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-   -   LBS Pricing? (https://www.bikeforums.net/road-cycling/537642-lbs-pricing.html)

CrimsonKarter21 05-04-09 08:44 AM


Originally Posted by BackRoadsBiker (Post 8850060)

And yes, I do work at a shop which luckily for me has a no haggle policy.

+1, my first day out I was a sheep, going back to ask about discounts. Now, I'll look them in the eye and tell people what's up. Sometimes they get the short-winded version, sometimes the long. Either way that realize (or pretend) that that it the way we work.
Don't like our prices? Go to Wal-Mart or another local shop where build quality and service are non-existent.

RazorWind 05-04-09 09:09 AM


Originally Posted by Cdy291 (Post 8847358)
SpeedPlay and Cervelo both are very strict about their pricing. Specialized too I guess. Trek actually isn't near as big of an *******.

Are they really?

The shop I bought my Soloist Team from just up and offered me a $250 discount to take it off their hands; I walked in expecting to pay full MSRP for it. MSRP was $2000 at the time, and I paid $1750 with some upgraded parts. This was about a year ago.

I gather that they had had this particular one kicking around their shop for a while, though.

RVD72 05-04-09 10:22 AM

My LBS (small chain) wouldn't deal much in pricing (basically from 0 to maybe $100). On the S1, they implied that they would be willing to deal a little bit but not much.

I did end up finding a much more reputable shop (basically one of the best in the region) who worked with me and ended up giving me an 18% discount which I felt was awesome ($3500 bike for $2880) that comes with lifetime fitting (as opposed to 1 yr by my local shop), etc. The only downside is that this shop is 100 miles away but they have some great routes over there so I drive out there every now and then anyway.

If your local shop is not willing to budge on price, you should look around for a better deal. The economy isn't so good and I'll be that these bikes are harder to move. I was also looking at the Cervelo S1 and their price to me was $1820. They may not go that low anymore (it was a special promotional day) but I'm pretty sure that they will go down to $2000 on that bike.

bbattle 05-04-09 10:39 AM

It's called Mutally Agreed Pricing and it's to protect the dealerships. If a large dealer can undercut the others, he'll steal all the business. After a while, he's the only guy selling that brand. It can be hard to set up a network of dealers without MAP.

It is also useful in keeping jack@sses from test riding bikes and wasting a bike shop's time and then buying the bike elsewhere for less money.

MONGO! 05-04-09 10:57 AM


Originally Posted by winders (Post 8848926)
Who do you think makes the best carbon frames? Best endurance geometry and best standard geometry?

S-

There is no "best" just ride the one you like the color of.

asv 05-04-09 11:01 AM


Originally Posted by CrimsonKarter21 (Post 8850912)
Don't like our prices? Go to Wal-Mart or another local shop where build quality and service are non-existent.

And thats why I would never bother buying a high-end bike at a LBS. I want to pay the market price, not the ripoff price.

khatfull 05-04-09 11:14 AM


Originally Posted by bbattle (Post 8851779)
It's called Mutally Agreed Pricing and it's to protect the dealerships. If a large dealer can undercut the others, he'll steal all the business. After a while, he's the only guy selling that brand. It can be hard to set up a network of dealers without MAP.

That sounds pretty much like price fixing, "We all agree not to sell our product for less than X."


Originally Posted by bbattle (Post 8851779)
It is also useful in keeping jack@sses from test riding bikes and wasting a bike shop's time and then buying the bike elsewhere for less money.

That's rather arrogant. If you have a bike, at the best price, compel me with the service you provide, and have knowledgeable, friendly employees why would I go elsewhere? If you're missing one of those shouldn't you fix it or expect business to go elsewhere?

I'm a network consultant. Part of my job is going to small companies, doing network audits, and writing up a proposal for that company to address the issues we found in the course of the audit. Sometimes we get the work, sometimes we don't, and sometimes they use our quote to price shop and play other company's quotes trying to get what they need for the best price. We understand we need to provide the most compelling proposal based on thoroughness, service, and, yes, cost. Sometimes we get the work at a higher cost because the company determines we're a better fit for them than another provider. Do we get bent out of shape when we lose a proposal or know that folks use us to price shop? Well, it's not fun and yes we "waste" time when that happens but it's an essential part of our business or any other business.

Face it, if nobody walks though the bike shop door for a test ride they aren't going to sell a lot of bikes. The goal then should be to convince the customer when you have them there that the only logical decision is to buy from you. But referring to people as jack@sses because they might not buy from you because you couldn't (or wouldn't) provide them a compelling reason to do so may be the reason you're not selling them in the first place. From your description it sounds as you're describing a very confrontational selling style, "Test ride this bike ONLY if you intend on buying it from us." That's not going to get anybody anywhere.

I don't know if you work at an LBS, but it sounded like you did...

Ih8lucky13 05-04-09 11:23 AM


Originally Posted by khatfull (Post 8852070)
That sounds pretty much like price fixing, "We all agree not to sell our product for less than X."

It is not price fixing, because all of the dealers are considered agents of just one company.



Originally Posted by khatfull (Post 8852070)
That's rather arrogant. If you have a bike, at the best price, compel me with the service you provide, and have knowledgeable, friendly employees why would I go elsewhere? If you're missing one of those shouldn't you fix it or expect business to go elsewhere?

I'm a network consultant. Part of my job is going to small companies, doing network audits, and writing up a proposal for that company to address the issues we found in the course of the audit. Sometimes we get the work, sometimes we don't, and sometimes they use our quote to price shop and play other company's quotes trying to get what they need for the best price. We understand we need to provide the most compelling proposal based on thoroughness, service, and, yes, cost. Sometimes we get the work at a higher cost because the company determines we're a better fit for them than another provider. Do we get bent out of shape when we lose a proposal or know that folks use us to price shop? Well, it's not fun and yes we "waste" time when that happens but it's an essential part of our business or any other business.

Face it, if nobody walks though the bike shop door for a test ride they aren't going to sell a lot of bikes. The goal then should be to convince the customer when you have them there that the only logical decision is to buy from you. But referring to people as jack@sses because they might not buy from you because you couldn't (or wouldn't) provide them a compelling reason to do so may be the reason you're not selling them in the first place. From your description it sounds as you're describing a very confrontational selling style, "Test ride this bike ONLY if you intend on buying it from us." That's not going to get anybody anywhere.

I don't know if you work at an LBS, but it sounded like you did...

Now this was vey well stated.

ljholland 05-04-09 11:29 AM

This has turned into an interesting discussion. What surprises me most is the anger shop owners/workers seem to have toward customer (assuming the posters on this board are somewhat representative of the industry).

khatfull 05-04-09 11:32 AM


Originally Posted by Ih8lucky13 (Post 8852130)
It is not price fixing, because all of the dealers are considered agents of just one company.

Point taken, you're right. It would have to be Trek, Specialized, and Cannondale getting together and saying, "We won't sell a bike speced like X for less than Y."


Originally Posted by Ih8lucky13 (Post 8852130)
Now this was vey well stated.

Thanks. I'm no Marketing guru but 12 years of doing this job has taught me a lot. It's the intangibles that generally get you or lose you business. Everyone in a certain industry offers pretty much the same "stuff" (be that services or products)...how they deliver, support, and service it/them is the big differentiator.

bbattle 05-04-09 11:32 AM

It's not price fixing. That's when competing companies get together and set prices. MAP is when the manufacturer(Trek, Specialized, Cervelo, Cannondale, etc.) tell their dealers what the prices are. They can and do make deals so the pricing isn't written in stone.

You missed my point entirely and went off on a rant about your job instead.

A brick and mortar bike shop can't compete on price with somebody selling bikes over the internet. The shop could have the best mechanics and sales staff that knows just how to set up a bike and make sure it fits you perfectly and then let you test ride it for an hour. They then show you how to adjust the gears, brakes, etc. and spend a great deal of time educating you on that bike. Then you say "Thanks" and walk out to go buy the same bike off that internet site.

Just as your company can't charge for audits and quotes, the bike shop can't charge for that test ride service, even though it takes time and effort. The customer just used the bike shop; acted like a jack@ss.

khatfull 05-04-09 11:47 AM


Originally Posted by bbattle (Post 8852201)
You missed my point entirely and went off on a rant about your job instead.

A brick and mortar bike shop can't compete on price with somebody selling bikes over the internet.

Agreed, but it sure sounded (to me at least) like you were talking about competing LBSs when you said "elsewhere". Sorry I mistook your statement. That said, I see and hear a lot of what I was describing go on in many different industries. Maybe my take on it is somewhat unique since I end up in that position at times, seeing it from both sides of the equation. One thing's for sure....the consumer (of bikes or network services) is king and they'll get their best perceived value for their money. That doesn't mean their perception is always correct :)

BackRoadsBiker 05-04-09 11:53 AM


Originally Posted by ljholland (Post 8852182)
This has turned into an interesting discussion. What surprises me most is the anger shop owners/workers seem to have toward customer (assuming the posters on this board are somewhat representative of the industry).

I don't think what I and other shop employees on this forum are expressing is anger. I don't want to start any fights, I am just expressing the facts as I see them from the inside.

As other posters have indicated, you are not only buying a bike from a shop, you are buying the service as well. For example: At the shop where I work, we offer free on-bike adjustments($40) (braking, shifting, minor wheel true, etc) for as long as the customer owns the bike, as well as a free fitting($60/hr). Now that it is spring, as you can immagine-people are pulling their Huffys out of the garage, so we are super backed up on repairs (2.5 weeks or so). If you bought a bike from us, however, We generally do any minor repairs within a day or two, then you get your bike back. It doesn't matter how nice your bike is, if you didn't get it from us, the work gets put on the board for the next open day.

I can't decide for anyone else, but being able to get repairs done quickly forever is worth paying a few hundred dollars more initally. And depending on your situation, that money would be spent on repairs and fitting for your internet-bought (nothing wrong with it if you're happy) bike anyway.

bbattle 05-04-09 11:55 AM

I think most people do appreciate the extra service that a good bike provides and will do their shopping there even if it means paying a bit more.

The guys that throw out low ball quotes just to get the job usually don't last too long, either.

Except in government work. :eek:

khatfull 05-04-09 12:52 PM


Originally Posted by bbattle (Post 8852378)
I think most people do appreciate the extra service that a good bike provides and will do their shopping there even if it means paying a bit more.

Precisely why I bought my CAAD9 at a local LBS...as I hope companies don't do DIY network support and hire me :)

Apus^2 05-04-09 12:52 PM

A lot of the times prices aren't written in stone. You just have to give the LBS a reason to give you a deal. If they know that you aren't loyal, why give you a deal? But if you are the person that come in, knows every person in the shop by their first name, bring in beer occasionally, buy all your stuff from there, you may just get that deal you are looking for without even asking. To stock Specialized for example, the shop has to move $xx,000 worth of bikes a year. The shop may give you a deal on a new bike on the floor so they can be a large part of the way to that number without having that bike stay in inventory for a long time. Be nice to your LBS and they will be nice to you. Expect a deal while shopping for everything else online, well, you saved your money on your online purchases--you may have to pay full, or near full price on your bike.

BackRoadsBiker 05-04-09 12:59 PM


Originally Posted by Apus^2 (Post 8852809)
Be nice to your LBS and they will be nice to you.

That's essentially what it boils down to.

IRONHEAD1 05-04-09 01:02 PM

personally I bought a cervelo S1, I tried to beat them up on the price, they did however have a 2008 model and I could have saved 300 bucks on it but the size was wrong, I ended up getting the 09, they did throw in pedals and bottle cages and cut me a deal on a computer. before I committed to the S1 I test rode a carbon specialized tarmac, he came off 500 bucks on that bike so it was a tough choice. buy the specialized and save some money or pay what seemed like full price for a cervelo. after riding the cervelo I couldnt even go to the specialized, it was day and night difference in bikes. I really wanted to get carbon too, or at least I thought. I am way happy about my choice. I think they are committed to the price on the bike but if you beat them up they will probably hook you up on shoes pedals etc.

garysol1 05-04-09 01:08 PM

If you are dead set on trying to get a discount on a bike I would walk in with CASH. Credit Card company's take a percentage of every sale so if you can save the LBS that cost he may be more willing to work with you.

viros20 05-04-09 01:27 PM

find out if the city you live in has a bike coaltion. I joined my citys bike coalition for 30 dollars and you get 10% of bikes & accesories with alot of participating shops.

I just purchased a CAAD9 5, around here they are popular and selling out fast. I was able to get 10% and saved 130 dollars even though the employess didnt know about the program and they got on the phone with the owner or someone, to approve 10% one of thier best selling bikes. The shop also sells Cervelos which i could of saved alot more on.

for the record, I dont recommend joining a bike coalition solely for a discount, Ive meet some awesome people and have done some really cool volunteer work. I never knew outreach would be something i really enjoyed doing.

af2nr 05-04-09 04:17 PM


Originally Posted by BackRoadsBiker (Post 8850060)
The only time we consider coming down on a bike is when it has sat collecting dust for a year and we need the space. If you don't mind getting a year old model, you can generally get a good price without too much negotiation this way.

This is where I have seen the best deals, as much as 40% off MSRP on a one day only sale. My last bike was discounted about 12%. It wasn't on the floor at all, had to be ordered. I wanted a compact due to an upcoming move to WV, they had a standard on the floor that I test rode. They made me the same deal on the ordered bike as they would have on the floor bike, partly because they knew why I wanted the compact and thought it would be the best fit for me. Of course I still plan to try and do some business with them online after my move, due to the fact that the area I am relocating to doesn't have many "local" shops.


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