sarcasm meter: jerk mode
Join Date: Mar 2005
Location: Montréal, QC, Canada
Bikes: 2005 Kona Blast; 2005 Turner Flux, 2006 Felt F3C
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
I don't have answers but I have questions that I would also like to ask LBS owners that may or may not help 135crewchief.
From what I understand, the LBS has a tough time competing against the PricePoint.com, JensonUSA, etc because these guys buy closeout/gray market stuff. What I've read and understood is that there are manufacturers/wholesalers/brokers in China/Taiwan/Hong Kong who have overstock from production runs. These gray market parts are much cheaper than what a LBS can buy from his local distributor.
Anyway, what I want to know is, why don't the LBS buy directly from these Chinese companies? I can get online right now and find a brand new Fox F80RLT fork on sale from a Taiwanese eBay seller going on average for $300-350. The MSRP on that fork is $675. If I can buy one fork at $350, why can't a LBS buy 10 at $275? Is it because you have signed agreements with local distributors?
I am very curious about this as everyone knows the LBS can't compete against the prices at PricePoint. However, I'm wondering why not? Why not play the same game that PricePoint and company plays? Any info on this, markups, the path parts take (manufacturer, national distributor, local distributor, LBS, etc) would be very helpful.
First Class Jerk