Netti Sales Starts 4 pm Friday 26th....

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geoff m
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Postby geoff m » 26 Oct 2007, 13:17

...... for those people who are Bicycle NSW members.

If you are not, apart from missing out on the membership benefits, and supporting cycling advocacy which supports you, then you will have to rock up to the Sale on Saturday morning, after about 1000 BNSW members have already pilaged the goods for 2 hours, leaving the crumbs.

Another reason to sign up:

http://www.bicyclensw.org.au/Membership.html

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Adrian E
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Postby Adrian E » 26 Oct 2007, 15:09

grhhh... I won't be getting early divs on the sale in this weather!

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weiyun
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Postby weiyun » 26 Oct 2007, 15:22

It was a stormy afternoon last year too... :roll:

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Toff
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Postby Toff » 26 Oct 2007, 18:00

There was an ad in the Telegraph today for it too... BNSW is recommended to beat the rush.

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Toff
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Postby Toff » 31 Oct 2007, 14:17

Well, I'm glad I didn't attend, now that the firm's business practices are coming to light.

Busted for Price Fixing

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weiyun
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Postby weiyun » 31 Oct 2007, 14:28

That's interesting. Not sure of the detail of the offense but I understand that there are other companies who also have a policy of not allowing for price discount. One that comes to mind is Cervelo. Worldwide, there's no price advantage anywhere. Maybe there's a legal way of going about it.

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geoff m
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Postby geoff m » 31 Oct 2007, 21:21

Interesting!

Its good they were caught. I will email the article to the CEO of Bicyle NSW and the Board.

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T-Bone
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Postby T-Bone » 31 Oct 2007, 21:29

If only this meant there would be some price drops.....

Not entirely true with Cervelo. If you buy overseas you can save a bit, especially with the US dollar so low. Of course savings depend on whether you're stuck paying customs (most likely with dhl or similar shipping methods) but still, from prices i could find, the SLC SL can be had for at least $1000 cheaper.

Now you've made me find another frame i wouldn't mind having.... it's too easy for me to get roped in, but i think i'll restrain myself somehow. :?

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weiyun
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Postby weiyun » 31 Oct 2007, 21:43

Well, sudden AUD fluctuation aren't exactly fair in these comparisons. Apart from exchange rate savings (note the absence of price drops yet for any of these imported stuff), I understand that Cervelo does not allow their dealers do any discounts of consequence. An image issue supposedly.

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Toff
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Postby Toff » 01 Nov 2007, 14:14

From the ACCC website:

Resale price maintenance:
A supplier must not directly or indirectly fix a price below which resellers may not sell or advertise their products or services, for example, by threatening to cut off supplies or actually cutting them off. Two exemptions from this prohibition are genuinely recommended prices and loss leader selling. However, resale price maintenance on both goods and services may be authorised provided it delivers a benefit to the public such that it should be allowed to occur.

If, in your experience, Cervelo have breached these conditions, you can report it to the ACCC on 1300-302-502 or via their website. Some sort of proof, such as written quotes from bikeshops would be really useful.

Lots of us could also report a complaint online, to increase the case's profile.

On a related note, anyone who has bought a Scott bike (or parts) in the last couple of years would be entitled to compensation from Netti if they wanted to pursue the matter.

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weiyun
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Postby weiyun » 01 Nov 2007, 14:35

The hard part is to obtain factual information that's admissible in a prosecution. As long as the dealers are in cohort, the consumers are pretty much out of luck. You need an insider to blow the whistle and/or ACCC having the time and energy to target a particular sector.

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geoff m
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Postby geoff m » 01 Nov 2007, 21:00

I went to buy some really good NZ wines from a city bottle shop, which always sold these wines about $5 less than RRP. But the wine had been taken off the net for sale.

So I rang them and the guy in this independently run shop complained that the NZ wine distributor had withdrawn their product due to another major bottle shop retailer (well known name - not your one James) complaining to the distributor that they were supplying wine to the independent shop who was undercutting their special discounted price by 80cents per bottle.

The bottle shop told me he expected to be able to place the wines back on soon although the price would go up 80 cents to the same amount as the major competitor.

I checked the major retailer who have a lowest price guarantee or they will sell their wine for less than any other advertised price.

I figured it would be easy to make such a guarantee, if you scanned your competitors prices, then used your purchasing power to put pressure on your supplier to withdraw supply or pressure price maintenance of their other outlets, then of course you could offer such a guarantee.

Its just amazing what goes on. I'm thinking of reporting it to the ACCC, given the great news that Netti have been prosecuted.

I can only go on the heresay of the shop attendant who proported the above situation.

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weiyun
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Postby weiyun » 01 Nov 2007, 21:25

Yes, unless the small operator is willing to put his business on the line and come out to assist with the enquiry, then it's difficult for the ACCC to establish a basis for the case.

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T-Bone
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Postby T-Bone » 01 Nov 2007, 22:49

Obviously it wouldn't be where i work, because prices just aren't good enough. I only buy if things are on good specials, just think a 2 for $20 special where you save $17 (just an example, not a current special). I usually work out the best buys, otherwise there's DM's which you can find some bargains sometimes, and prices are always fairly good (very small profit margins). I've bought a $21 wine for $8 (should have bought more, when i saw it). Beers are much harder to get bargains on, but i'm still trying to find my favourite, only a few thousand more to get through. I guess it all comes to shopping around.

I'm sure there's plenty of this going around, but it's so hard to control, just look at the petrol price issues, how long has that story of collusion been going on, but it's so difficult to prove.

Anyway, even with the scott issue, i'm sure there would be a way to get a bike cheaper. There always is, such as racing licence discounts, and who would tell netti anyway, the bike shop isn't going to say they sold the bike for 10% less, though they might not be able to advertise those discounts outside the store. I remember when i got a good deal on my Giant CRX (think it was 20% off or something), and then Lindsay got an even better one, so there's always room for adjustment.

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weiyun
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Postby weiyun » 02 Nov 2007, 03:05

Anyway, even with the scott issue, i'm sure there would be a way to get a bike cheaper. There always is, such as racing licence discounts
Can our racing license get more than a 10% discount?
and then Lindsay got an even better one, so there's always room for adjustment.
That's called a mates special, I'm sure. :roll:

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Toff
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Postby Toff » 02 Nov 2007, 09:05

Whilst there is no obligation for a seller or a buyer to publicise the price paid for goods, that's not really the point...

It is illegal for anyone to restrict trade. The wine example is definitely illegal and should be reported to the ACCC.

With the Scott case, there would almost certainly be ways of getting a bike cheaper, but this does not rectify the illegal activity of Netti (and probably others). To be efficient, markets need to be transparent, and preventing dealers from either selling OR advertising their best prices is a serious breach.

Later today, Richard Pratt (owner of Visy) will be getting potentially the biggest fine in Australian history for a similar case of price-fixing. (Probably $36 Million!)

The ACCC is really targeting this stuff right now, so I'd recommend reporting any breaches to them for investigation right away.


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