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Full Price, In this Economy??

2K views 26 replies 21 participants last post by  markf 
#1 ·
That's absurd!! Everything now is cheaper(diamonds, auto's, expensive everything).. You mean to tell me the ONLY thing that is not discounted are Mountain Bikes?? Where are the sales?? Specifically on 2009 Gary Fisher's??
 
#3 ·
There's not a big enough markup on mountain bikes in order for dealers to drop prices and stay afloat. If this recession lingers until the '10 models come out, expect big sales on '09s because they won't be selling this spring. Oh yeah, and prices won't go up for '10 models compared to current models.
 
#4 ·
There should be plenty of '08 bikes kicking around, so just look for them. That being said, I've seen what an LBS pays for their some of their Specialized bikes, and they marked them up 80-90% from that. Maybe sales volume doesn't allow them to discount much, but that markup is high compared to just about anything else you can buy.
 
#6 · (Edited)
jeffgothro said:
My LBS said they wont discount a 2009 for me, thats ok, I found the same bike/year mail order 100.00 cheaper (plus not tax and S&H included in the final price) so I'm going to go that route.
This just my opinion, but I wouldn't buy a complete bike from an online retailer to save $100+tax. You'll get that money back in the complimentary tuneups most shops offer. Not to mention, they'll ususally go the extra mile if you ever have to bring the bike in for warranty issues.

A frame only, no problem buying online. But at that point if you're buying just a frame, chances are you're doing most of your maintainance yourself.
 
#7 ·
rmccully said:
There should be plenty of '08 bikes kicking around, so just look for them. That being said, I've seen what an LBS pays for their some of their Specialized bikes, and they marked them up 80-90% from that. Maybe sales volume doesn't allow them to discount much, but that markup is high compared to just about anything else you can buy.
so what you're saying is that a bike they pay $1000 for is marked up to $1800? (most people call this 40% margin) NBDA(nation bike dealers assoc.) pegs the average margin bike shops need just to keep the doors open right around 38%, leaving 2% profit. that's really not excessive, and is really pretty low for a relatively low volume retail store. you can't compare stuff like this to groceries or anything you buy at wal-mart, all their money comes from the huge volume of sales they do.
 
#10 ·
markf said:
so what you're saying is that a bike they pay $1000 for is marked up to $1800? (most people call this 40% margin) NBDA(nation bike dealers assoc.) pegs the average margin bike shops need just to keep the doors open right around 38%, leaving 2% profit. that's really not excessive, and is really pretty low for a relatively low volume retail store. you can't compare stuff like this to groceries or anything you buy at wal-mart, all their money comes from the huge volume of sales they do.
In that general ballpark. I didn't say it was too much and it's probably what the business needs. If you look at other items in the same price range, say a plasma tv or high end appliance, these things have similar or lower margins but also get discounted when a replacement model comes in. Bike shops are allowed to make a profit, and I'd hate to see a single one close due to undercutting by large retailers or a sour economy, but just about every shop I've been to has and does discount bikes from time to time. If the OP wants a particular bike but can't afford what one shop is charging, there's a good chance he'll find a shop that will offer a discount, at least on the 2008 models.

To the OP, I also wouldn't buy online to save $100-200. LBS support can be very valuable.
 
#11 ·
You are way off the mark

rmccully said:
There should be plenty of '08 bikes kicking around, so just look for them. That being said, I've seen what an LBS pays for their some of their Specialized bikes, and they marked them up 80-90% from that. Maybe sales volume doesn't allow them to discount much, but that markup is high compared to just about anything else you can buy.
The margin is closer to 36%...I know as I worked for bike shops for 8 years and saw plenty of invoices.

The higher volume you do, the better the margin because the manufacturer will give volume and shipping discounts. But basically every major manufacturer provides a 32%-40% margin.

They also fix the prices, there is a "range" that you must sell the product in and you are limited in how many sales you can have until the next years product starts to arrive. If an LBS consistently sells below the prescribed price range...they will lose their dealership. Specialized, Trek, Giant, etc all do this.

An LBS gets way more markup (50%+) on parts, clothing, and accessories. This is why they are almost always willing to give a discount on these when you purchase a new bike.

If you don't want to pay full price, order a bike online from the many companies that sell that way (Ibex, Motobecane, Windsor, Iron Horse)...that's what I did.
 
#12 ·
jmitchell13 said:
This just my opinion, but I wouldn't buy a complete bike from an online retailer to save $100+tax. You'll get that money back in the complimentary tuneups most shops offer. Not to mention, they'll ususally go the extra mile if you ever have to bring the bike in for warranty issues.

A frame only, no problem buying online. But at that point if you're buying just a frame, chances are you're doing most of your maintainance yourself.
Thats cool, but I'm already an experienced mechanic, I dont really need the service, and to be honest I dont really know the people there and dont like people working on my bike whom I dont know or trust. :nono:

I would much rather assemble it myself, then I know its done right and if it breaks its my fault. :thumbsup:
 
#13 ·
it all depends on the lbs. a couple here in the chicagoland area are discounting 09 GFs around 8-10%. i hate paying msrp for anything.

i can agree with the benefits of buying at a lbs; however, only if it's a good shop with good service.

i do like the idea of last year's model; however, there aren't too many 2008s to choose from around here.
 
#14 ·
^^The correct answer^^^

formica said:
Bikes are one of the things that have been selling briskly - anyone recall the $4 gas of a few months ago? Why discount something that is selling well.

Tons of great bikes on Craig's List ( and a few Magnas) if you need a deal.
Food prices don't drop either!! I can't believe that my grocery store hasn't discounted food over the past year like car companies.... well, the US car companies.... Toyota and Honda don't seem to be discounting as much....
 
#15 ·
Food prices won't drop for 6 months. Everything you buy now is based on what it cost to produce it 6-9 months ago. Feed grains for chicken, cattle etc.. are still pretty high and diesel fuel (farm equipment and semi trucks for transport) is $1.00-$1.50 MORE a gallon than reg. unleaded. Just buy Ramen and Spam.:thumbsup:
 
#17 ·
jeffgothro said:
Thats cool, but I'm already an experienced mechanic, I dont really need the service, and to be honest I dont really know the people there and dont like people working on my bike whom I dont know or trust. :nono:

I would much rather assemble it myself, then I know its done right and if it breaks its my fault. :thumbsup:
While this is true for some people, some manufacturers will not recognize or even entertain the idea of warranty repairs if the bike is not assembled at the store where the sale was made.

And I said SOME, not ALL.

Some stores are putting the 2009 bikes on sale also, because sales have been down the past 2 months or so. I know at Performance Bike, there are 3 sales coming up tomorrow, Sat and Sunday from 8 am to 12 pm with an additional 20% off ALL in store items, including bikes. But you need a coupon (if you gripe enough, no coupon needed)
 
#18 ·
I have never known it to be standard practice to discount new models, especially if you have unsold older stock sitting on the floor. In the past I have got killer deals by buying outgoing models on sale when the new ones started hitting the shop floor. Is the '09 going to be noticeably better anyway?

b.
 
#19 ·
I just picked up a 2008 Rockhopper Disc for $200.00 less the MSRP. You need to look around to find a good deal. My LBS was willing to discount even off their sale price to move product. Very good service as well. Picked up a Rock shox reba team dual air for my sons's 2007 Hardrock sport disc for half price(brand new). Deals are out there you just need to look.:)
 
#21 ·
frdfandc said:
While this is true for some people, some manufacturers will not recognize or even entertain the idea of warranty repairs if the bike is not assembled at the store where the sale was made.

And I said SOME, not ALL.

Some stores are putting the 2009 bikes on sale also, because sales have been down the past 2 months or so. I know at Performance Bike, there are 3 sales coming up tomorrow, Sat and Sunday from 8 am to 12 pm with an additional 20% off ALL in store items, including bikes. But you need a coupon (if you gripe enough, no coupon needed)
But I'm mail ordering it.

jeffgothro said:
My LBS said they wont discount a 2009 for me, thats ok, I found the same bike/year mail order 100.00 cheaper (plus not tax and S&H included in the final price) so I'm going to go that route.
 
#22 ·
im seeing over 50% off some stuff at my lbs! its insane, blurs for 999! they have an 08 trance for 799, a very well spec'd bullitt for something like 1800.. a few other random drastically discounted parts. bike markup is huge.

i can only imagine they're hurting pretty bad and just trying to keep the lights on or something.
 
#24 ·
That $4 gas drove everybody into bike stores. They're doing gangbusters business. Why drop prices?

Also, the dealer's cost is also going up due to higher transportation costs.

Besides, shops don't make a lot on bikes, it's the $10 bottle cages they clean up on!
 
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