Originally Posted by
TiHabanero
When running my shop margins at the year end had to be in the 45-50% range. Anything below that meant deep cuts in borrowing, hiring and capital improvements not to mention a horrible ROI. Can't imagine being in biz running on 30% margins. How can it be done? Even Bike Nashbar and the like run on margins heavier than that!
Correct - as I pointed out earlier, the lower price and wider selection of Nashbar and the like are due to costs of goods that are much lower and a market that is orders of magnitude larger. It's a mistake to assume that shops start at the same point in marking up their merchandise. There are some items that would be significantly more expensive at a shop even with a low markup.