Shimano introduce new flat and SPD pedals

On 8/2/2021 at 2:01 PM, Hairy on a Davidson said:

what ... like some sort of organised price fixing type of thing ... nah, they would never do that?

So they already facing the "heat" and it's not cool

40 minutes ago, MajG said:

So they already facing the "heat" and it's not cool

This specific case was dismissed. They did get a wrap on the knuckles a few years before along with few big bike stores, sOme of whole shut up shop and moved into other sectors within the industry when their protected mark ups where removed. 
 

fact of the matter is there simply isn’t enough margin in bikes and bike part. I you have two or three players adding a 10-35% margin, regardless of taxes any duties, there is just nothing left in the deal for the final seller (ie: the beloved local bikeshop)

That is essentially why Spez is doing so well locally. Their model works, and works well. The end user doesn’t realise/understand how the supply chainfuntions, and they. Don’t need to. It’s just works, and at the end of the day everyone in the deal is happy. 

The concept stores are essentially franchises. They pay Spez for the luxury of access to their supply chain, at a reasonably affordable price (Spez has essentially the same price worldwide, give or take a few bucks for currency fluctution/duties and taxes etc). Essentially, if you buy a bike at your local concept store, or buy it in the states while on holiday (and claim sales tax back at the airport, as you should, and then declare your purchase and pay VAT and duties to SARS on arrival, as you should), the price will be basically exactly the same.

in reality, your Spez bought locally is somewhat subsidised, in order to keep the prices in line with ROW pricing. The shop, which is actually a Franchise, makes very little on the bike. But they can stay profitable because they have access to the rest of the specialised inventory - tires, bottle cages, tools, clothing, shoes etc etc etc. They also get to make money on servicing your bike, as the official brand recognised service centre. On the balance of trade, everyone wins here. The shops are profitable, the customer gets a good deal (like it or not, and take away all the fanboy hatred, rand for rand, you will battle to get a better deal in South Africa for a bike with similar components). That is why every third bike you see in SA is a Spez, and this is not collusion, it is just a good business model, and removes 1 or 2 players in the value chain. 
 

but if you want to talk about collusion/price fixing in the industry, forget about local distributors, look at the international market. How various international anti-trust and competition tribunals have not managed to stop SRAMs slow and steady buyout of the entire OEM market is almost laughable. To stay relevant, Shimano has to now focus more and more on the high end and aftermarket industry. 
 

If a bike manufacturer wants to get a good deal on RockShocks forks for their entry level bike, they have no choice but to spec that bike with a SRAM drivetrain, tektro of SRAM guide Brakes. Oh, but you have a race face crank, sorry buddy, still sram. 
 

I know some might differ with me here,  but quality wise, you cannot compare SRAM SX or NX with Deore or SLX. The entry level SRAM stuff is on par with non series or the other super cheap Shimano stuff (acera etc). But find a 40-65k dual susser with Shimano components, it’s a unicorn. That is the real anti-trust problem in bike industry… consumers are forced to deal with SX and NX rubbish because of this. Amd let’s not even talk about brakes. From entry level. Shimano stuff Is good, SLX are already really good brakes. SRAM level/tekto etc cannot compare. But to get a semi decent market accepted fork, The OEM industry is forced to go with the SRAM stuff. 
 

from GX up, SRAM compares with a Shimano SLX/XT/XTR, but you cannot with a straight face say SX NX compares with SLX/DEORE

1 hour ago, DonatelloOnPinarello said:

This specific case was dismissed. They did get a wrap on the knuckles a few years before along with few big bike stores, sOme of whole shut up shop and moved into other sectors within the industry when their protected mark ups where removed. 
 

fact of the matter is there simply isn’t enough margin in bikes and bike part. I you have two or three players adding a 10-35% margin, regardless of taxes any duties, there is just nothing left in the deal for the final seller (ie: the beloved local bikeshop)

 

That is essentially why Spez is doing so well locally. Their model works, and works well. The end user doesn’t realise/understand how the supply chainfuntions, and they. Don’t need to. It’s just works, and at the end of the day everyone in the deal is happy. 

The concept stores are essentially franchises. They pay Spez for the luxury of access to their supply chain, at a reasonably affordable price (Spez has essentially the same price worldwide, give or take a few bucks for currency fluctution/duties and taxes etc). Essentially, if you buy a bike at your local concept store, or buy it in the states while on holiday (and claim sales tax back at the airport, as you should, and then declare your purchase and pay VAT and duties to SARS on arrival, as you should), the price will be basically exactly the same.

in reality, your Spez bought locally is somewhat subsidised, in order to keep the prices in line with ROW pricing. The shop, which is actually a Franchise, makes very little on the bike. But they can stay profitable because they have access to the rest of the specialised inventory - tires, bottle cages, tools, clothing, shoes etc etc etc. They also get to make money on servicing your bike, as the official brand recognised service centre. On the balance of trade, everyone wins here. The shops are profitable, the customer gets a good deal (like it or not, and take away all the fanboy hatred, rand for rand, you will battle to get a better deal in South Africa for a bike with similar components). That is why every third bike you see in SA is a Spez, and this is not collusion, it is just a good business model, and removes 1 or 2 players in the value chain. 
 

but if you want to talk about collusion/price fixing in the industry, forget about local distributors, look at the international market. How various international anti-trust and competition tribunals have not managed to stop SRAMs slow and steady buyout of the entire OEM market is almost laughable. To stay relevant, Shimano has to now focus more and more on the high end and aftermarket industry. 
 

If a bike manufacturer wants to get a good deal on RockShocks forks for their entry level bike, they have no choice but to spec that bike with a SRAM drivetrain, tektro of SRAM guide Brakes. Oh, but you have a race face crank, sorry buddy, still sram. 
 

I know some might differ with me here,  but quality wise, you cannot compare SRAM SX or NX with Deore or SLX. The entry level SRAM stuff is on par with non series or the other super cheap Shimano stuff (acera etc). But find a 40-65k dual susser with Shimano components, it’s a unicorn. That is the real anti-trust problem in bike industry… consumers are forced to deal with SX and NX rubbish because of this. Amd let’s not even talk about brakes. From entry level. Shimano stuff Is good, SLX are already really good brakes. SRAM level/tekto etc cannot compare. But to get a semi decent market accepted fork, The OEM industry is forced to go with the SRAM stuff. 
 

from GX up, SRAM compares with a Shimano SLX/XT/XTR, but you cannot with a straight face say SX NX compares with SLX/DEORE

Interesting insight into specialized business model and end of day the consumer benefits. Or is least impacted by middlemen markups. 

Always known bike profits are low, same like tiger wheel n tyre the profits on tyres are minimal but the additional items and add one is where money is made so its a fairly widely spread model too.

On the sram entry-level components I agree with you, just switched to Shimano xt from sram nx and it's worlds apart and was slightly cheaper than gx setup.

Always good to read your insider inputs ????????