11/8/13 8:53 PM

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Not to mention the container with the French and German tires has to travel a lot less of a distance to the UK than the states. Think that has some effect on the price here maybe?

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11/9/13 9:55 AM

...and that is that US importers typically have exclusivity in the US market, which allows them to charge whatever price they think the market will bear. If there was competition among importers, I suspect that we'd see prices more on par with Europe.

I still think that we're just getting shafted.

11/9/13 10:25 AM

Every conti I have here says 'Made in Germany' except the Mountain Kings which I noticed say Taiwan. This surprised me frankly, but I have only used road Conti prior. Michelins and Huctchinsons say 'Made in France' The Vit Rubino Pro III say 'Made in Thailand'.

I suppose it is reasonable to assume the lower end of the lines aren't made in country??

11/9/13 10:19 PM

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Since almost none of these tires, certainly not the Vittorias, are made either in the US or anywhere in Europe, the cost difference can't be related to the $/Euro/Pound relative value.

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11/9/13 10:38 PM

Are we saying all these including the ones marked otherwise made in Asia?

11/10/13 7:23 AM

...as this has been an issue for many years. The amount of disparity varies, but only slightly, which is what one would expect from exchange rate fluctuations. A change in the exchange rate of 10-20% does not explain why tires here are frequently around double the price in Europe and have been for a long time.

11/10/13 8:49 AM

Do bike shops also purchase their tires from the "Q"? As in the Quality Bicycle Products wholesaler which serves 5,000+ bike shops in the USA. If so that would explain a lot.

11/10/13 7:24 PM

Prices here in are high from large mail order companies as well and I'm sure that they buy direct from the importer.

11/10/13 9:36 PM

Sorry, but I do not follow your reasoning. First off, who is the "importer" or importers that you mention?


You wrote, "...and that is that US importers typically have exclusivity in the US market, which allows them to charge whatever price they think the market will bear. If there was competition among importers, I suspect that we'd see prices more on par with Europe."


And if the source you cite is selling tires for almost half off, why haven't bike shops and mail order companies purchased from this same source as well? There are plenty of domestic retailers to purchase the contis from. That is there is plenty of competition. And with a 50% or so markup, from the source you provide there is plenty of profit margin for these retailers to compete on price, sourcing their stock from another retailer overseas like the one you cited.

11/10/13 9:41 PM

There used to be considerable interest in the grey market in other areas that I'm familiar with.

For example, B&H Photo used to sell camera gear at a discount if unofficially imported. The difference would be warranty and inconvenience.

Sandiway

11/11/13 6:37 AM

Continental has a US importer, as does Vittoria and every other brand. If you want to know the names of the companies, do a Google search. Importers are typically given the exclusive right to the US market and nobody else can buy directly from the manufacturer.

The reason that dealers don't buy from European retailers is that the cost is about the same as buying wholesale from a US importer/distributor. Consumers cannot buy from importers/distributors, but we can buy from European retailers at about the same price. The implication is simple, the price of tires here is high because the importer/distributors are charging dealers much higher prices than their counterparts in Europe.

There are exceptions to this, such as Bikesdirect.com and similar companies. In their case, you're buying directly from the importer. That's why the Ti Motobecane 29er that I'll be receiving this week cost me $2800 instead of $5000.

Perhaps you haven't figured it out yet, but rubber goods have a pretty high profit margin at retail, much higher than bikes and "hard parts". They're one of the few areas where retailers can make decent money (others are clothing and optics).

11/11/13 7:23 AM

Well now your post is clear, because up until now, you were not making much sense using basic economic principles. Or more like "doesn't explain anything". You failed to communicate your industry knowledge until now. And if you are going to tell someone to do a google search, then what was the point of your original post?

11/12/13 5:30 AM

...seemed to have any problem understanding it.

11/12/13 7:52 AM

You start a thread and notify us about an importer of tires. And one that we later learn has existed for a very long time. As in is one not due to currency exchange differences; I take your word for it without you providing any further explanation and supporting evidence.

Your whole contention is that "we're just getting shafted." because of a "lack of competition among importers". uh, really? Is that so? See your original post or the follow up post of others citing other sources.

Incidentally I did a follow-up google search for Conti GP4000S, and the top hits were for retailers selling the tires for prices which you consider reasonable. If there's competition lacking, its lost on me. (I've never ridden Contis, have no interest, so this topic is only of new found interest)

You then proceed to tell me I haven't explain anything, despite the fact you cannot name another higher priced importer when asked. You assert a lot, but are light on the details. Perhaps you really don't know or are too lazy to communicate.

You finally assert, "Importers are typically given the exclusive right to the US market and nobody else can buy directly from the manufacturer." Prove it. I say bullshit. You know why, because that whole last post of yours describes an illegal practice here in the US AND in Europe.

If you want to know why, then "do a Google search". Or perhaps one of the lawyers here will instead chime in, ...that is someone who can provide some supporting factual context.

Maybe, just maybe, why bike shops charge $60+ per Conti tires...it is the price its customers are willing to pay .

11/12/13 11:41 AM

$80.00, not 60.00 for the road tires here.

I think the above argument, all due respect, is superfluous.

As far as it being legal, it seems to me when it comes to commerce in the US maybe a great deal of latitude exists in regards to rule of law. Or at least overlooking it.

Last edited by Sparky on 11/12/13 11:44 AM; edited 1 time in total

11/12/13 6:42 PM

Price fixing across an entire industry is illegal, having a sole importer licensed to bring in a product is not. A manufacturer can give an exclusive right to any territory to anyone (at least in the us, I know nothing of EU law) but can't conspire with OTHER manufacturers to fix a price.

11/12/13 7:18 PM

While we're on the subject...

What's the difference between GP4000 and GP 4000S anyway?

11/12/13 7:53 PM

I thought it was the Black Chili compound, but a visit to the Conti sire show the non S also comes in Black Chili and bot the 4k and 4ks are 3 ply 330 TPI with Vectran Breaker for flat resistance.

So now I am less sure than I thought I was. ;)

I have some red 4K non S that seem to have worn a lot faster then the 4KS's I have been using subsequently.

11/12/13 10:21 PM

quote:

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Price fixing across an entire industry is illegal, having a sole importer licensed to bring in a product is not. A manufacturer can give an exclusive right to any territory to anyone (at least in the us, I know nothing of EU law) but can't conspire with OTHER manufacturers to fix a price.

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11/13/13 8:31 AM

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If people buy their drugs in Canada or Mexico using a US prescription, is that illegal?

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11/13/13 11:43 AM

quote:

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Price fixing across an entire industry is illegal, having a sole importer licensed to bring in a product is not. A manufacturer can give an exclusive right to any territory to anyone (at least in the us, I know nothing of EU law) but can't conspire with OTHER manufacturers to fix a price.

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11/14/13 5:03 AM

?

11/14/13 6:31 AM

My original post was about a UK-based retailer , not a US importer. So much for your rant...

As others have said, price fixing is illegal, but granting exclusive rights to import/distribute a product is not only legal, it's a very widespread practice across a broad range of businesses. Sometimes it's done through a US-based division of a company, sometimes it's done by licensing an independent US-based company. It's also why some products cannot be sold into the US market from foreign countries, another very common practice. That doesn't happen to be the case for Conti tires.

As for retail pricing in the US, retailers are forced to charge higher prices because they pay higher prices for the product. People here pay those prices because the only alternative is to order from a foreign supplier and many people either don't know about that option or they're unwilling to do so.

11/14/13 7:02 AM

"My original post was about a UK-based retailer , not a US importer. So much for your rant..."

A UK-based retailer who sells tires here is an importer in my book. Others will agree... For instance, do you drink or drive (but not both @ same time) a domestic or an import?

Last edited by Jesus Saves on 11/14/13 8:19 AM; edited 2 times in total

11/14/13 7:26 AM

daddy-o..

greglepore mentioned price fixing among multiple companies, across the industry, say conti, michelin, vitorria, maxxis, and others all agreeing not to sell their tires below a price say $100.

What I describe, resale price maintenance, is a single company dictating to its retailers, distributors, or "importers" (as the other poster likes to refer), that you cannot (re)sell our product for less than $X. If you do, we will cut you off; no longer supply you with our product (conti tires) to resell.

What the other poster was describing is a resale price maintenance practice which is illegal. It does not exist for conti because Conti would have cracked down on UK retailers selling low priced conti tires here in the US. Conti to UK retailer: you sell tires in the USA (for a much lower price than we dictate), and we will no longer sell you tires. There's only one maker of conti tires (Conti, of course) and its quite a popular tire, so it is a significant threat and significant potential loss of business for a reseller. If Conti (or its single, exclusive distributor/importer) did dictate resell price, the US government would sue and fine them $$$ applying the same anti-trust law gregl describes.