Shimano changes price, decrease of 40%

Shimano changes price, decrease of 40%

“We see price changes from an increase of 1 percent to a decrease of 40 percent,” said Wayne D. Gray, vice president of KHS, which distributes Shimano. “No specific percentage across the board. But there’s reduction in our recommended wholesale pricing and retail of many items. It’s on the high-range stuff — anything above SLX is reduced on price,” he added.

“We launched new prices yesterday, and instantly my parts catalog is of no value,” Gray said. “Fortunately we have B2B sites now where dealers can see reduced pricing.”

With new retail pricing, a Deore XT front brake, for example, which had a suggested retail price of $159.99, now has a suggested retail of $118.99 — a 26 percent change. With the new price lists, margins were trimmed substantially on inventory bought at old wholesale pricing, and margins also slimmed on new wholesale prices.

“Shimano didn’t contact us,” said Brian Blair, buyer for The Path Bike Shop with stores in Tustin and Trabuco Canyon, California. “We didn’t know about the change until yesterday when we got an email from an outside rep.”

“Even at the new lower cost, many items are still available cheaper overseas than here,” said Mike Jacoubowsky, owner of Chain Reaction Bicycles, whose brick-and-mortar store often is confused with the online U.K. retailer with the same name. “They haven’t really addressed the problem.

“The problem is the U.K. What other industry is there where customers can buy products for the same or less than we can? We’ve ordered pedals from Chain Reaction and Wiggle because they were cheaper than from Shimano,” he added.

Source:http://www.bicycleretailer.com/north-america/2016/02/10/shimano-slashes-component-pricing#.Vr4rgPKLTDc