The Overseas Purchasing Debate

[biker jk]

The other comment that I would have is that I've heard anecdotally that mom and pop bike shops in the US are dealing with the same issues as we have here, i.e. having to compete with goliath online retailers (both local and O/S) who are able to access much lower wholesale prices due to volume.

Yes and the US LBS complaints were heard by Shimano USA who cut their wholesale prices to help them compete. In contrast, the family run Shimano Australia is under no pressure to cut its huge margins. The Australian LBS should be allowed to order from Shimano Japan direct. Then Shimano Australia would need to cut margins to compete.

[boss]

You're more industry than I am Mr JK - are shop owners/managers vocalising these complaints with Shimano or just shifting people over to SRAM consumables when servicing?

[Avvocato]

The other comment that I would have is that I've heard anecdotally that mom and pop bike shops in the US are dealing with the same issues as we have here, i.e. having to compete with goliath online retailers (both local and O/S) who are able to access much lower wholesale prices due to volume.

Yes and the US LBS complaints were heard by Shimano USA who cut their wholesale prices to help them compete. In contrast, the family run Shimano Australia is under no pressure to cut its huge margins. The Australian LBS should be allowed to order from Shimano Japan direct. Then Shimano Australia would need to cut margins to compete.

If Shimano JP wanted to take over the local operation they would have bought it. Will the Australian LBS be sending warranty parts to JP and leave the customer waiting until the warranty claim is reviewed, approved and then the replacement stock is shipped, because there's no local stock on hand?

There's margins there but it is so people along the supply chain can be employed to provide services. If the links in the chain don't earn a profit the business won't operate and we'll all be left waiting for parts to arrive.

[biker jk]

The other comment that I would have is that I've heard anecdotally that mom and pop bike shops in the US are dealing with the same issues as we have here, i.e. having to compete with goliath online retailers (both local and O/S) who are able to access much lower wholesale prices due to volume.

Yes and the US LBS complaints were heard by Shimano USA who cut their wholesale prices to help them compete. In contrast, the family run Shimano Australia is under no pressure to cut its huge margins. The Australian LBS should be allowed to order from Shimano Japan direct. Then Shimano Australia would need to cut margins to compete.

If Shimano JP wanted to take over the local operation they would have bought it. Will the Australian LBS be sending warranty parts to JP and leave the customer waiting until the warranty claim is reviewed, approved and then the replacement stock is shipped, because there's no local stock on hand?

There's margins there but it is so people along the supply chain can be employed to provide services. If the links in the chain don't earn a profit the business won't operate and we'll all be left waiting for parts to arrive.

It's a 10 hour flight to Japan and 8hr 45 min to Malaysia. Someone in Perth sending a warranty claim part to Shimano Australia (Sydney) would require a 4-5 hour flight. So it's not the real story is it? Shimano Australia is charging an unjustifiable margin to provide that service you mention.