Shimanos new marketing and your wallet
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Shimanos new marketing and your wallet
I was talking with a well respected bike retailer local to me the other day and found out that we can look for significant increases in Shimano stuff this next season.
Seems thay are changing the marketing strategies a bit and are fixing the bottom end retail prices so that a retailer must charge X ( minimum )amount or lose Shimano product lines. And the new price list that he showed me was outrageous. I'll be looking seriously at alternatives to Shimano.
Of course it works out good for LBS in that online marketers are subject to the same minimums. The consumer loses on this deal however.
Seems thay are changing the marketing strategies a bit and are fixing the bottom end retail prices so that a retailer must charge X ( minimum )amount or lose Shimano product lines. And the new price list that he showed me was outrageous. I'll be looking seriously at alternatives to Shimano.
Of course it works out good for LBS in that online marketers are subject to the same minimums. The consumer loses on this deal however.
#2
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I've seen X-mart stores often advertising "Shimano" on their bikes, could this move be an attempt to eliminate them?
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#4
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Originally Posted by Aloner
I thought price fixing was illegal?
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I think Shimano is overrated in the first place. My preference has always been Suntour from way back. Suntour is still available in Europe, but for some reason has been entirely supplanted by Shimano here in the USA. I say boycott the tossers if they can't be reasonable!
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How much did dura ace cost last year? My local store is offering 2004 dura ace minus the hubs for $1300. I was under the impression that it was just about the same price last year.
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Can you line-item what exactly you get for $1300? I bought a Shimano Dura-ace rear derailleur back in about '81, and it was a piece of crap, didn't last six months. I can't imagine paying $1300 for this stuff...please, elucidate me on why this is desirable equipment at a reasonable price...
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Holy Crap!!! 1300 is more than I paid for my bike! And it wasn't a cheap one. No wonder cycling is not popular. The average schmoe can only afford a second hand Huffy. You would think that you could get a quality bicycle for $1000
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Originally Posted by Chris L
In this country it is, however, the law is very vague and does allow for loopholes sometimes. Basically, if Shimano could argue to a judge that there were other reasons for discontinuing to supply a particular retailer (possibly that the shop owner lacks in expertise on the product, or doesn't have the proper capacity to display it properly or something on those lines) they could get away with dumping retailers. Of course, if they start doing it too often, they may not be able to convince too many judges.
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Gee,i feel better to know shimano will be the only one to raise prices,thanks for the info.
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Shimanos new marketing and your wallet
Marketing 101 - Price product at a cost the market will bear that maximizes profit within marketshare.
Consumerism 101 - Evaluate product using cost vs. benefit analysis when making purchasing choices.
Fail either class and suffer the financial consequences. Pretty basic stuff
Consumerism 101 - Evaluate product using cost vs. benefit analysis when making purchasing choices.
Fail either class and suffer the financial consequences. Pretty basic stuff
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2003 Iceman Challenge - 2:34:55 - 897 / 2,000*
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Originally Posted by Aloner
I thought price fixing was illegal?
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I'm curious to know how Shimano got so big. Years ago their components were found on entry level bikes and wasn't exactly impressive.
Regards.
Regards.
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Originally Posted by JCM800
I'm curious to know how Shimano got so big. Years ago their components were found on entry level bikes and wasn't exactly impressive.
Regards.
Regards.
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Originally Posted by JCM800
I'm curious to know how Shimano got so big. Years ago their components were found on entry level bikes and wasn't exactly impressive.
Regards.
Regards.
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Since the American dollar is currently worth about .87 cents compared to the Euro dollar, you are going to find substantial price increases coming from Europe. The increases began this year but will be much higher in 2004.
I believe there is a law, here in the states, that says a company can not dictate how high a price you can charge. Companies get around that by saying how little you must sell it for in order to retain your ability to stock certain products.
I believe there is a law, here in the states, that says a company can not dictate how high a price you can charge. Companies get around that by saying how little you must sell it for in order to retain your ability to stock certain products.
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Originally Posted by ngateguy
They bought suntour and used to make really good fishing reels. I have heard that Shimano was going to crack down un un authorized sales of their parts I didn't realize they were going to make us consumers grab our ankles when they did it. I really miss suntour they made some great stuff. My first Bianchi was all suntour. My friend still owns a Nishiki with suntours I find it a joy to work on it.
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Shimano is the same way with their fishing equipment. You cannot find it on discount. They have used the time proven method of buying up market share and now that they have some 90% in the north American market they will use this muscle to put pricing controls on their products.
BTW, Campy Forever! It is better gear, in any event.
BTW, Campy Forever! It is better gear, in any event.
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Originally Posted by ljbike
I believe there is a law, here in the states, that says a company can not dictate how high a price you can charge. Companies get around that by saying how little you must sell it for in order to retain your ability to stock certain products.
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I might add that doesn't mean you have to buy Shimano, maybe its time to check out campy
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Originally Posted by Aloner
Check out SRAM if you're an MTBer.
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I've got Suntour shocks on the European Trek I bought last year, so Suntour is still making some components, but possibly not doing distribution anymore in the US?