How much do bike shops add to their bikes to get a profit?

rowanharley
rowanharley Posts: 76
edited October 2017 in Workshop
I'm thinking of asking my LBS to buy me a bike off wiggle and order it in for me. But how much extra would I be paying him? The bike to work scheme will save me €300 but doesn't include bikes bought online. Is it worth it or should I just save the hassle and buy it straight off wiggle?

Comments

  • cooldad
    cooldad Posts: 32,599
    Surely the only way to find out is ask the shop.
    But If I was your LBS I'd think twice anyway.
    They become liable to sort out any warranty problems, and technically you've bought a second hand bike, so no recourse against Wiggle
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  • The Rookie
    The Rookie Posts: 27,812
    I don't know about bike shops, but typical retail mark up is about 32% between the price they buy in at and the marked up price. That has to cover the cost of running the shop, staff wages, power, light, rent etc. and will typically give a shop profit margin of about 6% of revenue.
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  • Matthewfalle
    Matthewfalle Posts: 17,380
    sorry - you want your lbs to order you a bike off the internet and pass it onto you?
    Postby team47b » Sun Jun 28, 2015 11:53 am

    De Sisti wrote:
    This is one of the silliest threads I've come across. :lol:

    Recognition at last Matthew, well done!, a justified honour :D
    smithy21 wrote:

    He's right you know.
  • jgsi
    jgsi Posts: 5,062
    Good grief, they aint gonna do that!
    They have business relationships with wholesalers..... have you thought of this whilst on the 'Apprentice'? lol
  • ayjaycee
    ayjaycee Posts: 1,277
    There might be some logic to that approach but I'm obviously being thicker than usual and missing it completely. Could you explain further please?
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  • imposter2.0
    imposter2.0 Posts: 12,028
    RowanHarley wrote:
    I'm thinking of asking my LBS to buy me a bike off wiggle and order it in for me.

    You should definitely ask them . Bike shops love questions like that...
  • cougie
    cougie Posts: 22,512
    So you really want a bike off wiggle rather than one the shop has in stock ?

    What is wrong with the shop bikes ?
  • trivial_poursuivant
    trivial_poursuivant Posts: 1,136
    Anything goes wrong with it and you need to do a warranty claim you are screwed as Wiggle will not see you are the original owner.
  • oldbazza
    oldbazza Posts: 646
    The Rookie wrote:
    I don't know about bike shops, but typical retail mark up is about 32% between the price they buy in at and the marked up price. That has to cover the cost of running the shop, staff wages, power, light, rent etc. and will typically give a shop profit margin of about 6% of revenue.


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  • slowmart
    slowmart Posts: 4,516
    RowanHarley wrote:
    I'm thinking of asking my LBS to buy me a bike off wiggle and order it in for me.

    Good luck with that.

    :roll:
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  • Thigh_burn
    Thigh_burn Posts: 489
    The Rookie wrote:
    I don't know about bike shops, but typical retail mark up is about 32% between the price they buy in at and the marked up price. That has to cover the cost of running the shop, staff wages, power, light, rent etc. and will typically give a shop profit margin of about 6% of revenue.

    I was in a relatively high end LBS last week and speaking to the owner he said that their margin is c30%.

    Interestingly, OP's idea isn't so far off what he was talking about doing. He was pretty stoic about the changes they've faced in the last couple of years from customers buying from the internet, but was clear that the recent decline in business was not sustainable long-term.

    One idea he has had is providing a fitting and consultancy service for customers looking to buy online (Canyon, Rose etc).

    He was also bemoaning the fact that they have to buy the bikes they have in stock from the distributor - not once they've sold them. So holding any stock means very high costs for them. The more high-end the shop, the more deadweight they have sitting there that customers are coming in to touch and feel, but walking out and buying elsewhere.

    So OP, give it a go. You might get slung out on your ear, or you might find someone more receptive. I agree with the issues upthread about warranty and the LBS will want indemnity from that (maybe you buy it and get it sent to them). But I don't think it's entirely ridiculous.
  • crankycrank
    crankycrank Posts: 1,830
    Too many things wrong with this idea. You're also asking a bike shop to knowingly violate the rules of your BTWS while supporting their competitor. Not likely they would ever be caught but really, you would ask a bike shop to do all this to save you a few quid? Think about it. Bike shops already have to deal with serving as fitting rooms for clothes, bikes, etc. for riders who will then go online to buy the same product. I don't have any issues with buying online but if you use a shop to help you with these things then FFS buy from them.
  • cycleclinic
    cycleclinic Posts: 6,865
    I would not do it. The lbs will check the bike over for you though for a fee. The margin on bikes is around 30% but given how long they sit around and you never have the one the customer wants they do not make much if any money overall. Currently I have stopped stocking biked. I buy them when I have an order only now. The distribution model has to change. There are different models that could be used. the money I could put into bikes I spend on other goods where I can make a bigger margin and the stock turns over much faster. The internet means we are all going to have to know more about what we are buying. Ian not sure how shops are going change but fewer will sell bikes for sure.
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  • Thigh_burn
    Thigh_burn Posts: 489
    thecycleclinic wrote:
    ...The distribution model has to change. There are different models that could be used...Ian not sure how shops are going change but fewer will sell bikes for sure.

    Given these issues, why shouldn't the OP's suggestion be one of the new models. Seems to make some sense to me.
  • cycleclinic
    cycleclinic Posts: 6,865
    It makes no sense for a shop to an agent for discount competitor.
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  • fat daddy
    fat daddy Posts: 2,605
    Even if they did do it for you ... its an expensive way of getting a bike.

    You will be paying markup twice. A percentage on the price Wiggle buy it for and then sell it on .. and then again the percentage the bike shop will add to it.

    You will be getting a low priced bike at a premium price ...... why not spend the money and buy a better bike from 1 supplier
  • step83
    step83 Posts: 4,170
    fat daddy wrote:
    Even if they did do it for you ... its an expensive way of getting a bike.

    You will be paying markup twice. A percentage on the price Wiggle buy it for and then sell it on .. and then again the percentage the bike shop will add to it.

    You will be getting a low priced bike at a premium price ...... why not spend the money and buy a better bike from 1 supplier

    Exactly this, if an LBS purchased a bike online and sold it on they would put some kind of markup and no doubt the customer will want to be able to pedal off on said bike.
    If your LBS stock the bike via their normal suppliers get it through them, I don't see why you would want the LBS to buy a bike to then sell to you. If it is a case your not confident assembling it them ask them how much it would be to setup the bike.
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