Originally Posted by
downtube
cale,
In the comments some owners also refer to the margins, it seemed they would be lower for internet sales. However that was not 100% clear...In general margins in the industry are between 30-40%. People were talking about 20-25% margins online, hence I naturally assumed they are lower.
Thanks,
Yan
Those 30-40% margins contain a lot of dealer support and marketing costs that are directly related to LBS sales. If you eliminate those costs, then it is entirely reasonable to pass along the savings to consumers. This assumes that Trek wants to compete aggressively in the online direct-to-customer sales market. Trek is very business savvy.