Bike Discount
How much discount does a bike shop normally receive from it’s manufacturers i.e. Trek, Specialized, etc.?
I want to determine what the bike’s value is at cost vs. MSRP amount
Yes that previous answer about a 250% mark up was way off, holy crap he has no clue. the answer just above was spot on.
Generally the cheaper the bike the closer to key stone pricing. for example a bike selling for $200 probably cost the dealer $110 to purchase, now after assembly, etc it would be closer to $120 or $130 cost. Now a high end bike selling for $6000 may have cost the retailer $4400. yes they make more money but the percentage mark up is less and a greater percentage of operating capital is tied up in one bike rather than many.
It’s very hard for shops to decide what to stock, especially if they are small or there are a lot of shops to choose from. An expensive bike will make a lot from one sale if it’s the right size and it sells. However you have to sell 20 cheap bikes to make the profit from one expensive one, that’s a lot more work.
So as the other guy said it’s parts, accessories, and service they make their money on. After expenses the actual bike sales part is break even at best. This is why most bike shops really won’t go down on the price of a bike because they really aren’t making enough on it to begin with, let alone discount it.
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