Originally Posted by
StanSeven
I have a different perspective than most people here. I have experience negotiating as a profession for the government. I also know cost accounting plus how businesses operate. Companies do well, proper, and provide excellent service when they are profitable. Cut back revenue and they cut back service. I for one like going into a LBS, inquiring abou a specific bike, have knowledgable sales people help me out, and be able to test ride that bike in my (or a close) size. As an example, there's lots of talk here about the pros and cons of Di2. If I were interested, I would like to find out for myself what's it like. Now I know my LBS wouldn't be able to do all that if they sold every bike fot 10% off. So I don't go into a LBS, expect top end service, and then insult them by asking them how cheaply can they sell that bike.
You are making the assumption that offering discounts CUTS BACK on revenue, that's completely absurd.
10 bikes at 200 bucks a pop: 2000
40 bikes at 100 bucks a pop: 4000
Business 101.
Originally Posted by
North of You
Just came back from a LBS and the owner was showing his buddy his brand new Audi which replaced his four year old Audi. This is a smallish LBS and does reasonable business. So if his margins are as tight as some of you are suggesting, I’m in the wrong line of work.
Originally Posted by
Vicelord
yeah, the owner of my LBS has a brand new E92 M3, a Mercedes Sprinter for races, and his wife I understand has a >$50K car as well. He also pays rent on an 5,000sq. ft. storefront in downtown Scottsdale. I'm sure he is really hurting for money.
Some people with the attitude that you are automatically living on the wire if you own a bike shop are out of touch with reality.
The classic sample-size-of-1 argument.