From: v561whw2@ubvmsb.cc.buffalo.edu (Kevin P O'Neill)
Newsgroups: rec.bicycles
Subject: Re: Buyers Co-op
Date: 10 Apr 92 04:00:00 GMT
Organization: University at Buffalo
News-Software: VAX/VMS VNEWS 1.41

In article <92100.155057CBC107@psuvm.psu.edu>, CBC107@psuvm.psu.edu writes...
>Why is Nashbar able to sell a deraileur for $30 when the bike shops want $45?
>It's called buying power.  

Buying power is only one reason for the price difference.  Another one is over-
head.  It simply costs more for bicycle shops to do business.  For example, 
in a bike shop a customer will take normally five minutes or longer to buy 
a derailleur.  The customer normally asks to see the damn thing, fondles it, 
asks how to install it, how to adjust it, and then asks to see something cheaper
or more expensive, or a different make, and then quizzes the employee about the 
difference between the two.  And then maybe purchases it (the emphasis is on 
the word maybe).

When you mail-order, the operator answers the phone, takes your order, name,
address, and credit card info.  That's all, business is over for the day.


						Cars generally suck,
								  Kevin

P.S. a few years ago this young women came into the shop wheeling her bike and 
carrying a twisted derailleur.  She had bought the derailleur from one of
the major mail-order companies.  It was a Huret Duo-Par (sp?, proper name),
and she had bought it because the catelogue had claimed that it was one
of the favorite derailleurs of early mountain bikers because it was so 
durable and handled such a wide gear range.  Utilizing the enclosed
instructions she mounted the derailleur and adjusted it (hah!).  Of course 
it went into her spokes, destroying the wheel and derailleur.  Upon talking 
to her I discovered she had no clue as to how to work on bicycles, yet the 
operator didn't suggest taking it to a shop for installation, but instead 
the operator told her to follow the enclosed instructions.  Bummer.  
Let's see, a new wheel, a new derailleur, straightening the drop out, 
installing and adjusting the derailleur, and installing the wheel.  What a 
deal.  Of course when she called up the mail-order company, it wasn't their
fault (which it wasn't), and the kicker is that for some reason, she felt 
the shop should have given here a break (discount) because of her misfortune.


					Cars generally suck,
								
							    Kevin



Why do we keep fueling the bicycle market with it's
>double and triple cost profit margins?  Let's form a coop.  Chris
>dealers that double and sometimes triple  their profit margins at the expense
>of the enthusiast.  It takes very little effort and some basic organization to
>establish a buyers cooperative, where the members will realize huge savings
>while a small amount is retianed for overhead.  Face it, manufacturers will get
> the same amount for their products whether they sell them to a shop or to a
>coop.  Through some simple 1-800 inquiry, I've found several companies who have
>"no minimum" order policies, but whose wholesale prices go down through quantit
>y ordering.  These companies are typically smaller European and American manufa
>cturers/distibuters who generally put out a higher quality product but sell les
>s of them.  Let's organize.    Chris