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When Performance's Going Out of Business Prices Are More Than Online Store Prices ...

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When Performance's Going Out of Business Prices Are More Than Online Store Prices ...

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Old 12-20-18, 09:16 AM
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raria
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When Performance's Going Out of Business Prices Are More Than Online Store Prices ...

I always felt Performance prices were less than your traditional LBS store. But when there going out of business prices are significantly more expensive than the on line stores:
Does any bricks and mortar stores have a chance of surviving?

I had to buy some:

Expendables

1) 28mm lightweight folding tires: Serfas Seca Pro at Back-Country/Bike Wagon $19.95, Local Performance Price $39.95 (with 30% discount)
2) Jersey's in XS for wife: Many online options for $25 or under, Local Performance Price with Discount $35
3) Tubes many Amazon places $3 each, Local Performance $5.40 (with 30% discount)
4) 11 speed SRAM chain. Amazon $15 ($3.99 more gets it to me in a day), Local Performance Store $39.99 but it wasn't in stock.
and so on.

Groupo Parts

1) SLX M7000 shifters (not in stock at performance)
2) SLX M7000 RD ($78 Performance online, $47 JensonUSA)
in fact most parts were not in stock and had a 3-7 day ordering period.

The problem is, its not just one online store beating the bricks and mortar stores, its just about all online stores beating them. If you consider randombikesparts.com the LBSs get toasted on price. I get it they provide better service, but its going to have to be amazing service in that they are giving people knowledge they didn't have (not just a warm greeting). But web sites like bikeforums.com give us a lot of knowledge for free.

The silver cloud is their bikes are now very affordable though. But what happens to warranties, after sales support given the entire ASI company is in bankruptcy not just performance?

I still dont know what's going on with Nashbar. Is that going out of business or scaling back or effected by this bankruptcy?

Last edited by raria; 12-20-18 at 09:21 AM.
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Old 12-20-18, 09:41 AM
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The liquidators set the prices and have an obligation to get as much money as they can to pay off debts.
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Old 12-20-18, 11:20 AM
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What he said.

When Target folded up here the liquidation prices weren't that good. Target USA owned the stock, so whatever they couldn't sell they could move to the US stores. It wasn't in their interest to blow it out.

In this case the liquidator currently only needs to be competitive with the LBSs in it's area, it can then take whatever is remaining and sell it online or at auction. That's when you're likely to be able to do your best bone picking.
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Old 12-20-18, 11:50 AM
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I am shocked, SHOCKED! to hear this.
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Old 12-20-18, 12:05 PM
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Is Performance going out of business or are they just closing the retail locations?

I thought they were going to continue as an online retailer.
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Old 12-20-18, 12:28 PM
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Originally Posted by TimothyH View Post
Is Performance going out of business or are they just closing the retail locations?

I thought they were going to continue as an online retailer.
There is much confusion and it seems no one knows for sure. Probably because they are trying to find financial backers. I suspect it's possible they will keep some stores open. It's also possible they will close all stores and just do mail order. I doubt they will shut everything down but who knows? It's very unclear.

Stay tuned.
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Old 12-20-18, 12:56 PM
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Performance and Nashbar both have been on a downward slide for quite awhile. I found other on-line retailers to take the place of being my "go to bike store" long before they announced Chapter 11.
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Old 12-20-18, 01:10 PM
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I thought I'd jump onto Nashbar to look for the OP's shopping list.

They do sell tubes for as low as $3.59. And, if one's total order hits $100, one gets free shipping, and 30% off (more or less).

But, their selection was miserable for a mail order store.

Tubes were about the only thing on the OP's shopping list that I could find.
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Old 12-20-18, 01:21 PM
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Originally Posted by CliffordK View Post
I thought I'd jump onto Nashbar to look for the OP's shopping list.

They do sell tubes for as low as $3.59. :
I buy these whenever I place an order. It's hard to beat $1.99 each.

https://www.chainreactioncycles.com/...rod155230?mx=a
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Old 12-20-18, 01:23 PM
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I can't say what mail order does for brick and mortar.

I assume if you're buying tubes mail order for $3, they are probably costing the company closer to $1.

You're actually over-paying if you're buying tubes for $3 each.
https://www.chainreactioncycles.com/.../rp-prod155230

If the actual cost is close to $1, then the markup at stores is phenomenal. Either that, or they are doing a very poor job at shopping.

Perhaps that $1 tube gets sent to wholesaler #1 who marks it up to $2 and sells it to wholesaler #2 who sells it to the LBS for $4, who then is underwater when trying to sell it to the public for $8.

This is actually a major problem with a company like Nashbar/Performance. They should have their own warehouse and purchasing department, and should be able to snag the best of the best deals. Can they bypass Shimano USA?

They still likely get hit with tariffs and sales taxes that one might avoid when buying from Europe, but...

My LBS purchases crashed after I went to a LBS looking for brake pads and tubes. Got hit with $8 each for tubes, and they tried to sell me the wrong pads (incompatible posts for my brake cantis).
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Old 12-20-18, 01:24 PM
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I like nashbar

As it turns out many other parts for the bike I built up I did buy from nashbar. The Richie seatpost, micro shift cassette

what's happened to them? Are they still in business or they closing up

Originally Posted by CliffordK View Post
I thought I'd jump onto Nashbar to look for the OP's shopping list.

They do sell tubes for as low as $3.59. And, if one's total order hits $100, one gets free shipping, and 30% off (more or less).

But, their selection was miserable for a mail order store.

Tubes were about the only thing on the OP's shopping list that I could find.
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Old 12-20-18, 01:34 PM
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Originally Posted by noodle soup View Post
I buy these whenever I place an order. It's hard to beat $1.99 each.

https://www.chainreactioncycles.com/...rod155230?mx=a
Looks like what I just posted. I've bought a few of those. Sometimes one gets greater discounts if one orders 10.

My latest fiasco I had troubles installing tubes in a road tubeless tire, and ended up puncturing both my spare tubes.

One of them was essentially unpatchable due to a couple of holes right on the ribs/seams. At home, I'll trim the ribs with a razor blade, or perhaps just sand them down.

I've read that the new Continental tubes are supposed to have a seamless design. I have some on order, so we'll see what that actually means.
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Old 12-20-18, 01:38 PM
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Originally Posted by raria View Post
As it turns out many other parts for the bike I built up I did buy from nashbar. The Richie seatpost, micro shift cassette

what's happened to them? Are they still in business or they closing up
They apparently merged with Performance. But, it is not clear what is happening. At a minimum, the companies will go through a major restructuring.

Perhaps they're selling down inventory to cover debts, hopefully not throwing the company into a death spiral.
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Old 12-20-18, 01:46 PM
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Originally Posted by CliffordK View Post
Looks like what I just posted. I've bought a few of those. Sometimes one gets greater discounts if one orders 10.:
I ordered 25 of them earlier this month(to split up between friends), but there was no price break.
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Old 12-20-18, 02:24 PM
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Originally Posted by noodle soup View Post
I ordered 25 of them earlier this month(to split up between friends), but there was no price break.
Right, I was looking in the wrong place.

https://www.wiggle.com/lifeline/inner-tubes/

So, order 10+ of them, and get a 15% discount, bringing the price down to about $1.69 each.
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Old 12-20-18, 02:40 PM
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raria
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Not my question!

I wasn't asking why their prices aren't lower, rather just pointing out that even with 30+% discounts they aren't competitive with online stores.

I'd be 10% more if I can talk to someone who knows their stuff, but paying 30+% more is a bit steep especially when a lot of their inventory has to be ordered anyway.

Originally Posted by Elvo View Post
The liquidators set the prices and have an obligation to get as much money as they can to pay off debts.
Originally Posted by tashi View Post
What he said.

When Target folded up here the liquidation prices weren't that good. Target USA owned the stock, so whatever they couldn't sell they could move to the US stores. It wasn't in their interest to blow it out.

In this case the liquidator currently only needs to be competitive with the LBSs in it's area, it can then take whatever is remaining and sell it online or at auction. That's when you're likely to be able to do your best bone picking.
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Old 12-20-18, 02:52 PM
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ALL of the Performance stores are closing - even the top stores.
They are saying ('cause I think they believe it to be true) that they will NOT remain as an online retailer.
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Old 12-20-18, 02:58 PM
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One thing about discounts is that many stores offer discounts on most of their products, most of the time.

Go to Harbor Freight for example, and it may be hard to find anything that isn't marked off.

Technically, the stores are supposed to offer the products at full price sometime. And, they may play games offering steep discounts on some products hoping customers will buy other products at full price.

So, when you see a 30% off price at Performance, it probably means that they're going to some fictional "full price".

So, say their tubes are $7.71 full price.

They may well have normally sold them for 20% off, or $6.17

So, going back to the $7.71 full price, 30% off brings them down to $5.40 (which is still higher than the typical department store sells them for regular price).

And, higher than Wiggle is selling the tubes in 10-packs.



I've grown to like discounts lately, but it would be so much easier if stores would just mark stuff down to the lowest price possible all the time. Perhaps vary some based on suppliers, inventory, exchange rates, etc.
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Old 12-21-18, 11:49 PM
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Having worked numbers in this industry, I saw this coming 3 years ago. I am not surprised.
Another in the books for the decline of physical retail.
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Old 12-22-18, 10:35 AM
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Interesting that Trek is betting the farm on brick and mortar. They have been buying up small stores all over the country.
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Old 12-22-18, 05:42 PM
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When Sport Chalet was going under, I thought, "Hey, I can go pick up some shoes for my son, who goes through shoes every 6 months." Even on "clearance" at 50-70% off, about $20 a pair more than just buying them off of Amazon, who aren't even the cheapest source for shoes.
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Old 12-22-18, 09:13 PM
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Interesting

Any thoughts on why? And where did you read this?

Originally Posted by colnago62 View Post
Interesting that Trek is betting the farm on brick and mortar. They have been buying up small stores all over the country.
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Old 12-22-18, 09:23 PM
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Originally Posted by CliffordK View Post
I've grown to like discounts lately, but it would be so much easier if stores would just mark stuff down to the lowest price possible all the time. Perhaps vary some based on suppliers, inventory, exchange rates, etc.
Then there is no urgency to buy. JC Penney tried this a few years ago and darn near bankrupted their company. As much as we complain about them, people respond to sales, coupons, and rebates. The sales numbers support it.
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Old 12-22-18, 09:40 PM
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Originally Posted by colnago62 View Post
Interesting that Trek is betting the farm on brick and mortar. They have been buying up small stores all over the country.
I can't speak of every store, but a couple years ago a near to me LBS changed their name to Trek Bicycle Store. However, they are under the same local ownership. https://www.battlecreekenquirer.com/...tore/90852866/
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Old 12-22-18, 10:38 PM
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Originally Posted by cb400bill View Post
Then there is no urgency to buy. JC Penney tried this a few years ago and darn near bankrupted their company. As much as we complain about them, people respond to sales, coupons, and rebates. The sales numbers support it.
I wonder if it is a double edged sword.

Yes, join the bandwagon if everyone else is doing it. But, if a customer knows to expect a sale, then they'll wait until the sale pops up.

Harbor Freight has a 20% off coupon most of the time, but you have to hunt for it now.

A few times a year, they send out a 25% off coupon. So, if I have something big that I'd like, I'll wait until that 25% coupon comes up.

And, then, I can only buy ONE item.

I have to think they hurt a bit from lower markups when those sale coupons come along, although perhaps offset by moving more inventory.

Sometimes waiting makes a purchase not happen at all, or one'll go elsewhere.

One also learns that for a company like Harbor Freight, everything is always on sale. If one doesn't like the price, wait for the next discount to pop up (although some items rarely get sale tags.. thus those 25% coupons).
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