Cycling and bicycle discussion forums. 
   Click here to join our community Log in to access your Control Panel  


Go Back   > >

General Cycling Discussion Have a cycling related question or comment that doesn't fit in one of the other specialty forums? Drop on in and post in here! When possible, please select the forum above that most fits your post!

User Tag List

Reply
 
Thread Tools Search this Thread
Old 07-11-08, 11:54 AM   #1
BikeSphinx
Junior Member
Thread Starter
 
Join Date: Jul 2008
Location: Northern Virginia, USA
Bikes: 2009 Trek 7.3FX
Posts: 7
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
LBS selling bike at MSRP?

So the other day I went back to my LBS to return/exchange my bike for the 2009 model. Over the phone, the salesperson said that they didn't have definitive pricing on the bike yet, but it will be $600 and above.

When I initially went to this LBS, they had been very informative in helping me pick a bike, and they were very patient and answered all my questions. So much so, that I felt comfortable with them and didn't shop around at other stores.

So anyway, I go in to exchange the bike and order the 2009 model. So the salesperson calls over a senior salesperson and explains to them what I want to do. The senior salesperson asks the salesperson how much the 2009 model is, to which the salesperson responds "we don't have an exact price, around $600". So the senior salesperson logs into their system, and reads out loud "MSRP is $600", then asks me if I'll pay the difference, and I said sure. I was just happy I'm getting the newer model.

But after leaving the store I thought about how other businesses (i.e. cars, retail) usually sell items below MSRP. And that the MSRP is just that, suggested retail price. But I'm new to this whole biking thing, so I wanted to see what other people on here think of this.

Do LBS's traditionally sell bikes at MSRP?
BikeSphinx is offline   Reply With Quote
Old 07-11-08, 12:00 PM   #2
Ziemas
Senior Member
 
Ziemas's Avatar
 
Join Date: Nov 2004
Location: Riga, Latvia
Bikes:
Posts: 10,082
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 1 Post(s)
Yes, they do. If you want a discounted product buy a bike online and deal with any service problems you may have out of your own pocket.
Ziemas is offline   Reply With Quote
Old 07-11-08, 12:02 PM   #3
Little Darwin
The Improbable Bulk
 
Little Darwin's Avatar
 
Join Date: Jul 2005
Location: Wilkes-Barre, PA
Bikes: Many
Posts: 8,402
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 2 Post(s)
Bike stores don't always take trade-ins, so if they paid you anything for your old bike, they saved you the trouble of selling it.

Bike stores do often sell below retail, but in free market exchanges the process is:

Offer

(possible haggling goes here)

Acceptance or rejection of offer/counter-offer

What you got was fair, whether it is more than everyone else in the world pays or not.

Don't second guess yourself over whether you paid an extra $30 after the fact, it isn't worth it...
__________________
Slow Ride Cyclists of NEPA

People do not seem to realize that their opinion of the world is also a confession of character.
- Ralph Waldo Emerson
Little Darwin is offline   Reply With Quote
Old 07-11-08, 12:08 PM   #4
ShadowGray
I like my car
 
ShadowGray's Avatar
 
Join Date: Apr 2008
Location: Philadelphia, PA
Bikes:
Posts: 1,747
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 1 Post(s)
It depends on the store really. Some people have luck with their LBSes selling below MSRP... mine sells at full MSRP.

I go to them for bike work, but I order everything else online. Including my bike.
ShadowGray is offline   Reply With Quote
Old 07-11-08, 01:15 PM   #5
ajmstilt
Senior Member
 
Join Date: Oct 2005
Location: NorCal
Bikes: Public D8, Marin Hamilton 29er, (stolen: Trek 7.3, Electra Amsterdam)
Posts: 123
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Do you haggle over the price of milk in a grocery store, a tv at the electronics store, or do you think you should have tried haggling over the price of that dinner in the restaruant?

no?

then don't worry about it and enjoy your new bike.

ajmstilt is offline   Reply With Quote
Old 07-11-08, 01:27 PM   #6
bab2000
Senior Member
 
Join Date: Jul 2007
Location: Fort Wayne, Indiana, USA
Bikes: riders:Schwinn Continental ('80), Specialized Crossroads Sport ('07), Schwinn Super Sport (73), Schwinn Superior (76), Projects: Schwinn Sprint ('74), Trek 800 & Schwinn Continental ('71)
Posts: 524
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
I have noticed my regular LBS sells some models below MSRP while others are matching or slightly higher.

I politely asked the sales clerk who I normally seek out when visiting and asked why the difference in some prices against the manufacture webs sites.

In short he explained that there are manufacturer or distributor incentives for certain models, or price breaks at order levels. The floor pricing in the store is often based on on the cost plus % for retail on many items, if they save, $s on a model, and it is a proven mover for them, they will stock heavier and therefore offer a better price than maybe found elsewhere. He also indicated he can not do that on all products, but they try.

I also suspect on special orders or advance orders, MSRP is the standard, if they locked you in at that price it is a 50/50 shot, if the price is higher than promo materials indicate they may lose, if less, they may pass along to you, either case you could be ahead.
bab2000 is offline   Reply With Quote
Old 07-11-08, 01:43 PM   #7
taser
Supreme Commander of CATO
 
Join Date: Jun 2008
Bikes:
Posts: 90
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
I had an LBS quote me a price above MSRP. The bike was quoted at about $100 over MSRP and accessories were another $30 above MSRP.

I didn't understand it, perhaps they bundled a lifetime service plan with their bicycles, but again I did not ask for it.

-Taser
taser is offline   Reply With Quote
Old 07-11-08, 07:04 PM   #8
mark9950
Senior Member
 
Join Date: Jan 2008
Bikes:
Posts: 439
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
A bikes not a car.
mark9950 is offline   Reply With Quote
Old 07-11-08, 07:23 PM   #9
wahoonc
Senior Member
 
wahoonc's Avatar
 
Join Date: Jan 2005
Location: On the road-USA
Bikes: Giant Excursion, Raleigh Sports, Raleigh R.S.W. Compact, Motobecane? and about 20 more! OMG
Posts: 16,768
Mentioned: 1 Post(s)
Tagged: 0 Thread(s)
Quoted: 40 Post(s)
MSRP= Manufacturer's SUGGESTED Retail Price...that is all it is...a suggestion. Depending on their contract with the particular distributor/manufacturer they may have to sell it at that or they may not. Also with the rapid rise in energy/shipping costs upcharges are quite often necessary. FWIW we own a small retail store and have had to start adding $10 to the price of a lot of products to cover the increases in shipping passed onto us by the distributors.

I have paid MSRP, more than MSRP and less than MSRP on the various bikes I have purchased in the past couple of years. As pointed out above, different reasons for different pricing.

Aaron
__________________
Webshots is bailing out, if you find any of my posts with corrupt picture files and want to see them corrected please let me know. :(

ISO: A late 1980's Giant Iguana MTB frameset (or complete bike) 23" Red with yellow graphics.

"Cycling should be a way of life, not a hobby.
RIDE, YOU FOOL, RIDE!"
_Nicodemus

"Steel: nearly a thousand years of metallurgical development
Aluminum: barely a hundred
Which one would you rather have under your butt at 30mph?"
_krazygluon
wahoonc is offline   Reply With Quote
Old 07-12-08, 06:50 AM   #10
shundaroni
Roadie
 
shundaroni's Avatar
 
Join Date: Jun 2008
Bikes:
Posts: 118
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
By and large, an LBS will charge what the local/regional market will bear. I had the "good fortune" of buying my bikes in an area full of fat people that think bicycles are only for those under 12 years old. None of the local shops were asking MSRP.

I will say, however, that there is plenty of room for haggling. This isn't milk or bread...unless your local grocer asks $1000 for it's produce, the analogy is bad. Even considering that, most retailers will offer price matching if you can find a competitor charging less. So, absolutely try to haggle. If they refuse to budge, exploit them for their fitting and test-rides and take that knowledge to another LBS.
shundaroni is offline   Reply With Quote
Old 07-12-08, 07:00 AM   #11
StephenH
Uber Goober
 
StephenH's Avatar
 
Join Date: Sep 2007
Location: Dallas area, Texas
Bikes:
Posts: 11,327
Mentioned: 1 Post(s)
Tagged: 0 Thread(s)
Quoted: 31 Post(s)
I don't know how uniformly the bike manufacturers price their products. But there are some products sold with an inflated MSRP simply to try to make the product look better. With bikes, I would think this would be more of an issue with offbrand bikes, or cheap or oddball bikes, not with the mainstream companies.
__________________
"be careful this rando stuff is addictive and dan's the 'pusher'."
StephenH is offline   Reply With Quote
Old 07-12-08, 08:53 AM   #12
Wordbiker
Pwnerer
 
Wordbiker's Avatar
 
Join Date: Jun 2005
Location: Pagosa Springs, CO, USA
Bikes: Road, MTB, Cruiser, Chopper, BMX
Posts: 2,907
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
The OP didn't mention the brand of bike, but all vendors have differing approaches to pricing.

Some will have a single MSRP with a fixed margin. Others will have an MSRP, an "advertised price" as well as a minimum price. The minimum price is contracted and bikes can't be sold for less or the shop risks losing their distributorship. Sometimes this minimum is only applicable for a certain time period, allowing for late season closeouts, etc.

Keep in mind that due to the spike in fuel prices and short availability for many bikes and parts, dealers may be less likely to negotiate lower prices, not more.
__________________
Quote:
Originally Posted by ahsposo View Post
Ski, bike and wish I was gay.
Wordbiker is offline   Reply With Quote
Old 07-12-08, 12:10 PM   #13
ablang
Senior Member
 
Join Date: Oct 2004
Location: Sacramento, CA USA
Bikes: not worth mentioning
Posts: 174
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
When I bought my Giant FCR3, it was priced $50 above MSRP on online sites, but I negotiated a 10% discount by offering to pay w/ cash, making it the regular MSRP price.

$500 - $50 = $450 MSRP
ablang is offline   Reply With Quote
Old 07-12-08, 12:17 PM   #14
dobber
Perineal Pressurized
 
dobber's Avatar
 
Join Date: Oct 2003
Location: In Ebritated
Bikes:
Posts: 6,557
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
As you stated, MSRP is the Manufacturers Suggested Retail Price. Seems to me they suggested it and you agreed to it.
__________________
This is Africa, 1943. War spits out its violence overhead and the sandy graveyard swallows it up. Her name is King Nine, B-25, medium bomber, Twelfth Air Force. On a hot, still morning she took off from Tunisia to bomb the southern tip of Italy. An errant piece of flak tore a hole in a wing tank and, like a wounded bird, this is where she landed, not to return on this day, or any other day.
dobber is offline   Reply With Quote
Old 07-12-08, 12:44 PM   #15
Old Pa
Codger & Geezer
 
Old Pa's Avatar
 
Join Date: Jul 2008
Location: Northwoods
Bikes: 1996 Cannondale F700, 1997 Fuji Roubaix, 2008 Motobecane Century Pro
Posts: 17
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
MSRP = Full Boat; never pay Full Boat.
Old Pa is offline   Reply With Quote
Old 07-12-08, 08:35 PM   #16
C_Heath
Its Freakin HammerTime!!!
 
C_Heath's Avatar
 
Join Date: Aug 2004
Location: Off the back @ 188 BPM's
Bikes: 2008 Felt F3 :)
Posts: 2,320
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 24 Post(s)
I buy some things from the LBS but not bikes. I mean, if they were making a couple hundred or even 3, I would but Ive seen bikes sell brand new in the box for half the MSRP dso you know they are making really good money when they sell at MSRP. I just bought one on ebay for almost half price. Details and pics to come This Thursday!
C_Heath is offline   Reply With Quote
Old 07-12-08, 08:57 PM   #17
Wordbiker
Pwnerer
 
Wordbiker's Avatar
 
Join Date: Jun 2005
Location: Pagosa Springs, CO, USA
Bikes: Road, MTB, Cruiser, Chopper, BMX
Posts: 2,907
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by C_Heath View Post
I buy some things from the LBS but not bikes. I mean, if they were making a couple hundred or even 3, I would but Ive seen bikes sell brand new in the box for half the MSRP dso you know they are making really good money when they sell at MSRP. I just bought one on ebay for almost half price. Details and pics to come This Thursday!
Hopefully none of those are stolen, gray market or worse: derailed recalls.

Also, if you think that selling bicycles is really good money, you've never worked in the bicycle industry.
__________________
Quote:
Originally Posted by ahsposo View Post
Ski, bike and wish I was gay.
Wordbiker is offline   Reply With Quote
Old 07-12-08, 09:43 PM   #18
J.C. Koto
apocryphal sobriquet
 
Join Date: May 2008
Location: Star City, NE
Bikes: 2008 Surly Long Haul Trucker "The Truckerino"
Posts: 1,072
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 4 Post(s)
Ahh, bikeforums ate my post yesterday... In short, if you *must* haggle, you're probably better off trying for a *slight* discount on accessories or older model bikes (clearance bikes), or just asking for some shop schwag (shop-branded bottles, shirts/jerseys, etc). The profit margin for new bikes is actually pretty low. Consider the additional shop costs of final assembly, initial tuning, 30-day re-tuning, etc. which can push the profit margin to near 0 for all but the most expensive bikes.

If the LBS is offering a bike at MSRP, and the bike is in good mechanical order, consider it a fair deal. Otherwise, get it somewhere else, and decide how much your time investment to get it into good, road-worthy shape is worth...

EDIT: It just goes back to the old maxim -- "You're buying the shop more than just the bike"...
J.C. Koto is offline   Reply With Quote
Old 07-12-08, 10:43 PM   #19
operator
cab horn
 
Join Date: Jun 2004
Location: Toronto
Bikes: 1987 Bianchi Campione
Posts: 28,306
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by Wordbiker View Post
Also, if you think that selling bicycles is really good money, you've never worked in the bicycle industry.
+1 Seriously

I love how people think they own the store when they come in buying a "big-ticket" item like a bike when it is our least profitable item in the store.
operator is offline   Reply With Quote
Old 07-12-08, 11:17 PM   #20
Wordbiker
Pwnerer
 
Wordbiker's Avatar
 
Join Date: Jun 2005
Location: Pagosa Springs, CO, USA
Bikes: Road, MTB, Cruiser, Chopper, BMX
Posts: 2,907
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by operator View Post
+1 Seriously

I love how people think they own the store when they come in buying a "big-ticket" item like a bike when it is our least profitable item in the store.
Least profitable perhaps, but it is the largest ticket item in the store.

While I can understand it's a huge deal for most folks to buy a bike, there's nowhere near the same margin as a car or even most other retail items that no one even haggles for.

Sorry to be the bearer of truth folks. If you keep haggling, the shops will just hire better hagglers, not cyclists that care about finding the right bike for your needs.
__________________
Quote:
Originally Posted by ahsposo View Post
Ski, bike and wish I was gay.
Wordbiker is offline   Reply With Quote
Old 07-13-08, 02:39 PM   #21
makeinu
Banned
 
Join Date: Oct 2006
Bikes:
Posts: 2,294
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by Wordbiker View Post
Sorry to be the bearer of truth folks. If you keep haggling, the shops will just hire better hagglers, not cyclists that care about finding the right bike for your needs.
Since they do a pretty poor job finding the right bike for my people's needs anyway (as opposed to indoctrinating folks into cycling myths and group think) I think we'd be better off with better hagglers.

Profit margins may be low for the shops, but they're pretty huge for the distributors. If the shops haggled with the distributors a bit more then maybe they could offer lower prices and more products for us customers.

According to Sheldon Brown a typical good quality bike frame costs about $8 to manufacture.

Last edited by makeinu; 07-13-08 at 02:43 PM.
makeinu is offline   Reply With Quote
Old 07-13-08, 05:57 PM   #22
Wordbiker
Pwnerer
 
Wordbiker's Avatar
 
Join Date: Jun 2005
Location: Pagosa Springs, CO, USA
Bikes: Road, MTB, Cruiser, Chopper, BMX
Posts: 2,907
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by makeinu View Post
Since they do a pretty poor job finding the right bike for my people's needs anyway (as opposed to indoctrinating folks into cycling myths and group think) I think we'd be better off with better hagglers.

Profit margins may be low for the shops, but they're pretty huge for the distributors. If the shops haggled with the distributors a bit more then maybe they could offer lower prices and more products for us customers.

According to Sheldon Brown a typical good quality bike frame costs about $8 to manufacture.
There's always WalMart.
__________________
Quote:
Originally Posted by ahsposo View Post
Ski, bike and wish I was gay.
Wordbiker is offline   Reply With Quote
Old 07-14-08, 08:31 AM   #23
madcalicojack
Senior Member
 
madcalicojack's Avatar
 
Join Date: May 2008
Location: Austin
Bikes: Fuji Cross Pro
Posts: 89
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Talking with the guy at an LBS here it was clear that different manufacturers use different MSRP pricing strategies. He was willing to discount Specialized below MSRP quite a bit, but the other brands were all priced at/near MSRP. If you thought the price was fair when you paid it then have no regrets. Next time, you might do some research and know the market price before swiping your debit card.
madcalicojack is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -6. The time now is 07:13 PM.