Why are Chain Reaction (and other UK sites) so cheap?
#1
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Why are Chain Reaction (and other UK sites) so cheap?
I am pricing out a set of SPD shoes, pedals and cleats and while shopping I came across Chain Reaction cycles.
Prices I found:
Shimano MT34 shoes: $61.49
Shimano A-530 pedals: $35.99
Shimano SH56 cleats: $12.99
Total: $110.47, free shipping.
REI prices on same (I know they aren't the cheapest, but for comparison's sake):
Shoes: $100.00
Pedals: $80.00
Cleats: $18.00
Total $198.00.
I guess there are some risks in ordering from overseas--like having to pay for return shipping if something is wrong, but wow, this is a hefty savings. Also Chain Reaction has the shoes in black--nobody else I can find does, at least in my size.
Just curious about why the huge discrepancy.
STP
Prices I found:
Shimano MT34 shoes: $61.49
Shimano A-530 pedals: $35.99
Shimano SH56 cleats: $12.99
Total: $110.47, free shipping.
REI prices on same (I know they aren't the cheapest, but for comparison's sake):
Shoes: $100.00
Pedals: $80.00
Cleats: $18.00
Total $198.00.
I guess there are some risks in ordering from overseas--like having to pay for return shipping if something is wrong, but wow, this is a hefty savings. Also Chain Reaction has the shoes in black--nobody else I can find does, at least in my size.
Just curious about why the huge discrepancy.
STP
#2
Senior Member
I am pricing out a set of SPD shoes, pedals and cleats and while shopping I came across Chain Reaction cycles.
Prices I found:
Shimano MT34 shoes: $61.49
Shimano A-530 pedals: $35.99
Shimano SH56 cleats: $12.99
Total: $110.47, free shipping.
REI prices on same (I know they aren't the cheapest, but for comparison's sake):
Shoes: $100.00
Pedals: $80.00
Cleats: $18.00
Total $198.00.
I guess there are some risks in ordering from overseas--like having to pay for return shipping if something is wrong, but wow, this is a hefty savings. Also Chain Reaction has the shoes in black--nobody else I can find does, at least in my size.
Just curious about why the huge discrepancy.
STP
Prices I found:
Shimano MT34 shoes: $61.49
Shimano A-530 pedals: $35.99
Shimano SH56 cleats: $12.99
Total: $110.47, free shipping.
REI prices on same (I know they aren't the cheapest, but for comparison's sake):
Shoes: $100.00
Pedals: $80.00
Cleats: $18.00
Total $198.00.
I guess there are some risks in ordering from overseas--like having to pay for return shipping if something is wrong, but wow, this is a hefty savings. Also Chain Reaction has the shoes in black--nobody else I can find does, at least in my size.
Just curious about why the huge discrepancy.
STP
I'm not sure, but there may be differences in fair trade laws too. I think that in the U.S., importers/distributors can dictate a minimum price, not sure about GB and Europe.
#3
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Shimano does their own distribution in the USA and screws over bike shops on wholesale pricing.
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But it's not just Shimano pricing. Schwalbe tires are a lot less expensive in the UK; so are a lot of other products.
#5
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Good to know. I thought it might have something to do with distribution. The price difference is just too large to be explained solely by currency fluctuations. I can't believe how much cheaper Shimano stuff is from the UK.
But it's not just Shimano pricing. Schwalbe tires are a lot less expensive in the UK; so are a lot of other products.
But it's not just Shimano pricing. Schwalbe tires are a lot less expensive in the UK; so are a lot of other products.
Last edited by dr_lha; 05-01-15 at 08:02 AM.
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Right we don't rely on sales tax the way Europeans do. That plus currency fluctuations may explain the cost differential even with products that have similar distribution networks in the US and UK.
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You could probably find a U.S. retailer who could beat the REI prices. I'm a member and I like REI, but their stuff is priced at list (until it goes on sale).
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Not sure if it's just Shimano. Just checked Selle Italia Max SLR Gel Flow Saddle, Merlin lists for 106$, cheapest at amazon 164$, REI for 200$ (if you're a member you get 10% cash refund next year so effectively 180$ in the long run). I wouldn't risk buying a saddle online unless you tested/used the saddle before and know what you're buying but this was just to give an example.
I purchased my Shimano shoes from Merlin for 95$ while the cheapest in the US was 150$. I knew my Shimano sizing so didn't have a sizing issue and shoe arrived in 8 days. Not bad at all.
By the way if you're lucky to find the size and model you're looking for, Sierra Trading Post in US is hard to beat. I purchased most of my cycling/skiing/hiking clothes from STP, they have a good selection of < S or >XL sizing items (I'm on the clyde side). Haven't tried parts yet (except for a Brooks saddle for my wife) but they offer good deals there too.
I purchased my Shimano shoes from Merlin for 95$ while the cheapest in the US was 150$. I knew my Shimano sizing so didn't have a sizing issue and shoe arrived in 8 days. Not bad at all.
By the way if you're lucky to find the size and model you're looking for, Sierra Trading Post in US is hard to beat. I purchased most of my cycling/skiing/hiking clothes from STP, they have a good selection of < S or >XL sizing items (I'm on the clyde side). Haven't tried parts yet (except for a Brooks saddle for my wife) but they offer good deals there too.
Last edited by RocTurk; 05-01-15 at 10:15 AM.
#9
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That and people charge what they think people will pay for a product. They obviously decided that $200 was the right MSRP for that saddle in the US market. In the UK market, the right price was apparently around £100.
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So, do you think this is the dominant factor vs sales/import taxes? If latter, to bring fair competition, US customs may always hold the item and ask buyer to pay an import tax to compensate for the difference but until they start doing that there's a clear advantage buying some of the items overseas if you know what you are really getting.
Btw, when my shoes arrived, the customs declaration was "rear derailleur". UK sites might be getting around US customs by these types of false declarations where the agents don't even bother checking the item. However, I highly doubt they'd let a larger size box for instance a wheel set or a bike frame go without checking.
Btw, when my shoes arrived, the customs declaration was "rear derailleur". UK sites might be getting around US customs by these types of false declarations where the agents don't even bother checking the item. However, I highly doubt they'd let a larger size box for instance a wheel set or a bike frame go without checking.
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I'm not sure it should be that much of a surprise that buying a European product from Europe would be cheaper. I suspect the difference here is due to the presence of an extra middle man doing the importing into the USA.
That and people charge what they think people will pay for a product. They obviously decided that $200 was the right MSRP for that saddle in the US market. In the UK market, the right price was apparently around £100.
That and people charge what they think people will pay for a product. They obviously decided that $200 was the right MSRP for that saddle in the US market. In the UK market, the right price was apparently around £100.
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Btw, when my shoes arrived, the customs declaration was "rear derailleur". UK sites might be getting around US customs by these types of false declarations where the agents don't even bother checking the item. However, I highly doubt they'd let a larger size box for instance a wheel set or a bike frame go without checking.
If I can come to a decision on the size--46 or 47? I think I'm going to try them out and see for myself.
STP
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I wear size 46 in Shimano and 11-11.5 US. According to their size chart (https://site.cellbikes.com.au/userfil...ng%20guide.jpg) 46 falls right between 11-11.5 and fits perfectly. FYI, some of their models also come in 46.5.
#14
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So, do you think this is the dominant factor vs sales/import taxes? If latter, to bring fair competition, US customs may always hold the item and ask buyer to pay an import tax to compensate for the difference but until they start doing that there's a clear advantage buying some of the items overseas if you know what you are really getting.
Btw, when my shoes arrived, the customs declaration was "rear derailleur". UK sites might be getting around US customs by these types of false declarations where the agents don't even bother checking the item. However, I highly doubt they'd let a larger size box for instance a wheel set or a bike frame go without checking.
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Starts with a G and ends with a D.....With an REE in the middle.
Chain Reaction is great.....I buy stuff from them all the time.....Nice people,fast shipping,have almost everything......What's not to like.
Chain Reaction is great.....I buy stuff from them all the time.....Nice people,fast shipping,have almost everything......What's not to like.
Last edited by Booger1; 05-01-15 at 12:36 PM.
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MT34 - $74.71
Amazon.com : 2014 Shimano Mens MT34 Shoes Black 45 : Sports & Outdoors
A530 - $51.94
Amazon.com : Shimano Pd-A530 Spd Pedals Black : Bike Pedals : Sports & Outdoors
SH56 - $13.50
https://www.amazon.com/Shimano-SM-SH5...s=Shimano+SH56
I pulled Amazon pricing for these...I'd have to imagine Chain Reaction Cycles can still beat the pricing due to the volume that they're selling.
Amazon.com : 2014 Shimano Mens MT34 Shoes Black 45 : Sports & Outdoors
A530 - $51.94
Amazon.com : Shimano Pd-A530 Spd Pedals Black : Bike Pedals : Sports & Outdoors
SH56 - $13.50
https://www.amazon.com/Shimano-SM-SH5...s=Shimano+SH56
I pulled Amazon pricing for these...I'd have to imagine Chain Reaction Cycles can still beat the pricing due to the volume that they're selling.
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MT34 - $74.71
Amazon.com : 2014 Shimano Mens MT34 Shoes Black 45 : Sports & Outdoors
I pulled Amazon pricing for these...I'd have to imagine Chain Reaction Cycles can still beat the pricing due to the volume that they're selling.
Amazon.com : 2014 Shimano Mens MT34 Shoes Black 45 : Sports & Outdoors
I pulled Amazon pricing for these...I'd have to imagine Chain Reaction Cycles can still beat the pricing due to the volume that they're selling.
STP
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The U.S. distribution system adds to the price. Many European sales places buy direct and cut out the middle distributor.
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