[Old_Dude]

I finally found a Crank Brothers Micro 17 multi tool at the LBS today & they had it listed for $24.99. I bought it anyway, but argued about the MSRP listed at CB's website.

The LBS people basically didn't care what the MSRP was. I gave them $25 for it, but I think I'll start buying my other stuff from another LBS which is even closer to where I live.

I e-mailed CB about this & they replied:

. . . Thanks for the heads up. While it's true that they are charging higher than MSRP, they are technically allowed to do that. We sell to distributors who sell to bike stores and we can't control the selling price. I don't personally think it's good business to charge over MSRP in the long run (look at your reaction). However, I agree that I should let them know that they lost a customer (but I won't mention your name). There is a possibility that they really don't know what the MSRP is so maybe they'll change their pricing after hearing from me. . . .

I love those Crank Brothers people - not only are their products great, but their direct customer service is awesome as well - even on Christmas Eve!

 

[sod8]

MSRP=Manufacturer's SUGGESTED Retail Price

 

[Utom51]

How dare you even think to question the markup of bicycle parts at a LBS? I hope they shamed you back to blind loyalty. Just pay the money, and don't pay any attention to the owners new car, house, motorhome, and bicycle, all of which are better than anything you own.

 

[Old_Dude]

They had a Advanced Mechanic Tool Kit AK-32 for $300 - I found one here for $199:

http://www.bikeswholesale.com/

Please don't get me wrong - I totally agree with the idea of supporting & helping the LBS - that this is good for everyone in bicycling - but good grief already, this price difference isn't even clost - $199 vs. $300 - that's a 50% increase in price - I'm sorry, I could see paying a small percentage higher for the same item, but paying 50% more? C'mon, get real! This is pathetic.

 

[bomberz1qr20]

Shops have a pathetic profit margin on complete bike sales. They make their money in aftermarket parts and accesories, period.
This is where you'll find the steeper markups. The cost of a wholesale bike plus labor to build it and sell it then tune it up after the sale amounts to very little profit if any. Helmets, tubes, tools, clothes and all the other gack is where the sales money is in bikes. Add to that a VERY small amount of income from the service dept and a shop can only hope to stay alive.

Support 'em or shut up!!

 

[edoz]

Originally posted by Utom51
Just pay the money, and don't pay any attention to the owners new car, house, motorhome, and bicycle, all of which are better than anything you own.

I've worked in bike shops for a long time and I've never seen a shop owner who fit your profile. In fact, I have a nicer mountain bike than the last three shop owners I've worked for.

The truth is, most shops don't make tons of money. They do it because they like to do it. I've made twice as much or more as a welder, but I keep going back to the shops because it's fun. When people like you drive the shops out of business, I guess I'll have to mail order, too. Of course the people who can't work on their own bikes will be SOL, unless YOU want to fix their bikes.

Next time you buy clothes, think about this. Retail clothing is often marked up 700 or 800 percent. That's how clothing stores can have 70% off sales and still rake it in. Yeah, that's right. That 60$ sweater at the Gap, cost the store like 8 or 10 bucks.

Do you go to bars? They make a killing on drinks. You think they pay anywhere close to 3 dollars for a beer? Buying them by the thousand, hell no. I don't hear anyone bitching about that.

You can't tell me you don't go out to eat. Resturants are mark up kings. When you pay 9 bucks for steak and eggs how much do you think it cost them to make it? They certainly aren't paying the wait staff much. No, they expect you to pick that up too, in the form of a tip.

Wake up. The bike shop isn't any worse than any other industry, it just gets undercut worse than most.

 

[jodysbike]

Originally posted by Old_Dude
I finally found a Crank Brothers Micro 17 multi tool at the LBS today & they had it listed for $24.99. I bought it anyway, but argued about the MSRP listed at CB's website.

The problem with Crank Brothers is that they don't build in a margine that most shops can live with. The distributers they use all use a differant mark up. That tool can cost the bike shop any where from $10.50 to 16.00 depending on the distributor.
So lets say that shop had to get that tool for $16. They made $8.99 off of you. If they got it for $10.50 they made $14.49 off you. Remember that's gross margine. The shop still has to squeeze rent, electric, wages,ect.. out of that and other small purchases.
No company in the bike industry should publish a MSRP unless they specify to the distributors what it will be sold to shops for.

Some companies like KORE suck! Why? You can buy a KORE stem from some mail orders for $15. That same stem is $55 at your LBS. Every industry gives price breaks when you buy in large quantities but the bike industry is a little screewy on this.

Bike companies selling left over forks, ect... for net to nothing to mail order doesn't help either.

Just had to vent a little. :angryfire

 

[jodysbike]

Originally posted by bomberz1qr20
Shops have a pathetic profit margin on complete bike sales. They make their money in aftermarket parts and accesories, period.
This is where you'll find the steeper markups. The cost of a wholesale bike plus labor to build it and sell it then tune it up after the sale amounts to very little profit if any. Helmets, tubes, tools, clothes and all the other gack is where the sales money is in bikes. Add to that a VERY small amount of income from the service dept and a shop can only hope to stay alive.

Support 'em or shut up!!

Thank you! I make $30 on a bike under $600 after I pay for shipping and my wrench to put it together (If I don't do it myself.)
The thing that gets to me is when someone buying that $600 bike ask me to take 20% off. Should I just leave my doors unlocked at night?
The only reason I'll move on price of a bike is if it's over $1200. I'll discount maybe 5%. At that point I know you'll be in all year buying tubes, gloves, etc... and I still make some on the bike in that range.

 

[TNK]

IF you look at both sides of the problem, both sides are correct. LBSs should not be ripping their customers off, and riders should not leave their LBS because they are upset over a price. The major problem we have is the fact the "Bike" industry is still, on the whole, a mom and pop industry, while the rest of commercial America (and the rest of the world) is Walmartized. We have come to expect cheap prices and poor service because that is what we are force fed everyday. I think I speak for most bikers when I say, we don't want that to happen to biking. I wish I had a solution, I would become rich because of it.

 

[johnbryanpeters]

I don't know any rich LBS owners either, or mechanics, for that matter. Standard markup as I understand it is 100%. They buy it for $5 and sell it for $10.

If I need it and they have it, I pay list without a whimper. If they have to order it and it's mongo bucks, sometimes I negotiate, usually successfully. I would not buy a new bike on the web.

I have had a few experiences where one LBS or another keeps getting the wrong part, takes forever, or whatever, that have caused me to buy on line.

In general, I want LBSs to stay around, so I buy from them; I depend on their expertise and local knowledge, plus most of the owners and wrenches I know are interesting people.

J

 

[Rik]

Originally posted by johnbryanpeters
Standard markup as I understand it is 100%.

The shop i work for runs on 60% markup, buts thats over here in Australia
its damn hard when some wanker comes in, loud mouthed and demanding, points out $1200 worth of bike and says "i'll give you $800, cash" and then goes on to argue "i know you make heaps off them, and you can just put this cash in your pocket, its either that or i walk out" i say we lose money on that sale, they say i'm lying...
i swear, if i was the owner of the store the only discount i'd give those type is knock off 20% of their teeth off!

 

[Damn True]

If you think that is bad think about this the next time you buy a t-shirt.

A Hanes Beefy-T costs about $1, a single color silk screen costs about $30 to make, the price to print the shirts is about $1 per shirt once you do over 50 or so.
The printed shirt will cost you $12-$15.