[Tithers]

Question...<br><br>
OK...is there a usual % mark-up that's standard on bike retail stuff...<br><br>
Like are bikes marked up X% over cost? Is there a usual #?<br><br>
Or...I guess another way to ask, What is the difference usually b/w cost and MSRP?

 

[JWcrew]

I'm not sure about the specifics of bikes, but my experince is that both manufacturing and retail in general operate on a gross margin basis of 40 to 50 percent.<br><br>
The other issue usually not adressed is that the mass on-line retailers are probably paying a lower price for their bikes than a LBS is which allows them to charge a lower price but still make a comparable margin.<br><br>
Jon

 

[jroden]

60-ish, maybe more, but remember they have to carry a note on all the inventory after x number of days, depending on the volume they sell, so before a bike even gets sold, there is often additional costs for just having it sit on the floor.

 

[Tithers]

Thanks guys! That helps me a lot!