Your new local bike store

Posted: August 6, 2009 in Uncategorized
Tags: ,

As much as I love to support local business I find it increasingly difficult to justify the extra expense that comes along with it.  My recent episode with wheels are not putting the local business in good stead I’m afriad.  The issues with my new wheels mean that I am now more than likely in the market for some new wheels once again.  I want to buy locally I really do but you do the maths on the following example:-

Mavic Ksyrium Equipe 09 model

mavic-ksyrium-equipe-set-08-med

Locally the RRP is $799 you would expect a fairly high RRP in relation to other more populated countries however SHOULD there be this much difference.  I dont think so.

I have called around many Perth bike stores and at least this time they all agree on the RRP and I then had prices ranging from $680 – $750.  They blame poor margin and interstate shipping costs for not being able to them lower.  So there you have it best price $680.

Now onto wiggle.co.uk these wheels exactly the same model, colour and specs are now available for a$470.97 including delivery from the UK.  Once again I question the morals of the suppliers and distributers here, they are allowing the local stores very little room to move and thus eventually I summise that I will, as with lots of other people be making there purchase from overseas.

So is there a future in the Bike store market in Perth.  Of course there is, however I see it being more a service and repair area rather than a sales environment.  I will pay a premium to shop locally but not $200 thats just not possible.

So I ask you, comment if you have an opinion on this.  Is it worth the extra money for you to support local business’s especially when you dont always get that extra level of service anyway.  Are Perth bike stores making so much money that they can afford to just let business walk out of the door like this?  Is the likes of Bicycle Victoria, Bicycle NSW etc doing anything to put pressure on the suppliers that are just taking the micky buy continuing to allow this to happen.  Its so important that we allow the love of bicycling to grow and prosper, making this easy and affordable will make more people want to cycle more often

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Comments
  1. Evan says:

    Durx
    I agree that the LBS has become a service/ repair. Today I phoned the shops to see if anyone carried Gaerne cycling shoes. One shop said they can get them for me at $415.00. Instead I ordered from the UK at $210 had a mate grab a pair and received free freight. I get a little frustrated when the local shops carry cheap Chinese accesories and charge huge mark ups when we can get them from Ebay at next to cost. I am all for supporting local business thou I would hope that the local shop would show reason for us to support them.
    Good post mate

  2. craig says:

    Yeah lots of good points, do you think that they would rather make lots of money on a small amount of product than make smaller profits by shifting more items.

    It would be awesome if someone would really shake up the Bike industry here in Australia and then maybe we could comfortably buy from this great country

  3. Leighton says:

    I had the same dilemma last year, and I bought from the UK – my lbs couldn’t even buy parts for the price I was getting handbuilt wheels made.

    My solution is to just go independant from the LBS – they can’t compete on price, and warranty support just isn’t worth it – bike components don’t fail that often and even if I write off the occasional component I’ll still be way ahead.

    Also, the LBS usually can’t get stock in as quickly as I can – that’s an utterly ridiculous state of affairs. Someone’s getting greedy somewhere, but all we can do is vote with out wallets.

    The LBSs aren’t on the way out at the moment – there’s enough uneducated or unfussy consumers that they’re still making good money. I imagine if that ever changes they’ll come into line.

    Perhaps we need to sort out a bike maintainence co-op in perth so people don’t have to go to the LBS just because they don’t know how to fit parts 😉

  4. craig says:

    Yes Leighton that’s spot on. I have no real knowledge on bike maintenance so I am some what bound to LBS.

    If you know anyone who can arrange a group maintenance course or get together that would be a great help to me and I would imagine lots of others

  5. Greg says:

    I wonder if Anaconda will have any impact on the local market? They overprice all of thier products but then agressivly discount them at sale time. But then most of thier range is crap!

    The LBS is good for fitting parts you don’t know how to fit or don’t have the tools to fit… and you don’t know which tools to buy to do the job 😦

    The guys on BNA have been talking about a local group maintenance course for a while http://www.bicycles.net.au/forums/viewtopic.php?f=18&t=14372

  6. Evan says:

    Today I dropped into Bike Force in Freo to grab some gear….I don’t think of myself as a tight arse or anything thou just couldnt hand over the cash and instead came home and ordered some more gear from chain reaction in the UK. The LBS needs my buisness more than I need to give it to them. Don’t get me wrong I wish I had the money to not have to worry about buying O/S and could just pay the 300% mark up.

  7. Dennis says:

    just to clarify a few things .yes it is a lot cheaper to buy overseas on certain products but their is a few factors that help decrease the price .
    no 1 they dont charge you 15% vat or gst to export .
    no2 aussie customs unless it is over a $1000 cant be botherd to charge you import tax as is done on all our stock .
    no 3 the exchange rate is at a all time high in regards to aussie versus pounds .
    no 4 most of the stuff bought in australia is bought in us dollors .
    no 5 most internet sites have very little to do with the customer timewise so the overheads are no where near as much as a shop pays .
    and as for 300% mark up that would be nice but unfortunatly for us it isnt anywere near that .i would like to tell you what it is but you wouldnt beleive me .im not saying dont buy from overseas you would be mad not to but dont think it is the bikeshop that is screwing you on price as proved above .
    Dennis G P C

  8. Evan says:

    Dennis…..great post and thanks for clarifying a few points. 300% is me beating a drum – thats just what it felt like at the time. To be honest I have never been into G P C thou will in future. I understand the overheads involved in business here in Australia i.e. super, rent, etc etc. The cycling industry needs world parity on certain products if you ask me.

  9. Evan says:

    Further…I dropped into a TBE store last week and was looking at some frames on the top rack. I touched one frame as all staff were busy when I heard “hey dont get that down without asking”. There was no need to get it down after that comment being yelled across the store as I just walked out. This is one TBE store and others I have dealt with (Nedlands) have always offered great service.

  10. great night out, highly recommend seeing Ben when he is back, after the birth of his baby due in around 4 weeks. On a side note he is also releasing a free album with his original band which is available as a free download from his website in the next week or so.

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