State of the industry: a running thread

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Russell said:
I made no comment and offered no opinion, merely requoted your post as an example as to how Kona can offer a BOGOF.

Kona can offer a BOGOF because the cost price of a bike is less than half RRP, the same as Orange and most other non-direct to consumer retail models.

I’m sorry you, bizarrely, took that as a personal attack.
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Couldn't it be the case that the cost price is not less than half the RRP but that they're cutting their losses by offering a BOGOF? If they could afford to offer BOGOF deals all the time, that would suggest the cost price is less than half the RRP, but a limited offer could just be stock clearance—the same as supermarkets at the end of the day.
 
incase it escaped your attention, i am an orange dealer, you quoted me, then said orange were doing the bike for 1100 and i still made profit,|(edit, which felt personal and specific to me) i was pointing out that no i didn't but you assume i do and then went on to say we've been paying too much, i don't think that was a bizarre response because it was an actual comment which suggests i'm wrong, i don't mind being wrong and being told but in this case i am not wrong.

regards Kona, what they are doing is the same equivalent discount overall, i stopped selling those because i was getting massively undercut on them, but my gripe was with the "small profit" comment more that anything, no profit, and the inference is that based on the sale price the retail price was a rip off to start with, and when i know i make bugger all in the grand scheme it feels like an attack
 
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Woz said:
Absolutely agree with this and I've mentioned this before. A visit to the likes of Gumtree produces pages upon pages of unwanted bikes. Practically spoilt for choice, and prices for complete bikes going lower and lower and making the price gap between new much bigger and bigger everyday.

A search on your all time favourite MBK brand :p gives 6053 hits in the bike section, cheapest complete bikes are 0€ (give away) and the most expensive a MBK Kevlight TVT in pristine condition for 1000€ that keeps going through price reductions.

29 737 hits for "electric bike" :rolleyes:
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16 speed Sora,6061 ally frame £120 from ebay and it rides great. I try not to look at the sti cables !
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John, you said that you could sell for £1100 and still make a small profit. My assumption was that as you put that information in the public domain, you were happy for it to be used. Clearly an emotive subject for you so I’ll leave it there.

@CassidyAce - it could be everything you’ve mentioned. Given the example in this thread, I think it’s very unlikely that a manufacturer won’t make a small profit even on a BOGOF.
 
As a business model , buying a product from a distributor/ manufacturer and then selling to the general public is flawed unless you offer something other than the cheapest price.

A physical shop offers very little over an online retailer. As now you can order a product from the comfort of your home , have it delivered at your convenience and send it back if you choose you don’t like it /doesn’t fit. How does a shop compete with this? Personally I find it hard work to get ready , drive to a shop , find parking , deal with finding what I want etc.

There will always be someone to undercut you unless you build value into the transaction. Value for the customer but also for you the business.

Motor trade is a prime example that most new cars are sold at a loss (on paper) . The added products / finance is added to build profit back into the deal for the retailer , whilst also giving convenience to the customer of having a one stop shop for the whole transaction.



Selling a bike at no profit isn’t ideal , but surely there is a way to build accessories into the deal , along with service plans for routine servicing , cleaning products , lube , shoes etc.

Do you have a deal with an insurance broker to refer customers needing cycle insurance ?

Do you offer fixed monthly small prices for yearly servicing ?

Do you upsell to every customer who comes in just for an inner tube? Why not take 2 to save you a journey next time ….

Do you offer finance on purchase? Whether that be 0% or at a rate ?

I see so many ways that bike shops miss opportunities by thinking that money is made purely on the product the customer asks for.
 
Yep, IIRC cinemas don't make money on the films, but on the food & drink.

My local bike shop tends to sell only at RRP, but they offer 10% back from the purchase price which can be spent on eye bleedingly priced accessories (eg tyres at £70, pedals at £100 etc). They have also run some highly successful ebike test days.
 
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@Russell i checked back to see what i said, "little or nothing" on page 25 as opposed to small and that was before i had actually checked whether or not i would make anything, i was happy to write that as it was the truth, but it was the inference from your post that i still made money at the reduced price inferring that the original price was excessively high that i was not happy with because that suggests that i or orange was overpriced which is what i said when replying previously.

i'll take it as a misunderstanding and i'll leave it there as well.
 
i've worked in 5 shops. it was never boring. I was never a fan of people asking for discounts. The 90's was a good time. The 80's was mix and match, The early 2000's the beginning of the end with the carbon/metal mix nightmare. and then the blobs they are producing today. How can you f*ckup a quick release. BANG, and it's gone.

i find this quite funny. 13spd, 14sp, 15spd, 16spd, internal electric hubs and get ready ~ they will melt my mind and my bank account.

i like single speeds and small, short, shallow hills

it takes me 6 weeks for my bum knee to strengthen for the summer and fall.

i went to the bike show in Vegas in 16' or 17'. i wondered around and the big companies weren't there. I just saw a bunch of off brand Asian companies selling off brand wares. The 90's were left behind. Stayed an hour or so, then left.

Hasn't made much sense since. Can't wait to see $25,000 dollar road bikes. GCN members posting all the latest and greatest. 50$ for a years worth of eurosport and unlimited uploads • implosion • see ya' • let it burn straight to the ground ~ imo
 
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greencat said:
Yep, IIRC cinemas don't make money on the films, but on the food & drink.

My local bike shop tends to sell only at RRP, but they offer 10% back from the purchase price which can be spent on eye bleedingly priced accessories (eg tyres at £70, pedals at £100 etc). They have also run some highly successful ebike test days.
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i carry food and drinks in my pockets, never been frisked'
 
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