Old 04-26-07, 11:42 AM
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Originally Posted by grebletie
I've been told that the markup on bikes is upwards of 40% in some cases. This is on higher-end bikes.
depends on a number of things. some companies have higher margins than others, all stores have higher margins if they buy from a company in bulk, sometimes companies will have wholesale specials on certain bikes making the margins higher, etc. maybe there's competition from another shop & in order to unload some bikes (thus have people buy accessories as add-ons) they mark the bikes lower than usual. the margin doesn't really matter if the bike is "high end" or "low end." i'd say the average margin is 30%. i've seen some high end bikes come in to a shop i worked at where our margin was 20%. sometimes managers/owners will get sick of a certain frame or bike in the shop & sell it at cost just to get rid of it. clothing & accessories are usually 50%; while bottle cages & tubes... well, those margins are sky-high (even if the cost to the consumer is relatively low).
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