Shimano prices slashed in US

Viewing 17 posts - 41 through 57 (of 57 total)
  • Shimano prices slashed in US
  • TooTall
    Member

    Well my US bike industry friends reckon it’s Shimano USA trying to protect it’s business when Shimano Japan won’t listen to protests about the likes of CRC nacking business – selling cheaper than shops can buy trade. They also cut some companies for constant discounting.
    They took their distribution in house last yr to streamline, but that wasn’t enough, so they are cutting their profits to try and improve the situation.

    Premier Icon LAT
    Subscriber

    dragon – Member
    Yeah buy Fox and split it into 2 companies bike and automotive, then flog the latter. It would be easily done for a company of Shimano’s size, but I suspect it isn’t really on their radar

    Is fox for sale?

    poah
    Member

    Well my US bike industry friends reckon it’s Shimano USA trying to protect it’s business when Shimano Japan won’t listen to protests about the likes of CRC nacking business – selling cheaper than shops can buy trade. They also cut some companies for constant discounting.

    they can’t stop CRC selling at what ever price they choose.

    mikewsmith
    Member

    they can’t stop CRC selling at what ever price they choose.

    They can…
    You can’t buy current mavic rims outside of the eu from. CRC. I heard sram were looking at streamlined distribution to get better prices to the shops but the catch was geo restrictions on sales.

    Hob Nob
    Member

    they can’t stop CRC selling at what ever price they choose.

    Of course they can. Look at Endura. They pulled supply to CRC as they were advertising discounts more than Endura allow on current product. Now on current stuff you only see a max of 5%, from everyone. Also why certain brands don’t get included in their discount codes.

    Same with Hope & Halfords.

    ninfan
    Member

    Of course they can. Look at Endura. They pulled supply to CRC as they were advertising discounts more than Endura allow on current product. Now on current stuff you only see a max of 5%, from everyone. Also why certain brands don’t get included in their discount codes.

    Nonsense, those brands would never act to cut supply to a retailer on the basis of price discounting – to do so would be illegal retail price maintenance, and banned throughout the EU…

    Hob Nob
    Member

    Don’t be so naive, there are plenty of companies that do it, not just specific to the bike industry.

    Why do you think for current product the most you ever see for discount on Endura stuff is 5%?

    TooTall
    Member

    they can’t stop CRC selling at what ever price they choose.

    You’re right. Shimano USA had their business model disrupted by tax-free purchases from outside the US. It’s happening more and more and the US is slowly becoming less of the captive market it always was. I’m not saying that Shimano USA was right in how it was running, but they are in it to make profit.
    It looks like CRC were cutting their margins so fine that it left them open to Wiggle buying them.
    It looks a lot like Amazon and the decline of book shops. Unfortunately, many of us like LBS’s but we’ve only got so much money.

    poah
    Member

    They can…
    You can’t buy current mavic rims outside of the eu from. CRC. I heard sram were looking at streamlined distribution to get better prices to the shops but the catch was geo restrictions on sales.

    they can’t legally stop selling to a company because they choose to price items what ever they want. The EU comes down pretty hard on anticompition and price fixing.

    Premier Icon nickc
    Subscriber

    It looks like CRC were cutting their margins so fine that it left them open to Wiggle buying them

    Wave enough money under some-ones nose and they’ll find it hard to say no. I’d imagine that far from buying a business that’s finding it hard to compete, Wiggle are just choosing the easiest way to grow their business.

    Premier Icon chakaping
    Subscriber

    Of course they can. Look at Endura. They pulled supply to CRC as they were advertising discounts more than Endura allow on current product. Now on current stuff you only see a max of 5%, from everyone. Also why certain brands don’t get included in their discount codes

    And this is why I haven’t bought any Endura stuff for years but use CRC most months.

    I think ninfan was being facetious BTW. Looks like blatant retail price maintenance to me too.

    ninfan
    Member

    @Chapaking, I know with absolute certainty that certain brands within the trade have been doing it 😉

    @Esher Shore:

    The rise of b2c online retailers with cash purchasing power has changed the game

    the cash purchasing power really makes a difference at certain times, and it becomes a self replicating thing – when the manufacturer wants to offload a shed load of end of line stuff with minimum hassle, then retailers like CRC that pop out of the woodwork with cash waiting can get ridiculous deals – and then subsequently build their own reputation as a great place to shop for discounts (I’ve seen one of the big guys snap more than one container load of clothing at two quid an item, few other companies could have ever dreamed of shifting that much odd sized and weird coloured stuff )

    sq225917
    Member

    I think SRAM take the lead on the OEM market because their lead times are much shorter- weeks vs months, their payment terms are much more generous and they seldom/ if ever fail to deliver what you order. Throw in a level of OEM customer support and service that is simply the best out there and it’s no surprise they are doing so well these days.

    There’s nothing to choose between the performance of the products ultimately other than one or two headline features for either brand.

    More price competition is good for customers, good for us all.

    @sq225917

    SRAM oe business is considerably smaller than shimano. Shimano and Giant are the dominant players in the bike industry on a global scale.

    Regarding supply to serial discounters, its not hard to be out of stock when orders are raised 😉

    mikewsmith
    Member

    @poah read what I said, the eu has no power over sales to places outside the eu, there is a bunch of stuff that crc/wiggle sell that doesn’t show up outside the eu.

    As for the rest you don’t have to sell anything to somebody who you don’t want to.

    Premier Icon grey
    Subscriber

    Shhhhhsh i never told you this…………The rumour I have heard is Shimano are going to start distributing directly in this country.

    Premier Icon jam bo
    Subscriber

    Nonsense, those brands would never act to cut supply to a retailer on the basis of price discounting – to do so would be illegal retail price maintenance, and banned throughout the EU…

    Didn’t hope pull everything from Halfords a couple of years back?

Viewing 17 posts - 41 through 57 (of 57 total)

The topic ‘Shimano prices slashed in US’ is closed to new replies.