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

06-11-2004, 09:33 AM

I'm all in favor of supporting local bike shops (LBS) but what do
people consider a fair markup?

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.

Later I saw that Performance was selling Look cleats (not clones)
for half that price.

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.

So what to people consider a reasonable markup? My first example
I feel is clearly too high. The second one seems to high but by
how much?

Keith

06-11-2004, 10:29 AM

Keith Vetter wrote:
> I'm all in favor of supporting local bike shops (LBS) but what do
> people consider a fair markup?
>
> 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.
>
> Later I saw that Performance was selling Look cleats (not clones)
> for half that price.
>
> 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.
>
> So what to people consider a reasonable markup? My first example
> I feel is clearly too high. The second one seems to high but by
> how much?
>
> Keith

A sucessful shop owner once told me "if no one complains about the price
then you're not charging enough". As a customer you don't want to hear
that (I was a little stunned when I heard it), but the guy ran a great shop.

06-11-2004, 10:29 AM

Keith Vetter wrote:
> I'm all in favor of supporting local bike shops (LBS) but what do
> people consider a fair markup?
>
> 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.
>
> Later I saw that Performance was selling Look cleats (not clones)
> for half that price.
>
> 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.
>
> So what to people consider a reasonable markup? My first example
> I feel is clearly too high. The second one seems to high but by
> how much?
>
> Keith

A sucessful shop owner once told me "if no one complains about the price
then you're not charging enough". As a customer you don't want to hear
that (I was a little stunned when I heard it), but the guy ran a great shop.

06-11-2004, 10:29 AM

Keith Vetter wrote:
> I'm all in favor of supporting local bike shops (LBS) but what do
> people consider a fair markup?
>
> 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.
>
> Later I saw that Performance was selling Look cleats (not clones)
> for half that price.
>
> 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.
>
> So what to people consider a reasonable markup? My first example
> I feel is clearly too high. The second one seems to high but by
> how much?
>
> Keith

A sucessful shop owner once told me "if no one complains about the price
then you're not charging enough". As a customer you don't want to hear
that (I was a little stunned when I heard it), but the guy ran a great shop.

06-11-2004, 10:29 AM

Keith Vetter wrote:
> I'm all in favor of supporting local bike shops (LBS) but what do
> people consider a fair markup?
>
> 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.
>
> Later I saw that Performance was selling Look cleats (not clones)
> for half that price.
>
> 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.
>
> So what to people consider a reasonable markup? My first example
> I feel is clearly too high. The second one seems to high but by
> how much?
>
> Keith

A sucessful shop owner once told me "if no one complains about the price
then you're not charging enough". As a customer you don't want to hear
that (I was a little stunned when I heard it), but the guy ran a great shop.

06-11-2004, 10:29 AM

Keith Vetter wrote:
> I'm all in favor of supporting local bike shops (LBS) but what do
> people consider a fair markup?
>
> 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.
>
> Later I saw that Performance was selling Look cleats (not clones)
> for half that price.
>
> 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.
>
> So what to people consider a reasonable markup? My first example
> I feel is clearly too high. The second one seems to high but by
> how much?
>
> Keith

A sucessful shop owner once told me "if no one complains about the price
then you're not charging enough". As a customer you don't want to hear
that (I was a little stunned when I heard it), but the guy ran a great shop.

06-11-2004, 10:44 AM

Retail more or less doubles the price, which they need to succeed by the
way. You walk in and expect them to stock what you need, but a lot of
stuff nobody walks in for.

On the other hand most retail businesses fail, so they have to guess
right what there's a need and a market for.

I abandoned LBSs not for the price so much as that they stopped
carrying a decent inventory.
--
Ron Hardin
[Only registered and activated users can see links. ]

On the internet, nobody knows you're a jerk.

06-11-2004, 10:44 AM

Retail more or less doubles the price, which they need to succeed by the
way. You walk in and expect them to stock what you need, but a lot of
stuff nobody walks in for.

On the other hand most retail businesses fail, so they have to guess
right what there's a need and a market for.

I abandoned LBSs not for the price so much as that they stopped
carrying a decent inventory.
--
Ron Hardin
[Only registered and activated users can see links. ]

On the internet, nobody knows you're a jerk.

06-11-2004, 10:44 AM

Retail more or less doubles the price, which they need to succeed by the
way. You walk in and expect them to stock what you need, but a lot of
stuff nobody walks in for.

On the other hand most retail businesses fail, so they have to guess
right what there's a need and a market for.

I abandoned LBSs not for the price so much as that they stopped
carrying a decent inventory.
--
Ron Hardin
[Only registered and activated users can see links. ]

On the internet, nobody knows you're a jerk.

06-11-2004, 10:44 AM

Retail more or less doubles the price, which they need to succeed by the
way. You walk in and expect them to stock what you need, but a lot of
stuff nobody walks in for.

On the other hand most retail businesses fail, so they have to guess
right what there's a need and a market for.

I abandoned LBSs not for the price so much as that they stopped
carrying a decent inventory.
--
Ron Hardin
[Only registered and activated users can see links. ]

On the internet, nobody knows you're a jerk.