An open letter to Chain Reaction Cycles

Or is it a case of not biting the hand that feeds you 😉

Ooh, the irony of this appearing on STW 🙂

it’s more the sort of story that bike biz would cover. None of the mainstream magazines do ‘industry’ type stuff.

non story more like

While they have a point, up to a point, it’s a pretty biased article IMO – most of which seems to have been picked up in the comments.

Can’t see the problem. People have the choice to shop wherever they like, be that LBS with a good service or an online discount box shifter. I bet the author of that letter has purchased non cycling goods from the Internet or from overseas instead of local retailers.
The Aussies like a good whinge though.

Do CRC even sell handbags?

If the world were one massive free market – it wouldn’t be a bone of contention. However, it isn’t, which makes the subject all the more interesting and debatable. Of course the consumer naturally follows the price. But distribution networks and regional pricing are more sensitive issues and often fall outside of a manufacturers control. I recall the Tesco / Levi jeans thing a few years back and CDWow also falling foul of this. CRC may not be falling into this camp but I don’t think this is as straightforward as it seems. Economics innit?

I think it’s slightly overstated too. We’ve had CRC trading online here for probably 15 years. We still have a thriving road/MTB scene, probably better than it was 15 years ago. Some independent shops are being replaced with chains, as in all other industries, but that is hardly just down to CRC, and the good independents are still going along OK.

Fair enough, considering this is a letter from Australia, not the UK.
As implied, I see it difficult to see any contribution that CRC makes to the country. No employment, scene support, or taxes paid.

Compare this with the thread running re Starbucks et al, and the resultant outcry- at least vat is being paid on sales, properties are being leased and maintained, staff paid- all of which contribute to our economy. CRC sales to Australia- contribute nothing except vat on (I think) sales over $1000.

sounds like his sisters jeans were a bit tight.

I’m guessing that’s a no then

Fair enough, considering this is a letter from Australia, not the UK.
As implied, I see it difficult to see any contribution that CRC makes to the country. No employment, scene support, or taxes paid.

Yes, but the australian economy is doing much better than ours at the moment, so from our point of view it’s quite nice having some cash flowing in this direction!

Anyway, my Australian friends love CRC. They can get stuff much cheaper. If people want local bike shops they will pay the extra. If they don’t they won’t.
It’s no different to the situation here.

Nice to see a man with principles.

Oh, and BABES! on his website. YEAH!

I wonder how he buys his books/DVD’s etc – Amazon maybe?

I struggle with long sentences is he basically saying crc are the tesco of cycling?

Customs and Border Protection is required to collect duty and/or GST on all imports valued at over A$1000

Id say it wasnt CRC’s fault that no tax or duty is paid on their sales.
If the Australian government dont want to tax imports below £650 then that’s their problem.

Our threshold for non-EU is £17 isnt it? Then you pay about 4.5% on parts and 20% VAT on the total.

What shite. My LBS has just opened a third shop in what is now becoming a successful chain in the SE/South. I didn’t notice online shops like Chain or Wiggle doing THEM any harm.

Reads like a whiny incompetent blaming all his self-inflicted troubles on an easy target.

Id say it wasnt CRC’s fault that no tax or duty is paid on their sales.
If the Australian government dont want to tax imports below £650 then that’s their problem.

True. But this fellow is saying that he’s not going to provide support for them when he thinks they’re not playing on a level field. Which is a fair enough viewpoint from where he’s standing.

Reads like a whiny incompetent blaming all his self-inflicted troubles on an easy target.

He’s connected to a magazine, not a retailer, so not sure of the connection between crc and any of your imagined ‘self inflicted troubles’.