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Old 10-04-06 | 12:10 AM
  #55  
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BikeWise1
30 YR Wrench
 
Joined: Aug 2005
Posts: 2,006
Likes: 4
From: Oxford, OH

Bikes: Waterford R-33, Madone 6.5, Trek 520

Originally Posted by fryth
I would imagine that as the price of a bike climbs, so does the markup/profit margin. So, you should have a better chance of getting 10% off of a $3000 bike than one that costs $700 in the first place. Anyone who has worked in bike sales want to comment on the truth of this?
First let me point out that in my shop, buying from me without beating me to death on price gets your bike on the stand immediately or ASAP when you need a tweak, with a coupon for a free cup o' joe from the coffeeshop cuties next door. Straight to the front of the line. What might that be worth? It also gets you no-labor-charge warranty service. Hmmmm...how much there? It gets you free minor repair lessons. And gee, who's that wrenching for free at our local MS150 ride? Not the MO boys, but me.

Seriously, guys....do you know how those mail order houses can afford to send out all those glossy catalogs??? They are rolling in dough! This is because their margins are higher and their costs are lower! They could sell for even less if they weren't so greedy. On the other hand, the average LBS operates on about a 6% gross profit margin. That's right: I get to keep up to $.06 out every dollar.

So yes, if I have a bike that needs a home because it's been around too long, then I deal. But on new stuff, you got the best deal just by being smart enough to walk through my door.

Not every LBS operates the way I do, so find yourself a good one and treat 'em right. Build a relationship.
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