Shimano Restricting Component Internet Sales?

Was just browsing the QBP catalog at http://aebike.com/ . All the Shimano components in this catalog
now carry a note.....

"This manufacturer currently prefers that we not sell this item via the internet. Please call for
more information."

Does this mean we can now only buy Shimano parts through Shimano authorized distributors?

"Grenouil" <grenouil7REMOVETHIS@bellsouth.net> wrote in message
news:l4pAb.6458$jK.198@bignews2.bellsouth.net...
> Was just browsing the QBP catalog at http://aebike.com/ . All the Shimano components in this
> catalog now carry a note.....
>
> "This manufacturer currently prefers that we not sell this item via the internet. Please call for
> more information."
>
> Does this mean we can now only buy Shimano parts through Shimano authorized distributors?
>
Yup, or at your local bike shop....

Grenouil wrote:

> Was just browsing the QBP catalog at http://aebike.com/ . All the Shimano components in this
> catalog now carry a note.....
>
> "This manufacturer currently prefers that we not sell this item via the internet. Please call for
> more information."
>
> Does this mean we can now only buy Shimano parts through Shimano authorized distributors?

That is the official Shimano policy, has been in effect for several months. There are a dozen or so
Shimano Authorized Internet Retailers.

I'm pleased to say that Harris Cyclery is one of them.

Sheldon "Authorized" Brown +-------------------------------------------------+
| Search the Quality Bicycle Products Catalog | and order on line: |
| http://sheldonbrown.com/quality |
+-------------------------------------------------+ Harris Cyclery, West Newton, Massachusetts Phone
617-244-9772 FAX 617-244-1041 http://harriscyclery.com Hard-to-find parts shipped Worldwide
http://captainbike.com http://sheldonbrown.com

"Grenouil" <grenouil7REMOVETHIS@bellsouth.net> writes:

> Was just browsing the QBP catalog at http://aebike.com/ . All the Shimano components in this
> catalog now carry a note.....
>
> "This manufacturer currently prefers that we not sell this item via the internet. Please call for
> more information."
>
> Does this mean we can now only buy Shimano parts through Shimano authorized distributors?

Well, Shimano is hardly alone in this. Many name brand companies put restrictions on Internet sales
of their products.

Since it says Internet instead of mail or catalog orders and since it says to “call” it raises the question are they still taking phone orders as an alternative to Internet sales or merely supplying more information?

“[P]refer” sounds tantamount to an implied threat to the retailer to me.

Sounds analogous to the old Soni and Coors distribution practices to me.

Anyone know if Shimano is trying this same tactic in the EU?

Price fixing is supposed to be illegal, yet many manufacturers like Sony, Nikon, Shimano,
etc., "fix" prices by establishing "authorized" dealers or "minimum advertised prices". If a
dealer violates the minimum advertised price (which is perfectly legal), they will find their
supply cut off.

This is the reason, that an item costs exactly the same at Best Buy, Circuit City, or another store.

Shimano, is controlling the pricing and the supply by designating "authorized" dealers. I wish
someone would investigate this "minimum advertised pricing" and "authorized dealers" and pass a law
preventing it. In a free market, sales should go to the lowest bidder and most efficient seller, not
at a price and supply level set by a manufacturer. (This sounds like the former Soviet Union
economic policies).

"Jonathan Kaplan" <insure10nospam@nospamyahoo.com> wrote in news:ha6dndu-3rhb9E-iRVn-hQ@comcast.com:
> Price fixing is supposed to be illegal, yet many manufacturers like Sony, Nikon, Shimano, etc.,
> "fix" prices by establishing "authorized" dealers or "minimum advertised prices".

False. Price fixing is only illegal if *more than one* manufacturer agree to sell different, but
competitive products at the same price.

"Jonathan Kaplan" <insure10nospam@nospamyahoo.com> wrote in message
news:ha6dndu-3rhb9E-iRVn-hQ@comcast.com...
> Price fixing is supposed to be illegal, yet many manufacturers like
Sony,
> Nikon, Shimano, etc., "fix" prices by establishing "authorized"
dealers or
> "minimum advertised prices". If a dealer violates the minimum
advertised
> price (which is perfectly legal), they will find their supply cut
off.
>
> This is the reason, that an item costs exactly the same at Best
Buy, Circuit
> City, or another store.
>
> Shimano, is controlling the pricing and the supply by designating "authorized" dealers. I wish
> someone would investigate this
"minimum
> advertised pricing" and "authorized dealers" and pass a law
preventing it.
> In a free market, sales should go to the lowest bidder and most
efficient
> seller, not at a price and supply level set by a manufacturer.
(This sounds
> like the former Soviet Union economic policies).
>
>
I assume you mean "highest bidder" In a free market the manufacturer can sell the product at
whatever the market will bear. If you object to their pricing, buy a competing product. That is
capitalism.

"Jonathan Kaplan" <insure10nospam@nospamyahoo.com> writes:

> Price fixing is supposed to be illegal, yet many manufacturers like Sony, Nikon, Shimano, etc.,
> "fix" prices by establishing "authorized" dealers or "minimum advertised prices". If a dealer
> violates the minimum advertised price (which is perfectly legal), they will find their supply
> cut off.

Under certain circumstances, selling below that price is not in fact legal. If the sale is
international, it can be called "dumping" and that is illegal. This may be the reasoning behind
Shimano's strategy- after all, it makes no difference to them. They get the same price from
wholesale; it's the seller who makes less money to undersell the prices of the competition.

> This is the reason, that an item costs exactly the same at Best Buy, Circuit City, or
> another store.
>
> Shimano, is controlling the pricing and the supply by designating "authorized" dealers. I wish
> someone would investigate this "minimum advertised pricing" and "authorized dealers" and pass a
> law preventing it.

Bingo. It's not illegal. It's part of supply side economics. It's probably also a way to control
warranty risks better. In taking a step like this, Shimano is doing what it's supposed to do: watch
out for the interests of its owners.

> In a free market, sales should go to the lowest bidder and most efficient seller, not at a price
> and supply level set by a manufacturer. (This sounds like the former Soviet Union economic
> policies).

In a free market, sales go where the customer wants to spend his or her money. That may not be the
lowest bidder nor the most efficient seller.

Now, you wanna talk price fixing? Let's talk pharmaceuticals.

"cheg" <spameater@communistcast.net> writes:

> In a free market the manufacturer can sell the product at whatever the market will bear. If you
> object to their pricing, buy a competing product. That is capitalism.

Umm, no. That's not capitalism. It's a free (retail) market. Those are not the same things.

False -- both of you. The question, irrespective of whether you refer to inter- or intra- brand
competition, is whether there is an agreement in restraint of trade that violates Section 1 of the
Sherman Act.

So long as a manufacturer like Shimano acts unilaterally -- say by terminating retailers who sell
over the internet, or at prices below minimum suggested retail prices, there is no agreement in
restraint of trade.

The result, as a retailer, you remain free to sell at any price you choose, or through any retail
channel, but you may lose your supply of product in the future should Shimano find out!

"Ken" <nospam@no.no> wrote in message news:Xns9449A8A7A55Ffubar123@216.251.47.166...
> "Jonathan Kaplan" <insure10nospam@nospamyahoo.com> wrote in
> news:ha6dndu-3rhb9E-iRVn-hQ@comcast.com:
> > Price fixing is supposed to be illegal, yet many manufacturers like Sony, Nikon, Shimano, etc.,
> > "fix" prices by establishing "authorized" dealers or "minimum advertised prices".
>
> False. Price fixing is only illegal if *more than one* manufacturer agree
to
> sell different, but competitive products at the same price.

"Tim McNamara" <timmcn@bitstream.net> wrote in message news:m2fzfxe3d1.fsf@bitstream.net...
> "cheg" <spameater@communistcast.net> writes:
>
> > In a free market the manufacturer can sell the product at
whatever
> > the market will bear. If you object to their pricing, buy a competing product. That is
> > capitalism.
>
> Umm, no. That's not capitalism. It's a free (retail) market.
Those
> are not the same things.

In contrast to " the former Soviet Union economic policies", i.e. Communism.

Grenoil-<< Was just browsing the QBP catalog at http://aebike.com/ . All the Shimano components in
this catalog now carry a note.....

"This manufacturer currently prefers that we not sell this item via the internet. Please call for
more information."

Does this mean we can now only buy Shimano parts through Shimano authorized distributors? >><BR><BR>

That is correct, to try to reduce/eliminate OEM resale to MO..

Peter Chisholm Vecchio's Bicicletteria 1833 Pearl St. Boulder, CO, 80302
(303)440-3535 http://www.vecchios.com "Ruote convenzionali costruite eccezionalmente bene"

Jonathan Kaplan wrote:
> Price fixing is supposed to be illegal, yet many manufacturers like Sony, Nikon, Shimano, etc.,
> "fix" prices by establishing "authorized" dealers or "minimum advertised prices". If a dealer
> violates the minimum advertised price (which is perfectly legal), they will find their supply
> cut off.

People like Sony, Shimano Nikon want to make their product available thru good retailers who will be
around to deal with customers problems, stock spares and sort out warrenty problems.

If a retailer is to sell shimano stuff well, they have to invest in a fair amount of stock, display
it weel and be prepared to spend time with customers.

If Grey Imports Inc advertise shimano stuff at OEM prices the authorised dealer will be unable to
compete and will dump their stock and move on to sell something else.

The end result is that shimano will sell less gear without the shop window and service of the
authorised dealer.

The Grey Importer will also sell less gear without the marketing effort put in by the
authorised retailer.

Shimano are protecting their long term buisness partners. There's nothing wrong with that.

--
Andy Morris

AndyAtJinkasDotFreeserve.Co.UK

Love this: Put an end to Outlook Express's messy quotes
http://home.in.tum.de/~jain/software/oe-quotefix/

Tim McNamara wrote:
>
> "cheg" <spameater@communistcast.net> writes:
>
> > In a free market the manufacturer can sell the product at whatever the market will bear. If you
> > object to their pricing, buy a competing product. That is capitalism.
>
> Umm, no. That's not capitalism. It's a free (retail) market. Those are not the same things.