Andrew’s Apology:

 

 

 

 

I have spent some time reading the various points of view with regard to this 
contentious meeting and issue.

 

The meeting was called and supported by most Retailers and some Wholesalers in 
SA although not everyone could make the meeting.

We met to look at options to increase retailer’s margins. No formal minutes 
were taken but the just of those that have appeared are more or less correct. 
i.e.retailers need more margin to survive.

 

First and foremost the meeting was called to discuss the Bad/Sad state of the 
Retail cycling industry in SA. Most Retailers are battling to pay their 
suppliers,

as a result of poor margins. This is irrespective of turnover or overheads and 
is across the board. It also obviously affects smaller players with less buying 
power more than the bigger operators.

 

-The Wholesalers have for many years prescribed recommended margins and RRP’s. 
These selling prices as recommended by the wholesalers/distributors are used by 
most shops as their advertised prices.

One of the discussions was for the Wholesalers to raise their 
recommended/advertised price on complete bikes. 

However it was made clear that nobody could or would be forced to do so and 
could sell at any price they chose.

 

I still maintain the intent was honourable.

In hindsight to have such a meeting was maybe not the correct way to go and for 
that I apologise!!!

A better mechanism or forum could have been chosen and from this I have learnt 
some good lessons.

 

In conclusion it is imperative that for the good of Cycling in SA that all the 
retail issues get sorted out as quickly as possible.

This might mean looking to our wholesalers yet again for this respite. 
We will also need to lobby Government to get the 15% duty on complete bikes 
removed.

 

I remain committed to Cycling in SA in all its forms and apologise again for 
any ill feelings caused.

Andrew Mclean.

 

 

Paul Ruinaard
Chief Executive Officer
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The difference between great people and everyone else is that great people 
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Michael E. Gerber

From: [email protected] [mailto:[EMAIL PROTECTED] On Behalf Of 
Donald Klopper
Sent: 23 September 2008 09:23 AM
To: [email protected]
Subject: [!! SPAM] [DarknDirty] Re: Fwd: Bike industry price fixing

 

PIGS. Well I never buy from CycleLab anyway, and I’ve just dropped any current 
or future support for Fritz Pienaar.

There’s many left to buy from. Maybe chainreaction.co.uk...!

 

Maintenance / support is pathetic anyway.

 

Werner: Can you post Andrew’s response (apology) please?

There’s a link to the Hub but many of us don’t have access:

 

http://www.thehubsa.co.za/forum_posts.asp?TID=33149 
<http://www.thehubsa.co.za/forum_posts.asp?TID=33149&PN=40> &PN=40

 

 

---------- Forwarded message ----------

Minutes of the meeting
http://www.thehubsa.co.za/forum_posts.asp?TID=33149 
<http://www.thehubsa.co.za/forum_posts.asp?TID=33149&PN=13> &PN=13

Margins in the bicycling industry – Fritz Pienaar and Andrew Mclean 
Fritz Pienaar 
Welcome everyone, thank you for attending this meeting. First of all I would 
just like to say that this meeting is not aimed at the wholesalers, but the 
wholesalers do play a part and it them that created the concern that retailers 
are not making enough money, and that this leads to their accounts not being 
paid. 
I would just like to say that everyone agrees in principle with raising the 
margins in the cycling retail industry, we have support from many retails, whom 
have phoned or contacted me personally to say that they are behind the decision 
and that it's time something like this occurs. Ie. Bowman's, Hatton cycles 
Wholesalers all agree in principle that this is needed. 

This email and all content are subject to the following disclaimer:

 

http://content.momentum.co.za/content/legal/disclaimer_email.htm

 

 



 


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