Bsc !!

Buggergrips

Likes Dirt
CRC piss off loads of shops in the uk. so, manufacturers and distributors don't supply to crc if they want to have a shop presence. then crc buy in 'grey' stock/end of line from europe/russia/asia, and bypass the distributors. this annoys everyone, pretty much. they did it with kona bikes and yeti frames, most notably.

unless I have to, I don't like buying from them. merlin are better.
 

sidetrack

Likes Dirt
So surprising to see these guys close down!
Am currently working for one of BSC biggest competitors, TFM, I am just shocked at how sudden this is.
Although Mr Hess is right, CRC prices are just too low for them to compete with. I just bought a pair of X0 carbon cranks off CRC for $258 when they retail at around $600!
Shops would pay a little over half of retail to get these products, which is more than what we pay from CRC along with free postage when most shops have to pay postage from the distributors to their shops!!
How CRC does it? We will never know.
Im not sure why you are surprised. TFM almost went under 6 months ago. If it wasnt for one of the smaller investors taking on the whole lot it would have just closed down.
 

vtwiz

Likes Dirt
The other ones to blame (other than BSC's strange business strategies and greedy distributors) is the bike companies themselves.

Why do we need an update of every model of bike yearly? This means that every year stores slash prices on last years models to make way for the new model,pretty much losing out on any margins they would have made. Slashing a bike just because it is last years colours is ridiculous. Most bike tech (group sets etc) only changes every 3-4 years or so and that is when there should be a model update.
 
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Knut

Troll hunter
The other ones to blame (other than BSC's strange business strategies and greedy distributors) is the bike companies themselves.

Why do we need an update of every model of bike yearly? This means that every year stores slash prices on last years models to make way for the new model,pretty much losing out on any margins they would have made. Slashing a bike just because it is last years colours is ridiculous. Most bike tech (group sets etc) only changes every 3-4 years or so and that is when there should be a model update.
Wholesalers as a general rule, aren't greedy. Sure everyone likes to be successful. If wholesalers are anything, its frustrating. The Rock Star mentallity is hard to swallow at times. There are some genuinely nice people in the industry. It's not a lucrative one, but it pays the bills for a while.

But when Joe Consumer walks in the door and asks to get part X from the LBS and it takes months, not days to turn up, then there is a problem. Now look at it from the other side for a moment. Joe Shop Assistant rings Joe wholesaler rep and gets the "Sure dude, I will order that now." The assistant does not know that the shop is not on stop, but backwards in many cases. Two weeks go by, the Mr Consumer comes in to pick up his part. The rep at the importer says "Pay your account and I'll ship it". The assistant tells the manager, who tells the owner, who hasn't slept in three years due to overdrawn accounts, account stoppages, staff issues and competition gaining strength by the day by big chain retailers and internet stores.

After six weeks, the consumer arrives at the shop counter explaing his dissapointment to the apologetic assistant. "How can I get my part X from UK in 4 days for 70% of the price when it still hasnt turned up in a month and a half?" Then adds" They probably dont even have it in stock!". The assistant invisages a container ship somewhere on the ocean between China and Australia. Then thinks of the 2000 part X's that the importer had to order to be able to sell it, then include, sales tax, import duty, transport, recieving the goods and ringing the consumer to say that his part has arrived. Only to get an earful about how he got one from the UK two weeks ago.

There is more to survival than avoiding starvation, thirst and disease. There are some very valuable lessons to be learned from these particular doors closing. There is also nationwide redundancies going on. Retail is a tough gig.

My thoughts are with ex staff.
 
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serowe

Likes Dirt
Then thinks of the 2000 part X's that the importer had to order to be able to sell it, then include, sales tax, import duty, transport, recieving the goods
But Steve - this is true of the UK, US, Europe, NZ - anywhere - they all have the same issues of transportation costs, import duty (if they bring it into the country), GST/Sales Taxes etc. Some are better at managing it than others (no, not saying BSC were good, bad or indifferent here). As for the 'assistant not knowing they are on Stop' they soon get to know this - it isn't something that comes out of the blue.
 

akashra

Eats Squid
Both of these personal experience: When you can't walk in to a store and buy a lockring for a rotor, that's a problem.

When the distributor doesn't even stock the cages for your RD after a stick went through it meaning a 3 week turnaround at least, AND that part alone costs more than buying the entire RD and importing it, that's a big problem.

But in the case of BSC, when you list a part as being "in stock" which a customer orders, and you then have to make multiple phone calls, each time being told "we'll call you back", and 4 weeks later you discover it's not actually in stock, and they actually haven't arranged ordering that part... well, that's just shitty customer service. And makes it no surprise why they might struggle to get customers to come back.
 

Knut

Troll hunter
Yeah good point. But it happens a lot. The industry is strong, but tight. I think we need to find ways to support it. By learning from the mistakes and understanding the past. This can only help make the future clearer and less formidable.
 

Hamsta

Likes Bikes and Dirt
Wholesalers as a general rule, aren't greedy. Sure everyone likes to be successful. If wholesalers are anything, its frustrating. The Rock Star mentallity is hard to swallow at times. There are some genuinely nice people in the industry. It's not a lucrative one, but it pays the bills for a while.
I am not being facetious in asking this, I am interested to know what the Rock Star Mentality is with some people in the industry? Could you attempt to elaborate what you mean?
 

Knut

Troll hunter
I don't see it as anything other than a question. The type I am referring to are the too cool for school fashion victims who look down at customers and sales assistants and call them "Hubbards". On the mantle of once being a regional road champion twenty five years ago.

Thats what I meant. Like I said, there are some cool crew amongst the industry shops and importers.
 

pharmaboy

Eats Squid
If stores are so upset with the prices distributors are charging them, and they can, supposedly, but parts cheaper off online sites than they can get them wholesale, then why don't the stores just start importing direct using those online sites?

Oh, what's that, because it's not cheaper on all parts? Hm. Then where is the price difference coming from on those parts?



I'd like you guys to run the math on how many, let's say cassettes, a store needs to sell just to cover the salary of one staff member. When you look at it that way, it all of a sudden isn't looking like such a profitable business.
There was a productivity commission report on australian retail generally, and it showed the average margin in oz is twice that of the average margin in the US - they even allowed for sales assistant income differences etc - it was a also a much greater margin than the UK and other European countries.

Why? Well, a couple of friends have come over from the US and noted how many bloody shops we have here - i come from newcastle, we have 5 shopping centres and another dozen smaller ones with supermarkets plus speciality stores - ultimately we have stacks of retailers competing for not a lot of customers. Its an oversupply of biblical proportions, created by Westfields and GPT's of this world, paid for by high margins for the retailers. Now the internet is cutting the margin with increased competition, and the only result is businesses going out the back door.

I'm sure plenty of people have been shopping in the US for instance - you sure as hell notice the sheer number of people buying stuff in the middle of the week.
 

Hamsta

Likes Bikes and Dirt
I don't see it as anything other than a question. The type I am referring to are the too cool for school fashion victims who look down at customers and sales assistants and call them "Hubbards". On the mantle of once being a regional road champion twenty five years ago.

Thats what I meant. Like I said, there are some cool crew amongst the industry shops and importers.
Thankyou, I recognise the type of asshat you described. The surfing industry is riddled with them.
 

akashra

Eats Squid
Thankyou, I recognise the type of asshat you described. The surfing industry is riddled with them.
http://www.27bslash6.com/f4s.html comes to mind :D

There was a productivity commission report on australian retail generally, and it showed the average margin in oz is twice that of the average margin in the US - they even allowed for sales assistant income differences etc - it was a also a much greater margin than the UK and other European countries.

Why? Well, a couple of friends have come over from the US and noted how many bloody shops we have here - i come from newcastle, we have 5 shopping centres and another dozen smaller ones with supermarkets plus speciality stores - ultimately we have stacks of retailers competing for not a lot of customers. Its an oversupply of biblical proportions, created by Westfields and GPT's of this world, paid for by high margins for the retailers. Now the internet is cutting the margin with increased competition, and the only result is businesses going out the back door.

I'm sure plenty of people have been shopping in the US for instance - you sure as hell notice the sheer number of people buying stuff in the middle of the week.
Interesting. I wonder if this ties in the "everyone wants to be their own boss" mentality a lot of Australians have. That this can't be justified and factoring in the frequent "there's more competition in America" to justify low prices, the above seems to contradict that.
I do tend to agree though - look how many small businesses we have around, and the staffing problems that creates. On the other hand, it allows for a lot more casual/part-time staff.
 

jossa

Likes Bikes

dusty_nz

Likes Dirt
Further frustration. Toasted a rear derailleur last weekend, Stick went the wrong way through.

Thought I would go LBS. Rang around all the amin stores here in Perth and no luck. No one and prices ranging from $115 to $170 for a 10sp XT rear derailleur.

Ended up getting the LBS to get one in. Promised next day on Monday, Had to re-order on Thur and the wrong part arrived on Fri. Had to use for a race on Sun.

Cost me $140 and the CRC price $80 plus $30 express shipping would have been a less stressful option.

Hmmmm
 
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