What do you all think? And how would I approach asking for a price reduction?
As an aside, you would not believe what customers try and get away with in bike shops. Probably half the guys who end up with three or more items (and I’m talking shoes/clothes/helmets etc - not even bikes) will ask for some kind of discount ‘because I’m spending a lot of money.’ Well hey dude, that’s because you’re buying expensive stuff. We don’t put price tags on it for shits and giggles, that’s how much it fucking costs. I had a guy ask me for a discount on a pack of 6 self-seal patches, which was all he was buying, because he’d driven across town to get them. ‘You must really want them then, price is on the ticket.’ I saw a guy haggle at the counter for 5 minutes, with other customers queuing, on a ~£150 purchase of current season items that he had already negotiated a 20% reduction on. Guess how much help he’ll get next time he’s in, somewhere between none and a punch in the face. Maybe it’s because bike shops are almost always still independents in a world of chain stores and corporate policies but I can’t think of any other establishment people walk into with the same sense of entitlement they do with bike shops.
+1. I’ll agree with this. used to work in a bike store- a major chain, sort of like halfords, and I know several LBS owners intimately.
in the first place, the margin on bikes is very rarely very extensive. of course, this may vary from shop to shop and the qty ordered, but the cost price that bike shops buy their bikes at is abt 50-60% of what they retail for. add in warehousing space, assembly costs, staff costs to sell the bike, warranty returns, demo bikes, etc etc, and who ain’t got a whole lot of margin left. I’d say probably 20-30%. the common man in the shop needs to understand something about ordering a year run’s of bikes- it’s a risky business. you’ve got to predict your demand way in advance adn order accordingly- order too many and you’re sunk, order too few and you’ve lost a major profit. very rarely will you be able to get in extra orders once they’re sold out, unless your brand is a rebadged OEM- they run 365 days a year. haggling on bike prices is something many bike shop owners dislike. give them some respect, for crying out loud. they have a business to run. it’s a difficult enough business as it is already.
accessories and service is where bikeshops make most of their cash. the margin on acessories can be as big as 70% (depending on what.) selling the bike is a way of getting the customer back in the door to buy acessories many, many many, times. this is also why you’ll see bike shops more willing to throw in freebies with bikes ( cheap shoes, jerseys, bells, bottles, cages, lights, etc.) rather than drop a bike’s price.
if you’re negotiating on an older model on the shop floor, I’d say this is fair. they probably want to get rid of it anyway, so give it a shot. do it quietly, on a slow sales day ( tuesdays and wednesdays are always good) where you can talk to the owner or someone big ( don’t try negotiating with the young sales staff. they very rarely have the power or the right to do price cuts.) . Be reasonable and don’t offer a ridiculous price. it would help if you’ve been to said LBS several times and you’ve bought stuff from them before, or they know you ( or at least know your face). LBS are much more willing to negotiate with loyal customers who are reasonable with them, rather than a new customer just looking for the best deal. (of course a relationship can be started by them offering you a said deal.) Discretion is also key. don’t advertise the price you got it for if they give you a good deal- thsi just hurts their business if they keep having to match it.
making relationships with LBS always helps. I know who can help me out in a jam ( stuff spoils or breaks down in race week), if I need to get hard-to-find parts, if I’m dealing with stuff that’s hard to wrench. the few hundred you give to them here and there can pay big dividends in the long run, or when you’re looking for your next bike. I built up my current ride at a steep discount ( new frame + 2nd hand components and parts for about half the price brand new stock bike would have cost). a friend is building an '08 scott addict with new ultegra , khamsin wheels, for about 1.2k USD because of strong LBS relationships.