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Price matching

I notice that the major cycling websites (e.g. Evans, Tredz, Wiggle) have got price match schemes (meaning that they will match the prices on a list of websites).  Now, this sounds like great news for the customer - they will reduce their prices to match other websites.  Surely this will mean we all get cheap, cheap stuff!  But in reality, it actually reduces the ability of the websites to compete on price.  Without a price promise, if they put their prices down, then they are going to get more sales from people who shop around.  Now, if they put their prices down, they will not get any more sales, as someone can get that same price from another site, so they have no incentive to actually order from the website that reduced its price.  They might as well keep the price the same and focus on other aspects, like having an easier website, free postage, delivery times, customer service or range of products.  

I haven't really got a conclusion, but just thought people might be interested that the major websites are almost starting a cartel.

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6 comments

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davel | 6 years ago
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Well, Evans can be pretty accommodating in store, and some of the staff are even kind enough to make me look like I know what I'm talking about.

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don simon fbpe | 6 years ago
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I can go to my local lbs and talk bollocks for hours on end.

Can Wiggle/Trendz/Evans offer this through their websites?

It's not all about ticket price.

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Canyon48 | 6 years ago
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I think the modern consumer is REALLY hard to keep loyal.

I've had a platinum discount at Wiggle for a while now and it's my usual shop. Wiggle is usually cheaper and price matches, not only that the returns are really easy.

The thing is, I have no loyalty to Wiggle at all. If someone can give me cheaper prices (or more convenience i.e. stock levels) I'll go there - hence why Wiggle price match, because they can keep me (and many others) shopping at Wiggle because they are the cheapest.

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lostshrimp | 6 years ago
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As someone who works next to a cycle surgery and an Evans there great. Next (or same if in stock) day click and collect orders for the same price as wiggle/CRC without the express delivery fee

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Man of Lard | 6 years ago
1 like

Conversely, when you take off your tinfoil hat - by them all having price matching it means that the loyal customer who favours one site over another can buy for the keenest price from his vendor of choice. If that vendor wants to attract more customers then he'll drop his price to match (or at least be competitive with) his rivals.

The problem with any cartel is that there is always someone willing to break ranks (apart from those that aren't in the cartel to start with) and try and grab more sales. Why would anyone form a cartel with the 800lb gorilla that is WiggleCRC in the first place? By virtue of being the largest player they would mop up the lion's share of sales at an agreed cartel price, so there's nothing to gain for another cartel member (until he breaks ranks and drops his price to get more sales)

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muhasib | 6 years ago
2 likes

Presumably this is why Wiggle include Haribo with their deliveries?

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