WHAT'S NEW
Comments - Definitely Not Wikileaks
January 28, 2012
Not Wikileaks?! But just as sore loosers as Julian Assange! Come on CC, your Shimano prices are FULL RETAIL with no discount whatsoever. NO-ONE sells at those prices, not even LBS's! So quit your griping, be serious about your pricing and leverage YOUR advantage with US branded products against the "Wiggle" invasion. Specialized, Zipp, Sram, just to name a few.
- Mario, Maputo
December 14, 2011
Well I live in Oregon where yjere is no sales tax, I don't see how that will change anything for me
- Jack, Portland
December 13, 2011
There is unquestionably a distribution problem. The middleman is who is going to get squeezed sooner or later. They add no value and have already been torn out in other verticals. It's coming to bicycling soon.
BTW this blog doesn't touch on an even bigger avenue of grey sales-- ebay and websites selling direct from Taiwan and China. Huge market for clothes, growing market for parts.
- Colin, Wichita KS
December 09, 2011
Occupy the high end online dealer is absolutely the best place to work in this industry. I've worked in some of the best online and LBS shops for many years and there's is no way I would go back to the LBS. Online leads to good pay, good benefits, bonuses, time to train etc, etc because it is more efficient and although it has it's own issues, it is much less of a drain on the employee. 8 hours online and you can go ride after work, 8 hours in LBS and your ready to go home and kick the cat if you can muster up the mental energy to find the cat. Anyway, good luck to Competitive Cyclist. I'm not happy about recent events but your site has been the basis of many decisions in this industry whether you know it or not. Great company.
-Someone who shops great service, not price.
- Dan, Flagstaff AZ
December 08, 2011
"Exploitation is not a strategy"? I thought exploitation was the whole premise behind unregulated market capitalism. What do you call creating a business where the employees are paid a low fixed wage while the owner collects all the profits? It's funny how you cry foul when you're the victim of exploitation, intentional or not.
- Occupy, Wall Street
December 08, 2011
moan mona moan, all by people who cant get off their arse to compete, well curl up and die
- dave, taichung
December 07, 2011
I have to agree with Michael, there are products that I would have purchased from Competitive Cyclist, but the shipping costs were prohibitive. I would have also liked to purchased a Tallboy (complete bike), but you can't ship them outside the US.
- chaz, Sydney
December 02, 2011
Why don't you stop whining and get your own arrangement with the manufacturer rather than dealing with the importers?
- Syn, Pax
November 29, 2011
US pricing still beats Australian pricing. I would buy from US sites like Competitive Cyclist, but unlike the UK sites that ship to Australia for free US sites always charge proportionally high shipping costs. Also some US sites won't even ship outside of the US.
- Michael, Australia
November 27, 2011
Lest not forget that Swagger in the US produces the USA Crit Series, arguably the most exciting bicycle race series we have.
- Touriste-Routier, PA
November 27, 2011
I buy everything online, and I buy a lot. But I've never bought from the UK sites. You guys have great service, but I've only bought items on sale from you. You're not even competitive with your US competition such as universal, jenson and bike bling. How about coming off msrp on more products or doing price matching ?
- steve, philly
November 27, 2011
Of course you miss the point. The US has highly anti-consumer, pro-manufacturer laws, which promote dealing with overseas sellers. SRAM, for example, uses this to exploit you the bicycle dealer, and in turn the consumer. CRC's best prices are on shimano parts; are you claiming that a company in England buys Japanese parts directly from the manufacturer, but you can't?
The strategy is to open a store in a more business-friendly location and use that to offer better prices. Many of us that buy high-end parts don't need the support of a LBS, that's why we buy online, when manufacturers force us to pay for LBS services that we don't use, we naturally go elsewhere. Never mind the fact that shipments over... not sure what the amount is, around $500 are subject to import duty tax that negates any savings buying from CRC. I have to tell you, this rant, little more than demanding that someone give you more money, is making me much less likely to buy my bike from you this spring.
- i, baltimore
November 26, 2011
Haters are noted. I'm glad you're still writing.
- Jeff, Pdx
November 25, 2011
The first time you ever try to warranty an item through Chain Reaction will not coincidentally be the first time you'll think twice about ordering from them again. I always try to shop local first and have found CC to reliable go-to backup spot online. Between coupon codes and sales it's almost like having the club discount offered by my LBS. Curiously though, the last item I wanted to order was out of stock at CC but available through Real Cyclist so apparently inventory isn't shared.
- Bobby , Los Angeles
November 24, 2011
when i'm not a douche i buy local
when i am a total douche i shop UK
when i'm half a douche i'll buy from you?
- marvo larvo, bx
November 24, 2011
complaining seldom results in sympathy, at least nor when sympathy is measured in after taxes bike dollars
- marvo larvo, vernon
November 24, 2011
Hey Brandon. Quit complaining. Why don't you set up shop in the UK? Why an outfit such as CC has to buy from distributors as opposed to direct from mugs is a mystery to me.
- Frank, Charlotte
November 24, 2011
Im thankful for this valuable insight into your psyche and corporate greed.
- 99%, everywhere
November 24, 2011
Whatever happened that so many people are suddenly so... hateful?!?!? What could you guys have done???
- I Understand, Completely
November 23, 2011
Thank you to PBK, CRC, and Wiggle and the fact that we currently do not have a 20% VAT that restricts me to owning one mid-level Shimano 105 equipped bike, instead of the 10 currently in my stable. Then again, many of us Americans work like dogs in order to EARN the right to support our passions and still posess the motivation to ride for a couple of hours after our Thanksgiving induced gluttony. As far as the Gandhi quote below; I can sit in front of a tree and meditate anytime. Such as the world, bikes move in only one direction... And that requires energy over stagnation!
- MO, SF SODAK
November 23, 2011
"There is a sufficiency in the world for man's need but not for man's greed."
-Gandhi
- Steve, Palo Alto
November 23, 2011
You all haven't posted a picture of a bike on your gallery since you made the move the UT. What's up with that?
- Bryan, Little Rock AR
November 23, 2011
only been with the devil for a couple months and you're complaining already? Staff meetings that tough already? Hope you didn't sell your crib in Arkansas. always buy my stuff from England and encourage others to do so. great selection, free shipping, mediocre cust service but I know what I want. Cat is out of the bag and the structure is here to stay. love my 100 look keos by the way
- Francisco Mancebo, Domestic Pro
November 23, 2011
@Tim, Salt Lake
They are your local bike shop.
- Me , Earth
November 22, 2011
Well, I think you guys at Competitive Cyclist have done really well for what you are doing. I've been frankly very impressed. For me, however, I never could figure out how you sold anything. Full retail prices, for the most part, and no incentive for me to shop with you online. Thus, I go to places that you rail on such as Total Cycling, Chain Reaction, etc. If I am going to pay full retail for any bike product, why buy from you? I can go support my local bike shop which is the golden virtue of all cyclist. Some do, some want to save at all costs.
Rather than cry that foreigners are taking some of your business and fighting for stiff pricing regulations, try having a sale on certain items and pricing things more competitively. You are after all, an internet, mail order, e-commerce retailer. You have kind of had your cake and eaten it too for a long time. Lower overhead per revenue earned than any brick and mortar and full retail margins. Nice gig, perhaps.
Overall, you can be the Zappo's of the bike industry, sell at full price, and you will have to provide ungodly levels of service to entice those to purchase from you en masse. In the meantime, some of us will get our Keo 2s and Ergo 3s for a halfway reasonable price overseas. Or, from our doing their best local bike shop dealer who contributes to the local community and cycling scene.
- Tim, Salt Lake
November 22, 2011
I live in Japan and unfortunately the strong YEN has not brought the prices down in our local bike shops. Wiggle offers a good selection at great prices, no sales tax, free shipping and goods I order on a Monday often show up at my place the same Friday. Typically save 40% or more. save time and customer service is top notch. As foreign exchange rates fluctuate it knocks prices out of line and internet shopping provides options among different countries.
- Mark, Tokyo
November 22, 2011
Let's see...you're airing your desire to fix prices and avoid competition by giving manufacturers the ability to enforce MAP's so the consumer has to pay more than the acual market value of the product? You aren't going to win many friends here.
- Neil, Washington, DC
November 22, 2011
I remeber by Kysirium's from Total Cycling back when they first came out for less than a pro deal thru the shop I worked at. The Mavic rep was not happy.
- Hung Low, Philly Pa
November 22, 2011
Waht a bleat about CRC.
wake up and smell the coffee - its a global marketplace and teh USA has rampant pricve fixing - so its not CRC are too cheap - its yo are too expensive
- TJ, edimborg
November 22, 2011
So You're pissed because a foreign retailer can sell goods at a cheaper price then you can? Perhaps you ought to be looking at abolishing price fixing of goods in the states rather than whinging about a free market
- JB, London
November 22, 2011
Whenever we ask manufacturers why they don't have global pricing parity, they plead the same case: They'd love nothing more
Then why don't santa cruz, intense, turner etc do so? UK customers pay double what US ones do.
Maybe US manufacturers should listen to your advice?
- Neil, Englandshire
November 22, 2011
wait a minute price parity?? ooohh you mean price fixing ! its called a free market, if you dont like it i believe cuba and north korea still offer the type of economy you are looking for
- kimbers, london
- kimbers, london
November 22, 2011
Arbitrage. A beautiful thing.
- Druckenmiller, Brunswick, ME
November 21, 2011
As for price parity if the manufacturer sells to CRC for the same the sell the importer it is price parity. If the product is handeled by an importer and distributor is that the manufacturer fault. If there are extra steps and each one takes their cut the price is higher.
- CJ, bonedale
November 21, 2011
You are in business for you, Chain Reaction & Wiggle are in business for themselves, and I'm in business for me. I love shopping at the UK sites when they have what I need. Their prices are great and their shipping can be faster than some domestic shops. It is funny to me that you want to ban swagger. Because that is exactly what is missing from this piece.
- Jason, Metro D-town
November 21, 2011
Curious how much Pro Bike Kit made in US sales. Their promotions and PBK points are pretty motivating on purchases. I do find CC's sales to be quite enticing as well. I always wonder what the LBS thinks when BMC frames are dumped on retailers such as CC. Your deep inventories and subsequent markdowns must make it hard on getting some models off the floor of the local shop. Glad to see what's new!
- Mark, Chicago
November 21, 2011
"Because they're based in Europe, Chain Reaction and Wiggle have the advantage of buying their goods directly from manufacturers. They then leverage their savings by selling the goods in foreign markets such as the US where distributors and importers normally add a layer of markup."
Stunning hypocrisy - Competitive Cyclist bought excess MY09/10 BMC inventory directly from BMC in 2010 and then sold a heap of it into foreign markets (emphasis on Australia), which already had a distributor and retailers loaded with full-price stock. Australia also has severe "retail price maintenance" penalties. Competitive therefore knowingly exploited a "market anomaly" and participated in the very situation you're bitching about.
Care to comment?
- Not, Likely
November 21, 2011
did we add "panache" to the list last year? If not it needs to go this year for sure.
- Jason, ATX
November 21, 2011
Retail Price Maintenance is a complete joke. Australia has very strong Consumer Competition laws which prohibit manufacturers dictating to retailers a minimum selling price. Personally I buy wherever products are cheapest. If it is a product that I don't need any assistance or guidance to buy (tyres, chains, cassettes) I will buy online. If I need assistance I will purchase from LBS. I just bought a set of wheels in Australia from a specialist wheel-builder as he offered the best value for money. Don't forget to survive in this current marketplace retailers must establish their value proposition and clearly communicate it to the consumer.
- a marketing professional, Sydney
November 21, 2011
As for expanding their operations, I noticed Wiggle were flying advertising banners over the crowds at this year's Blackmore's Running Festival here in Sydney. Oz is obviously a huge destination for the as well.
- Donncha, Sydney
November 21, 2011
FYI, Wiggle no longer ships Assos to the US or Canada.
- Al, Montréal
November 21, 2011
Of course the joke in the name: (un)Competitive Cyclist is so much more expensive than the UK sites, i've stopped ordering from you. MSRP is fantasy.
- been there, done that
November 21, 2011
Who cares about the talk of prices... Thanks to hipping me to Shelley Verses' blog. That's a great find!
- Jeremy, KCMO
November 21, 2011
I have disagree with the statement that "European retailers are purchasing their goods directly from the Manufacture". Most mass retail items are manufactured in Asia, this includes Most of the Collnago line. The manufacture my have their base office in Europe. Cervelo is a good example, with offices in Canada & Switzerland, yet their bikes are made in Asia. Price point has to do with the power/value of their dolllar. US/Canadian dollar against the UK pond, not a fgood exchange rate.
- Heiko, Mississauga
November 21, 2011
I generally try to by locally (LBS) unless the price difference is too big. You think you yanks have it tough - try buying in Canada when FX changes daily and pricing is set annually. We routinely get burned locally or on shipments from US. I've bought some consummables (chains, tires etc) through Wiggle and have been happy with the service. No freight, no duty, no tax. What happened to NAFTA? We should be able to cross border shop at will!
- Paul, London, Canada
November 21, 2011
Tax & Regulatory competition is just that: competition. Those nations with consumer advantageous laws win.
- John C., Blacksburg, VA
November 21, 2011
I'm just glad you're back. Keep going, don't stop.
- Carl, Downers Grove
November 21, 2011
That was unpleasant.
- jim davis, troy ny
November 21, 2011
Price maintenance is, imo, a very murky topic in a modern, web-centric "free" marketplace. Granted, it's supposed to ensure dealer promotion of products, but how applicable is this in an e-commerce environment? The word "exploit" is used to describe Wiggle and CR's business model, but aren't they simply cutting out the middle-man? Isn't cutting out the middle man good for consumers? (of course) Why should U.S. consumers pay a premium to keep distributors in business in a modern, increasingly border-less global marketplace? Thought provoking write-up, but I tend to disagree with the conclusion.
- Dan , DC
November 21, 2011
I hope this means that 'What's New" is staying.
- adam, hamilton
November 21, 2011
You blame Continental et al for not controlling their pricing but claim the lack of sales tax is a congressional act beyond your control. What of EU anti trust preclusion of enforcing MSRP? Seems as if its two strains of the same disease. Or whatever you want to call it. But to suddenly act as though you're the friend of the IBD? Ha.
Oh, and another nomination for a banned word: PRO.
- Mark, Draper, UT
November 21, 2011
Very clean and objective piece. Your underwriters will be proud.
- Sam, Key West
November 21, 2011
If you guys think Wiggle and Chain Reaction are cheap, you should check out Ribble Cycles, I wouldn't go near the first two's high prices!!
- Matthew, Kippax
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