Road Cycling - Trek--dealer cost vs. your cost?

When I buy a car I always get very good deals because I know what the dealer is paying, what their incentives are, etc.

So, here's the question--roughly what does a Trek dealer pay for their bikes? Let's pick the 5900 as an example--its MSRP is $4799 according to the Trek website. My LBS has it for I think $4299, so roughly a 10% discount.

What's it cost the LBS? I do realize that they don't make huge bucks on each--no one really does in most retail settings anymore.

Thoughts?

Don't forget to add in market demand and availability into your equation. While I'm sure your local Chevy dealer will be happy to deal with you when you come prepared to talk about a Corsica, it's a different thing when you want the limited edition Corvette.

55/Rad

When I buy a car I always get very good deals because I know what the dealer is paying, what their incentives are, etc.

So, here's the question--roughly what does a Trek dealer pay for their bikes? Let's pick the 5900 as an example--its MSRP is $4799 according to the Trek website. My LBS has it for I think $4299, so roughly a 10% discount.

What's it cost the LBS? I do realize that they don't make huge bucks on each--no one really does in most retail settings anymore.

Thoughts?

We could tell ya, but then we'd hafta, well...you know.... ;)

Like the employee purchase process, it's a secret. You will have to get a job at a bike dealer to find out THE TRUTH.... :D

Trek sets the retail price higher than they would actually expect to charge in the real lbs - so every sale seems like a discount. I don't know anyone who paid the listed price - I certainly didn't when I got my 5200.

Don't forget you're dealing with the biggest advertising/sales monster in the bicycle industry - the NIKE of bicycles.

Having shopped for bikes here in Ohio, and in Naples, Florida last month, I have to add that location has a lot to do with it. The bikes I checked out down there were selling right at MSRP. No dicounts and no negotiations. I can typically walk into most any bike shop here and find the same products discounted off MSRP. Selling prices are typically what a market warrants and what business costs demand. Don't forget as RAD said, about demand that is part of what "market warrants" implies.

I would say that if your LBS has discounted it approximately 10%, check some other stores in different markets/states, I am willing to bet you will easily find markets that will not discount it at all, and quite frankly especially with cars, we have all seen the new model everyone wants going for well over MSRP along with extended wait times for that hot new model because they can't fill the demand.

Other things you need to keep in mind are the "extras" you may get from the LBS such as tune-ups, adjustments, perhaps discounts on accessories, and free installation of those accessories with the purchase of the new bike. Even if you can do all installations/maintenance things yourself, it still adds value to the price you pay for the bike itself, and should be considered at least to some extent. Perhaps as a negotiating tool you could tell them you'll sign a letter promising never to bring it in if the wheels go out of true, the derailer won't shift to your liking or you need the handlebars or seat adjusted.

I for one have no "inside" information, but tend to lean towards the side that reports the margin on bikes is minimal. Being involved in leasing retail space, I know what those folks are paying for the building and over-head, along with taxes on payroll and everything else associated with running a business. Quite honestly I am constantly amazed there aren't more business failures than their are.

I know that its a supply/demand issue, clearly. I have seen various posts on the Trek 5900 supply is limited but who knows. LBS actually has 4 or 5 Madone 5.9s so I think some of the posts re: availability of the high end Treks must be old or my LBS has a lot of pull with Trek.

ok, well I will just have to try out my negotiating skills and see what comes of it.

Does anyone know whether waiting til end of season will be fruitful? I am thinking I will either go for the 5900 or maybe get a 5900 or 5200 frameset and build it up myself.

the margin on bikes isn't very high. quite low, actually. most of our profit comes from parts, accessories, and labor.

I know what dealer cost is, but I ain't sayin' shet!

Don't worry about trying to take all the dealers profit, find a shop you like dealing with, get the bike for the best price they'll give you, thats the essence of a good deal.