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LBS markup?(8 posts)

LBS markup?scottfree
Oct 4, 2001 11:59 AM
What's the markup from wholesale on bikes? How much would an LBS employeee have to pay for a $2000 bike?
re: LBS markup?thejerseydevil
Oct 4, 2001 12:02 PM
roughly 33-50% depending on make and model, speaking only of big name bike companies.
re: LBS markup?Tig
Oct 4, 2001 12:10 PM
They usually have a lower % markup on bikes than accessories. Clothing and tools are a good 50%. Fairly standard in the retail industry.
i think you meanttcr01
Oct 4, 2001 12:21 PM
I think you meant 100 percent, meaning it is twice what the retailer pays for it. This is pretty standard for accessories and clothing. Some LBS's don't mark accessories up that high to stay competetive. Note that retailers purchase merchandise at a price based somewhat on volume. So not every retailer gets the stuff for the same price. It's pretty tough to for LBS's to compete against the mail order places due to the volume discounts they receive. Sometimes LBS's can't even buy things for the same price that mail order houses are selling it for.
re: LBS markup?The Great Satchmo
Oct 4, 2001 7:46 PM
I am rather fortunate. My LBS, which is no giant shop, just about always gives me mail order prices (myabe not so much on parts). Guess that's why they have a lot of rider loyalty. That and their work is done right.
re: LBS markup?Wayne
Oct 5, 2001 6:33 AM
All the other responses have been right on, but typically if you work at a bike store there is also the benefit of the Employee Purchase (EP) which most companies provide to bike store employees. This typically is 10-20% below cost. So for the Klein Quantum Pro that I EP'd it was just over 2 grand and the bike retails for 3800 dollars. Our shop just became a Litespeed dealer, and they're offering a 25% below cost EP. Now if I can just convince the wife that I really need that mtn. bike and that this is too good of a deal to pass up...
Workin' the EP Programs...TJeanloz
Oct 5, 2001 7:35 AM
A good LBS employee can get their stuff for cheap. Of course, a good employee's personal endorsement goes a long way towards customer purchases. The risk (ala Mektronic for me) is that the stuff isn't really recommendation worthy. The least an employee will get is 10% off wholesale. The most, is, of course, free.

There are ways to bargain down- usually the companies will give an additional % off if you take a class from their rep. Or just listen to their rep talk all afternoon. I found that you can pretty easily negotiate a 50% off wholesale price for most things. Below that and things get tough.

But in the final analysis, I have NO doubt that giving merchandise away to key bike shop employees is far more effective marketing than sponsoring anybody except Lance Armstrong.
just get itnm
Oct 5, 2001 8:48 AM
you can always sell and MAKE $ on the deal. lots of people do that and not just for bikes