Cycling shoes are no different than regular shoes. Today, I am wearing a pair of brown Italian loafers - US$240. Yesterday, black Skechers - US$33. For cycling, I have a pair of Sette MTB shoes from Pricepoint - less than US$40. I have a dealer catalog with some nice Italian cycling shoes that run up to about $US200, dealer cost. Good luck with 300% markup on them. Quality workmanship costs money, but no retailer wants to buy a $200 item to make $10 profit.

2manybikes: Most of the comments being made about big markups are from people without any business training or education. They have no idea of what it cost to run a business. Here in the Clev OH area they are usually UAW guys that do most of the *****ing. Yet they are the first to cry foul over the Japanese not playing fair though.

Tim

Actually we have, somewhere on the first page of the thread.

I know,i own a business and for a small business of say under 10-12 employees,it tough. They have over the years taken away writeoffs or made them so you can hardly write much off at all. Insurance is killer and you get rent going up every renewal time but profit goes up less if any. I didnt raise prices for over 5 years but profit was less each year. I finally had to raise a few things 5 whole % and all i heard was b$tching,complaints and lost business.
Now for bike markups. Mine was $1999 msrp and i got it for $1049 so there ya go.

cervelo soloist centaur Can$2599

cost - ~1700

source, LBS that friend works at.

and my trek 520 sells for 1600$ cnd

i got it on sale for 1300$, and imagine they are still making profit.

When I said "shoes", I meant "shoes". Not "bike shoes."
Retail clothing is 300% markup. I was trying to point out how little of a mark up there is on bikes. Question arises about high end stuff is there more or less of a markup on a $15,000 bike? I've read at the bike industry site that accessories make the money and the bikes pay the fixed costs. I know a local shop that paid $950K for a building. That seems like a lot of bikes to sell. Of course that guy might be using the "put 3 million in the bank" and run a shop for fun plan.

How do you make a small fortune in bicycle retail?












Start with a large one.

Retail clothing at a 300% markup! Please! My family (in the States) is in the reatail clothing business. The standard markup is 100% or keystone. If you buy a shirt wholesale for $25 you sell it for $50.

No wonder so many people grip about prices in America; they think small retailers are making out like bandits and thus want everything below cost. Enjoy shopping at Mall*Wart.