LBS reasonable markup - Page 3 - Cycling Mob: Road Cycling, Mountain Biking and More

06-11-2004, 11:55 AM

Harris wrote:

> Keith Vetter <[Only registered and activated users can see links. ]> wrote:
>
>> Last year I needed some Look-type bike cleats. I went to a
>> bike shop, and, while they didn't have any in stock, the owner
>> just happened to be on the phone to the supplier and he added it
>> to their order. When they came in, the store wanted $27 for
>> them--that seemed expensive but not knowing better and
>> since they were ordered explicitly for me, I bought them.
>
> Wow! I almost choked when a local shop wanted $16 for them a couple of
> years ago. Then I found out all the shops charged that. But $27 is
> highway robbery for two pieces of plastic. Find a good online source
> and buy several pair.
>
>> Last month, I needed another pair and I went to a different bike
>> shop. Again they didn't have them in stock, but they looked it up in
>> the catalog. The catalog price was $13 and they said they could
>> sell it to me for $21.
>
> Yikes! First, why is it that these shops don't carry such a common
> item? And how do they justify such a huge markup?

I have a couple of extra pair somewhere that came with shoes. Maybe I should
put them on eBay, with a healthy reserve!

Matt O.

06-11-2004, 03:06 PM

Keith Vetter wrote:

> Last month, I needed another pair and I went to a different bike shop.
> Again they didn't have them in stock, but they looked it up in
> the catalog. The catalog price was $13 and they said they could
> sell it to me for $21. This time I declined.

I don't know what catalog they looked in, but that sounds
like a pretty high wholesale price for Taiwanese Look
cleats. Even gen-u-wine Looks don't cost that much.

Still, for small parts, a keystone margin (50%) is pretty
common in retail.

Todd Kuzma
Heron Bicycles
Tullio's Big Dog Cyclery
LaSalle, Il 815-223-1776
[Only registered and activated users can see links. ]
[Only registered and activated users can see links. ]

06-11-2004, 03:06 PM

Keith Vetter wrote:

> Last month, I needed another pair and I went to a different bike shop.
> Again they didn't have them in stock, but they looked it up in
> the catalog. The catalog price was $13 and they said they could
> sell it to me for $21. This time I declined.

I don't know what catalog they looked in, but that sounds
like a pretty high wholesale price for Taiwanese Look
cleats. Even gen-u-wine Looks don't cost that much.

Still, for small parts, a keystone margin (50%) is pretty
common in retail.

Todd Kuzma
Heron Bicycles
Tullio's Big Dog Cyclery
LaSalle, Il 815-223-1776
[Only registered and activated users can see links. ]
[Only registered and activated users can see links. ]

06-11-2004, 03:06 PM

Keith Vetter wrote:

> Last month, I needed another pair and I went to a different bike shop.
> Again they didn't have them in stock, but they looked it up in
> the catalog. The catalog price was $13 and they said they could
> sell it to me for $21. This time I declined.

I don't know what catalog they looked in, but that sounds
like a pretty high wholesale price for Taiwanese Look
cleats. Even gen-u-wine Looks don't cost that much.

Still, for small parts, a keystone margin (50%) is pretty
common in retail.

Todd Kuzma
Heron Bicycles
Tullio's Big Dog Cyclery
LaSalle, Il 815-223-1776
[Only registered and activated users can see links. ]
[Only registered and activated users can see links. ]

06-11-2004, 03:06 PM

Keith Vetter wrote:

> Last month, I needed another pair and I went to a different bike shop.
> Again they didn't have them in stock, but they looked it up in
> the catalog. The catalog price was $13 and they said they could
> sell it to me for $21. This time I declined.

I don't know what catalog they looked in, but that sounds
like a pretty high wholesale price for Taiwanese Look
cleats. Even gen-u-wine Looks don't cost that much.

Still, for small parts, a keystone margin (50%) is pretty
common in retail.

Todd Kuzma
Heron Bicycles
Tullio's Big Dog Cyclery
LaSalle, Il 815-223-1776
[Only registered and activated users can see links. ]
[Only registered and activated users can see links. ]

06-11-2004, 03:06 PM

Keith Vetter wrote:

> Last month, I needed another pair and I went to a different bike shop.
> Again they didn't have them in stock, but they looked it up in
> the catalog. The catalog price was $13 and they said they could
> sell it to me for $21. This time I declined.

I don't know what catalog they looked in, but that sounds
like a pretty high wholesale price for Taiwanese Look
cleats. Even gen-u-wine Looks don't cost that much.

Still, for small parts, a keystone margin (50%) is pretty
common in retail.

Todd Kuzma
Heron Bicycles
Tullio's Big Dog Cyclery
LaSalle, Il 815-223-1776
[Only registered and activated users can see links. ]
[Only registered and activated users can see links. ]

06-11-2004, 03:14 PM

Harris wrote:

> Yikes! First, why is it that these shops don't carry such a common item?
> And how do they justify such a huge markup?

We stock them, but they really aren't a very common item.
Remember that roadies represent a very small part of the
overall bicycle market. Bike shops make their money selling
$350 comfort bikes. The volume is all in the family
market, not the enthusiast market.

We are not a big shop, but we do a fair amount of road stuff
because we own Heron. We sell 3-4 pairs of Look replacement
cleats a year.

Also, if the shop is charging $21 for an item that they buy
for $13, that is not a huge mark-up. Actually, that's a
fairly small mark-up for that type of item.

Todd Kuzma
Heron Bicycles
Tullio's Big Dog Cyclery
LaSalle, Il 815-223-1776
[Only registered and activated users can see links. ]
[Only registered and activated users can see links. ]

06-11-2004, 03:14 PM

Harris wrote:

> Yikes! First, why is it that these shops don't carry such a common item?
> And how do they justify such a huge markup?

We stock them, but they really aren't a very common item.
Remember that roadies represent a very small part of the
overall bicycle market. Bike shops make their money selling
$350 comfort bikes. The volume is all in the family
market, not the enthusiast market.

We are not a big shop, but we do a fair amount of road stuff
because we own Heron. We sell 3-4 pairs of Look replacement
cleats a year.

Also, if the shop is charging $21 for an item that they buy
for $13, that is not a huge mark-up. Actually, that's a
fairly small mark-up for that type of item.

Todd Kuzma
Heron Bicycles
Tullio's Big Dog Cyclery
LaSalle, Il 815-223-1776
[Only registered and activated users can see links. ]
[Only registered and activated users can see links. ]

06-11-2004, 03:14 PM

Harris wrote:

> Yikes! First, why is it that these shops don't carry such a common item?
> And how do they justify such a huge markup?

We stock them, but they really aren't a very common item.
Remember that roadies represent a very small part of the
overall bicycle market. Bike shops make their money selling
$350 comfort bikes. The volume is all in the family
market, not the enthusiast market.

We are not a big shop, but we do a fair amount of road stuff
because we own Heron. We sell 3-4 pairs of Look replacement
cleats a year.

Also, if the shop is charging $21 for an item that they buy
for $13, that is not a huge mark-up. Actually, that's a
fairly small mark-up for that type of item.

Todd Kuzma
Heron Bicycles
Tullio's Big Dog Cyclery
LaSalle, Il 815-223-1776
[Only registered and activated users can see links. ]
[Only registered and activated users can see links. ]

06-11-2004, 03:14 PM

Harris wrote:

> Yikes! First, why is it that these shops don't carry such a common item?
> And how do they justify such a huge markup?

We stock them, but they really aren't a very common item.
Remember that roadies represent a very small part of the
overall bicycle market. Bike shops make their money selling
$350 comfort bikes. The volume is all in the family
market, not the enthusiast market.

We are not a big shop, but we do a fair amount of road stuff
because we own Heron. We sell 3-4 pairs of Look replacement
cleats a year.

Also, if the shop is charging $21 for an item that they buy
for $13, that is not a huge mark-up. Actually, that's a
fairly small mark-up for that type of item.

Todd Kuzma
Heron Bicycles
Tullio's Big Dog Cyclery
LaSalle, Il 815-223-1776
[Only registered and activated users can see links. ]
[Only registered and activated users can see links. ]