Originally Posted by
noodle soup
At the retail level, the profit margin is much smaller on high-end bikes and components.
Between the two of us, you are in the know more, so not challenging- just clarifying here...
So a $12000 bike has a smaller margin than a $450 bike?
An entry level Trek fx1 has a higher margin than a Trek SLR(pick one)?
If the fx1 costs $300 and sells for $450, the margin is 33%.
So an SLR must cost over $8k to the dealer.
But even then, it seems a bit like a useless number because even if the margin is higher on cheaper bikes, the operating costs for each are the same(rent, salary, utilities, etc). Add all the carrying costs in for both and it's a different story, right?
Just surprising.