Originally Posted by
Bob Dopolina
You have no idea of what you are talking about. None.
If you see a bike discounted that much it is because it is not a current model year, the last of a certain model or an odd size and it is inventory the shop wants off the books. They will take A LOSS on that bike so that they can get some cash back that they can then use to invest in stuff they can sell like tubes, helmets, locks or lights.
Do a search. There are plenty of people on this board who own or works in shops who have posted very clear information about margins on bikes at your LBS. They are laughable.
auto dealers do the same thing. i bought a new truck off the lot cheaper than many used trucks. it was oddly equipped (but how i wanted it) and sat on the lot for over a year. a year or so later my friend got a sales position at the dealer and found the paperwork from my sale. he did not give me numbers, but he said i walked out paying less (purchase, tax, title, license) than the dealer payed for the truck.
after a while products turn into liabilities.