[trap121]

Not sure if this is the right thread or not.....

I'm talking to a LBS and plan to purchase a new DH bike and AM bike at the same time. Paying in cash. The owner of the shop said he can give me 5% off (off retail) each bike if I buy them at the same time with cash. It comes out to about $700 off the total price which means I would still be paying over 13k in cash. Then add 1k for state tax.

Are the wholesale prices of bikes so high that he cant give me a better deal or what? Am I expecting too much to get a better discount considering I'm about to drop 13k with this guy?

The bikes are Pivot 5.7 XTR Ultralite and Pivot Phoenix XO build

 

[EVIL JN]

I think you could get a bit more since i got 10% of my 2011 demo 8 frame from a shop that i have no real connection with.

 

[IH8Rice]

he probably thinks youre just wasting his time. 5% off for a cash deal is a smoking deal....for the owner

 

[p-spec]

go there with cash,if your for real.

dont be scared to negotiate.

money talks

 

[William42]

he probably thinks youre just wasting his time. 5% off for a cash deal is a smoking deal....for the owner

what he said. he probably gets charged 3-5% for card.

 

[reidhresko]

you are getting hosed at that price point. particularly with him about to get 13K in cash. greedyy shop owner trying to take advantage. bargain like a champ and don't be afraid to walk away if he wont budge. 13K will buy you two smoking ass rides.

 

[p-spec]

13K can get you a nice whip and deff pussy

 

[RayB]

That's a ridiculous sum of money for a pair of "bleh" bikes.

At $6,500 per bike, you could get this something like this:

http://www.wrenchscience.com/mountain/frames/Ibis/Mojo+SL-R-+WTF+XTR+Bike/2011

+

http://www.wrenchscience.com/mountain/frames/Turner/DHR+Privateer+Bike/2011

And that's MSRP.

Any particular reason why you wanna get a pair of Pivot's?

 

[dezhamer16]

the bike industry is ~100% mark up across the board. 5% off is a joke, like one said. they probably don't think you're serious, if you're about to drop 13k in cash and that's all they'll bend walk away. i work in a bike shop... they are trying to rob you, and i don't know a damn thing about pivots, but i'd give you atleast 10-15% off two treks if you're gonna spend $13,000.

 

[Deano]

i think everyone just about summed it up.

at my LBS, if a serious buyer wants to put down that kinda money.

on a 2 bike high end deal, on the spot payment, we would knock off 15 % easy.

 

[OGRipper]

the bike industry is ~100% mark up across the board.

This is not always true and in any case it's not like the entire mark-up goes in the owner's pocket. Factor in the cost of rent, insurance, taxes, paying employees, and other operating costs, and the margins are a lot tighter than you think.

And quoting prices from an online store is not fair unless you add the cost of walking into an LBS to get the bike set up properly as well as initial service, which most shops will throw in (along with other freebies).

With all of that said, yes, you should be able to bargain for a better deal. Just don't go thinking the owner is making $6,500 on a $13K sale, because he's not. And if he offers good service and other intangibles you can get from a proper shop, he shouldn't have to match an online warehouse price either.

 

[dezhamer16]

This is not always true and in any case it's not like the entire mark-up goes in the owner's pocket. Factor in the cost of rent, insurance, taxes, paying employees, and other operating costs, and the margins are a lot tighter than you think.

And quoting prices from an online store is not fair unless you add the cost of walking into an LBS to get the bike set up properly as well as initial service, which most shops will throw in (along with other freebies).

With all of that said, yes, you should be able to bargain for a better deal. Just don't go thinking the owner is making $6,500 on a $13K sale, because he's not. And if he offers good service and other intangibles you can get from a proper shop, he shouldn't have to match an online warehouse price either.

i certainly didn't mean the shop/shop owner is doubling his money on everything he sells, but as a rule of thumb, cost is half of what msrp is. but yes, like he said, that has to cover a lot of costs, and its not like someone is buying a $5,000 bike on a daily basis. and yes, with that added cost you're getting customer service, a storefront to purchase items on the spot and general bicycle help.

i know with all our bikes we over 3 free tuneups for the first year(tune ups are $60) which is fairly common with many shops and you can also bargain with stuff like bottle cages, computers, pedals, clothing, etc...

but at 13 grand, thats some serious coin for some serious rides, and being charged full msrp when you're paying in cash, you might as well be holding the jar of Vaseline.

 

[gemini2k]

the bike industry is ~100% mark up across the board.

Not on a lot of high end stuff. IME high end bikes usually have 30-40% margin over wholesale. Not to different. But if you're buying 2 high end bikes with cash, they should give you 10% off MINIMUM. Especially since these bikes are unlikely being stocked and are simply ordered at time of payment. If they were stocking these things and had inventory sitting around then a smaller discount would makes sense. But still probably at least 10%.

 

[trap121]

That's a ridiculous sum of money for a pair of "bleh" bikes.

At $6,500 per bike, you could get this something like this:

http://www.wrenchscience.com/mountain/frames/Ibis/Mojo+SL-R-+WTF+XTR+Bike/2011

+

http://www.wrenchscience.com/mountain/frames/Turner/DHR+Privateer+Bike/2011

And that's MSRP.

Any particular reason why you wanna get a pair of Pivot's?

I was actually debating between the exact 2 bikes you listed and the 2 pivots. The problem is supposedly Ibis wont be sending out small SL-R's until august. I went against the DHR because of reviews I have read concerning design flaws in the frame and the fact you can only use 1 shock.

Yes, my LBS does have to special order the Pivots. He doesn't have any employees, he is the owner and mechanic. He only deals in high end bikes and upgrades. Maybe he is just use to rich people paying whatever he says?? I kinda got that feeling from him anyway. Problem is the only other Pivot dealer is 3.5 hours away. I may end up going there anyway.

Why do you consider Pivots bleh bikes? Have you heard bad things about them? If so please share.

 

[RayB]

This is not always true and in any case it's not like the entire mark-up goes in the owner's pocket. Factor in the cost of rent, insurance, taxes, paying employees, and other operating costs, and the margins are a lot tighter than you think.

And quoting prices from an online store is not fair unless you add the cost of walking into an LBS to get the bike set up properly as well as initial service, which most shops will throw in (along with other freebies).

With all of that said, yes, you should be able to bargain for a better deal. Just don't go thinking the owner is making $6,500 on a $13K sale, because he's not. And if he offers good service and other intangibles you can get from a proper shop, he shouldn't have to match an online warehouse price either.

Are you implying that the examples I laid out above came from an "online warehouse" ??

Because if so, I am afraid you are foolishly mistaken. Those are MSRP prices--Ibis & Turner will happily confirm it.

The point wasn't to start a debate of LBS vs. online retailer, because quite frankly that topic is like...

The point was to show the OP two things:

1) He can acquire two far better bikes for the same price.
2) So by extension of (1), he has not really been offered anything close to a "good deal".

Cheers.

 

[djjohnr]

Rule of thumb - Selling a bike at MSRP nets dealers 25-40% in margin. The variation depends on the brand and the dealers annual sales (more sales = better pricing from the manufacturer = more margin). However, if you look at the inventory screens at a large shop you'll find 35% is the most common margin amount.

Most dealers will let a bike go for 20% margin if you'll buy same day. So, a tactic I use that has almost always worked is to offer the price calculated to give the dealer 20% assuming they're getting pricing based on 35%.

OR

Price to offer = (MSRP*.65)/.8

If the bike is a couple of years old you may try pushing for 10% margin.

Price to offer = (MSRP*.65)/.9

 

[MmmBones]

i certainly didn't mean the shop/shop owner is doubling his money on everything he sells, but as a rule of thumb, cost is half of what msrp is. but yes, like he said, that has to cover a lot of costs, and its not like someone is buying a $5,000 bike on a daily basis. and yes, with that added cost you're getting customer service, a storefront to purchase items on the spot and general bicycle help.

i know with all our bikes we over 3 free tuneups for the first year(tune ups are $60) which is fairly common with many shops and you can also bargain with stuff like bottle cages, computers, pedals, clothing, etc...

but at 13 grand, thats some serious coin for some serious rides, and being charged full msrp when you're paying in cash, you might as well be holding the jar of Vaseline.

If you don't figure out how those margins work you might be the one holding the jar of vaseline!!

 

[trap121]

What do you guys think about the online shops like Fanatik and others?