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Bike Shop charging customers to bring in bikes for sale?!

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Old 05-02-09, 08:20 AM
  #51  
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Originally Posted by the_doctor
I do not live far from you. I have to tell you that in Massachusetts, LBS are equivalent in size to many motorcycle shops. Yes, they sell that many dollars in bicycles. I know of two bicycle shops in the area which have salesmans incentives ie commissions.

If you are not aware of your requirements and ALL OF THE MODELS AND BRANDS out there, then they will snow job you.

If the guy is going to charge more than MRSP for the bike then I would walk away. Only 2 of the dealers around here advertise around sticker. Most put stickers below MRSP.
Yeah it's true brick and mortar stores are charging less than before for bicycles, despite the fact that you need to sell 2-3 bikes to earn enough to buy more. If it weren't for accessories they would go out of business and you would have to rely on online retailers and Sheldon Browns website for your service needs. New cyclists would...

Most new cyclists would then need to purchase 2-3 seatposts to get the size right, and invest in many tools just to keep it on the road, but only in a manner slip shod, dangerous and barely compared to the Like-New feeling a bike mechanic like those found at many shops can provide.

Then again it's easy to forget that bike shops have many fiscal advantages that allow them to charge less; Check out this list provided by Bicycle Dealers of America.

Fiscal incentives for Bicycle Shops providing Sales and Service.

1. They don't pay rent because landlords like bicycles so much the space is usually donated.

2. Taxes do not apply to the sales or service of bicycles.

3. Most bike shop employees are willing to work for free to serve the greater good

4. Tools are donated to shops by Greek Gods that we otherwise haven't heard from in some time.

5. Trained bike mechanics are found almost anywhere oxygen is required and will trade their expertise for soda crackers. Soda crackers are provided free of charge to participating bike shops courtesy of Santa Claus.

6. Utilities such as electricity, water and natural gas are funneled through their respective conduits by Elves of the Woodland, who very much like bicycles.

7. Customers, while insisting on paying only as much as the very dealer they frequent, are likely to drop off cupcakes if treated well. These cupcakes can be sold on Ebay for a sizable profit.

8. Stocking a complete inventory for a bike store now costs just a minimum $100,000.00 dollars for a small shop with a limited inventory. Most Americans have this amount of capital in tuppence jars that were handed out at the premier of Mary Poppins in 1964.

9. Profiting by providing a specialized service is immoral, as many doctors can tell you. The successful shop accepts warm fuzzies for payment. Warm fuzzies can be sold on Amazon for an exceptional profit.

10. Inhaling the fumes from the vulcanizing cement found in patch kits provides 100% USRDA of nutrients. Patch kits are provided free of charge from their manufacturers, so no expenses for food bedevil the bicycle shop owner.

11. God's love covers all taxes for all (if any) cash transactions made at a bike store.

12. There are so many bicyclists in the USA that only one cent of markup is required on every $1000 of sales to stay above water. Water doesn't rust bicycles.

In short, when a bike shop tries to fleece you of hard earned cash in exchange for a specialized product, product knowledge, service and/or inventory, take the time to remind them why they are actually there. Tell them if they want into Heaven they will die of starvation as God intended. This will set them straight.
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Old 05-02-09, 01:21 PM
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i personally have bought two special order bikes from an LBS in the last year. Shipping was included in the price I was charged, which was full MSRP. I can only see demanding shipping costs if the dealer is giving a substantial discount from MSRP on the price for the bike.

In fact a special order bike is probably MORE profitable for most shops as they are not being charged interest on financing it for a period of time sitting in stock on the floor waiting to sell. Particularly if paid for in advance all the costs involved, and the shop profit, are covered up front.
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Old 05-02-09, 01:46 PM
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Originally Posted by tatfiend
i personally have bought two special order bikes from an LBS in the last year. Shipping was included in the price I was charged, which was full MSRP. I can only see demanding shipping costs if the dealer is giving a substantial discount from MSRP on the price for the bike.

In fact a special order bike is probably MORE profitable for most shops as they are not being charged interest on financing it for a period of time sitting in stock on the floor waiting to sell. Particularly if paid for in advance all the costs involved, and the shop profit, are covered up front.
This is a very valid point.

Every shop does lose a certain amount of margin on bikes that sit for more than one season, or beyond the financing period offered by the manufacturer unless they paid cash for all their stock, though one could also argue that this is all the more reason to charge shipping on custom orders: to compensate for the loss on all the other bikes on the floor that aren't being sold.
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Old 05-02-09, 01:48 PM
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Originally Posted by tatfiend
i personally have bought two special order bikes from an LBS in the last year. Shipping was included in the price I was charged, which was full MSRP. I can only see demanding shipping costs if the dealer is giving a substantial discount from MSRP on the price for the bike.

In fact a special order bike is probably MORE profitable for most shops as they are not being charged interest on financing it for a period of time sitting in stock on the floor waiting to sell. Particularly if paid for in advance all the costs involved, and the shop profit, are covered up front.
Shipping one bike costs more than shipping 20, and the lowest markup a shop has is bicycles, most get their profit margins such as they are from accessories.

I only shop in stores, that might not work for people in small towns, but if you're in a city it's better to do your shopping in person. you get to see what you're buying and get the shops backing and have a place that services bikes.
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Old 05-02-09, 01:57 PM
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You go to the grocery store and shipping costs of all you buy is included in the price.
How much do you have to pay to 'ship' a letter via US mail?
One way or the other shipping costs are charged whether stated or not.
You want the bike?
Bike shops have lots of overhead: shipping, rent, utilities, help, tools. You want to work for less money? Why not?
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Old 05-02-09, 05:20 PM
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When I was ready to buy a RANS V-Rex last summer, I asked the LBS owner if he could get me one and how much it would cost. They don't generally stock RANS but do state that they sell them. His deal was MSRP versus MSRP plus shipping if I bought directly from RANS. The LBS got my business. Had to pay sales tax but you're supposed to come clean with the state about out-of-state purchases every year at tax-time so I would've had to pay it anyway. (Hypothetically)
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Old 05-02-09, 06:16 PM
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Just look at the total price including shipping and ask yourself if it is worth it to you or not.

Don't worry about how the seller is spreading out his costs on the bike. It is either good for you or it isn't.

There is no such thing as getting ripped off if you like what you got and the price seemed is in your budget.

Seriously.


(FYI, If it makes you feel any better, if the LBS had to order the bike special and it was shipped alone UPS ground, it would cost about $90.00 to $120.00 to ship - that is based on the bikes that I have sold and shipped on ebay)
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Old 05-03-09, 01:44 PM
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Mike;

Per my understanding most distributors have contracts with UPS and/or Fedex which give them reduced rates compared to what you or I receive as walk in shipping customers so I expect thatyour estimate may be a bit high compared to what a LBS is charged to have a bike shipped to them.
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Old 05-04-09, 03:46 AM
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Originally Posted by Panthers007
First: I'd find another shop.

Second: I'd call the Better Business Bureau.

Third: I'd climb up the corporate ladder at the distributors they represent and get a hold of someone in management. Ask them if this is part of their policy.

Fourth: See the first.

That is just plain fried!

<by the by - the cost of shipping is covered by the distributor - not the bike-shop, unless they are crooks>
Why would you call the BBB? The dealer has the right to charge whatever they want. The customer has the right to walk away.

If they hit him with a undisclosed "shipping fee" after the fact, than they would be acting unethically.

The OP needs to do comparison shopping. If you can get a better price elsewhere, great. Otherwise ... that's your local market.
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Old 05-04-09, 06:51 AM
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Where did people get the idea that LBS don't pay shipping? Some distributors cover some costs, but the lion's share is payed by the LBS. Few if any distributors defray LBS costs by covering shipping on special orders. Policies differ between distributors but one thing holds true, most of the costs are paid by the LBS, which because it deals with dozens sometimes hundreds of brands either directly or through multiple distributors would be foolish not to simply charge reasonable amounts for shipping.

Wal-mart has instructed you well young cheapskates, to assume that paying more than the seller is wrong.
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