I’ve just bought a new helmet for £45 when the RRP is £90. What are the bike shops getting them for to still make some profit at half RRP?

could be a number of reasons

the shop, could be just making a loss to move old stock,
they bought a load in and got a deal from the manufacturer/importer
they are grey imports
the importer has decided to clear this years lines and is selling cheap.
you are one hell of a negotiator and could sell ice to eskimos 😉

few options, but on helmets the margin is typically 30-40% I guess

I’ve just bought a new helmet for £45 when the RRP is £90. What are the bike shops getting them for to still make some profit at half RRP?

Do you think they made a profit on the sale?
It sounds like you got a clearance item which was priced to go rather than something that you would make money on, could even have been at a loss. If it’s there, taking up space, already paid for (most things will be) and there are bills to pay most retailers will see it gone for something rather than sit there for nothing.

It’s a current year model according to the website but that is what I really wondered about. Guess if there are plenty of other reasons it should be fine.

Current year doesn’t mean a thing. 2014 RockShox are out next month!

If you look inside the lid it should have a date of manufacture mark in it. Also 2013 is over for the bike trade, 2014 stuff is being launched and will be there in August so it’s now last years stock as 2013 was around from mid 2012, if that makes sense.

As Sancho says there are also deals from suppliers etc. I have some nice Teva links from that sort of deal 🙂

Is it a Giro? Madison are ditching them. Which could mean stock being shifted cheaply.

No, a Bell.

mikes smith I guess that makes sense.

Deals on most giro bell helmets at the moment

giro and bell is the same co…theyre will be very little profit on that i guess

Madison are about to dump a lot of Giro stock after the fallout, Easton Bell own Giro. Shops generally wouldn’t make that kind of margin on P&A. Obviously there are exceptions to that in some instances

http://www.bikebiz.com/news/read/madison-and-planet-x-settle-bell-dispute/014151

some background

Didn’t realise they were the same company. I guess a decent helmet for £45 is the main thing!

Thanks mrmo. Not likely to be any issues for the end customer though, are there?

Its still made of polystyrene and plastic whatever price you paid for it 🙂

Yeah 🙂 just reading the stuff about grey imports without CE marks, although I’m sure they wouldn’t make a separate somewhat shitter version for outside the EU!

I seem to remember from when I had a Saturday job at an lbs helmets used to be one of the biggest margins to make sometimes up to about 65%. Bikes less so. Between 30 and 45%

only issue i can think of is what about the crash replacement, but for the money you paid why worry. It is a helmet, it’ll offer a little bit of protection which is what it is meant to do. If it fits and you like it you got a bargain, so be happy and enjoy.

mrmo – Member
Is it a Giro? Madison are ditching them.

Not quite the truth, not sure if the announcement about Giro distribution has been made yet

Don’t be surprised if they do….

Although its more to do with protecting their distribution network (quite rightly)

Not quite the truth, not sure if the announcement about Giro distribution has been made yet

It has, a while ago. Giro, Bell & Easton sales are about to take a tumble in the UK. I’m not sure the ‘actual’ truth will come out though.

Yes indeed mrmo.

Wondering rather than worrying (it’s a slow day here today now that I’ve fixed the washing machine).

From the article mrmo linked:

Dominic Langan, chief executive of Madison, the exclusive UK distributor of Giro Helmets in the UK, said: “The unauthroised importation of Giro helmets from outside the EEA into the UK needs to stop. Significantly, these helmets may not carry a certification to the European Standard CE EN 1078, which is required for bicycle helmets sold in the UK and elsewhere in the EU.”

So are Madison saying Giro makes crappy helmets for overseas and awesome ones for the EU? I’m surprised that Easton-Bell allowed them to release a statement like that.

does this mean some cheap Giro shoes out there?

Wondering rather than worrying (it’s a slow day here today now that I’ve fixed the washing machine).

Orange 5 huh…. makes sense 😉

Surely more to do with the legality of selling them without the relevant sticker rather than the safety of them?

Trek Stache actually. F all to do now I’ve finished deliberating that one.

I’m sure they wouldn’t make a separate somewhat shitter version for outside the EU!

I wouldn’t count on that. Helmet safety standards are like speed limits – everyone uses them as a target. Manufacturers all want to make the lightest, most ventilated helmet because that’s what customers want, so they don’t want to over-engineer them when they don’t have to.

The shop has to cover it’s costs, rent, businesses rates, staff.

Even if the helmet comes in at £45 and they sell if for £90, £18 of that is VAT so by the time they cover all their costs the profit margin is pretty slim.

In this case I think the shop is trying to avoid a loss.

Clothing, lids, bikes, all the same principle – make a normal/good margin during part of the season, but potentially forced to clear at just over cost (to cover overheads if you can) later in the season or by discounters, then look at the average over the year for the true margin made on that line. Helmets and other clothing items are generally the most extreme examples of boom-bust, same in outdoor gear retail.

I’m surprised that Easton-Bell allowed them to release a statement like that.

I can’t imagine Madison give a f*ck what EBG think…

In this case I think the shop is trying to avoid a loss.

Most people are clearing Giro out because everyone is about to start discounting it heavily.

There is no VAT on helmets however some retailers/brands will fill this gap with profit!

And the likes of Madison always have deals on, like the SLX clutch mechs from Merlin. They were all boxed so i suspect Merlin took the lot on a largely reduced rate. They generally do a clearout price for 10+, 50+, 100+ etc so take them all and corner the market means you buy cheap, sell cheap but shift them all and make a fast buck!

Not quite the truth, not sure if the announcement about Giro distribution has been made yet

I thought it had been made public… Might be wrong though?

Certain Yorkshire based company right?

Its still made of polystyrene and plastic whatever price you paid for it

Often thought this, why are they so expensive in the first place? Couple of quids worth of materials squirted ito a mold and retails at £90

bland – Member
There is no VAT on helmets ..

Is that really true ? On what basis are they exempt ?

Safety equipment

Couple of quids worth of materials squirted ito a mold and retails at £90

and how much did the mold cost?

Helmets aren’t going to be that cheap to shift around, yes they are light but they do take up a fair amount of space.

Couple of quids worth of materials squirted ito a mold and retails at £90

Yep and it’s moved by magic carpet, sold by pixies and designed & tested by magic…

just to finish the manufacturing costs thing.

If coal is cheap and iron ore cheap, why are cars so damn expensive?

There is no VAT on helmets however some retailers/brands will fill this gap with profit!

Not strictly true- they’re zero rated if they carry the ‘ce’ mark.

Presumably the vat is being paid on any grey helmets sourced outside the eu….