Originally Posted by
gauvins
I am not familiar with the economics of independent bicycle shops. I don't know what proportion of their business is made of sales of complete bikes, components and service. I'd be surprised if the industry were decimated by aggressive component pricing. There will always be, I assume, the local road racing team and other niches. I also find that in our city, one can find a couple of bike coops and large sporting goods stores providing repair and tune up services.
At the other end of the spectrum, Surly prohibits online sales of their bikes/frames, arguably to support their network of retailers. Not sure this is in their best interest. Almost convinced this is not in my best interest.
I tend to agree. I'm not sure a LBS making a bit on a high end component set every few weeks comes close to their profit off $100 labor on tune ups that they perform many of each day. I'd be willing to bet that most general LBS make far more off Electra add-ons than selling components to someone building their own bike, or off the labor to put said components on that touring bike.