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@yorkiefix
Having sold Brooks saddles/products at an IBD for a while now I know selling against online retailers that undercut prices is a big problem. Most independents would buy at a trade cost that would probably allow for somewhere between 30-40% margin depending on their rate, based on quantity etc etc. Obviosuly retailers are free to offer whatever discount they want on the products (we typically offer £2-3 off rrp on cheaper models and £5-10 off on more expensive ones) in an effort to maintain competitiveness, especially against bigger chains and web-based sellers.
However, I think the retailer in this instance is more wary of price-matching against SJS, which are notorious for discounting heavily to a point where other shops can never seriosuly hope to compete. This goes for many big online sellers, who buy in far greater bulk and operate with much lower overheads, allowing to sell much cheaper and maintain a smaller margin. For instance, there was a certain online retailer underselling the new B17 Imperial by as much as £20 under rrp when it was launched earlier in the year, something that we could never hope to match given our margain on the product. I can certainly understand the retailer (and even the distibutor) trying to keep the price and margins reasonable and I don't think it should be seen as price fixing. Indeed, this is a good thing as it shows the distributor trying to work in favour - or at least for the benefit - of independents rather than just trying to make the most profit. This happens a lot in the bike industry, the best and most recent example was another online retailer, - who shall remain nameless, selling Dahon folding bikes at 39% below rrp!