In our How’s Business column for October, one retailer made a comment about low retail pricing of Continental Tyres through Wiggle.
Gina Ricardo, WiggleCRC Site Merchandiser & Marketing Manager for Australia and New Zealand wrote to us with the following reply:
“I’ve got no idea how on earth how this customer of Wayne’s from Cyclemania bought Conti Gp5000 tyres for $48 a pair off Wiggle. With GST + our cost prices this isn’t possible, we don’t intentionally price below cost on a sku like the GP5000 so this was either a pricing error or the customer used some sort of combination of vouchers. Attached is the last 90 days pricing data for the 25mm 700cc Tyre. We haven’t gone below AU$66”.
“Just feel like I’ve got to pipe up and say something. We’ve got to make money as well and we’re not playing the ‘race to the bottom’ game. Most of the time we are matching our prices to the local online retailers. Gone are the days where favourable currency made our cost prices a level above local cost prices – the AUD isn’t doing great and it’s a challenging environment for us as well.
We are working hard to be a sustainable retailer in the Australian market so it does bother me to hear the same story of Wiggle being the big bad guy. What about all those other online retailers who haven’t implemented the GST changes or respected the Shimano geo-lock…”