Hi,
This may seem like a lame question…but can and will a bike shop owner “negotiate” on the selling price of a new bike? Also, is it acceptable for me to attempt to negotiate with them? Any thoughts on this subject?
KK
If they are smart, they will realize a small price decrease can save a customer from buying online. In turn, you should realize the possible value of buying from a shop- if the fitting is included, follow up service, discounts on other gear, possibly quicker turnaround time for loyal customer repairs, etc.
And the owner is not eating ramen and he can still buy his xmas ham even if he gives you a discount.
-Physiojoe
It depends on the time of year and the brand. In the fall, new models are close to being released, so old stock may be discounted. Also, there is lots of NOS (new old stock) in some shops. My local shop has some Trek Madone’s from Lance’s string of Tour victories. They are discounted, but if I was interested I would see how much they were willing to negotiate because it’s not something that is likely to move.
However, walking into a shop in the middle of the season and haggling over the price of a current model year bike is probably not going to work. You’re better off seeing what they will offer you for that price. Maybe a fitting included? Or a discount on pedals you’ll need for the bike, something like that.
That said, some brands like Trek inflate their prices on the web to make it seem like dealers have cut you a deal. So it’s not really negotiating, but across the board Trek prices seem to be $100-300 cheaper in store than the prices posted on their website.
If it’s on the floor/in the shop, they’ll usually talk. If it’s an item they’d have to order for you, usually there is less wiggle room. Either way, you’re the customer, so it doesn’t hurt to ask.
I don’t walk in to a wal-mart and ask for a lower price because I don’t go in to wal-mart, but if I did I’m fairly sure they’ll beat advertised prices. But my local grocery store takes competitors coupons so, yeah essentially they do allow haggling.
Also, there’s a difference between a luxury item like a bicycle and a box of cereal. Everyone carries essentially the same cereals, cereal is discounted once every 4 weeks so I can always stock up and it’s affordable even at full price.
View points like yours are what is killing the local bike store. ITS A BUSINESS, IT SHOULD BE COMPETITIVE. There is nothing that buys you a pass from bargaining, or charging more than is reasonable.
This coming from a guy who makes every effort to buy at my LBS but they’re nothing like you, whenever I go in for something, they ask “how about $x”. I have only ever asked for a lower price once because usually the price is decent.
Paper towels, no, but you can negotiate prices of items in major chains like Best Buy. Similar to bike shops, you are much more likely to get prices to move on older new stock or demo models and such.
Do you walk into a car dealership and pay the asking price of a new car…
Big difference in negotiating over a purchase of $2.99 for towels and $2,999 + for a bike.
Dealers make about 30% on a new bike, so getting a 10% discount takes away 1/3 of the profit. It’s usually easier to have them throw in higher margin items (ex. new helmet, upgraded saddle, pedals) as a deal sweetener, or services (bike fitting, free tuneups).
It also depends on how fast the item will sell. If it is an item that the owner expects will move fast, you won’t get any wiggle room. If it is an item that may take longer you will get a bit of room.
i.e. It is unlikely you will be able to negotiate a P2, but you will have more room negotiating a P4 (it sells slower)
Agree 100%. That kind of “don’t bargain” attitude might not stop people from coming in to ask for advice, but they’ll use your (free) advice to go buy the suggested product cheaper. I sell high priced (non bike) items, and I would much rather have a person confront me with a lower price and ask what I can do, instead of losing the sale altogether. It’s not like there’s a big bike shortage or anything. If you make 10% less profit and sell 20% more, then you’re still (likely) ahead.
-Physiojoe
I don’t walk in to a wal-mart and ask for a lower price because I don’t go in to wal-mart, but if I did I’m fairly sure they’ll beat advertised prices. But my local grocery store takes competitors coupons so, yeah essentially they do allow haggling.
Also, there’s a difference between a luxury item like a bicycle and a box of cereal. Everyone carries essentially the same cereals, cereal is discounted once every 4 weeks so I can always stock up and it’s affordable even at full price.
View points like yours are what is killing the local bike store. ITS A BUSINESS, IT SHOULD BE COMPETITIVE. There is nothing that buys you a pass from bargaining, or charging more than is reasonable.
This coming from a guy who makes every effort to buy at my LBS but they’re nothing like you, whenever I go in for something, they ask “how about $x”. I have only ever asked for a lower price once because usually the price is decent.
I’ve gotten a discount on every bike i have bought. 30% off for higher priced units in the fall when bikes are soon to come in for next year. Do own a bike store and know the actual costs? I have been told there is not much they can negotiate on low end bikes, but there is much more mark up on more expensive bikes. I’m sure when i got 30% off, they still made money. I’d be surprised if any retail was not a 50% markup from dealer costs. Thats pretty standard in retail. It can be even more in retail when they constantly advertise 30-50% off.
And I also avoid Walmart, but do ask for discounts on pretty much anything over $200, washers, dryers, diswashers, chainsaws, dishes, electronis. Drives my wife crazy, but most times you get something.
No you would not order it from Wal Mart. You would order it online from England, cheaper then Wal Marts cost, and get free shipping.
The old saying, want to make a million in the bike industry, start with two, still applies.
Steve
SMp
Hey Guys, I’m not trying to be rude or mean or anything. But do you walk into Wal-mart or any grocery store chain and negotiate on the price of a roll of paper towels? Most of the local bicycle shops will staff a very knowledgeable staff to help you with your needs. One thing to consider before asking for a lower price is the cost of the time and knowledge of the individual helping you out in the store. But yea I do negotiate prices on multiple bike purchases.As to buying a bike online? Well won’t be a Cervelo or well a 2011 Cervelo.
I’m not trying to be rude or mean or anything either, but I really wish bike shop owners had economics/business degrees or at least understand the basic principals of supply and demand and pricing theory.
Understand this basic point, if bicycle shop owners were in the construction business, we would be the sheet rockers.
Steve
SMp
Also understand that there is more money spent in the Baby Pagent industry, in this country, then on bikes. And that includes big box.
Steve
SMp
I have been told there is not much they can negotiate on low end bikes, but there is much more mark up on more expensive bikes. I’m sure when i got 30% off, they still made money. I’d be surprised if any retail was not a 50% markup from dealer costs. Thats pretty standard in retail. It can be even more in retail when they constantly advertise 30-50% off.
In my experience you have that somewhat backwards. The lower end stuff is closer to a 50% mark up and as the item get’s more expensive the mark up drops (maybe 30-40%) So for example the bike store that sells a $400 bike makes 200 bucks (50%). But if you sell a $10,000 bike that “only” get’s marked up 30% and they make 3K. Depending on other things.
To contribute to the thread, at the shop I work at we are always MUCH more inclined to give discounts on things if you walk in and say I need X, X and X in addition to the bike. Maybe we’ll offer free shoes and pedals. We’re less inclined when someone just wants 20% a bike. Maybe this is obvious but I thought i’d throw it in as your personality goes a long way. If you not a jerk customer who has to “go ask their good friend about it, because ‘he bikes a lot’” or you’ve come in 37 times to ask the same questions, you haven’t been “that guy/gal” that comes in to try stuff on and leave, then you walk in two weeks later with something you bought on line, and you’re a nice person to deal with and…(you get the picture) then I’m much more inclined to hook you up. End rant.
Yes…negotiation is absolutely acceptable. Whether or not they will is up to the salesperson or owner.
But it never hurts to ask and they don’t only discount old or on the floor models.
For instance, I was at a LBS getting a fit and my girlfriend came with me. She absolutely loved the 2011 Cevelo S2. I made a deal with the salesman for 10% off plus no tax because of their weekend special. So that was a 18%+ discount on a 2011 bike that needed to be ordered from Cervelo…so everything is negotiable.
i say sure, go for it.
but as the others say, the margin on actual bikes is pretty small. the markup on things like clothes, though, is usually at least 100%.
my experience has been that you as a customer can also bring something to the table, so that it’s a win-win for everyone. like, “what if i pay cash?” or, “hey, i also need a new helmet/wetsuit/gps/etc - can we roll it into a package deal?”
never hurts to ask, and if you’re coming into this thing genuinely wanting to work with the shop on a deal everyone’s happy with, i don’t think they’d be upset by the effort.
good luck . . .
-mike
Its been my experience at my lbs that i have better luck getting add ons with my purchase than i did getting a discount.
Like i got a free computer, saddle and aero bottle with my last bike. Wife got a free aero helmet, shoes and pump etc.
And this is why most people think the garden variety LBS owner is clueless.
Comparing the purchase of everyday consumer items vs a disposable income, high dollar purchase is completely baseless.
To the OP. Absolutely you can negotiate. They most likely won’t be able to get exactly to an online price, but sometimes online shipping fees can wash out the no value added sales tax issue and then it’s an even game. All they can do is say no.
As far as Cervelo…well…all they did with their new policy is ensure I won’t ever buy a new Cervelo. I will wait a year and pick up used.