Originally Posted by
WalksOn2Wheels
It was mentioned earlier, but I keep forgetting that they actually sell bicycles made by them. So they get OEM pricing on parts. Which means they can easily undercut every U.S. dealer and still make a profit.
It seems to me like there should be a pricing policy in effect. It devalues the brand and hurts your dealer network. I used to work for a motorcycle parts distribution company and we had a person in charge of calling dealers out if they were trying to blow out items they were specifically told could only be marked down X%.
There is more to it than that. LBS in US have to buy direct from Shimano who sets prices, in Europe they go through a sale channel so prices can be more competitive. And also in US, Shimano's agreement with vendors doesn't let them sell OEM parts otherwise maybe places like Bikesdirect would sell OEM build kits. But regardless, parts in retail packaging are much cheaper in UK/europe than US. Of course if you live in the UK or Europe you have to pay VAT which is like 20% so it's a perfect storm that UK sites offering free shipping to US with no added taxes makes things a great deal for us. The shoes I bought cost $199.99 msrp and and I haven't seen any US retailers discount them at all. I paid $67 for the pedals. I have seen the pedals for $67 at Jenson and Nashbar but both charge local 9% sales tax. So with 10% first order discount on PBK I got both for $198 shipped and If I bought locally I would have paid $291. I'd love to support local shops and business, but $100 is not chump change to me