nikolai wrote:So you're saying it's because the UK market has more buying power, therefore can get better deals? As well as there being a market to support multiple distributors, where Australia may not?
- If that's the case why doesn't the Australian online bike shop just buy directly from wiggle, add on their cut & sell it here?
(Sorry I'm a bit of an economics retard, had to google parrallel import & economies of scale)
Primarily because shops do more business than a private consumer, and hence would be paying additional tax and duty. There's a $1000 limit and customs apparently watch orders and will add them up if it looks sus. That aside, you'd want to be matching wiggle prices, as consumers wise up, or you're still going to lose business.
Other issues include:
* handling warranty - customers buying locally would expect a better turn around / result (potentially available from a local distributor) than the headache of the bikeshop dealing with warranty via Wiggle.
* wiggle don't always have stock (the local distributor may, but you can't change prices mid-way)
* the distributor, if they find out the retailer is going behind their back... well .. human nature being what it is I am confident this would be a bad thing (tm)
Peter at Abbotsford Cycles when I lived over that way said he would install a crank + chain rings for me for $50 if I bought the cranks from Wiggle, or for free if I bought them from him, acknowledging I could buy them cheaper from Wiggle than he could get them wholesale. A very pragmatic and realistic approach, I felt, and a guarantee of my return custom.