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RaceFace purchased by MEC Co-op to become in house brand, LBS gets screwed

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RaceFace purchased by MEC Co-op to become in house brand, LBS gets screwed
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flag freeride5
Posted: Oct 26, 2009 at 15:41 Quote
Canadmos wrote:
Wouldn't MEC have to sell the stuff at the same rates that the distributor would sell them at?
Nope Mec is also starting their own bike lineup. and that's where most of the stuff is going to go. but if you want Raceface product it means skipping the distributor. basic way of price inflation= cost to make product= $10. Company sells this product to distributor for $15 then distributor sells to a store for about $30 then store sells product for $60. By taking out the middle man it allows MEC to make more profit, It will be more reasonable to sell the product cheaper meaning a happier you and me. and more sales means MEC buys more product from Raceface. So theoretically every one gains
flag widowmaker
Posted: Nov 24, 2009 at 11:18 Quote
freeride5 wrote:
Canadmos wrote:
Wouldn't MEC have to sell the stuff at the same rates that the distributor would sell them at?
Nope Mec is also starting their own bike lineup. and that's where most of the stuff is going to go. but if you want Raceface product it means skipping the distributor. basic way of price inflation= cost to make product= $10. Company sells this product to distributor for $15 then distributor sells to a store for about $30 then store sells product for $60. By taking out the middle man it allows MEC to make more profit, It will be more reasonable to sell the product cheaper meaning a happier you and me. and more sales means MEC buys more product from Raceface. So theoretically every one gains
Except local bike shops
flag cdn-spec
Posted: Jul 12, 2011 at 10:44 Quote
If you are a MEC member you'd know they are a "not-for-profit" co-op so that means the prices are regulated so that they make minimal profits. This means lower cost to the consumer. Also, MEC takes this profit and puts it back into the comunity be it into LOCAL cycling advocacy groups, trail maintenance or other outdoor sports (climbing, paddling etc.) I was out at the christie trail build with tons of volunteers from the local MEC (Burlington) and they were riders that talked to other co-workers and ended up having a great turn out and the store also gave a grant to the project. if you dont believe that look back on the pb article regarding MEC giving a grant to Moose Mountain trail system in Alberta.

https://www.pinkbike.com/news/MEC-grant-Calgary-mmbts-Club-2011.html

Its not raceface screwing over LBS shops its the middlemen (distributers) that have to get they're peice of the pie. If you really want to bitch about the market how about bitching about the reason LBS cant order direct from dealers to keep prices down.
flag whattheheel
Posted: Jul 12, 2011 at 10:46 Quote
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