Forum home Road cycling forum Workshop

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

RowanHarleyRowanHarley Posts: 75
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?

Posts

  • cooldadcooldad Posts: 32,904
    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
    I don't do smileys.

    There is no secret ingredient - Kung Fu Panda

    London Calling on Facebook

    Parktools
  • The RookieThe Rookie Posts: 27,676
    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.
  • MatthewfalleMatthewfalle Posts: 17,571
    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.
  • jgsijgsi Posts: 5,025
    Good grief, they aint gonna do that!
    They have business relationships with wholesalers..... have you thought of this whilst on the 'Apprentice'? lol
  • ayjayceeayjaycee Posts: 1,333
    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?
    Cannondale Synapse Carbon Ultegra
    Kinesis Racelight 4S
    Specialized Allez Elite (Frame/Forks for sale)
    Specialized Crosstrail Comp Disk (For sale)
  • imposter2.0imposter2.0 Posts: 10,825
    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...
  • cougiecougie 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 ?
  • 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.
  • oldbazzaoldbazza 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.


    This^
    Ridley Helium SL (Dura-Ace/Wheelsmith Aero-dimpled 45 wheels)

    Light Blue Robinson(105 +lots of Hope)

    Planet X XLS 1X10(105/XTR/Miche/TRP Spyre SLC brakes

    Graham Weigh 105/Ultegra
  • slowmartslowmart Posts: 3,807
    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:
    And God created the bicycle, so that man could use it as a means for work and to help him negotiate life's complicated journey.
  • 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.
  • crankycrankcrankycrank 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.
  • cyclecliniccycleclinic Posts: 6,863
    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.
    http://www.thecycleclinic.co.uk -wheel building and other stuff.
  • ...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.
  • cyclecliniccycleclinic Posts: 6,863
    It makes no sense for a shop to an agent for discount competitor.
    http://www.thecycleclinic.co.uk -wheel building and other stuff.
  • fat daddyfat daddy Posts: 2,632
    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
  • step83step83 Posts: 3,661
    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.
Sign In or Register to comment.