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Old 10-07-10 | 09:32 AM
  #6  
gregf83
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From: Vancouver, BC
Fortunately, there are public companies that make bikes (i.e. Cannondale) and publish their gross margins. Obviously, they don't break it down in detail but it gives you a reasonable idea of the range of margins you can expect. As it turns out the margins are reasonable (40% as I recall) and in line with other competitive businesses.

Bottom line: No large bike manufacturers are buying bikes for $800 and selling them for $5000.
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