Thread: Clems at Riv
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Old 03-22-15 | 08:21 AM
  #120  
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bikemig
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From: Middle Earth (aka IA)

Bikes: A bunch of old bikes and a few new ones

Originally Posted by gomango
From my understanding, it isn't really a permission issue.

It's a margin issue.

Two shops that I frequent here were interested until they figured out the margins and market pricepoints.

It was a big "no go" from that point on.

But that wasn't really my point. The Rivendell business model restrains them to a smaller operational size.

It seems to me GP doesn't want to get any larger. Seems happy to be the size he is atm.

Cash flowing this operation must be interesting at times.
Rivendell is more of an internet direct company than a classic bicycle wholesaler looking for a distribution network. The market for these bikes is small and one mail order operation can pretty much provide all the supply needed for the demand. Rivendell has adopted a "high" margin, low volume strategy. I have no idea how high their margins are but it's higher than it would be if it sought to sell to bike shops.
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