Bike shop profit margins?

[wysper]

I've had more than one shop owner tell me that both buy and sell prices are dictated by the principle. That's why they're often more flexible on extras than price. If that's substantially correct then a) it's potentially price fixing, wot's marginally illegal, and b) profit is manageable only in terms of overheads...

I wonder if this is more along the lines of most importers have RRPs. So most stores would stick fairly close to the RRP.

Good service and "an experience" if free though

And while it is free, it is what keeps the customers coming back. Well this one anyway

2. Business is about relationships. Buyers deal with people they like.



4. Funnily enough business isn't about price. Yes, for a few customers it will be but my experience is that the ones who chisel every cent out of you, are the ones who also complain and moan. You'll never have a happy relationship with them.

Good points, and having been in retail, if I was still there, I would let the customer that was really trying to screw me on price walk out the door. They always come back to bite you and end up costing you. I am not talking about the customer that is just trying to get a good deal.


And like it has been mentioned before, how you deal with something when it goes wrong is a very good indication of things. Sometimes when you are working on the coalface you can forget that the guy with the problem/issue is not the one to blame. You can get too close to things and forget there is a guy who has often as not dropped his/her hard earned coin on something that now isn't working or performing as it should.

I know sometimes I forget that, and often have to stop and put myself in their shoes and reasses how I am reacting. Fix their problem, put things right for them.

Easy to say, sometimes hard to do.

[MadDuck]

I'm keen to know which outfits you have visited which give discounts for cash on large ticket-items; given that when they can sell you an HP agreement they make good, extra bucks, known as claw-back. So why would any outfit want to drop the claw-back AND give you a discount for cash?

Quite simple Mr Simple and I wont go on here and name any place I have been into to do this for obvious reasons. They sell me an HP they have to pay commission. They have do do a mountain of paperwork......picture any clearer yet?

[bully]

Yep I get it all day every day. Generally I sell new bikes at window price but discount the gear they may want. Profit margins in new bikes are a heck of a lot lower than what most would realise.
Second hand bikes...depends....if they are trading...window price. Cash/finance...then we can talk creative finance.

Some people forget that lights must be turned on,wages paid ...same with a power load of bills!

Good service and "an experience" if free though

i came to your shop, you let me test ride all the bikes it was great! but like you said no discount on the bike, only the gear.
so i went elsewhere got discounted on the gear and got the bike for 19000 instead of 22500... what would you do?
for me apart from a new bike because its a big cost, its all about the service over the price, within reason.

[toycollector10]

I haven't read all the posts but here's my two-bobs worth.

Who would want to be in the business today anyway. Joe Schmuck walks in off the street looking for a dooferlater for his Shagmaster and gets quoted $169.95 so he says "Eff of, I can get that on eBay for $29.95," and on and on it goes.

The internet has changed the bike and parts retail scene totally. Except for servicing of your bike.

Want a Ducati 999? Will you go to your local dealer first off or surf TardMe until you see something you like at a price you like?

So I say Hats Off to any dealer still in business. I'm bloody sure it's a hard road to hoe and do any of them really make a LOT of money out of what they do?