Meow!
Join Date: Sep 2004
Location: Riverside, California
Posts: 6,019
Bikes: Trek 2100 Road Bike, Full DA10, Cervelo P2K TT bike, Full DA10, Giant Boulder Steel Commuter
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If the typical LBS is making say 40% PROFIT on the bike (not including rent, etc) and is providing for example, free tuneups (- parts) for life, then in reality that profit is much less... and active riders actually make the margins, less. LBS really make their money on the customers who come in for accessories only, or who buy bikes and rarely ride. My LBS sells lots of hybrids and low buck MTBs... and their is a reasonably high margin on those... and they may never see them again.
I personally do not believe that bike shops really make a whole lot of money in the end... look at the amount of stock they have! I revieve nearly 20% or more off everything I buy through my LBS... I have spent nearly 15k+ there (4 bikes, lots of accessories, etc), and I do a lot of maintence myself. I know in the end (expecially with all the time configuring and selling with me) they probably do not clear much of a profit, but for the service they are great!
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Just your average club rider... :)