Originally Posted by
cafzali
Actually, they're not traditionally LBSes in a sense in that they're exclusive dealers. Not sure about Cannondale stores, but Trek stores are locally owned, they're just exclusive franchisors of Trek bikes. In return for their exclusivity, I'm sure they receive better product pricing, which translates to higher margins.
But probably lower sales. Why stock on up on Trek models that have low sales when you can sell models from other brands that sell well? In this case it's a Cannondale factory store. But the Cannondale shops I been to, pretty much exclusive to just Cannondale. And I don't think they do that much business since I haven't seen any new Cannondale bikes around here this year. So this shop gets good prices and deals on Cannondale but sell so few I don't see anyone riding a new Cannondale? Great business model... :/