Originally Posted by lopek77

Design of Shimano distribution tree has no impact on cycling customer. That will not change prices in LBS, they will be high as always. Average customers just needs to find the cheapest distributor, which will be an online source.
It's a fact that buying power shape the price. Chain Reaction as the biggest online store in the world, is providing one of the lowest prices on the market. They still make money sending their items from Europe to USA, sometimes even offering free shipping.
What an average person doesn't know, is that the part which cost $50 at LBS, was sold to the distributor for $10, $20 bucks? Everything in between is a profit and/or cost for the next guy. If there is a direct sale Factory-Distributor/Dealer-End customer, there is a potential huge saving, which dealer can pocket it, or share with the customer. That's what we see with Chain Reaction Cycles store.
American distributors selling products to LBS, wanted to kill all the distribution channels that online stores were using. It was a big battle... Greedy LBS wanted to be better than greedy online stores...Business is business...It's all about making money. They dont care about customer....all the care is their bottom line. What they forgot is that it's the customer who will decide who will win the battle.
We know that online model is better, is growing fast, and people are price shopping. LBS has no chance to survive if their bottom line is based on selling stuff to a walk in customers...