… any idea how much roughly, as a percentage of rrp, cost price equates to with bike clothing?

no idea, and it will vary a lot between manufacturers. If you look at what the shops sell off last years stuff at, that will give you and idea.
ie Assos can be bought for 50% of rrp a year after release

That would be trade price. I’m looking at manufacturers cost price.

Trade is typically one third of rrp. Not sure about cost though. But obviously less than one third.

yes but i’m not allowed to tell less of a mark up than retailers though

Steve-Austin – retailers will perhaps sell items in a sale at a loss as it frees up cashflow. Far better to have working capital than a box of kit that is never going to sell.

Cheers for that. Throws economics books in the bin 😀

they also sell stuff the bought at cost to clear the shelves. When was the last anyone paid RRP for anything? We have been duped into thinking we are getting a bargain because its less than RRP or its on sale. No its not, its just a marketing scam

Trade one third of rrp, not for much stuff I know of.

trade is not 1/3 of rrp

when I worked in the outdoor trade, got to be similar, almost every item of clothing came to us about about 2/3 of retail. so maximum of 40% of sale price was nominal profit. SO 100 quid item cost us around 65, the distributors took about 25 so it cost them about 40. Obviously manufacturers made something so guess maybe half of that was their costs.
Obviously there was more and less mark up on somethings.

Cost price is a bit meaningless in many cases. The “cost” of manufacture of an item that we consider does not generally include the associated costs of sales, distribution, marketting, warranty provision etc. All of these are associated with specific products, and need to be considered somewhere.

You also need to take into account corporate operating costs of accomodation, staff etc which are roughly constant, regardless of sales.

Many of these costs apply to all stages in the chain, manufacturer, distributor and shop.

You say we are being ripped off because shops mark up their products heavily? They need to pay all these costs as well as buying stock.

Cost price isn’t meaningless. There must be a per unit manufacturing cost.

The reason that I’m asking is that I am able to get biking kit from a certain manufacturer at cost price. I simply want to get an idea of what cost price might actually be so I can figure out how much stuff I can afford to order. 😀 No dodgyness involved.

Trade used to stick around the 2/3’s of RRP mark but again, it varies with each manufacturer.

I’ve been working in the electrical industry and most Contractors will get 50% off trade on most lighting. We give the wholesalers 60%ish but make just over 50% GP ourselves.
Makes me wonder why we have trade pricelists and then give 50% off!!!!!
Cable is the scary stuff tho, its been marked up soooo much most wholesalers will give a 98% discounts on the common stuff!

The reason that I’m asking is that I am able to get biking kit from a certain manufacturer at cost price. I simply want to get an idea of what cost price might actually be so I can figure out how much stuff I can afford to order. [:D] No dodgyness involved.

Why not ask them what the price is?

In my days of selling amateur radio kit i used to work for one of the major UK importers. We would buy the kit from Japan then double the FOB price and that would make the trade price. The RRP would then be around 20-25% on top of that however many dealers discounted that down to 2% sometimes on the larger items, they were hoping to make their margin on the acessories.

I’ve worked with distributors and wholesalers in the past, emaill me and I can give you an idea in to the bike industry. I’m sure shops and manufacturers wouldn’t be happy if prices were banded about on the web