I really like my LBS as they are always happy to give advice etc, even lend me tools on occasion, generally very helpful. So I was just wondering, in terms of supporting them, what is the best stuff for me to get from them, i.e. What do they make the most money on. Ignoring bike sales (can't justify another one just yet). E.g. I tent to buy a lot of bits and bobs there at the moment (tubes, chains, tires, lube etc) but try and do maintenance my self. I could save money online buying tubes in bulk etc and take my bike to them for maintenance (probably do a better job!). Ultimatley, I appreciate their good service and would be good to support them.

bits and bobsm pumps clothing are where they wll make the money.

Biggest margin is on things like tubes. (margins on clothing are pants (see what I did there)) TBH we make the most profit from people who can't fix their own punctures, but real cycling enthusiasts are our favourite people. speaking as a bike shop employee, it sounds like you are already the sort of customer we really like.

How do LBS's make their money?

Not from me

🙂

Depends how big the shop is really. We make money by selling lots of everything not just accesories! City centre location means we have a strong demand for everything we sell.

So I was just wondering, in terms of supporting them

For me it would be telling people of the good service they provide and encourage friends to use them.
Give them the opportunity to price match online retailers. The worst they can say is no or at least get as close as they can. I was looking at some Campag Neutron wheels recently and spoke to them first and they were able to match the price I was happy to pay. Didn't buy them in the end but bought a bike from them instead. 🙂

its a well known fact that lbs makes there money by ripping hora off at every opportunity……

They make money from me buy consumables, then swearing never to go back because they are either rude, can't be arsed to look up from the computer to serve me, give me crap advice and/or a mixture of the previous.

2 of my LBS's today didn't carry any replacement jockey wheels, another LBS was closed and the 4th didn't pick up the phone as I didn't want to get there to be told he didn't have them as well.

Internet for consumables for me.

margins on clothing are pants

What brands do you stock?

Repairs mostly for my LBS.

I know where you're coming from on this. I think that LBSs rank as one of the places you'll miss when they're gone and they'll only continue with ongoing trade on an even playing field. Although I've bought from the likes of Chainreaction before, I'm a numpty with a spanner and haven't got any specialized tools. I'm lucky to have a (so far) good bike shop nearby and it's nice sometimes to be able to see what you want and buy it there and then. I'm not sure that the supermarkets have been "all good" for this country and I miss being able to get things on the high street (in small towns, not cities obviously) – decent clothing, bread, butchers etc. I'd hate to live in a country where everything was bought in out of town giant retailers or online, but that seems to be the way things are moving. If LBS gives a good service, then I'm happy to pay a little more so that it stays there for my convenience too. Works both ways, though. If I get surly or shoddy service, then I look elsewhere. From what I've seen of bike shops around here, there seem to be a lot of hard working folk trying to carve out a living and compete with the big boys with all of their purchasing power. Good luck to them and long may they continue!

Dunno. Please let me know when you know. I think I should push drugs and launder the money through the bike shop – it's got to be the only way?!

I've told you before. Money laundering, to be truly effective, takes place where there is no product, just a service. Hence my belief that all tanning salons are fronts for money laundering.

People like me I guess that aren't competent or interested in repairs and appreciate the personal and prompt service (mainly in the form of repairs). For me saving say £10 on a new chain and cassette is neither here nor there compared to the cost of alot of stuff.

I buy everything I can through my small town LBS and stuff they don't stock I research on net then they order it in for me. They can get most brands and if not then at least they have had the chance.

In return I get 10% (or 15%) off everything and instant service for all repairs. With 5 bikes in regular use there is always something needing some attention.

Corporate LBSs are pants except for browsing and smaller ones that can't be bothered to provide decent service deserve peoples cynacism but mine is just great for me.

shep – we do Endura,specialized and odds'n'sods, our margins are poor because we don't sell much clothing TBH.

I'm a bit suprised clothing margins aren't good. I've worked in a few shops in my teens and twenties and the mark up on designer (evisu, levis vintage, duffer, diesel etc) clothing was fookin massive…wonder why this isn't the case with biking companies?

Clothing is not too bad to be fair – no complaints there but I always give away margin by discounting, d'oh! We have Gore, Craft, Smartwool and a wee bit of Altura. It's just you can't expect to sell everything, which is fair enough – the margin has to be fairly high therefore to get your money back because you cannot sell every garment as you need the people who want that size in that colour!

We have a press out the back.

And a distillery eh Druidh.

The lowest mark-ups in a bike shop are always on the bikes. The highest mark-ups are normally on the clothing, or cheap stuff like tubes and cables.

High-end bikes about 30-45%, clothing normally a double-up (100%), tubes can be over 300%!

jim the saint – Member

High-end bikes about 30-45%, clothing normally a double-up (100%), tubes can be over 300%!

You must let me know where you are getting those trade prices.

I've told you before. Money laundering, to be truly effective, takes place where there is no product, just a service. Hence my belief that all tanning salons are fronts for money laundering.

Phone 'unlocking' shops make good fronts.

Wish I had a decent LBS. Local one is very hit and miss (ie, my missus rang a few weeks back and asked if she could drop a bike in to have the indexing sorted, they said not for a couple of weeks as it's a long job!). If you get the other mechanic, he is really helpful and knowledgeable. I suppose it just depends who you speak to. Only other bike shops are Evans…..! I suppose it has been the push I've needed to work things out for myself.

jim the saint – Member

High-end bikes about 30-45%, clothing normally a double-up (100%), tubes can be over 300%!

You must let me know where you are getting those trade prices.

+1

repairs and access to their tools (not for use by me I might add) for those jobs which are beyond me (quite a few). I buy their workshop time and use of their mechanic. I source my bits on the internet and proffer them to the LBS with my bike and negotiate a price for them to fit the bits. cranksets are always an issue for me as well as retapping the frame, hub overalls. the rest I try to do myself but the LBS is always there if I struggle! The LBS is the 4th emergency service for me.

LBS's are only LBS's as long as they offer a mix of good customer service, a good price (not cheap or bargain but fair and not RRP) and good customer service.

Sadly too many price everything at the recommended retail price and offer hit and miss service.

jim the saint – Member

High-end bikes about 30-45%, clothing normally a double-up (100%), tubes can be over 300%!
Net or gross?

People bleat about the cost of holding stock. If you are paying on account you can get away with paying 30 or 60days net. So the reasonable thinking is the bike you have on display ready for sale- if sold within 2 months it could have cost you nothing to hold/stock. Of course it'll never apply to everything but if your holding off paying invoices until they are red you're going the right way.

Every wondered why a bikeshop employee will say 'cant order it as its out of stock at the supplier or we cant get hold of those now'? Its because their accounts on hold until they've paid some invoices off first…..

I'm not going to take Hora seriously……….
I'm not going to take Hora seriously……….
I'm not going to take Hora seriously……….
I'm not going to take Hora seriously……….
I'm not going to take Hora seriously……….

Invoices usually can be paid up to 60 days but most suppliers give incentives for prompt settlement and living or working on ever increasing ammounts of credit has been proven to to be unsustainable, remember Woolworths?
This year I've been flat out with repairs but new bike sales have been flat. I've never been able to sell clothing here.

Consumables make the most profit in percentge terms but selling a bike or a larger item is a 'quick hit' even at reduced margins.
To those who want trade prices on their consumables, all you have to do is place an initial order for £500 or so and commit to spend £5k plus per year and most major suppliers will deal with you. Checkable references that you are a genuine business may also be required.

Every wondered why a bikeshop employee will say 'cant order it as its out of stock at the supplier or we cant get hold of those now'? Its because their accounts on hold until they've paid some invoices off first…..

ever wondered if you stop talking utter bollocks and shite.

jim the saint – Member
The lowest mark-ups in a bike shop are always on the bikes. The highest mark-ups are normally on the clothing, or cheap stuff like tubes and cables.

High-end bikes about 30-45%, clothing normally a double-up (100%), tubes can be over 300%!

when i get back from here , can you drop me a line with your contacts , im coming back to the bike trade if margins have jumped to that while ive been out of the game for a year…..

shit i knew prices were going up but didnt realise it was 100% profit increased price fixing from every shop in the land !

ever wondered if you stop talking utter bollocks and shite

You know I used to work in accounts for a similar set-up and the utter bollocks and shite that I heard from customers (shops) saying they wanted extended-credit/longer to pay as its been 'quiet', 'times are tough' but on the other hand they wanted the hold taking off their account so they could get their new orders that they placed through….

Its how business works you know. Probably why your not involved in that area anymore as you don't know how to play the game; negotiate discounts, payment terms or margins.

I've always had problems getting an LBS (well two actually) to order me in various parts/clothes I've requested. They simply never materialise. It's happened so many times that I don't even bother any more. Seems a bit odd considering I have repeatedly spent a lot of £££ in both shops over the years. I wonder if it's just a bad organisation thing, or if ordering in individual bits like this is just not profitable enough that they can be bothered.

I only tend to use them for last minute things or clothes – as I prefer to try on. I'm afraid I was rather abrupt with the poor chap on the phone at Evans yesterday though – he didn't really have a clue what I was asking for (spare crown race), but didn't deserve to told he didn't know what I was talking about.. sorry chap!

Could be that they don't have an account with that particular distributor (supplier)? Of course it can be laziness but doubtful if you were a regular customer. I'd hazard a guess they're account was on hold pending clearing some overdue invoices.

Trail-rat, thats absolutly true about paying for bikes on account etc. I used to work for a company who imported electrical items in to the UK and our dealers did exactly that.

Every wondered why a bikeshop employee will say 'cant order it as its out of stock at the supplier or we cant get hold of those now'? Its because their accounts on hold until they've paid some invoices off first…..

Complete bollox. Have you ever actually worked in a bike shop & know how things work?

Basic pyramid setup

The bulk/highest thru-sell items (Cables, blocks, labour) have the best margins

The more expensive/niche, slower sell items have lowest margins (+ bikes)

buy the stuff your shop seems to stock the most of or reccomend to you.

If you want to order this little doo-dad or that shiney-next-different-thing with pricematch discount the shop probably won't be making money, but are doing it as a customer service.

Having worked mail order + shop floor .. the website only places seem to work off about 10-15% margin (maybe more but then its OE stuff) and nothing else .. shops can't deal with that.

Have you? No I don't mean working on the shop floor as a sales assistant or supervisor.