An Open Letter To Chain Reaction Cycles

HIFI2009

Likes Bikes
Let's face it, the world is changing. CRC and the like are here to stay. I ordered parts from both Wiggle and Pushys (local online attempt) on Christmas Eve. Wiggle order arrived on Thursday - three days later that included Christmas Day and Boxing Day. I'm still waiting on the Pushys order. I suspect that their staff are all on the Christmas break.

With regards to LBS, I regularly frequent Bicycle Recycle here in Vic. On multiple times I have taken in a "project" that I have attempted to complete but failed. They never complain that I am bringing in bikes that have been pieced together through online orders and we always have a nice chat. Guess who I recommend to my colleagues? Furthermore, I nearly always buy something else from them, whether it be something I just can't wait for or an impulse buy. But it helps that they have seriously good mechanics.
 

unitec

Likes Dirt
What Local Industry??

I am often given the guilt trip by my mates that work for bike shops & importers however what I say is that the "industry" died years ago.
Once upon a time we did have a real bike industry where talented Aussy craftsmen actually made bicycles however the bike shops & greedy importers killed it off by transferring manufacturing to Taiwan.
Now these very same middle men want the public to protect their profits by spending double for bike parts. Get real.
 

Snit

Likes Bikes
Perhaps the LBS is already dying in the eastern states. So many disgruntled customers here.
I can think of at least 5 first class bike shops in Perth inner city that provide reliable efficient service.
You guys seem to take your bikes to shit ones hence feel no need to support them. We have shit ones here too I just don't take my bikes there!

I have no agenda but I pay alot of tax so that makes you a bit more aware about what that is being used for.
It feels great to see this used to assist disadvantaged people, but it shits you to see people avoid paying it in the purchase of luxury items.
Online shopping is here to stay, so I think its the governments responsibility to keep the grass roots Australian small business competitive by applying appropriate levels of duty on imports.

Pharmaboy - you troll far and wide with your delusions of grandeur. I suggest you be careful with your accusations.
You are off your head.
 

MARKL

Eats Squid
I am often given the guilt trip by my mates that work for bike shops & importers however what I say is that the "industry" died years ago.
Once upon a time we did have a real bike industry where talented Aussy craftsmen actually made bicycles however the bike shops & greedy importers killed it off by transferring manufacturing to Taiwan.
Now these very same middle men want the public to protect their profits by spending double for bike parts. Get real.
I have to agree 99.9% of bikes and bike components are imported - who cares if they come via CRC or a middleman in Australia they are still all imported. I had to laugh the other day I saw an ad for some de walt power tools - they were advertised as 'not imported' as if coming through an Oz distro suddenly makes them 'Australian Made'.
 

GDonehue

Likes Dirt
I am always interested to read threads like this as I have seen the tone change over the last five years and I think that in itself shows that the market has spoken. I will say from the outset - I have worked for both sides of the fence (and even in the middle of the fence for a bit). In my mis-spent youth I was a bike store brat working both down here in Melbourne and up in QLD. In that time I worked for some great stores and some absolutely shit stores. A while back in 2008 I worked for 12 months as the guy who ran Torpedo7's operations in Australia. At the time that made me the second most evil bastard after John Howard (and you can troll through the posts to see). Heck - I even remember the vitriol that was tossed at me when we 'dared' to sponsor the Otway Odyssey in 09 - You'd think we were burning flaming babies! In the end I left Torpedo with a sour taste in my mouth because I saw a lot of pretty shitty things being done - but even I have to admit that this was to be expected. You do not sell at those prices without cutting corners and to expect it not to be that way would be bloody stupid. THEY ARE NOT A LBS - BUT THEY DO NOT WANT TO BE ONE. If the LBS want to be an online store and compete for that dollar - don't suddenly expect CRC and others to play by the LBS rules all of a sudden.

What I found funny though - and what I think is at the crux of this 'argument' is that when we did sponsor the Otway ride we were told how we had no place in the industry and how we knew nothing about servicing our customers - yet on the two or three training days they held we were the ONLY guys to turn up. We also brought two mechanics to the event day and had it not been for them being there a whole bunch of folk would have been fair dinkum screwed. Where were the local companies during these days... got me stuffed. They weren't at home counting their huge profits, as some of you suggest, but I think they were at home watching an opportunity sail on by, so fuck 'em I say.

I know and use some great bike stores and they know I buy both local and overseas. Most of what I get from overseas is not available here or can only be purchased with the exchange of a kidney and even they admit that. For as long as I get this great service I will go back and pay a premium for it as it is about value, not cost, at my end of the market. If a local bike store wanted to become the next CRC they could - but I'd prefer to see someone with some balls do what the guys at Deubel, Bilt and Zerode in NZ are doing and produce some quality local product.
 

Glenn Polner

Likes Bikes
The dudes hate is misdirected. CRC are not evil.
Agreed what a long winded piece of nonsense, take it up with the individual manufactures and Australian government for taxes and costs

Chain Reaction rocks (even if my bank account hates them)
 

Norco Maniac

Is back!
geez if he thinks CRC stock anything much worth buying for a race bmx, the guy's delusional. the odd thing like grips, chains etc but for anything much more than pants and jerseys etc it's easier to go straight to the manufacturer or their Aussie distributor. i deal direct with the dealers here in SA who stock Supercross, Bombshell, Answer, Crupi, Snap, Merida, you name it, and these guys don't have a shopfront either.

if my LBS can't or won't order me in something - like the front skewer for my hardtail that i chased through my closest LBS for three months before i gave up and went to another - i'll look online. simple. i need my bikes in working order and i will get the parts where and when i can.

even with race gear (apparel), none of my local shops stock anything much, so it's not even possible to go try something on and ask them to order it in. how can i give the bike shop my hard-earned if they don't carry the stock i need to buy?
 
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The Duckmeister

Has a juicy midrange
There's a vicious cycle at play too regarding the stock-keeping & pricing. Shops are not keeping as much stock as some people would like because customers will just tell you that they can buy the stuff for half the price online and not buy it from the shop. So the shops won't outlay the cost of buying in stock that isn't in the same degree of demand that it used to be, 'cos it's not going to move as much. It's simply not viable to keep everything on the shelf. It then goes up the chain; the shops buy less stock from the suppliers, but the suppliers still have the shipping costs etc to recoup over less stuff, so the costs get proportionally higher, so prices aren't likely to become competitive unless some really drastic action happens in multiple stages of the chain. One thing is certain, it's not the people at the coal face in the shops that are making truckloads of money in the bike business. I know, I'm one of them.
 

Dicko888

Likes Dirt
local distributors would appear to be the problem. Maybe the manufactures wont allow it but the LBS should be buying direct from the manufacturer.
 

Knut

Troll hunter
I just signed a multi-billion dollar contract with POSM and Dozer. We have just purchased 51% of all world oil stocks. Details are being finalised as we speak. The price of fuel is going up by 300%. How cheap do you reckon you can ship your goods to your Aussie customers now Mr Chain Reaction?
 

rb baby

Likes Dirt
Dumb letter dumb topic, evolve or become extinct as CRC has done.

Show the Aussie consumer a similar or better way locally and we will support it.
 

dunndog

Eats Squid
I just signed a multi-billion dollar contract with POSM and Dozer. We have just purchased 51% of all world oil stocks. Details are being finalised as we speak. The price of fuel is going up by 300%. How cheap do you reckon you can ship your goods to your Aussie customers now Mr Chain Reaction?
Wouldn't matter, shits still way cheaper when paying for shipping. And it'd also increase the cost for distributors to get product in, so the difference made would be zero.
 

RYDA

Likes Bikes and Dirt
Just completed a $160 CRC order. In the end saved 50% of my total transaction. Best thing is, I'll probably be seeing my stuff early next week.

 
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madstace

Likes Dirt
local distributors would appear to be the problem
I get shot down everytime I suggest this here, but recent experience has only confirmed the above for me. A (hopefully) quick story...

I recently purchased my semi-custom SB66 from my awesome LBS (all names withheld to protect innocent and guilty). While they did their best to make the process painless, there were/still are some hiccups.

  • Yeti distributor stuffed up a couple of the specs, but to their and the LBSs credit, these were quickly resolved. Some most likely at the LBSs expense I suspect.
  • Changed bars to Easton Havoc Carbons. Even though this was an order, not just an enquiry, after 2 months there's no sign of the bars or even an ETA from the distributor.
  • Raceface stem was initially spec'd, but after the distributor sent a direct mount, then advised the stem wasn't available in Oz, I gave up. I also enquired about a Raceface bar in lieu of the Easton, but not holding my breath.
The above just illustrates to me how hard it is for the good LBSs out there to provide parts in a timely fashion. I get the additional cost argument but I don't see the point in paying the extra when some distributors don't seem to be working very hard for their customers. I'm not calling all distributors out, but in the above examples, there's some pretty poor form.

The most unfortunate thing is my LBS is too understanding of what drives people to shop with CRC and the like, and most likely won't hate me when I probably make the inevitable OS order, even though I'd prefer to buy local. Thankfully I haven't given it too much thought as riding the new beast has been so much fun!
 

gc49

Likes Bikes
It's not just bike stuff.

My old man bought a specialised component for a winch on his 4x4 a few years ago. He had a look into it, and the part is made in South Australia and you buy it direct from their distributor or from a few specialty stores around the country (but not direct from the company itself). About the same price from any of them. He then discovered that they actually export the component overseas (notably the states), and you can get them off a US site and ship them back here.

Now which should cost more, direct from the distributor in this country of its manufacture, or the one that's been shipped to an overseas distributor and shipped back? You guessed it, it was about 50% of the local price after getting it shipped back from overseas!

The problem is they charge as much as they can for things in this country, up to the point that people start refusing to pay, instead of the true value of the product (and unfortunately we tend to pay it and just grumble rather than look elsewhere, at least until CRC and the like have now started showing up). This isn't the actual shops mind in most cases, but the distributers that seem to cause the issues. They used to site "shipping it half way round the world", but as most stuff's made in Asia now, and the cost of shipping is a lot lower in relation than it used to be, it's a load of bull these days, and they then screw the local shop dealer on the price, causing them to charge they high prices we all know and love.

Unfortunately in the end it'll be the LBS that looses out, not the distributor, as eventually everyone going to the OS sites will lose so much business that they fail, then the distributors/importers will loose their own market, so finally lower prices for the few shops remaining (or else go online direct to the public themselves), but by then it'll be too late for the local industry. Either that or the distributers cry foul to the manufacturers and get caveats put in place so that each region can only sell the brand in that region, leaving them with the monopoly still in the local scene (a few brands spring to mind on this, though there are always ways around it if you try hard enough/know people OS).

Having said that, I still use CRC and that myself. If there's not much in it, I do try to go local (I actually know a shop owner, so try to help out), but when you're looking at sometimes 50% or more reduction in costs, and things in stock (something again that local stores often find difficult), and a situation that's going to happen at some point eventually anyway, might as well save the money you can.
 

ctguru

Likes Bikes and Dirt
I understand the view that a Business like CRC are killing LBS!!! But the problem is that stores like CRC, Torpedo7, Wiggle, JensonUSA etc are offering a service for stock which you can not get for the price from your local LBS!!!

BUT

I wouldn't buy a new bike from them I buy from my local LBS and to say that I purchased my new DH bike 4 weeks ago gave $3500 to my local shop, I did spend a further $400 from CRC on upgrade parts!!!
And I will do this again in May when I purchase a new AM bike...


+1 thats what i did
 

Registered Nutcase

Likes Bikes and Dirt
It's not just bike stuff.

My old man bought a specialised component for a winch on his 4x4 a few years ago. He had a look into it, and the part is made in South Australia and you buy it direct from their distributor or from a few specialty stores around the country (but not direct from the company itself). About the same price from any of them. He then discovered that they actually export the component overseas (notably the states), and you can get them off a US site and ship them back here.

Now which should cost more, direct from the distributor in this country of its manufacture, or the one that's been shipped to an overseas distributor and shipped back? You guessed it, it was about 50% of the local price after getting it shipped back from overseas!

The problem is they charge as much as they can for things in this country, up to the point that people start refusing to pay, instead of the true value of the product (and unfortunately we tend to pay it and just grumble rather than look elsewhere, at least until CRC and the like have now started showing up). This isn't the actual shops mind in most cases, but the distributers that seem to cause the issues. They used to site "shipping it half way round the world", but as most stuff's made in Asia now, and the cost of shipping is a lot lower in relation than it used to be, it's a load of bull these days, and they then screw the local shop dealer on the price, causing them to charge they high prices we all know and love.

Unfortunately in the end it'll be the LBS that looses out, not the distributor, as eventually everyone going to the OS sites will lose so much business that they fail, then the distributors/importers will loose their own market, so finally lower prices for the few shops remaining (or else go online direct to the public themselves), but by then it'll be too late for the local industry. Either that or the distributers cry foul to the manufacturers and get caveats put in place so that each region can only sell the brand in that region, leaving them with the monopoly still in the local scene (a few brands spring to mind on this, though there are always ways around it if you try hard enough/know people OS).

Having said that, I still use CRC and that myself. If there's not much in it, I do try to go local (I actually know a shop owner, so try to help out), but when you're looking at sometimes 50% or more reduction in costs, and things in stock (something again that local stores often find difficult), and a situation that's going to happen at some point eventually anyway, might as well save the money you can.
It is the australian business model that is the problem. Rather than looking to sell the product direct to a consumer they look to sell to a wholesaler.

Sent from my GT-I9100 using Tapatalk 2
 

Sic

Likes Dirt
Its tricky. I recently purchased a new frame from a local store and they were great, did me a bit of a cut on the price and let me have a about a month of it hanging behind the counter before I got around to paying it off and picking it up.

While I was getting a shiny new (and bloody expensive) high end frame I thought I would look at what a new drive train upgrade would cost so I asked for a quote on a near full XT drive train and unfortunately they couldnt even get close to what I could get from CRC.

Ill wear a bit of an increase in price to build a relationship with a shop but this was a saving of about $400 which is just too good to pass up.

So shops have to compete in other ways and frames, services and after sales follow up is pretty much what I expect from them, otherwise I dont have a reason to shop there. I think complaining about CRC is bit redundant, the horse has bolted.
 

speedyjonzalas

Likes Dirt
I used to live fairly close to CRC and I was always happy to support them when they first started to corner the market. They drove prices of components way down in the UK and many stores followed suit.

The local UK shops still get custom and are not finding as 'tough' as it is here but this is because they dont massively hike up prices.

The system over here is entirely broken - too many people are expecting 100% return on their investment. Eg wholsalers, distributors and shops.

I was all about supporting my local shop in the UK but there is no way I will be doing that here. The only place I have been in Adelaide to that comes close to good service/prices is littleblackbike and they only do bmx.

The last place I went to try and buy a new Avid code and it was going to be around 3 times the price as ordering from CRC and they didnt even have it in stock. Absolutely no sign of any discount. Ordered it from CRC and spent the equivalent on extras there as well.

Long live CRC imo.
 

agentninety3

Likes Dirt
It is the australian business model that is the problem. Rather than looking to sell the product direct to a consumer they look to sell to a wholesaler.
Is the thought that the increased bulk purchasing power of a distributor a myth then? How is a single non-franchised LBS going to order the volume of stock to obtain these discounts that are bandied about?

It's also been mentioned before, but what about international price standardisation? People have mentioned that Shimano in Australia are extremely expensive compared to the rest of the world.
 
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