$ Mark Up?
10-13-05, 06:57 PM
#51
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Cycling shoes are no different than regular shoes. Today, I am wearing a pair of brown Italian loafers - US$240. Yesterday, black Skechers - US$33. For cycling, I have a pair of Sette MTB shoes from Pricepoint - less than US$40. I have a dealer catalog with some nice Italian cycling shoes that run up to about $US200, dealer cost. Good luck with 300% markup on them. Quality workmanship costs money, but no retailer wants to buy a $200 item to make $10 profit.
10-15-05, 05:26 PM
#52
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Originally Posted by 2manybikes
It seems as if there is a huge divide between those who really know, and those that take a guess or listen to those who take a guess. There is no hope of convincing the ones that don't know, they think you are making it up for your own benefit (profit). They don't care anyway, they want that ten dollars for themselves.
Tim
10-16-05, 10:19 AM
#53
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Originally Posted by operator
Well, I haven't seen anyone mention that the bike shops make more $ off the accessories and service than just the bike selling alone. Even though it is the "big ticket".
10-16-05, 11:42 AM
#54
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I know,i own a business and for a small business of say under 10-12 employees,it tough. They have over the years taken away writeoffs or made them so you can hardly write much off at all. Insurance is killer and you get rent going up every renewal time but profit goes up less if any. I didnt raise prices for over 5 years but profit was less each year. I finally had to raise a few things 5 whole % and all i heard was b$tching,complaints and lost business.
Now for bike markups. Mine was $1999 msrp and i got it for $1049 so there ya go.
Now for bike markups. Mine was $1999 msrp and i got it for $1049 so there ya go.
10-16-05, 02:57 PM
#55
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cervelo soloist centaur Can$2599
cost - ~1700
source, LBS that friend works at.
and my trek 520 sells for 1600$ cnd
i got it on sale for 1300$, and imagine they are still making profit.
cost - ~1700
source, LBS that friend works at.
and my trek 520 sells for 1600$ cnd
i got it on sale for 1300$, and imagine they are still making profit.
10-16-05, 08:14 PM
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Originally Posted by Waldo
Did you actually read anything in this thread?
I was good enough to omit the erroneous guesses as to what Cinelli tape actually costs and the absolutely insnae comment about 300% markup on shoes.
I was good enough to omit the erroneous guesses as to what Cinelli tape actually costs and the absolutely insnae comment about 300% markup on shoes.
Retail clothing is 300% markup. I was trying to point out how little of a mark up there is on bikes. Question arises about high end stuff is there more or less of a markup on a $15,000 bike? I've read at the bike industry site that accessories make the money and the bikes pay the fixed costs. I know a local shop that paid $950K for a building. That seems like a lot of bikes to sell. Of course that guy might be using the "put 3 million in the bank" and run a shop for fun plan.
10-16-05, 08:18 PM
#57
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How do you make a small fortune in bicycle retail?
Start with a large one.
Start with a large one.
10-17-05, 12:19 AM
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Originally Posted by slagjumper
When I said "shoes", I meant "shoes". Not "bike shoes."
Retail clothing is 300% markup. I was trying to point out how little of a mark up there is on bikes. Question arises about high end stuff is there more or less of a markup on a $15,000 bike? I've read at the bike industry site that accessories make the money and the bikes pay the fixed costs. I know a local shop that paid $950K for a building. That seems like a lot of bikes to sell. Of course that guy might be using the "put 3 million in the bank" and run a shop for fun plan.
Retail clothing is 300% markup. I was trying to point out how little of a mark up there is on bikes. Question arises about high end stuff is there more or less of a markup on a $15,000 bike? I've read at the bike industry site that accessories make the money and the bikes pay the fixed costs. I know a local shop that paid $950K for a building. That seems like a lot of bikes to sell. Of course that guy might be using the "put 3 million in the bank" and run a shop for fun plan.
No wonder so many people grip about prices in America; they think small retailers are making out like bandits and thus want everything below cost. Enjoy shopping at Mall*Wart.
