SmooveP
Well-Known Member
Hey guys! I just want to repeat what I said earlier. I didn't create the thread to convince myself to buy from a LBS because my intention is really to buy from LBS. My question is about what is reasonable if there is even a way to quantify it.
Honestly its a little unfair since we don't get responses from anyone representing the online stores. I know most of you guys either work or own an LBS or have good personal relations with people in the LBS and I respect all your POV. But this doesnt answer my question
I just visited another LBS near me yesterday and I gave them the list I need. He quoted me $141 less than the first one. So right now, the 1st LBS gave me a price which is 40% higher than my online price and the 2nd one gave me 23% higher.
So right now, we have a range of 23~40%? My source is just 2 LBS so this may not be the average but if you guys look at it, the margin is so far.
I know we get a lot from LBS but how do we know if we are paying too much? I know there are so many good LBS but this doesnt mean that there are no LBS that is overcharging us.
Like what the other poster said earlier, cant we or the LBS do something about the "dumping" of products by manufacturers to online store for a very low price? If the manufacturers can give the online store a very low price, then why not offer the same to LBS?
Also, I dont believe most LBS buy lump quantities of parts and stock it in their warehouse. Based on what I saw, they still have to order it from the manufacturer or somewhere. So what will prevent the LBS from buying the parts from the cheap online store and charge us the LBS price?
Again, I HAVE NOTHING AGAINST LBS as I am still going to get my parts from them. This is just for discussion on what we think is reasonable or acceptable for you personally. I think this will benefit both us riders and the LBS.
Oy. "Reasonable" is subjective. Ask 10 people what a fair price is, and you'll get 10 different answers. For me, paying 10% offl retail price might be reasonable. For someone else, they might feel ripped off if the shop owner drives a nicer car than they do.
"Dumping" is a strong word. In international commerce, it refers to selling goods at a loss to corner the market. The way it's used here is less evil: if a manufacturer or wholesaler has excess inventory he wants to move, it's often easier to unload it all at once at a discount than take the chance that he won't be able to sell it at all. A LBS COULD get better prices by buying ANYTHING in larger volume, but what are the chances a small shop a) can afford to do that, b) has the space to store it, c) wants to take the risk that they can sell it? There is nothing evil about suppliers offering big discounts to customers who buy in volume. It's called economics. Also nothing evil about a bike shop trying to get the best price they can. It's called making a living.
A LBS could buy stuff at the cheap online price. I have no ideas if it's ever lower than their wholesale price. Reasons not to might include warranty issues or hurting relations with their wholesale distributor.
Like everyone has been hinting at, there's no easy way to know or calculate a "fair" price. Wholesale prices are not published (they vary depending on volume anyway). Most manufacturers publish the Manufacturer's Suggested Retail Price (MSRP), so you could at least use that to make sure you're not paying more than MSRP.
To confuse you even more, many online stores are LBS's, too. Some are out in the open, and some do it in a sneaky way like an eBay store. That way they can drink from both ends of the straw - the low-ball/low margin end and the high-margin/high-service end.
Hope that helps.
p.s., I'm not a bike shop owner, but at one time I wanted to be, and I've spent some time looking into it. Not an easy way to make a living!
