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Showrooming

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I've heard from more than one startup that banks only lend to those who dont need it.
 
Yup ...Adrian started literally in his townhouse garage and finally expanded to a small industrial unit because biz was booming but not from retail sales.

With high rent costs in cities it kills diversity ...only the major chains can afford space....hell Toronto can't even sort its street food opportunities. There are a few distributors working closely with their dealer network so people can buy online, pickup locally and the dealer nearby gets a cut but does not need to stock. Not a bad route. I got a great price and terrific service from them.

 
Funny that banks will only loan you money if you can pay it back. Would a socialist system work better? Canada's regulated banking system is great. Most people that don't think it is, want something for nothing. Move.
 
Have been to Adrian's place a few times but only for tires as I do all the basic stuff myself. How I wish that I had the skills for the more advance stuff!

Anyway, back on topic. Like @Wingboy says, everyone wants something for free....my buddy's a perfect example. Has his own business, bitching about having to pay 10k in tax...well ****. That means you made money! But of course it's too much, too expensive, crooks, blah blah blah....you don't like it....back to Poland you go! But when you say that...it's all huff and puff.
 
No, thats when you go to a venture capitalist...or an angel investor.

There are MANY ways to raise money in the 21st century depending on your needs/situation
 
Have been to Adrian's place a few times but only for tires as I do all the basic stuff myself. How I wish that I had the skills for the more advance stuff!

Anyway, back on topic. Like @Wingboy says, everyone wants something for free....my buddy's a perfect example. Has his own business, bitching about having to pay 10k in tax...well ****. That means you made money! But of course it's too much, too expensive, crooks, blah blah blah....you don't like it....back to Poland you go! But when you say that...it's all huff and puff.
Small business has to pay property taxes, HST, employees, heat, hydro, rent, business taxes - a lot of which has nothing to do with earning a profit.
Have you ever been an independent business owner ? If not, shut your blowhole.
 
Most people that ***** about not having enough money, are usually the ones that can't stop spending it.
 

I cant wait till this comes to canada.
 
The USA just recovered from a catastrophic collapse of their corrupt banking system. It could never happen in Canada because our banks are regulated. Christian Bale starred in a movie about it.
 
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I'm old enough to remember the main street shop owners moaning about the new Walmart on the edge of town. Guy was saying that the exact same bicycle in his shop cost him more to buy from his wholesaler/distributor than the Walmart retail price to consumers, so how could he possibly make a living..... Well, truth is 98% + of customers voted with their feet and pocketbook and all of these small and inefficient retailers went out of business. While that's a sad thing that someone went bankrupt please don't expect me to pay a premium for your product to keep you in business.

In terms of bike shops I've been a customer since the early 70's for sales, service and parts. I can tell you that with a few exceptions, and GP bikes is one of these, it's been a pretty sorry experience overall. Rude, indifferent and inattentive staff, minimal inventory on hand, long lead times, poor work quality and poor accountability. In addition, we here in Canada have Motovan and Parts Canada that own and/or control all of the authorized distribution channels for virtually all bike non OEM related brands and this creates a very high cost structure and very inefficient inventory control processes. So it's no wonder that bike owners cut out all of the middle men possible and shop online instead.
I agree that consumers have no responsibility to support any store who isn't willing to compete. I disagree that having distributors (Parts Canada, Motocan, Thibeault, in the supply chain is inefficient and adds to cost. Disty role in the supply chain is to provide meaningful services to manufacturers on one end and dealers on the other. Disty's provide Manufacturers forecasting, volume orders, warehousing & fulfillment, marketing expertise, local salesforce reach, credit and collections -- allowing the manufacturer to focus on making and building products. Disty's provide dealers similar services -- warehousing, one-stop reordering, inbound shipping consolidation, credit, & marketing support.

The savings for a manufacturer vs costs of dealing dealer direct) are huge, and they are passed along to distys in their pricing. Dealers also save a huge amount of time, effort and cost by using distributors.

At the end of the day your goods are more available, get to you faster, and cheaper BECAUSE there are distributors.
 
Small business has to pay property taxes, HST, employees, heat, hydro, rent, business taxes - a lot of which has nothing to do with earning a profit.
Have you ever been an independent business owner ? If not, shut your blowhole.
Actually I have for about a decade. So thanks but no need to be a dick about it.
 
Most people that ***** about not having enough money, are usually the ones that can't stop spending it.
I will agree 100% with this. 2-3 international trips/year, blows money on anything, new cars, but 'I'm so poor, blah blah blah.' LoL
 
Then you already know. I wish you and your small business well, its a tough world out there.
I do and thanks. Did it for a decade and due to my work being away I got out of it. I'm looking to get back into it but when I finish up here in BC.
 
At the end of the day your goods are more available, get to you faster, and cheaper BECAUSE there are distributors.

You have absolutely zero evidence to support this. 25 - 40+ years ago these distributors worked hard to secure Canadian distributor rights to US manufactured non OEM product lines and it was a great deal for US and other manufacturers who had no representation in Canada + it was an even better deal for Motovan and Parts Canada. Was this a good deal and a cheaper deal at some point in time years ago, maybe it was, but not anymore.

In this age of online ordering and global logistics these distributors are hugely responsible for excessive retail costs of US products and very low profit margins for Canadian bike dealers, so low that many are going out of business. These distributors suck up the majority of the profit margin, leaving little for retailers.
 
Funny that banks will only loan you money if you can pay it back
Spoken like a true corporate lackey.

Nice theory. I have very high cash flow, I retain my first client from 35 years and and no issue paying it back but I don't own property. So no I don't get the time of day from the banks. You will hear that story across the small business spectrum.

Other mixed economy nations like Norway and Sweden support their small businesses with reasonably priced term loans as they understand the importance of the segment to employment.

The window is there for P2P operations
why ....because the banks are greedy fucks.
Put $100k inheritance in your "savings account" ....get 0.3% p/a return. Get a "low interest" LoC ...oh that will be 6-7% above prime ...maybe you get 13% ....more often 16-17%

Wanna buy a ridiculously over priced house in Toronto, banks will line right up to fund the casino bet.
Has nothing to do with socialism or wanting something for free...that's just a crap comment from the right wing trolls with pensions who couldn't survive in today's gig economy.
It has to do with regulating the oligarchic banking system in Canada to serve the small business community that employs so many instead of lining their own pockets with the inherent advantage their charter for fractional lending gives them.

As it stands angels and P2P fill the role the banks could but won't. Disintermediation is going to hit the banks too....can't happen soon enough.
 
Thankfully tech is leveling the playing field and filling in the gaps where the banks fail:
Crowdfunding, kickstarter, angels, VC, P2P and various forms of financing for businesses exist
 
bigpoppa is right, there are lots of ways to raise money. BDC helps small businesses, I would not use my house as a leverage to open or run a business (but thats just me) , thats why I'd never open anything that wasnt Ltd. The cost to incorporate with a #'ed company in Canada is pretty reasonable, and the benefit is too long to type. Chartered banks dont exist to fund unsecured credit, they have a responsibility to shareholders like any other business.
When rent chases a business out of a location guess what? somebody else moves in. The landlord didnt build the space to minimize his returns.

why trot out how they do it in Norway or the US? its not how its done here, nor will it be that way for a long time.
 
I agree that consumers have no responsibility to support any store who isn't willing to compete. I disagree that having distributors (Parts Canada, Motocan, Thibeault, in the supply chain is inefficient and adds to cost. Disty role in the supply chain is to provide meaningful services to manufacturers on one end and dealers on the other. Disty's provide Manufacturers forecasting, volume orders, warehousing & fulfillment, marketing expertise, local salesforce reach, credit and collections -- allowing the manufacturer to focus on making and building products. Disty's provide dealers similar services -- warehousing, one-stop reordering, inbound shipping consolidation, credit, & marketing support.

The savings for a manufacturer vs costs of dealing dealer direct) are huge, and they are passed along to distys in their pricing. Dealers also save a huge amount of time, effort and cost by using distributors.

At the end of the day your goods are more available, get to you faster, and cheaper BECAUSE there are distributors.

You're right, the distributor model is essential to small business. Most manufacturers, regardless of the industry don't want to deal directly with every customer who sells their product. they're in the business of manufacturing the stuff and shipping small quantities all over the place is inefficient and expensive. A small markup on the wholesale price and a reasonable delivery charge made the system work for smaller shops that couldn't sell the volume necessary for direct from manufacturer drop shipments.

The problem for the consumer arises when distributors and manufacturers arrange "Exclusivity" agreements, which is code for, "jacking up the price because we THINK we can." Over the years I've had sales reps feeding me the same BS over and over about how their becoming the exclusive source for something will give me better service and access, but without exception all it meant was a dramatic price increase to me and therefore an increase in the retail price.

Every time the exclusive arrangement reared it's head I started researching alternative products, because there ALWAYS are alternatives. More often than not the exclusivity agreements reduced availability of the now-exclusive product across the market and increased the profile of competitor products as resellers find alternatives.
 
The problem for the consumer arises when distributors and manufacturers arrange "Exclusivity" agreements, which is code for, "jacking up the price because we THINK we can." Over the years I've had sales reps feeding me the same BS over and over about how their becoming the exclusive source for something will give me better service and access, but without exception all it meant was a dramatic price increase to me and therefore an increase in the retail price.

Every time the exclusive arrangement reared it's head I started researching alternative products, because there ALWAYS are alternatives. More often than not the exclusivity agreements reduced availability of the now-exclusive product across the market and increased the profile of competitor products as resellers find alternatives.

This is what was infuriating about how the Canadian distributors did business. They'd have agreements with the dealers and with the manufacturers that they represent, and only carry a subset of parts (presumably, only those that they knew they could sell with decent volume). You walk into a dealer asking for something, the chap behind the counter opens the catalog, and if it's not in the catalog it might as well not exist, even though you know it exists south of the border or somewhere else in the world. They would not lift a finger to help someone who really did want something that wasn't in their standard catalog.

This is also bad for small business on the manufacturing side. If someone comes up with a specialty product, the distributors won't help (foreseeable sales volume is too small).

Result ... consumers buy over the internet. To help out the little guys, when I need to buy over the internet, I'll buy direct from a manufacturer's website as opposed to via Ebay or Amazon, if there is a choice in the matter.
 

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