Negotiating a Price
 

I've noticed that some people have had real luck in working down the marked/sticker price of a bike or getting extras like a rack thrown in at their LBS. Since I am in the market for a new bike, and I have no established relationship with any LBS yet, I haven't many connections yet. More importantly, I haven't got a clue about the techniques used for negotiating or haggling like this.

So I'd love to know, how do you do it? Other than quoting prices from other shops, possibly, what are some strategies I could try?

Pay with cash. This will eliminate paying taxes as well as a few hundred bucks off the tag.

Where the heck do you live???

If you pay with cash, the shop doesn't have to pay x% of the price to the credit card company so they can earn the same without your paying more. So you win and the shop doesn't lose.

Serious question? It's like going to a grocey store, you ring up your products, at the end they add the tax (usually a percentage). The bike shop does the same, except that percentage tends to be a few hundred dollars.

I like saving a few hundred dollars.

paying cash only helps sometimes. Some stores knock off the tax for cash others don't. just make sure that if you pay cash you still get a recite.
Your best bet is to call up all the local (within 20-30 miles) lbs and find out prices ont he models you are looking at. Then you tell your lbs the bet the best prices you find. Many times if you buy accessories you can get a discount on that stuff and have them installed for free. you can also try to find some of last years models, most stores are more flexible on those.

Finally if your aren't happy with the price or service don't be afraid to walk away. It is your hard earned money and you shouldn't spend it if you are not comfortable. Just because you test drive a bike doesn't mean yo have to buy it either.

And what's your point? Paying cash doesn't eliminate the tax.

Also, some sellers find it easier to keep a transaction "under the table" when cash is used :innocent:

The LBS has to pay the sales tax so I think the buyer would have to.

The only thing I can think of is when you are told you aren't paying tax but in essence the price is lowered a bit to accomodate it.

Paying in cash (or cheque/debit card or equivalent) is no problem. I've never tried to ask them to lower the price, and I am certainly looking at basic accessories. The LBS I am considering has a coupon for some basic additions (bicycle computer, rear seat bag, front and rear light) for free if you buy a bicycle, kickstand, water bottle and cage. Well, I need all four of those things, so that's good. But how much I can negotiate the price down from there? Right now prices are pretty much identical across the LBSes: $1,050 for the Allez Elite.

I have found a 2007 for $799, but I don't see anything else past that which is more than $20 off.

explain how I am still paying it.

How are you not? Tax depends on what state/country you live in, not your method of payment.....

Regardless of how the LBS collects funds they have to pay sales tax to the state, so unless they are running afoul of the law and putting themselves at risk they are charging you the state mandated sales tax that applies to your state. It doesn't matter if you pay with cash/check/sexual favors...tax is being paid.

a bike is listed for $2,000. tax would be an additional $165. I get the bike for $2,000. I guess they just decided to let me slide on the $2,165 it should have been.

awesome! :thumb:

Some sellers who do this would be putting themselves at risk to both the state and the companies that they do business with were they ever to be audited. The product came into the store they have to be able to account for it going out.

Maybe you are and maybe you aren't. The law says you have to pay sales tax on retail purchases, and that the shop has to collect it and remit it to the state department of revenue.

If you find a shop that will help you break that particular law in order to get a sale, good for you. Up to you and your personal values as to whether you take them up on it. (It's not like we all drive exactly the speed limit, you have to decide what works for you.)

I run businesses and sales tax and payroll taxes both scare the hell out of me - I make sure I am clean on both, just helps me sleep at night.

I never said anything about the bike shop paying taxes. oye!

They gave you a price break. Unless you're buying it off the back of a truck someone is paying tax.

Yeah, your price including tax came to 2000.

RESPONSE TO THE ORIGINAL QUESTION: Trade secrets

I work in LBS #1 which does high-volume business of high-mid to into level bikes. EVERYTHING IS ALREADY MARKED BELOW MSRP. You want to ask for last years models (marked off several hundred dollars), Demo bikes (these probably aren't in "like new" condition), or bikes with scratches.

In our store, this is pretty much the only way to get a bike knocked down. Keep in mind profit margin is pretty thin on bikes. Accessories are slightly more profitable, but the entire business runs on pretty slim margins.

As for accessories, most shops will have a policy of 10-15% off accessories with the purchase of a bike. be sure to ask about this up front instead of waiting until you're at the counter paying. Secondly, dont expect a salesperson to be able to negotiate pricing, inevitably they will have to ask a manager.

The best way of approaching this to get the best value for your money is to know how much you're willing to spend and tell the salesperson up front. That way we can work with you to find where you want to splurge and where you want to skimp. Time and time again I see people who dont want to disclose their price range and we end up spending more than expected on the bike then skipping computers, helmets, lights, shoes, etc; and I personally believe this lowers their bicycling experience.

Disclaimer: I realize other stores have different policies.
I hope this helps answer your questions. I'll answer anything else if you want to know.

Thanks for the inside advice! Thank you very much for the information. I put out a few emails to local bike chops to find out whether they have any older models or the like. I admit, usually last year's models are only put down by $50. I know that's still better than nothing, but $999 new or $959 last year? Hmmm... ;)

My LBS told me he'd sell me a 2007 Giant OCR1 for $899 and a 2008 for $1099. I bought the 2007. I saw a thread somewhere that said the range of prior year discounts tends to be 20%-30%.