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Tuesday, March 20, 2012

Don't pay full price... Surf for deals and Haggle

I'm sure there has got to be someone who follows my blog who is in the cycling industry or own even a store. So this might offend them.

Bottom line: Money in my pocket is better than money in your pocket.

This statement is what I believe to be the cardinal rule for a consumer. It doesn't matter if you have got millions or just pennies. Don't settle for paying high management expense ratios on mutual funds. Just find the stocks the mutual funds hold and buy them yourself in your discount brokerage account. Don't pay full price for a car. Call 10 dealerships with the exact trim level and color and ask what is their best price.

This holds true for cycling goods. Cycling for many is a hobby or leisure activity. You want to maximize bang for the buck.

It's too bad that the amazon app doesn't exist for blackberry phones running OS7+. I'm surprised to find that amazon.com is making such a big push into cycling. It will dramatically change the business model of bike stores and distributors. Amazon.com's pricing is amazing to say the least. For example Shimano XTR FC-M985 28/40T crankset stocked and shipped by Amazon.com themselves is $438.51 USD. Next closest price is JensonUSA @ $445.00. JensonUSA and other online discount retailers in the past always
had the best price.

Now if only http://www.amazon.ca/ would follow along. That would decimate the Canadian distributors and lift the strangle hold they have on local bike stores. Allowing the local bike store to at least come close to USA local bike store pricing. 

this is a repost from: http://www.dirtragmag.com/

 

Specialized warns dealers of new price-checking app

 
By Adam Newman

Specialized is warning local bike shops that a new app from Amazon.com could seriously undercut their business. In a letter to dealers from Specialized's founder and president Mike Sinyard warns that the app, which allows customers to scan a bar code and find an item for sale online and make the purchase from their phone - often cheaper than in the store - would effectively turn a local bike shop into a fitting room for online retailers.

The Amazon.com cycling storefront includes "featured brands" Mavic, Crank Bros., Yakima, Thule, Diamondback, and Schwinn. Shimano and Pearl Izumi are other major brands sold through Amazon.
In the letter, Sinyard tells dealers that by ordering, stocking, and servicing these brands, they are supporting Amazon.com's sales while undercutting their own. Specialized even produced a video demonstrating exactly how the app is used.

As a sign of Amazon.com's commitment to cycling sales, it recently hired Paul Calandrella away from Specialized and named him Senior Vendor Manager for Cycling.

On of the major brands also sold on Amazon, Easton-Bell Sports - maker of Bell and Giro helmets and apparel - recently brought a lawsuit against Specialized, alleging that the Specialized was encouraging dealers not to stock Bell and Giro products. That lawsuit has since been withdrawn.

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