Thread: Ribble
View Single Post
Old 01-04-12 | 07:02 PM
  #15  
tsl's Avatar
tsl
Plays in traffic
 
Joined: May 2006
Posts: 6,971
Likes: 15
From: Rochester, NY

Bikes: 1996 Litespeed Classic, 2006 Trek Portland, 2013 Ribble Winter/Audax, 2016 Giant Talon 4

Originally Posted by stapfam
Have to agree but My LBS is still in business because they realise that they have to match prices wherever they can.
The trouble here is that in many cases, Ribble's prices are less than US dealer cost. The aforementioned importers and distributors see to it that the retailers cannot be competitive.

Over on another forum in a "Gray Market" thread, a LBS owner listed his cost for a Shimano 6750 crankset and compared it to Ribble. I just bought one from Ribble, and yes, indeed, it was less. That's the only reason I could afford to hang Ultegra on the Litespeed. If I'd had to buy from even US internet sources, I'd have only been able to afford Tiagra. And only Sora if I'd gone to an LBS.

I understand too that since Ribble OEM's their own bikes, they get OEM pricing. But still, for them to add on a profit margin and still be less than US dealer cost says something about how inefficient the market is in the US with those extra layers of middlemen. Any economist will tell you, an inefficient market is a failing one. LBSs seem to agree.

It's not those of us who buy "gray market" who are driving LBSs out of business, its the importers and distributors they must buy from.

You know, thinking as I'm writing, maybe we need to put the blame back with the manufactures. BikesDirect.com can sell whole bikes for less than the cost of the components. They can do that because, like Ribble, they get OEM pricing and buy direct form Shimano, et. al. Maybe Shimano and friends need to assess who their real friends are in the US market, and sell direct to LBSs, instead of selling direct only to the folks who are killing US retail.

IMHO.
tsl is offline  
Reply