Price Fixing and Negotiation

I just got a new roadbike, and I can tell you how I did it. I did call all around the country and eventually found the cheapest one. This cheapest dealer was on the other side of the country, so I negotiated with the nearest dealer and he sold me the exact same bike for the lowest price. However this is in the netherlands, where the margins are probably different. (bikes have become awfully expensive here in the last years)

the 10% off the bookprice seems to be right... also the bikeshops provide a LOT of discount on the accessoires (high margins). Negotiating for some extra stuff worked out for me: camelbak, cycling computer, spd pedals...etc

hope this helps

sgnden said:

Hello:

Is pricing on bikes ($2000 range - Trek, Specialized, Giant, Lemond) "fixed" by the manufacturer? That is, do shops have the ability to discount without being slapped on the wrist by the mfgr?

Should I spend time calling dealers around the country to find a strong discount? It looks like most dealers take the price down 10% from list and call it good.

I posted too long a question previously...maybe this helps clarify.

What is your collective experience...?

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Depending on the bike model, many shops will negociate price. But, before you go calling around every shop you can find, keep in mind the value of establishing a good relationship with your local shop. Many times, a new bike purchase will include free service for anywhere from a year to lifetime. If you buy from out of town, you lose that benefit. Support your LBS.

sgnden said:

Yes...that is my goal...within reason. I would like to have that relationship with the LBS but not if he's $500 more than the "next guy". Gotta make your best deal "first"... Thanks.

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I agree. Everyone is always touting the LBS, and I agree in principle with them, but damn some of them don't deserve it (others obviously do). Last year I knew what bike I wanted, talked to the local shop dealing in that line, went there and haggled with them for price and got them to their lowest offer. Then I found the EXACT same bike online for $600 lower than the LBS lowest offer. So I forgo the free service, etc, in lieu of saving 600 big ones. So when I received the new bike disassembled in the mail I did the "right thing" and took it to said shop to pay them to assemble it correctly, tune it up, etc. They did so happily (for the fee of course, can't blame them) and in the course of conversation asked me how much I paid for it. I told them, and they had the nerve to tell me that the price wasn't really all THAT great and they could have sold me one for that too (the original guy I dealt with was not there this day and the guy that told me this was not aware I tried to buy one there first). So I told them well, the joke is on you because maybe if you would have been willing to sell it to me for the cheap price you shouldn't have insisted on $600 dollars more! No sympathy for them. I haven't been back there since. I do what I can on my own and use a different local shop for stuff I can't handle now. It would be nice if we could trust and love every LBS, but when it comes down to it some of them are no better than used car salesmen (no offense to car salesmen out there - gotta make a living somehow!) and we don't go around praising the used car sales industry much...

Yeah, you guys are right on. It is your money first and foremost, so of course it's you'd be smart to try to save as much as you can. One look at my signature will tell you that I'm obviously biased. I have a great relationship with my local bike shop because a very good and very old friend owns it. These guys would have my loyalty even if it weren't for that - these guys "get it", and everybody in town knows it. Some shops do have an amazing ability to hire total jerks - I've been to a few. Knowing how difficult it is to operate a financially successful bike shop, it amazes me how some of the shops that don't get it stay in business.

I always try to support the local business if I can and their prices aren't too far out of line with the national competition. Hardly any business can compete with their online counterparts due to the bricks-and-mortar thing, overhead, and volume discounts. But they (should) make up for the difference with excellent customer service and supporting the community.

friedmikey said:

Yeah, you guys are right on. It is your money first and foremost, so of course it's you'd be smart to try to save as much as you can. One look at my signature will tell you that I'm obviously biased. I have a great relationship with my local bike shop because a very good and very old friend owns it. These guys would have my loyalty even if it weren't for that - these guys "get it", and everybody in town knows it. Some shops do have an amazing ability to hire total jerks - I've been to a few. Knowing how difficult it is to operate a financially successful bike shop, it amazes me how some of the shops that don't get it stay in business.

I always try to support the local business if I can and their prices aren't too far out of line with the national competition. Hardly any business can compete with their online counterparts due to the bricks-and-mortar thing, overhead, and volume discounts. But they (should) make up for the difference with excellent customer service and supporting the community.

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I agree, My LBS is Golden Spoke in Placerville, a great little family owned bike shop, been around for ever. Rufus who does just about everything there is a former Trek (maybe Specialized) sales rep, really knows his stuff.

Frankly, I don't know how some shops can stay in business, the profit margin is not that great on bikes from 2k down. You really have to move the bikes (and these color TVvv's) and hope you can rake in a steady amount of tune-ups and repairs. I have often wondered why the independent bike shops have not started a cooperative to buy in volume.

LW