531Aussie said:Bleve said:[censored]. We stock road tyres from $30 to $120, and the same with MTB
tyres etc. Shops do exist to make money though, so you can't expect
them (esp when wholesale isn't all that cheap here) to give them to
you.I dunno if it's the retailers, the distributors, or the manufacturers,
but someone's ripping us off.
Tell all your bike shop buddies that everyone is starting to buy tyres
online for close to half price 🙂
It's a volume thing. An LBS exists to make money (duh!). If a product
sits on a shelf for ages (like tyres tend to in suburban LBS's), and
takes time to sell, it's going to have a markup of a lot of percent.
For example, a typical markup on tubes is around 500% or so. but, that
represents about $5 in profit for the LBS, and still takes staff time
to stock, price, sell etc.
If the LBS sells 1,000 tubes a week, then they'd be able to drop the
price on tubes a lot.
Same with tyres, a typical markup on a lowend ($30 or so) tyre is
around 100%. Sounds like a lot? It's $15. It takes staff time to
stock, to explain the tyre to the punter, to sell it, price it, order
it and so on. A typical markup on a high end tyre is around 30%,
something like a pro race or similar, the LBS is making maybe $30-40
on. Again, it sits on the shelf, it has to be priced, sold (and paid
for by the LBS). Sell tonnes of them, and you can drop the margin, but
sell a few, and you can't. This is very basic business stuff.
Places like probikekit are selling huge numbers of items, so they can
cut their margins, but small suburban LBS's are not, so they can't.
It's very trendy to bag LBS's for being greedy, and the wholesalers,
but in actual fact, they're not making a fortune, they're just doing
ok, and they only really survive because most people who work at the
small ones do it for love and are happy to get paid peanuts.
I'm not whinging abuot anything here, I'm explaining how it works (as
anyone with half a brain would realise 🙂 ), and that LBS owners and
bike trade wholesalers aren't driving around in mercs and flying to new
york every week for parties with their mates. The wholesaler area is
actually pretty competitive (there's a -lot- of small wholesalers!) and
their margins aren't big, and on the whole they provide a very valuable
service to suburban LBS's.
The only price-gouging that I'm aware of is Shimano, as they have a
monopoly and a pretty captive market. And even then, they're only
charging what they know the market will bear.
It's like anything in the end, you get what you pay for. When you buy
from an LBS, you're buying into a relationship with the shop with all
that that entails - support, community and so on. When you buy online,
you get the parts you wanted (hopefully!), and that's it. They're
different things, and the LBS owners I know are very aware of this.
For a lot of people here, just the parts is all you need, and that's
fine. For a lot of others, the (forgive the [censored] terms!) LBS
experience is worth paying for.