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Old August 19th 03, 09:31 PM
Jim Edgar
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Default Say it aint so Shimano ... PART 2

I wrote:
The quality shop has a right to make more margin on one item to support
lower margins on other things, not to mention the costs inherent in carrying
inventory in the shop, so we can all go in and drool over cool gear and
things.


Mike S. at mikeshaw2@coxDOTnet wrote on 8/19/03 1:03 PM:
That's called Labor. Where do you think shops make their money? It
certainly ain't on parts!


Parts is Parts. Labor isn't what we're talking about here.

The issue at hand is that another poster stated that maintaining MSRP's
somehow subsidizes shops which aren't well run.

Not all margins are the same. Sometimes a superior product like the Chris
King headsets have a lower margin, while the "bread & butter" replacement
stuff has a great margin. When the margin is below a certain level, there's
no reason for a shop to stock something.

For the manufacturer of a quality product, the issue is that they have to
ask a retailer to stock their product, which might sit there for a bit
longer than the $20 no-name brand version. Why is it in the retailer's
interest to do so if they are only going to make 5% on something?

It seems like CK is weeding out the guys who want to place the order with
them _after_ they take the customer's money. They want to support their
dealers who have the stuff in stock - and they realize that costs money for
the dealer.

-- Jim

ps - please take a look at your newsreader quoting. it ain't.





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