There are various “interesting” discussions taking place on the bulletin-board Bikebiz at the moment where certain retail shop owners are getting upset about other (for “other” read internet and mailorder) stores having the audacity to offer a discount on products. Now maybe it’s me that’s got it wrong, but those owners who are complaining seem to have a minimal grasp of basic economic theory. They all seem to rigidly believe that the only way to maximise their profits is to sell at full RRP for as long as possible, then only discount to shift remaining stock at the last possible minute. Surely the way to maximise profits is to carefully examine the effect a discount has on sales figures? If reducing your profit by 25% leads to a doubling of sales, then you are better off offering a discount.
Interestingly, various threads have seen confessions of price fixing, promises to “re-educate” staff in a major retail chain if they dare to offer an unofficial discount, an attempt to form an illegal cartel to enable them to increase prices, and lots of people who generally get very upset when people who don’t charge full RRP.
I’m going to have to stop reading Bikebiz because all it does is make me hate (some) bricks-and-mortar bike shops more and more, and appreciate what a good job people like Chain Reaction do. I know that it’s not meant to be visible to the general public, but the Bikebiz bulletin-board is probably the worst advert imaginable for the cycle trade.
On a nicer note, I ordered myself a new cycle helmet yesterday, a Giro E2 from Chain Reaction (take that Bikebiz whingers), and some clear lenses for my Smith Buzzsaws from a proper local bike shop (not all of them are run by whinging tossers).
Last night we went out for a friends birthday. We headed over to Bristol for some food (where they cocked up my order), and then onto the cinema to see The Rocky Horror Show. It was very good, if a little hot. Nick Bateman can’t act to save his life.