rec.bicycles.marketplace · Public discussion

Re: Lickbikes.com: Legit?

Started by Bestest Handsander · · Last activity · 2 posts · 1,060 views

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rec.bicycles.marketplace
Published
29 March 2004
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30 March 2004
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Bestest Handsander
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  1. This is common practice in most supply chains. The manufacturer does not
    force dealers to sell at a certain price. They will just refuse to sell
    more product to retailers who discount the price, or charge them more at the
    wholesale level. Sometimes they only get upset if their product is
    advertised at a low price. That's why it's not price fixing.

    There are several good reasons for manufacturers to do this, but no good
    reasons for Shimano considering their market position. I think they and
    their traditional brick and mortar resellers haven't figured out how to deal
    with internet sales and the global market it opens up to all of us. Markets
    were so much easier to control when we couldn't shop all over the US, Great
    Britain, France, etc. for the best price. They're still stuck in their
    traditional segmented market mentality and are scared of the new retail
    world. So they only let big e-commerce sites (ones they have a cozy
    relationship with) sell until they can figure things out. As far as I can
    tell they still think of the dealers and manufacturers as their customers...
    not the end user. Do you dealers have to buy Shimano from a distributor, or
    do you buy direct? I think sooner or later someone is going to come along
    and "Dell" the cycling market.

    Just .02 from a marketing consultant.

    "Qui si parla Campagnolo " <[email hidden]> wrote in message
    news:[email hidden]...

    Quoted message said:

    I said-<< >shimano is trying to control their distribution. They are


    trying to

    Quoted message said:

    stop gray

    Quoted message said:

    market, back-door supply and OEM resale, because most of those people DO


    NOT

    Quoted message said:
    Quoted message said:

    service their products well. >><BR><BR>

    ADR said-<< Sounds like price fixing to me.

    Quoted message said:
    Quoted message said:

    <BR><BR>

    Not according to the FTC...

    ADR-<< I see a problem with price fixing. >><BR><BR>

    See above-

    adr-<< Not all people need the same level of
    service, >><BR><BR>

    Service level doesn't determine price but wholesale prices do. shimano is
    controlling their distribution, closing many 'backdoor' sources. Places


    like

    Quoted message said:

    Licktons and Branford would pay more for shimano they sell, they didn't


    like

    Quoted message said:

    that.

    Peter Chisholm
    Vecchio's Bicicletteria
    1833 Pearl St.
    Boulder, CO, 80302
    (303)440-3535
    http://www.vecchios.com
    "Ruote convenzionali costruite eccezionalmente bene"

  2. Bestest Handsander said:

    This is common practice in most supply chains. The manufacturer
    does not force dealers to sell at a certain price. They will just
    refuse to sell more product to retailers who discount the price, or
    charge them more at the wholesale level. Sometimes they only get
    upset if their product is advertised at a low price. That's why
    it's not price fixing.

    There are several good reasons for manufacturers to do this,

    Perhaps in supply-side economics, but not in demand-side economics.
    Prestige-oriented boutique manufacturers (e.g., Montblanc) use this
    strategy to maintain snob appeal while selling an inferior product
    sometimes, but that is not a *good* reason for this practice.

    Sometimes it's counterproductive. Look at how good Avocets market
    penetration is- their position has been severely hurt by their
    stubborn insistence on retailers selling at the full MSRP and
    ridiculous dealer-direct minimum wholesale orders. If they were
    smarter, their tires would dominate the market instead of being hard
    to find.

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