shops wont budge on Trek prices.......

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Comments

  • Rich Hcp
    Rich Hcp Posts: 1,355
    It's important to support the Indy shops

    I'm not buying my MTB from my LBS, well not the nearest one, because he's not an Orange dealer.

    I had to drive 40 miles each way to do the deal!

    However, he will be servicing my bikes, he probbably makes more on that than the bikes he sells, but he does a great job, doesn't charge too much and I'm happy
    Richard

    Giving it Large
  • thefartingcockeral
    thefartingcockeral Posts: 394
    I went to but a gary fisher Big sur but they did not have one in stock for the nest couple of months. The trek 8000 was £100 more than the big sur and out of my budget. Because of this they knock the £99 off the difference between the two bikes so i got the 8000 for £1000 cash and got a free shock pump and an extra pair of semi slicks.
    Thanks Richardson Cycles in Essex
  • taliesyn
    taliesyn Posts: 87
    rob cole wrote:
    there is nothing wrong with a distributor insisting that their dealers maintain the recommend retail price - especially for a large brand like Trek who have dealers all over the UK

    Actually, yes there is. Price fixing is illegal in the UK, and if the dealers provide discount and then have any subsequent supply problem with the distributor, then they have a legal basis to go after the distributor for restriction of trade which is also illegal.

    That's why they're recommended retail prices :)
  • NorwegianBlue
    NorwegianBlue Posts: 484
    taliesyn wrote:
    rob cole wrote:
    there is nothing wrong with a distributor insisting that their dealers maintain the recommend retail price - especially for a large brand like Trek who have dealers all over the UK

    Actually, yes there is. Price fixing is illegal in the UK, and if the dealers provide discount and then have any subsequent supply problem with the distributor, then they have a legal basis to go after the distributor for restriction of trade which is also illegal.

    That's why they're recommended retail prices :)


    A lot depends on how the selling is actually done.

    If the dealer is buying from the distributor or manufacturer and selling on then they can set their retail price at whatever they want, they can even sell higher than RRP if they want. However a lot of shops don't like to sell like this as it leads to a problem with cashflow, buy in a lot of stock and you deplete your liquid assets.

    Sometimes dealers sell on behalf of the distributor/manufacturer on a comission basis. That is to say the stock never actually belongs to the shop. In these cases the distributor sets the price and the retailer can't vary it. This does not constitute illegal price fixing. The salesperson in this cases can no more give you a discount than the person on the till at Tesco can knock a tenner off your bill. However the shop can afford to offer free accessories out of that comission.

    It's always worth asking if you can pick and choose your "free" bits up to the stated value. You may be able to get a nice upgrade in there somewhere.

    Larger retailers have a larger turnover so they won't experience cashflow problems so they can buy in bulk from the manufacturer/distributor (usually with volume discount) so they can set their price where they want.
    "Swearing, it turns out, is big and clever" - Jarvis Cocker
  • averageguy
    averageguy Posts: 41
    Picked up my 2007 rockhopper today...admittedly last years model..but did manage to knock them down to 399...

    Only had time for a quik trundle..due to gardening duties...sigh

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