WHAT'S NEW
Comments - A Whiff Of Crayfish
December 22, 2011
55% off BMC what is going on?
- AnotherNotHappy, BMCDealer
December 18, 2011
still waiting for my bag of cash, next time I stop in it better be ready
- Francisco Mancebo, Domestic Pro
December 18, 2011
Thanks for stocking an insane amount of BMC's that you dump on the market for months at a time!
- Every LBSBMC Dealer, Springfield
December 17, 2011
Hey, thank you for the 12 days specials - got some nice stuff for under the Christmas tree.
- Happy, NYC
December 16, 2011
The BKW overshoes - ugly, though BKW was great, the old campy cotton booties were the best.
On the video do you see how low everyone is - even though the drop from seat to bar is like 5 cm?
What is Gilbert wearing!!!!!
- tom, DC
December 15, 2011
@Rick Still in LR? Thought you would make the move to UT to pay for your new AUDI!
- rich, poorville
December 15, 2011
Interesting post. I recall about this time in 2007, my buddy and I were the first guys on Ebay to sell the Sram Red bits. Got them at wholesale, and sold them at maybe 30% less than retail. Sold as many shifters and derailleurs as we could bring in. if only it lasted. I'm hoping to do the same with the new Ultegra Di2 kits soon. My point is, if people can buy product cheaply, they will. That's just the new internet era.
- Ebay man, Small town USA
December 15, 2011
The copy-and-paste from QBP's dealer site is G-O-L-D. I tip my threadbare prototype Rapha Winter Hat to you, sir.
- Prodigal Son, Chicago
December 15, 2011
I bought a pair of white Shimano PD-M?540?'s for something like $26 before any damned store in the states had them. It was a double whammy. There's no doubt that I would spend $15 more on something that I couldn't even buy yet in America.
More power to them.
- WV, Cycling
December 14, 2011
will you stop whining if i buy one of those 40% off BMC's? that's the way to beat wiggle
- marvo larvo, vernon
December 14, 2011
I will expect my bag of cash before the lunch ride. I will still pummel all you hicks and then retire to my Mormon casbah
- Francisco Mancebo, Domestic Pro
December 14, 2011
I really enjoy all the whining about whining. Right or wrong I love the bike industry posts. Please keep it up. I for one like the pressure that the UK retailers put on the US market because that is exactly what it needs. As has been pointed out in this blog many times, the old business models are going to have change to adjust to global market. It will be interesting to watch it shake out. Oh yeah and congrats CC on "single handedly aides the gluttony of the American consumer through cut throat, industry crippling pricing with a total disregard for the market all while building a client base of "price first" clients..." That is a great one.
- JZ, Utah
December 14, 2011
Interesting...sounds like what happened with your being purchased by Back country...aren't they not liked somewhat for offering WAAAAY low prices on current inventory year models? That's the word on the street at least. Perhaps if you guys hadn't sold to BC then Wiggle might have been the fish they would have tried to catch to get better established in the Bike market, being that their strategies seem pretty similar from an outsider looking in. In the end, everyone is just trying to make a buck, more power to Wiggle's previous owner, now they can retire wealthy!
- wish you knew, anytown
December 14, 2011
As someone who has worked in the uk bike trade for the last 15 years I say quit whinging. For years we had to put up with customers buying from the US at cheaper prices than our UK trade. It's not so much fun now the shoe is on the other foot is it? We now trade in a global market you'd better get used to it.
- Simon , Crowthorne
December 14, 2011
I always enjoy the posts and I don't detect any whining. Your former wrench of 12 plus years. Merry Christmas to all my old friends.
- Rick , Little Rock
December 14, 2011
funny that you complain when your new daddy does pretty much the same thing with products, pricing and their shady origins. you have nothing to complain about
- stop whining, Mormon Police State
December 14, 2011
Enjoy all your writing. Thanks!
- Owen, Texas
December 14, 2011
I, for one, say keep the industry competition posts coming. As a finance guy, I think it's great to hear about how this niche works.
- Jesse, Edinburgh
December 13, 2011
+1 for James in Mt. Lebanon. I mean seriously? CC complaining about an online retailer? Is this not the pot calling the kettle black? CC single handedly aides the gluttony of the American consumer through cut throat, industry crippling pricing with a total disregard for the market all while building a client base of "price first" clients and has the tiny balls to complain? Welcome to the world you created! On a side note I look forward to all your deep discounts during your 12 days of Christmas as long as they can beat Wiggle, PBK, Amazon, Price Point, oh and please help me put my LBS out of business this year! I hate their "small business" attitude! How dare they charge me enough to keep the lights on until I come in with more parts I buy online to install. Merry Christmas Cry Baby! LOL....
- Bojangle , Florida
December 13, 2011
I wish Wiggle would hire a bunch of ex-dopers. Tired of killing all the Arkansas hicks on the lunch ride at the office. ready to get back to Europe. Gotta phone number for Wiggle?
- Francisco Mancebo, Domestic Pro
December 13, 2011
1983(?) Paris-Roubaix video clip = good stuff. ( That looks like Bernard Hinault discussing the race there at the end). MAP, EBITDA, etc. = pffffffttttt...who cares?
- PawleeWalnutz, NYC
December 13, 2011
ps. If not, get a grip, pour some of that intensity and focus into your work/family/cycling or whatever really matters to you and you may find that Brendan's take on MAP and Wiggle don't upset you as much.
- Steve, Miami
December 13, 2011
Brendans always pushed his own agenda here, nothing new & kind of the point of this blog. Its still entertaining
- dingle, Berry
December 13, 2011
I love this column and all who post replies here. I'm just left wondering what some of these people do for a living. I mean if Brendan can inspire such passion by posting his thoughts in a forum he created, I can only imagine the dizzying list of great accomplishments some of the contributors must have! I'm sure there's at least one Nobel Laureate out there!
- Steve, Miami
December 13, 2011
Innovate or die, gents. Innovate or die. These are the same, dated, "woe is me, life is not fair" arguments we have been getting from the music and film establishment about online piracy over the last few years when indie labels started kicking their asses. Break away from the dated models of doing business like you're stuck in a pre-internet world and start actually serving your customer base. Instead of complaining how things aren't fair, take a risk and do something that is different.
- Murdoch, Austin, TX
December 13, 2011
This is an example of big business taking advantage of global free trade to skirt national regulation created to protect, the same way big business outsources jobs overseas to skirt labor regulations like minimum wage. Is it clear now how free trade hurts our national economy? It sure sucks when you're the victim of exploitation.
- Poor Me, Big Business
December 13, 2011
Sounds like somebody is a little bitter about the multiple HE got...
- Leroy, Carrboro, NC
December 13, 2011
Good article, as usual. Good to see you back in the saddle again after the transitional hiatus. Enjoy your writings immensely. Keep at it. Regards.
- Baruch, Nashua
December 13, 2011
Here's something to think about: MAP = The price you can ADVERTISE a product. MSP (minimum selling price) = The price you decide to ACTUALLY sell the product.
Why not just advertise the product at MSRP as you, and most LBSs, do? Then, after someone enters an order online, send back a confirmation email with the actual price they are going to pay.
The customer can then decide whether they still want to buy from you and confirm the order, or take their business elsewhere. Yes, it is an extra step, but I'm sure there is technology available to take care of the pricing so no one has do send the email manually.
This should clear you of any "legal" problems and also make CC a more attractive option for "price matters most" customers based in the US. Also, don't think of this as a "discounting" or "lowering yourself". Think of it more as a way to stay competitive in global supermarket that is the Internet.
- ConcernedShoppers, Everywhere
December 13, 2011
First off, MAP as it is used in the bike industry has not been litigated in the courts. CC can always be the first to try and take this to the courts. Also, if it can be shown that manufactuers allowing their product to be discounted in a global marketplace, the rule of reason would probably nullify MAP. Regardless, what is stopping CC from offering gift cards and free shipping based on what a shopper spends? For example, you spend $200, shopper receives a $20 gift card redeemable at CC and free shipping. Nothing in MAP prevents that.
- Frank, Charlotte, NC
December 13, 2011
@jJAMES, MT. LEBANON Your response was PRUCKING FRO! I nominate you and Brendan for next presidential debate.
- Jorge, Florida
December 12, 2011
Also Pro Bike Kit and Maestro are way better than Wiggle.
- mark, villa park
December 12, 2011
If you ever open up "What's New" to guest writers, I'd like to be the first to nominate James from Mt. Lebanon. Based on his all-caps raging on an enjoyable, educational and free read, I can only i only imagine his prose would include an in-depth analysis of all the little old ladies he punched and puppies he kicked for slowing him down during his quest for a PR on his local multi-use path.
- Bobby , Los Angeles
December 12, 2011
I'm so sick of hearing you whine about facing grey market competition. Guess what - no one cares! At least not anyone who isn't trying to make a living selling derailleurs at full retail. OK, that's a broad generality and I can't speak for everyone, so let me say: I DON'T CARE THAT YOU FIND IT DIFFICULT TO COMPETE AGAINST FOREIGN/GREY MARKET INTERNET SELLERS! While I've bought cycling gear online from a host of different businesses, I've been a CC client for 2-3 years, during which time I've bought everything from a Kimber PepperBlasterII to a bike, but I DON'T CARE THAT YOU HAVE TO COMPETE AGAINST RETAILERS WHO HAVE MORE ADVANTAGEOUS CONDITIONS THAN WHAT YOU'RE FACING. PLEASE STOP WRITING/WHINING ABOUT IT! (unless you're going to make this a dedicated industry-column) Once was acceptable to this regular reader, but twice (at least that I remember) is too much for me. Your friends in the industry might find your musings on Wiggle to be of interest, but as someone who's read this blog for the past two years for its entertainment value, I don't, and I won't continue reading it as long as you insist on having endless pity parties for yourself. Lamentably, as I'm sure you're aware, the Supreme Court ruled a few years ago that minimum advertised pricing isn't illegal per se, but it should be! Fixing prices is hardly a market solution or "fair" to the consumer, and I'm incredulous that you'd write this (and a previous) column for a public comprised more of potential customers than business associates. As a consumer buying bike parts - a bike even - and not needing some 30 year-old CC "expert" to tell me which ridiculously overpriced carbon fiber seat post I should shell out for, I'm focused on 3-4 factors when deciding from whom I'm going to buy the item: 1) price 2) cost of shipping 3) after-sales warranty service/return policy; 4) immediate availability. My point? I'm not willing to pay a price premium when buying something online just b/c the vendor has a nice website w/ cutesy copy and a "PRO"-attitude.
cont'd...
- James, Mt. Lebanon
December 12, 2011
To quote someone else, minimum resale price maintenance is indistinguishable in economic effect from naked horizontal price fixing by a cartel - and if you think I feel any sympathy for your naked desire to limit the consumer's ability to shop around on price, you're nucking futs! Seriously! You're so pretentious w/ your inside references, your name-dropping, your look-at-where-I-went photos, your marketing-copy-disguised-as-thoughtful-musings, and most of all your stupid blathering about "PRO" (something you clearly never were on the bike, or else you'd grasp intuitively that droning on about what's "PRO" and what isn't = surest sign that you're not) - but this whining about grey market competition takes the cake. I'm outta here, and I won't let the door hit me on the way out. Thanks!
(PS. You'll need to update the answer to that authentication question once Novitzky completes his investigation and Larry is indicted - because if he "won" seven Tours, then Landis surely won "one" - and Pereiro "none!")
- James, Mt. Lebanon
December 12, 2011
@Sterling, Poughkeepsie It's similar to "year end car sales." #MAVIC doesn't want to sit on 2011 model wheels while the 2012's are en route from Asia. They also don't want to sell 100 to company x, 100 to company y and so on. They want a single shipment, to a single company with a single check to cash. It's all about the bottom line. I'm guessing someone at mavic is good friends with CC (a la Dick Cheney/Halliburton) and they shot them an email, "Hey Brendan-Love your blog. You're awesome man. I love your lust for all things PRO! So, we have a few hundred wheels we need to quickly unload. Your account is on file, plus your newly acquired parent company has excellent credit. Give me the green-light and I'll have them on a truck today. I know you can easily make 35 points on each pair. Have a great Christmas."
It's called the "Good 'ol boy club."
- Erick, Englewood, NY
December 12, 2011
Brendan- Why did you drop out of law school? And have you thought about conducting some investigative research on the impact your relocation had on the Little Rock community? Keep truckin'!
- Paul, Walnut Ridge
December 12, 2011
Man, what an ensemble from Fast Phil. Stripe direction on the shirt and the tie at odds with each other is the only real faux-pas but matched with a gold sut, I'm not sure it matters.
- haitch, melbourne
December 12, 2011
Out of curiosity, can someone explain to me how CC can sell stuff at super deep discounts--like the wheelsets recently on offer for the xmas specials or the old pinarello frames?
Is the MSRP only valid for the product year and than it's fair game to discount it substantially?
- Sterling, Poughkeepsie
December 12, 2011
The problem isn't MAP or Wiggles. Manufacturers and distributors have no way to enforce policies if enough customers are unwilling to follow them. Value is ultimately determined by 1) What consumers are willing to pay for a product or 2) What a product can be bought for (whichever is lower). This reminds me of Costco and other "wholesalers" selling hard to value items (particularly jewelry) at a "discount" compared to some appraised value. Clearly, the diamond or other gem is not worth the "appraised" value if it can be purchased for less.
If you and other large and small retailers banded together (esp if over 51% of the purchasing power) and stated they would not follow MAP rules what would manufacturers really do? If consumers refused to pay the MAP price what would they do? In both cases prices would quickly become unfixed... is most cases dropping... perhaps in a few others rising. All I got out of this post was that you at competitive cyclist want to whine instead of being part of the solution to an unfair business policy placed upon you by your suppliers.
- Patrick, SLC
December 12, 2011
Another longtime bike industry employee here.
While working for a manufacturer, a red flag was uncovered when sales to an extremely poor country's distributor grew exponentially for a 2nd year in a row. After some digging, we discovered that these products were being purchased at distributor cost, then resold online at a profit for the reseller, but a substantial discount from MSRP.
When this was taken to the International sales manager, nothing was done because they weren't willing to lose the sales volume they were gaining from this distributor.
It was difficult to sit by while hundreds of multi-hundred dollar widgets were being sold into a country with an annual average salary of $500.....but this is what we were forced to do.
@Mass...so it isn't a matter of charging what something is worth, it's most often about dishonest ways of doing business that are the reason for these pricing variations.
- Omar, Chicago
December 12, 2011
I think competition is good and price fixing is bad. The legacy distribution model and price fixing doesn't make sense in the Internet era. I buy from competitve, pbk, wiggle, and my lbs. Depending on what I'm buying, I will choose my vendor based on price, service, and turnaround time. I've purchased a lot of on-sale items via Competitive and a few full price items. PBK and Wiggle are great for certain things, and I even bought my current bike and immediate need items from my LBS. Its all about choices.
- Alex, Philly
December 12, 2011
@Max From Toadsuck,
Hi Rick!
- Cinghiale, West Freezing
December 12, 2011
The real problem here is that manufacturers are using a loophole to accomplish price-fixing. I have a bigger problem with these anti-competitive maneuvers than with proper competition in a globalized world.
- Dave, Boulder
December 12, 2011
the answer isn't to try and shut Wiggle et al down (or force MAP pricing on them) - that will do nothing but hurt consumers (and when it happens, we'll all know where to direct our ire). Why make us all pay more than the products are worth? If the Euros can sell them for less, that is the worth...artificially inflating the prices just plain sucks for us.
Instead, why not channel your energies into developing your own house brands, or sourcing brands that you can be competitive (or exclusive with, ie Canyon), or working around the dated distributor middle-man model to just get lower pricing so you can compete? Surely you can wax poetically about a new line of Euro-Inspired, American-designed (Chinese-made) clothing that is priced so as to make us all ask, "Rapha who???"
You, yourself, in your "open letter" to us, told us that in the US, "it's not about the consumer", and that you would be going on to do these things I mention, above. Stop obsessing over something that only serves you, and start innovating.
- mass, MD
December 12, 2011
In the 90's I worked for one of two dominant mail order catalogs in the US and we often had many of the same kind of responses and questions from other - but the dirty secret at the time was that we were buying from Specialized and Trek. These purchases were large pre-season orders that were applied to the OEM purchases of these companies to allow them greater cost saving's in the marketplace on whole bikes.
For instance when you are buying Campy headsets for 11 dollars you can make a very good profit selling them at the same cost as the LBS wholesale. Before you go all - "those components were not in boxes but bags", you are wrong all the italian and 75 percent of the asian equipment were in original boxes with instructions, etc.
The landscape is alterable - it really depends on how you play the game - to quote from a movie - do you want to be the PG guys that everyone loves but who doesn't always get the girl or do you want to be the R rated guy - who might be a bit shady but always gets laid. Either way you can always alter how you play the game.
BTW - I love the business articles, it reminds me of the old Rivendell Readers.
- bernard, new york
December 12, 2011
Well said. As a fellow member of the bike biz, I find it remarkable that you are doing the homework to locate, analyze, and report on things that have such a huge impact on the retail landscape...while other publications and blogs-- including those with "Retailer" in their names-- prefer the head-in-the-sand approach.
Keep up the good work.
- Max, Toadsuck, AR
December 12, 2011
With 13 days left before our Nations largest consumer celebration, why are you still parsing through WIGGLE's accounting? You have an amazing job, 2 homes, couple cars, few bike and an iPad!
- Brian, Big Sur
Twitter
Facebook
YouTube
Flickr
RSS
