Forums >Gears and Wears>Seriously? and it doesn't come with pedals??
First experience at a bike store last night, shopping for a gift for (and with) my wife. A road bike so she can do more/better in triathlons.
Prices range from $700 up to $7000. Shocking on its own; they dont come with pedals. Isnt that like a car with no gas or brake pedal I ask. I get the long dissertation about different fits, weights, balancing etc etc etc. So i keep chatting with the guy and ask him how they pay for all their inventory - thinking they must basically get them on consignment from the manufacturers. He says no - they buy them outright. I question margins and he claims the margins in their business are extremely small.
as i look at a last year's model that was $1500 and is now $1000....
Anybody with industry experience have a comment on the claim that the margins are quite small, because I'm not buying it.
Rhode Island Road Runners
Btw,did you price out the shoes and the gaudy clothes?
My direct knowledge is ancient, but I know a couple who own a local tri shop. It seems to me that margins on bike frames are indeed small, and its not like unsold inventory gets sent back to the manufacturer at the end of the season. This shop does buy frames outright, and if one doesn't sell, well, oops. They make their money... and it isn't a lot of money... more off the "stuff" (especially clothes) and the bike service.
But, again, my real knowledge is circa 1990 and the little bit I hear from this couple when I'm at races or meetings with them.
DWARP Marathon Madness Mob
Abs of Flabs
rectumdamnnearkilledem
First experience at a bike store last night, shopping for a gift for (and with) my wife. A road bike so she can do more/better in triathlons. Prices range from $700 up to $7000. Shocking on its own; they dont come with pedals. Isnt that like a car with no gas or brake pedal I ask. I get the long dissertation about different fits, weights, balancing etc etc etc. So i keep chatting with the guy and ask him how they pay for all their inventory - thinking they must basically get them on consignment from the manufacturers. He says no - they buy them outright. I question margins and he claims the margins in their business are extremely small. as i look at a last year's model that was $1500 and is now $1000.... Anybody with industry experience have a comment on the claim that the margins are quite small, because I'm not buying it.
Of course it doesn't come with pedals--they can't assume what sort of pedal the customer will want...SPD, Time, Look, Speedplay, etc. Many customers likely already have a set of pedals, as well.
That "profit" also will include thorough fitting, assembly, adjustments, and probably at least 6 months of included adjustments and minor repairs. All things one doesn't get when they purchase a bike at Wal-Mart (aside from basic assembly).
A friend of ours owns a small shop. Once he pays for the retail space, utilities, and his employees' wages he barely breaks even.
You could save money buying a bike off of eBay or Craig's List, but it may be a poor fit and then you're stuck with an ill-fitting bike. Most reputable bike shops will stand behind their fitting and any issues that crop up in the first few months a customer is in possession of their bike.
Getting the wind knocked out of you is the only way to
remind your lungs how much they like the taste of air.
~ Sarah Kay
A Saucy Wench
Yeah, a friend of mine owns a bike shop here and says if he could get away with it he would just do service and customization. He makes very little or loses on frames, makes a bit on custom parts, but makes his living on service, clothing, accessories, etc.
Having no pedals is a pretty complete bike. Serious bikers often buy just the frame. Then EVERYthing else is component.
I have become Death, the destroyer of electronic gadgets
"When I got too tired to run anymore I just pretended I wasnt tired and kept running anyway" - dd, age 7
Runners run
It would be like skis coming with bindings already mounted.
Or running shoes coming with laces. Oh, wait...never mind.
Feeling the growl again
Yeah but my understanding is that shoe stores have better margins. When I bought several pairs from a big name manufacturer through a special team discount, I got shoes that retail for $90 for $35/pair.
"If you want to be a bad a$s, then do what a bad a$s does. There's your pep talk for today. Go Run." -- Slo_Hand
I am spaniel - Crusher of Treadmills
That must have been subsidized by the manufacturer--retail margins on running shoes are around 50% or less.
Yeah, it's kind of funny to gripe about bike costs on frames that are often made in the US (Trek, Cannondale, and many smaller brands), yet pay HUGE mark-ups on running shoes made in China.