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Conference noted::bicycle

Title: Bicycling
Notice:Bicycling for Fun
Moderator:JAMIN::WASSER
Created:Mon Apr 14 1986
Last Modified:Fri Jun 06 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:3214
Total number of notes:31946

1578.0. "Prices/margin/buying/mail-order-questions" by CSOA1::CONNER (Welcome to the jungle) Wed Jun 06 1990 19:09

 
   Cars are marked up 15- 18%.  Furniture and jewelry are marked up 100+%.
How much are MTB's marked up ?  How much can I expect to get a bike that lists 
for $329.00 for ($260, $280, $300) ?  I see Schwin, Giant, Specialized and TREK
all with almost the exact same components (especially grouppo) for the exact 
same price ($299.00 except the TREK which as $309.00).  The $349.00 versions of 
each of these bikes are also nearly identical.  Which ones are the best buy in 
this price range (not to exceed $350.00) and how much can I expect to pay and 
be getting a really good deal ?  Can I buy any of these mail order ?  How much 
do they cost that way (unassembled I assume) ?  I will be buying 2 this weekend 
and I want the best possible deal.  The TREK dealer will let me have 2 820's 
for $289.00 each.  Why won't they give me a better deal ?  What's their margin?

Thanks,
Mike _who_wants_a_REALLY_good_deal_since_I'm_buying_2_     :-)
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1578.1In the BusinessBOOKIE::CROCKERFri Jun 08 1990 13:3724
    I was "in the business" for six years.  If you're *lucky*, you get
    35-45% on a bike -- more on parts.  That's not taking into account the time
    spent prepping the bike, or what the dealer pays for shipping (one of
    the reasons why dealers sometimes drag their feet on "special orders"
    -- shipping a single bike is much more expensive than shipping a bulk
    order).  So why doesn't a bike store go for the same margin as a car 
    dealer?  Well, 15% of $10,000 is $1,500, and 15% of $299.00 is 
    roughly $45.  Question answered?
    
    Sorry if I sound a little abrasive, but most people who are in the
    bike business are in it because they love it, not because they stand to
    make a lot of money.  It used to irk me when a customer who owned a big
    house and an Audi 500 complained about the price I -- who squeeked by
    with a two room apartment and a used Mercury cheapo -- was asking them.
    
    As far as mail order goes -- you're pretty safe ordering parts, but
    complete bikes are a risk.  What if the wheels are out of true when
    you receive the bike?  They may have been true when shipped, but
    shipping itself can cause wheels to go out of true (most "on the floor" 
    bikes come with machine-assembled wheels, which are much harder to 
    maintain -- but cheaper -- than handbuilt wheels).  Also, you pay the 
    shipping, which I believe runs $30 to $45 for one or two bikes.
    
    Hope this helps.
1578.2generally low overhead operations...SUSHI::KMACDONALDHat floating? It's MUD SEASON!Fri Jun 08 1990 14:2115
'Way back when I was in the biz, we sold everything for 20% over 
wholesale. Overhead (salaries (ha!) for employees, rent, shipping, etc.) 
ran to approx. 17-18%, according to the last figures I saw. We 
distinctly did NOT offer discounts, as doing so would've meant we were 
selling below cost! Our prices were typically 10% or so below the 
competition, but that varied widely per item. Also, we ran a REAL low 
overhead operation - instead of shipping special orders, we'd ask 
friends to pick up bikes for us at our other shops if they were visiting 
their folks for a weekend, etc.... So I'd expect that o.h. figures for 
other shops would tend to be higher.

Bottom line is, I wouldn't expect much of a discount & I personally 
wouldn't trust a shop that gave me much of one! :-)

                                       ken
1578.3ULTRA::WITTENBERGUphill, Into the WindWed Jun 20 1990 18:0311
    Some bike  stores  offer  discounts  (typically 10%) to members of
    nearby  bike clubs. I was at Belmont Wheelworks (my favorite shop)
    yesterday,  and  they  said that to get the bike club discount you
    have  to  pay cash. Fair enough, it saves them the several percent
    that a credit card costs them.

    After doing  a lot of catalog buying it was really nice to be in a
    shop  that  had a much larger selection than the catalogs, and had
    people who could give good advice.

--David
1578.4I'll be spending more in the store...GSFSWS::JSMITHChromed CannondaleFri Jun 22 1990 13:329
    re: -1
    
    	Most of the shops in New Hampshire that offer the
    GSW discount will give you the discount no matter what
    form of payment you use (excluding Tazmanian Devils).  
    It is interesting to note that with the discount they 
    are in fact approaching catalog prices.
    
    					_Jerry