Should I pay MSRP????
 

Still deciding between 2 bikes. One of my LBS's are selling the Raleigh Cadent 4 for the MSRP of $799.99. When I asked if they could take anything off, they said "no", thats the price. Another LBS is selling the Specialized Sirrus Elite disc for $850, MSRP was $990, so they are offering me $140 off. From what I have read from many posts, are I being taken? I've read in a lot of posts that LBS's should offer substantial discounts off the MSRP. Am I wrong?

Both bikes seem to go for around $650, as by this point in the year even the 2015s are considered last year's model. You can expect to pay a bit of a premium to help support your LBS, but both are a bit high, IMO.

According to my info the Specialized Elite Disc normally lists for $150 more than the Raleigh. In Michigan Specialized is
considered to be a premium brand, Raleigh bikes seem to be popular in the sub-$700 range.
Specialized is popular for mountain bikes and higher end road bikes.
I have a Sirrus, base model, and I luv it. Had it for 2 years already and its been flawless.
Recently added a Topeak rack and trunk bag.
The Sirrus is reliable, handles quick, gets compliments on the look and finish of the paint.
Got it because it just felt right, advise you to find the one that feels right to you.

I paid MSRP for my last bike. It should noted the bike I bought was rare and in high demand. However I told the owner of my LBS that I rarely pay MSRP for anything and if I was going to pay MSRP, I had a certain expectation of service to go along with that. The owner of my LBS has easily lived up to his end of that "agreement". The level of service he has provided has been stellar (including allowing me to exchange a 2015 bike for a 2016) and in this case I have no regrets paying MSRP.

Man, if you can get the Sirrus Elite Disc for $850...or even $650 like DrIsotope claims you should...I'll be jealous. That's vs the Comp Disc are the models I'm narrowed down to.

Here in my city, the two LBS (different locations of same store) -- the Specializeds fly off the shelf and they won't offer any discount unless you buy multiple bikes. Luckily my wife wants to get one too, so we'll be able to take them up on it.

Bikes shop do not discount bikes. They operate on very low profit margin. They're not car dealerships. You can get a discount if you buy several bikes at one time or if you buy a bunch of accessories (helmet, cycling shorts, shoes, pump, etc) with the bike.

This is totally false. I negotiated the price on my bike when the 2016 models were coming out.

MSRP is typically the Advertised one , the dealer can sell for less at their discretion.


though probably not below the cost of making it ready to sell.

Yes, I find it amazing that bike shop sell bike at MSRP. The reason I get a discount is because it was last year model. So it went from $769 to $699.

There is no bike shop standard that applies to every bike shop. They are mostly sold for what the owner thinks they should sell for. In some cases there are minimum prices the distributor will let the retail shop sell them for. The wholesale cost from one location to another can vary a lot too. The amount of bikes ordered at one time, shipping cost, and a few other things, will affect the price. If you want a good deal, ask for a lower price on accessories, or to include something, they have a higher margin.

Currently, in our area, the only Raleighs that LBS discount are those that are years old leftovers. On the other hand, all but the least available Specialized are discounted.

The Specialized Sirrus Elite disc has a MSRP of $920 (not $990). They do not discount 2016s, but 2015s can be had for $830 at several LBSs.

They sell the 2015 Candent 4 for the $800 MSRP.

I would expect to have a discount off MSRP for year-end closeouts.

I bought a new Trek in the spring and paid MSRP. But my dealer was willing to swap tire sizes and install a kickstand for no charge so that to me was worth it.

Not true at all.

I just negotiated with a bike shop on a $2900 MSRP 2016 model Trek mountain bike. Got them down to $2150.

Never, ever pay MSRP on bikes or cars.

Let me say it this way- yes I would pay MSRP for a 2016 bike, but not for a 2015 close-out bike. Here in Norway its normaly 20-40% discount and some real expencive bikes up til 50% discount.
Ive got my Sirrus carbon 14' from 1500£ to 930£ last year :p

Not sure I agree here. I suspect the bike you bought was in very low demand and readily available... Also, more expensive bikes carry greater markup.

Sorry but I don't think your comment is apples to apples.

It's my understanding that many of the bike manufacturers control the prices their bikes can be sold at. for example, new bikes are sold at msrp, once they are released the "last year" model can be discounted a certain percentage, etc.
I suppose different manufacturers have different policies, but I don't think it's a wal-mart type scenario where bikes can be discounted at the whim of the retailer.

In the USA, a manufacturer can set a price but they cannot dictate what price a store or dealer sells the product for. HOWEVER the manufacturer CAN dictate what price a store or dealer can ADVERTISE a product for.

That being said, many manufactures do get away with setting and fixing prices. Weber grilles and Bose are two companies that come to mind. There are loop holes in the way the laws are written and many manufacturers have loosely worded pricing policies that allow them to control prices. Most manufactures call it UMRP (Unilateral Minimum Resale Price).

If a store sells a product below UMRP prices the manufacturer can penalize them such as not shipping as many products as a company may order, reducing hold backs or raising dealer costs. Yes, holdbacks exist outside of the automotive world...

And it's worth pointing out that this is to protect dealers, not to stick it to the customers. This type of policy prevents larger dealers with more operating capital from squeezing out smaller ones who can't afford to discount prices as much. So even though it can be frustrating sometimes, it's actually a good thing.

I think it's simple: you should "expect" to pay MSRP at some places but not others -- there are market/supply/demand/manufacturer/seasonal/etc reasons that impact what you'll pay.

But there is NOT a universal rule of thumb that applies to whether or not you will pay MSRP. And if you do, it's NOT because you are being taken.

Yes, I agree and this is the reason for UMRP pricing in the first place.

I want to reinforce that I paid MSRP for my Fastroad CoMax 2 but my LBS (Bike King in Inver Grove Heights, MN) has more than made up for the lack of any discount with great service.

I have been in or around retail most of my working career. I learned a long time ago that people who say "I don't pay retail for anything" are usually the biggest pain in the butt customers. People who think this way believe they are winning the battle but in the long term are losing the war.

I paid MSRP from a LBS for my specialized crosstrail comp. It was the bike I wanted, and I wanted it from a local dealer.
This particular LBS has excellent service and also has a lifetime adjustment policy for brakes and deraillers.
There are certain situations where I will haggle over price. But it is usually with vendors I will never see again. This LBS has excellent marketing skills
and is an all around nice guy. He sponsors local sports teams, conducts group rides, organizes cycling trips to fun places etc.
He makes a nice living but supporting him and his staff is me doing my bit to keep him keeping on.

I paid full MSRP on my Specialized Vita. However it was a new model that was ordered for me, not one in stock. It included a Body Geometry fitting by their pro, one free tune-up, and 10% discount on anything I purchased for 3 months, and I have gotten exemplary service.

A year later, the same bike shop gave me a nice discount on my Lapierre. I purchased it the last week of Nov '14, a 2014 model. That one was ordered as well, to get the proper size. Being the end of the year, the manufacturer authorized a discount, the shop discounted another ~10% on top of that- a little over 20% total. Again a fitting by their pro, tune-up, discounts, and several free minor adjustments .

So as you see, the answer is... it depends ;)

This shop, too, is highly regarded, active in the community, and sponsors events and rides.

What is substantial? On a $799 bike there isn't too much room. What exactly were you thinking you should pay?

A local LBS has a 30% sale on EVERYTHING.

I purchased a new helmet saving $80. It didn't matter that it was so new they didn't receive their first shipment yet, they still gave me 30% off.

When I bought my road bike, I paid cash up front and received 20% off. It was a very expensive bike and the 20% was more than enough to buy a second bike for trail riding.

Cash is king.. if you flash it, you can usually get a discount.

If bike shops operate like car dealerships any negotiations will depend on several factors:

Demand. Low demand models and unpopular colors often have more wiggle room for discounts. Ask for their ugliest or least popular color. (Dark brown was very unpopular at the car dealership where I worked years ago, and occasionally the manufacturers would stick us with dark brown as part of a lot of same-model cars. Savvy shoppers, or those who just didn't care about color, got good deals on dark brown cars.)

Manufacturer incentives to sales staff (usually hidden from consumers). Some vehicle models are bundled with spiffs or minis for sales staff - either an extra bonus over the usual commission, or a guaranteed minimum commission to promote quick, no-hassle sales. The sales department might be willing to discount the MSRP more than usual if there's a good spiff. But the mini is different. It's usually attached to baseline models, like 4-banger trucks with manual shift, maybe a basic package like AC but nothing else. The salesperson may get only $50 or so for the sale with a mini, so they aren't going to waste a lot of time dickering over price, kicking in coupons for free oil changes, etc.

Shopworn or dinged models, especially new/old stock.

How much effort they put into make-ready, setups or whatever goes into the process between pulling the bike out of the carton and putting it onto the floor. Remember that sad but darkly humorous "Yeah, but that True Coat" scene in Fargo? If you know the car biz, that's a classic profit packer ploy. But unlike cars, most bikes don't arrive anywhere set up, adjusted and ready to ride. And the end result depends on the skills of the mechanic.

So, if shopping for a mid to high end bike at the LBS is anything like the car dealership, you have to play it by ear and get a sense of which models the LBS might be willing to dicker over. If you're a regular at the LBS, just ask: "Whaddaya got that you can afford to discount? I'm not picky about the color, etc." If you're not a regular they might not be willing to share that tip. Probably helps to buy a little something or other every time you visit the LBS too. Many low priced accessories have decent profit built in so it doesn't cost you much, doesn't cost the shop much effort and gives them a little bonus for giving you some of their time.