Originally Posted by
cale
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.
Trek is carrying around a huge number of old school dealers that have no interest in efficient changes ( they are big fans of inefficient changes )....this will be interesting.
I expect the market will be changing in 2-3 years.
Thanks,
Yan