gonesh9

I've decided to have a bike built... I am on a racing team, and the deal we have with our bike shop sponsor is his cost plus 20%. I'm just curious how much a typical markup is on parts at most bike shops, so I can get a good idea of how much it should end up costing. Anyone have any insight into a typical markup on parts? Does it vary much depending on what kind of part it is?

Thanks!

operator

Why don't you ask them. Markup is different for different things. Anyone want to get fired for revealing cost on the internet? Anyone?

Please don't ask anyone to do this.

gonesh9

sorry, i realize now that was pretty insensitive of me to ask.

lshaped

i didn't think it was insensitive- it's a good question- you have a budget in mind and don't want to waste your time shopping around if everyone is at 20%- as for getting fired for revealing this- i didn't realize it was a trade secret- relax

theacox

How about this angle....if I walk into my LBS and order something out of QBP and pay for it up front. What would you readers feel is a fair markup' on a non-stock item that is simply ordered, pre-paid.

I am looking at doing the same, as the OP, but was turned off by the 50% markup (I saw the book and could read upside down) on my last order.

Tim

wahoonc

What ever their standard markup is. They have to take the time to order it for you and they still have their overhead to pay. They have to pay for the phone or internet to place the order, they have to pay for the lights to see, they are paying taxes on the property, they have to pay the employees, etc. etc. They aren't getting any discounts on any of that stuff.

Small business is not an easy life and small business owners get tired of being nickeled and dimed to death over everything. Do you go to Macy's, Applebee's, Walmart or your local grocery store and ask for a discount? Why should your small business owner be any different? FWIW I ask my LBS to order stuff all the time for me, I pay what they ask, if they WANT to give me a discount fine, if not, fine also.

Aaron

JarArtSword

The typical markup of a bicycle is 36%-40%.

I would pay what they ask personally, a discount is a nice offer and there are undoubtedly mouths to feed.

It looks like you are getting a solid 20% off(assuming a bicycle.)

And the article seems to imply that accessories have a much higher markup, so you are getting an even better deal on accessories.

source: https://www.startingabiz.com/starting-a-bike-shop/

CCrew

On the average (not all) msrp on accessories is double cost. I guess I'm fired now. Darn.

ghettocruiser

My shop tells me a lot of their costs. No one gets fired, because I know they need to cover the costs of operating a business.

If they can give a discount, great, if they want MSRP on something, I'll pay it.

operator

You people don't seem to realize that stores can lose distributors for intentionally revealing cost pricing to consumers. QBP comes in two catalog versions. One with prices, one without. Guess why.

If your shop tells you what cost is, great. Just don't go around asking for it - seriously it's bad form. Especially if someone say the OP already has access to a relationship with a shop where they WILL share that information anyways.

Siu Blue Wind

Thank you operator. It is also something we adhere to on Bike Forums. FYI we consider it not kosher to ask for markup, which would in essence pretty much be giving cost. As operator said, it is contractual for dealer/distributor to keep the costs between those who are involved. Even a posting of a picture of the catalog meant for dealer use is a violation of the agreement.

If you are getting cost plus 20% then I would figure you are luckier than the average person that walks into the shop, paying the regular retail. I would be more than appreciative for that, if it were me.

Thread closed, thank you for participating.

Siu Blue Wind
Forum Admin.