rec.bicycles.marketplace · Public discussion

Re: Lickbikes.com: Legit?

Started by Brian Plaugher · · Last activity · 1 post · 1,016 views

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rec.bicycles.marketplace
Published
29 March 2004
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29 March 2004
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Brian Plaugher
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  1. Peter said, inter alia,
    Places like

    Quoted message said:

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

    For record straightening purposes, Lickton's continue (continues?) to
    be a Shimano Authorized internet dealer.
    Branford's dealings, from their website:
    Shimano America is implementing a new distribution program that
    authorizes select retailers to sell Shimano products via the web and
    mail order. In a recent letter to Branford Bike Shimano America stated
    that the purpose of their new sales policy was to "ensure that
    consumers are provided with the highest levels of service, receive
    proper product and warranty information, and that Shimano's products
    are promoted in a manner that furthers Shimano's reputation for
    quality products."

    We called Shimano America and asked George Eubanks, the policy
    creator, for a clarification. George Eubanks stated that he was not
    familar with Branford Bike and then added that we were not on
    Shimano's list of six "authorized web retailers". However if we agreed
    to stop selling all Shimano products over the web we would still be
    allowed to purchase them for resale through a brick and mortar store.
    We explained to him that we only sold Shimano products via our online
    catalog and previously with a paper catalog. We added that Branford
    Bike has sold Shimano products for over 28 years and currently
    serviced riders on every continent including Antartica. George Eubanks
    explained that this was their policy. However in a year or so there
    may be an opening and we could apply for "authorized web retailer"
    then. He added that soon they would be sending a list of banned
    retailers to Shimano distributors. He assured us that we would be
    included on that list if we continued to sell Shimano products via our
    online catalog.

    As a result we have decided to discontinue all Shimano products from
    our Online catalog. Many are on sale already and they will be removed
    from our catalog once our stocks are sold out. We regret that we can
    no longer offer Shimano's fine products to our customers around the
    world. If you would like to speak with Shimano America or George
    Eubanks you may call them at 800-423-2420 or fax them at 800-206-0010.
    You may also call them at (949)951-5003.
    Recent Developments...
    Bicycle Retailer and Industry News (BRAIN) did some excellent
    investigative reporting in regards to the Shimano price fixing issue.
    They established that there is an active and ongoing effort by
    multiple manufacturers in the bike industry to blacklist specific
    dealers so as to prevent them from selling their (the manufacturer's)
    product at a discounted price. BRAIN discussed how it is illegal for a
    manufacturer to require a retailer to sell at a specific price if that
    retailer is buying the manufacturer's products from a middleman or
    wholesale distributor. However, it is legal for a manufacturer to
    require that a retailer sell their products at a specific price if the
    retailer buys those products directly from the manufacturer. Thus the
    idea, we believe, behind Shimano's policy of forbidding their
    distributors from selling to any internet or mail order retailer. By
    setting up "Authorized" Web/Mail Order retailers Shimano can legally
    require that the prices of their products be fixed at a price Shimano
    believes riders should pay.

    Click on the underlined text to read the complete BRAIN article.

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