When running my shop margins at the year end had to be in the 45-50% range. Anything below that meant deep cuts in borrowing, hiring and capital improvements not to mention a horrible ROI. Can't imagine being in biz running on 30% margins. How can it be done? Even Bike Nashbar and the like run on margins heavier than that!

Really? If that were the case, every single service operation would involve an individual price negotiation.

Yes. In a free market very transaction is a short form negotiation. The shop says what they want for the job as a take it or leave it proposition. The buyer is free to decide which, or may make a counter-offer such as "$7.50 to adjust a headset?" Would you do it for $5?" By leaving a repair, you're tacitly accepting the price. You don't have to like it, but you are accepting it.

Meanwhile we've had lots of comments about how dealers set prices. The reality is that consumers as a class play a major role. The concept of "what the market will bear" is very material here. Regardless of what you're charging, if the shop is booked up, and you're running at capacity it's probably a bit low. OTOH, if the shop isn't at capacity, and people are routinely griping about prices then you're high.

There'a also "capacity pricing" which may depend on seasons. This is why many shops will build wheels or do overhauls at much lower prices in the off season. The electric company does this, charging more in the summer than winter, and some also having day/night rates.

FB has it correct as far as the meaning of negotiation, and I did say negotiation OR purchase.

Correct - as I pointed out earlier, the lower price and wider selection of Nashbar and the like are due to costs of goods that are much lower and a market that is orders of magnitude larger. It's a mistake to assume that shops start at the same point in marking up their merchandise. There are some items that would be significantly more expensive at a shop even with a low markup.