Originally Posted by
urbanknight
When I worked for a shop, the sales guys got a commission, but it was a tiny "bonus" on top of their normal wages. Something like $2 for a child's bike, $3 for an entry level bike, $5 for mid range, and $15 for a select few top shelf machines. I was a mechanic, so it was a pleasant surprise when I helped the sales staff one slammed Saturday, and the manager pulled me aside after selling two bikes to fill out my commission request.
some shops do that. Most in my experince do not. there are usually bonuses or spiffs for selling a bike that we have a back stock on but ya. and even then, the commissions are usually minimal.
with that, Most of manufacturers have a Minimum acceptable price that the shop cannont go below. One shop I worked at sold every bike at this price. The one Im at now doesnt. We cant go below that price which is why we offer the discount on the accessories many times.
Cervelo is strict on thier pricing, any new model year bikes must be sold at MSRP or you risk losing your contract with them. same with selling below MAP. So we arent trying to rip you off, we want you on a bike, and we want you happy but sometimes people think that us only knocking 100 bucks off of a 1000 dollar bike or 200 off a 3000 dollar bike is rediculous because you think we make all kinds of mark up.
There is anywhere from 30-40% markup on bikes but once you factor in the cost for me(the sales guy) cost to keep the lights on, cost of it being in inventory, and all other costs, we rarely make more thank 5-10% on bikes. Accessories are where the money is and allow us more wiggle room to discount. So go after your savings there, push for 20%. Most shops allow me to do that but would rather us offer 10%.
Just some thoughts.