Go Back  Bike Forums > Bike Forums > Mountain Biking
Reload this Page >

are there any bike store owners out there/questions?

Mountain Biking Mountain biking is one of the fastest growing sports in the world. Check out this forum to discuss the latest tips, tricks, gear and equipment in the world of mountain biking.

are there any bike store owners out there/questions?

Old 09-26-05, 03:09 PM
  #1  
135crewchief
Senior Member
Thread Starter
 
135crewchief's Avatar
 
Join Date: Apr 2005
Location: Spokane, Wa
Posts: 85

Bikes: 05 Trek 4300, 05 Gary Fisher Tassajarra Disc

Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Likes: 0
Liked 0 Times in 0 Posts
are there any bike store owners out there/questions?

i am looking for bike store owners to ask simple questions about store sartup. if you are a owner or know one please respond and i will fire away with some of my questions. The first question is estimated, how much it would cost? are there franchise fees to sell brands of bikes? etc....
135crewchief is offline  
Old 09-26-05, 05:26 PM
  #2  
cryptid01
one less horse
 
cryptid01's Avatar
 
Join Date: Aug 2003
Location: East Jesus NY
Posts: 5,600

Bikes: are better than yours

Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Likes: 0
Liked 0 Times in 0 Posts
Originally Posted by 135crewchief
The first question is estimated, how much it would cost?
How much does a house cost?


Originally Posted by 135crewchief
are there franchise fees to sell brands of bikes? etc....
A question probably better posed to the manufacturer, no?
cryptid01 is offline  
Old 09-26-05, 07:00 PM
  #3  
santiago
sarcasm meter: jerk mode
 
santiago's Avatar
 
Join Date: Mar 2005
Location: Montréal, QC, Canada
Posts: 4,510

Bikes: 2005 Kona Blast; 2005 Turner Flux, 2006 Felt F3C

Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Likes: 0
Liked 0 Times in 0 Posts
I don't have answers but I have questions that I would also like to ask LBS owners that may or may not help 135crewchief.

From what I understand, the LBS has a tough time competing against the PricePoint.com, JensonUSA, etc because these guys buy closeout/gray market stuff. What I've read and understood is that there are manufacturers/wholesalers/brokers in China/Taiwan/Hong Kong who have overstock from production runs. These gray market parts are much cheaper than what a LBS can buy from his local distributor.

Anyway, what I want to know is, why don't the LBS buy directly from these Chinese companies? I can get online right now and find a brand new Fox F80RLT fork on sale from a Taiwanese eBay seller going on average for $300-350. The MSRP on that fork is $675. If I can buy one fork at $350, why can't a LBS buy 10 at $275? Is it because you have signed agreements with local distributors?

I am very curious about this as everyone knows the LBS can't compete against the prices at PricePoint. However, I'm wondering why not? Why not play the same game that PricePoint and company plays? Any info on this, markups, the path parts take (manufacturer, national distributor, local distributor, LBS, etc) would be very helpful.
__________________
First Class Jerk
santiago is offline  
Old 09-26-05, 07:39 PM
  #4  
thejoe
Senior Member
 
Join Date: Aug 2005
Posts: 70
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Likes: 0
Liked 0 Times in 0 Posts
Coming from a computer sales background I can say that grey market is a sketchy buy. Russians, bad returns, bad parts, no warranty's, etc.

Pricepoint and Jensen make their money selling a part they get for $36, and sell to you for $40. They deal in volume, thousands of units. While Pricepoint might sell it for $41, Jensen might be selling it for $40 to try and get the sale and make some money on shipping or return business (they probably both got it for $36). 2,000 $40 tires they got for $36 = $8,000. Online = volume.

LBS's sell at close to MSRP because they know people don't want to wait for stuff and they know they won't sell 2,000. Plus if you buy it at their shop they might get installation fees.
thejoe is offline  
Old 09-26-05, 07:56 PM
  #5  
santiago
sarcasm meter: jerk mode
 
santiago's Avatar
 
Join Date: Mar 2005
Location: Montréal, QC, Canada
Posts: 4,510

Bikes: 2005 Kona Blast; 2005 Turner Flux, 2006 Felt F3C

Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Likes: 0
Liked 0 Times in 0 Posts
Originally Posted by thejoe
Coming from a computer sales background I can say that grey market is a sketchy buy. Russians, bad returns, bad parts, no warranty's, etc.

Pricepoint and Jensen make their money selling a part they get for $36, and sell to you for $40. They deal in volume, thousands of units. While Pricepoint might sell it for $41, Jensen might be selling it for $40 to try and get the sale and make some money on shipping or return business (they probably both got it for $36). 2,000 $40 tires they got for $36 = $8,000. Online = volume.

LBS's sell at close to MSRP because they know people don't want to wait for stuff and they know they won't sell 2,000. Plus if you buy it at their shop they might get installation fees.
I agree with what you say, but we're getting to the point that large minimum orders may not be necessary. I just bought an Avid BB7 set (front and back) and paid something like $150. I think the MSRP for both is $200. I saw the same kit from an eBay seller based in Hong Kong for $120 or $130. Assuming a 30% markup this means that my LBS buys the kit for $150 cost. Even paying the Hong Kong seller $130 he comes out ahead. And that's just paying for one, what if he decides to buy 20 kits.

As for warranty, I agree that this may be an issue but the mechanical nature of this stuff is less of an issue than processor/hard drive failure that you have to deal with in your line of work.
__________________
First Class Jerk
santiago is offline  
Old 09-26-05, 08:32 PM
  #6  
thejoe
Senior Member
 
Join Date: Aug 2005
Posts: 70
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Likes: 0
Liked 0 Times in 0 Posts
It all depends on the product, seller, and what cost manufacturer's are giving vendors. Your brakes might cost Avid $15 to make. They may sell them to vendor A for $60 because they sell more than vendor B who gets to buy them for $80.

If I was selling your brakes, I would look around to see where the average retail price was, try and beat it by a few bucks. I would not look at an auction for price comparison.
thejoe is offline  
Related Topics
Thread
Thread Starter
Forum
Replies
Last Post
oldschool27
BMX
2
05-25-13 10:30 AM
dwg
Classic & Vintage
2
06-14-12 09:37 AM
rankin116
Winter Cycling
4
10-10-08 01:37 PM
enjoi07
Road Cycling
0
07-22-08 12:31 AM
Terror_in_pink
Singlespeed & Fixed Gear
12
01-31-05 07:35 PM

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


Thread Tools
Search this Thread

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.