Hello Art and bfd:
If the LBS only makes 38/45% profit as you say, how in the world did I get a $2,500 retail bike for
$1,188? The math does not add up. Let us see...$1188 wholesale x 110.5% profit = a profit of
$1312.74. Now the retail would be what? Darn, it is $2,500.74! This is very simple math
wouldn’t you agree?
I do believe the lower end bikes have a much smaller profit margin. However, the high-end bikes
have an enormous mark up. Is it possible that you're referring to an average month end, or
year-end, profit for the LBS for "all" of his business? That could be far more reasonable.
Nevertheless, to take my comment out of context and dispute it as wrong would be a great
misrepresentation of the reality.
Personally, I do not support my LBS; most in my area are crooks who hire untrained kids as
mechanic/salespersons. This includes the shop where my son worked. I literally drive 25 miles
away to a shop that treats me and my bike like VIP's. I firmly believe that the professionalism
of this shop, the vast experience, and the mechanical knowledge of seasoned employees, is well
worth the mark up I paid. It affords me a grand return from their service. Choose your bike AND
your shop wisely.
Okay “crooks” is harsh I confess, they are not really crooks, but unworthy of my
business just the same. They were quickly and easily outgrown once I started biking seriously. I
suppose they have their place in the learning curve one goes through when one begins to ride and
study bikes. It’s not really reasonable to start out biking and spend thousands of dollars to
“see” if you’re going to “like” biking. The LBS’s I refer to are
like a grade school compared to a graduate school. On the other hand, the good shops also have a
wide variety of bikes and will accommodate almost anyone’s financial abilities. The main
question to ask first then when looking for a good bike should be what shop in my area is good.
-RB
"bfd" <[email hidden]> wrote in message
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Quoted message said:"Art Harris" <[email hidden]> wrote in message
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Quoted message said:[email hidden] (RB) wrote:
Quoted message said:Quoted message said:As for markup on bikes, do not fool yourself into believing the LBS makes very little profit.
The markup is as high as 120% on the higher end bike, i.e., Trek 2300/5200 and up, or the
Klein Quantum line and any other bike in the same price range.
Extremely unlikely.
Agree, the bicycle industry does NOT have very high mark up, unlike say cars. I would say, 40% is
getting close to max markup. LBS make their money off of service ($55-75/hr labor) and some
accessories which can have a markup as high as 50%. Don't believe me? Attend one of those seminars
at Interbike - where they *encourage* you to max profits of 38, 40, even 45%!