Originally Posted by
Hill160881
Most of it has been discussed but the big one I see is the three big companies are price gouging there customers.
if you combine that with Covid and the emergence and timing of companies like Elite, 9velo, Winsoace, wheeltop, ltwo… They have shown the consumer the massive markup the three major companies have. That with providing a compatible product at half or one third the major companies prices has slowed any recovery the big three may have seen post Covid.
Not just the big three. The boutique bike makers have absolutely lost their minds with their prices as well. Like Moots. They are a complete joke. Do they product a fantastic product? Yes. Is is on the level of cheaper builders like Sturdy? Not even close.
What profit margins? To have a profit margin, you have to first earn a profit. Which of the "big three companies" has earned a profit? In retail there is always a huge markup, often around 400% over cost. But from that 400% comes the rent, the utilities, the wages, the maintenance, the insurance, and, lastly, the taxes paid on whatever is left over. In the end, your typical retail business has a profit margin of 1% to 3%.