiff. First he recommended Mavic 721's. To be fair a decent rim if not a bit vanilla and too narrow. Then he suggested Alienation rims. WTF. If you don't know Alienation is a BMX company that makes a Ditch Witch copy for dirt jumpers. Not to sound like a total bike snob, But ditch witches on a SB66C? I asked about Spank rims because I have had a pretty good experience with the Spike rims on my DH bike and I know they do a 30mm wide AM rim. In the end it took him half an hour to find them on the internet and confirm if their rep could get them. How do you not know what products are available for your customers to buy? I've even had situations where I've had to tell a bike shop staff member what distributer sells a certain product after being told flat out that it was not available in OZ.
Sure we can throw rocks all day at local retailers and tell them all of the things they are doing wrong. But I know how hard it must be to find good reliable staff to work for peanuts and still make a profit. Pricing is not the retailers fault. Another trend that is huge in Europe and Asia is the Direct sales models we see popping up all the time. Germany has this covered with brands like Canyon, YT, Rose and Bergamont. Only YT and Polygon(Indonesia) sells to Australia. I know our population small in comparison but surely it is a viable option considering the popularity of brands like giant. What do you think? Are bike shops doomed? Are the one make shops like Giant and specialized stores a good or a bad thing? Can Australia have its own direct sales brand?
