Originally Posted by badger1

Not confusing at all. MSRP is just that: Manufacturer's Suggested Retail Price. The manufacturer -- in the example -- is Specialized. In Canada or the U.S., a given dealer is not bound by that price.

I own a Specialized, and have ordered and will soon receive a new one. My lbs would sell that bike to a 'walk in' off the street for the MSRP. I will pay that, less a minimum 10% discount that my lbs will offer me because I am a loyal/long-time customer.

Dealer margins on bicycles are not very high at all. An lbs has only so much wiggle room on price (MRSP less their dealer cost) within which to allow for haggling.

A high volume dealer in a large city environment will obviously have more wiggle room than a lower volume dealer in a small catchment area.

Discussions "around pricing" really come down to the usual: people claiming that bikes are too expensive, etc. Always amazes me that folks expect a legitimate dealer to sell 'em a bike at or below dealer cost. If someone wants a 'deal', they ought to buy either from a direct-sales company like Canyon, or from an 'online' "bike shop" like Bikes Direct, and take the consequences.