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Why are Chain Reaction (and other UK sites) so cheap?

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Why are Chain Reaction (and other UK sites) so cheap?

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Old 04-30-15, 09:09 PM
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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
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Old 04-30-15, 10:04 PM
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Originally Posted by Porschefan
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
A lot of it has to do with the recent strength of the dollar. The dollar has increased about 30% vs the Euro in the last year. Against the GBP it is up about 15%.

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.
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Old 05-01-15, 06:21 AM
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Shimano does their own distribution in the USA and screws over bike shops on wholesale pricing.
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Old 05-01-15, 06:28 AM
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Originally Posted by dr_lha
Shimano does their own distribution in the USA and screws over bike shops on wholesale pricing.
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.
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Old 05-01-15, 06:41 AM
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Originally Posted by bikemig
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.
Yeah I know. I just bought a pair of Pro4 tires with free inner tubes off Merlin for about what I'd pay for one locally. Remember also that Euro prices are set to include 20% VAT, which we don't pay.

Last edited by dr_lha; 05-01-15 at 08:02 AM.
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Old 05-01-15, 06:44 AM
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Originally Posted by dr_lha
Yeah I know. I just bought a pair of Pro4 tires with free inner tubes of Merlin for about what I'd pay for one locally. Remember also that Euro prices are set to include 20% VAT, which we don't pay.
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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Old 05-01-15, 09:20 AM
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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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Old 05-01-15, 10:09 AM
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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.

Last edited by RocTurk; 05-01-15 at 10:15 AM.
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Old 05-01-15, 10:27 AM
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Originally Posted by RocTurk
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'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.
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Old 05-01-15, 10:42 AM
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Originally Posted by dr_lha
That and people charge what they think people will pay for a product.
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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Old 05-01-15, 10:47 AM
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Originally Posted by dr_lha
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.
Nothing else left to say in this one.
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Old 05-01-15, 11:23 AM
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Originally Posted by RocTurk
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.
Interesting. I have seen complaints from some on forums that they were surprised by unexpected customs charges. Surprised, because apparently they were used to nothing extra being charged.

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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Old 05-01-15, 11:32 AM
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Originally Posted by Porschefan

If I can come to a decision on the size--46 or 47?

STP
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.
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Old 05-01-15, 11:51 AM
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Originally Posted by RocTurk
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.
I think that most rely on the fact that people are often uncomfortable ordering from abroad. I only do so when the savings are significant and I'm not in a rush to get the parts.
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.
Sounds like an improvement from writing "gift" on them. That said, the US import/export system is ridiculously complicated, so it might just not be worth their time trying to put the right thing on it.
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Old 05-01-15, 12:33 PM
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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.

Last edited by Booger1; 05-01-15 at 12:36 PM.
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Old 05-01-15, 02:33 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.
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Old 05-01-15, 03:06 PM
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Originally Posted by SpeshulEd
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.
And the shoes are sold by a UK company!

STP
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Old 05-01-15, 06:08 PM
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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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