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Dealer Cost?(5 posts)

Dealer Cost?SFDan
Feb 12, 2002 2:26 PM
I know that buying a bike isn't like buying a car but I am still interested in knowing what the dealer cost of the bike I'm thinking about buying (it is a 2002 Cannondale R900 Si). Does anybody know where I can find this info?
re: Dealer Cost?merckx56
Feb 12, 2002 2:41 PM
normally, a dealer will try to hold anywhere from 25 percent (on an old bike) to 40 percent. if it's a 2002 c'dale, figure the shop will be trying to get between 35 and 40 percent mark-up. some dealers give stuff away though! if the bike is, say $1599, cost is close to $1050.
it's simple math, but normally the way shops "hold their margin". as for accessories, they are normally "keystoned".
meaning that the actual cost is about half of retail. the holds true for the LBS. as for the catalogs, anything goes...
re: Dealer Cost?ngl
Feb 13, 2002 11:51 AM
Cost is 67% of MSRP. Then factor in his shipping and assembly charges (plus interest on the money tied up in inventory).
re: Dealer Cost?jawa
Feb 18, 2002 4:55 PM
don't forget overhead (rent, electric, shop tools to build bike, Selling and administration (someone has to sell it, manager salaries) insurance. Blah blah blah. What is turnover at a bike shop 2- 3 times a year??
re: Dealer Cost?merckx56
Feb 19, 2002 9:19 AM
it's factored into the 35-40% margin that shops want on bikes and the up to 100% mark-up on accessories.