How Much Does Price Matching Hurt The LBS?

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How Much Does Price Matching Hurt The LBS?

257 posts & 75 voices | Started 5 months ago by mu3266 | Latest reply from wrecker

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mu3266 - Member

Hey all. I've put a deposit down on a bike which costs £3200 & while in the process of saving up, I came across the same bike for the poultry sum of £2300. Now, if it was a small difference, I'd just shrug my shoulders & crack on, but with a £900 difference, my shoulders feel a bit heavy to shrug it off.

My question is this; Does price matching hurt the LBS as much as I picture it doing?
If push comes to shove, I'll just go to the other shop (which amazingly, is a LBS also) but I'd still like to have some loyalty to this one. Cheers Gents, Ladies & other unidentifiables (no names)

Posted 5 months ago #
hels - Member

Is that 2300 chicken pounds ??

You need more facts, maybe the bike at the second shop is an ex demo or shop soiled or something. Or last years model. Or a typing error...

Posted 5 months ago #
FuzzyWuzzy - Member

I'd guess it depends on what the LBS are paying for the bike. £900 is a heck of a difference though, is it a 2012 bike or is the LBS reserving you a 2011 one (and the other place is dumping old stock)? Have they ordered in anything specially? Probably just worth raising it with them and asking what's the best they can do but I wouldn't assume they can price-match that amount without making a loss themselves.

Posted 5 months ago #
swright - Member

Probably hurt the lbs a lot. They are probably selling the bike at trade to cut their losses and get rid of the bike. Your lbs mark up tends to be about 30% not including staff, setting up the bike, lighting, etc... So in the end They are probably making around 15%, 20% on the bike. Bit shit really when the likes of crc are jobbing frames out at 60% off...

Posted 5 months ago #
Elfinsafety - Member

Simple economics, innit? Buy wherever is cheapest. I don't get how people will happily hunt about for the best bargain for a new telly/computer/whatever, and buy from a major chain retailer rather than a Local Electronics Shop, but seem to have some sort of 'loyalty' towards a bike shop.

No bike shop gets my business unless they're at least pretty close to what I can get something for online. Recently went to a bike shop (expaynding chain actually), tried some shoes on, asked them to price match the sale price most other retailers were offering, they said no, I walked out and bought them online. So, used their facilities to try on for size, yet they get no benefit at all. Despite offering a 'price match' service.

I do find the independent shops to be a lot better in this respect though; might not be able to offer such low prices, but can give you a discount on something else, free labour etc.

In fact it's the chains who appear to be the most inflexible on this, I've found. Here in London, they know they can stick to full RRP, so they do.

My heart does not bleed for the cycle retail industry. Plenty of cheap online outlets, loads of decent s/h bits, enough to keep me and my bikes running for some time yet, at least...

Posted 5 months ago #
Kona TC - Member

By the bike for £2300 and give the £900 to a charity; simples

Posted 5 months ago #
jimbobrighton - Member

Elfin, I'd say that's a little harsh - I'd probably ask the question re price matching before using their facility to try equipment for size.

at the end of the day a LBS does provide a service in that you can touch, see and feel the products before you buy, and this is a more expensive way of selling something. As the retailer, they just have to hope that some of their customers put a value on this service. A bike, a jacket, helmet & shoes is a much more personal item than an electronics item, otherwise you'd not have gone in and tried it free of charge.

We get this a huge amount in my trade, with customers calling up, gleaning all the information they can from us and then taking their custom elsewhere to save (often a paltry) amount of cash.

Consumers need to put a value on good service. They will miss it when it's gone (the amount of CRC bashing threads lately is a testament to this).

Posted 5 months ago #
ratherbeintobago - Member

Someone told me that LBSs make most of their money from servicing/repairs. Anyone in the trade able to comment?

Andy

Posted 5 months ago #
Elfinsafety - Member

Funnily enough, the shop in question now has the same shoe on sale, and it's even cheaper than I paid elsewhere!

So they've done themselves out of the extra they wooduve got off me in store. Silly really. Oh whell.

Elfin, I'd say that's a little harsh

Business is business; dog eat dog. My priority is to myself, I can't be concerned with the profit margins of others. I don't have sufficient cash to prop up outdated business models.

Sorry if it sounds harsh, but that's how it is.

Posted 5 months ago #
mattjg - Member

bike for the poultry sum of £2300

There's your problem - the maths is being done by chickens.

Posted 5 months ago #
Zulu-Eleven - Member

Ah, good to see Elfin has finally come round to Thatcherismism

Big question for the OP is how much is his deposit? - he could walk, lose the deposit, buy from the other place and still save money

Posted 5 months ago #
RichPenny - Member

I imagine they've got some face recognition software running on the CCTV so you'll be banned next time you go in Elfin

Posted 5 months ago #
chakaping - Member

Recently went to a bike shop (expaynding chain actually), tried some shoes on, asked them to price match the sale price most other retailers were offering, they said no, I walked out and bought them online

Reprehensible behaviour.

Do you ask your corner shop to price match with Tesco?

Posted 5 months ago #
teamhurtmore - Member

Business is business; dog eat dog. My priority is to myself, I can't be concerned with the profit margins of others. I don't have sufficient cash to prop up outdated business models.

Sorry if it sounds harsh, but that's how it is.

...bloody capitalist Bet he votes for Big Dave

Posted 5 months ago #
jedi - Member

i dont shop for the cheapest, i want service and no hassle

Posted 5 months ago #
MrSalmon - Member

Business is business; dog eat dog. My priority is to myself, I can't be concerned with the profit margins of others. I don't have sufficient cash to prop up outdated business models.

Sorry if it sounds harsh, but that's how it is.

Doesn't the fact that you were in there trying them on in the first place imply it's not so outdated? Otherwise you'd have just gone straight online and bought them at the cheapest price you could find.

Posted 5 months ago #
BigJohn - Member

Hey all. I've put a deposit down on a bike

So you've done the deal and have a contract with the shop.

Best thing to do is go to the LBS with some sort of proof that you can get it for the lower price and talk it through.

Posted 5 months ago #
nasher - Member

Hey all. I've put a deposit down on a bike which costs £3200 & while in the process of saving up, I came across the same bike for the poultry sum of £2300

When did you put the deposit down and how long have you been saving? if you did this a while back you probably put a deposit on a 2011 bike, but now the 2012 models are in and the other shop is selling off the 2011 to make room for the 2012...

Your current shop will probably sell you the latest 2012 model.....unless it already is in the shop.

Depending on how much deposit you put down maybe go buy the 2011 bike from the other shop, your LBS keeps the deposit and you have some spare cash?

Posted 5 months ago #
CaptainFlashheart - Member

Jedi, +many.

Posted 5 months ago #
RichPenny - Member

Doesn't the fact that you were in there trying them on in the first place imply it's not so outdated?

Nope, it's the fact that he doesn't feel obliged to buy them there that makes it outdated.

Posted 5 months ago #
TooTall - Member

My priority is to myself,

Your Thatcherite roots are showing. Time for you to get all faux socialist again - the facade is slipping. I find your double standards amusing now.

Posted 5 months ago #
Elfinsafety - Member

Ah, good to see Elfin has finally come round to Thatcherismism

Hardly. Just looking after what scant financial resources I have, is all.

Your Thatcherite roots are showing

What, for favouring one capitalist enterprise over another? Since when was a bike shop a lovely wooly socialist enterprise anyway? It's a business whose principal function is to generate profit for it's owners, not some altruistic charity. Please explain how I can further Socialism by favouring one Capitalist Enterprise over another, cos I'd love to know...

Do you ask your corner shop to price match with Tesco?

I don't do any major shopping in the corner shop, it's for bits and bobs when I need them. I buy milk there, as it seems that the price of mild does not in any way differ wildly from shop to shop. Anyone care to explain why?

I'd love to see small shops be able to sell stuff at the same price as the big guns. But we don't live in a perfect World. So I look after my pennies, cos I ain't got many.

Point is, a bike shop's no different to me, than any other shop. So why the double standards of many on here; screw over little local shops in favour of Comet/PC World/B+Q etc, but act all altruistic when it comes to bike shops. Strange behaviour if you ask me.

There used to be loads of little bike shops round Covent Garden and thayt. Most seem to have disappeared. No loss imo, as they mostly seemed to sell overpriced stuff at full RRP. Certainly din't really cater for the majority of cyclists. Spensive boutiques for trendy types. The market changed, and they either died off or adapted.

The LBS needs to adapt if it's going to survive. That's simple economics, right?

So how's the local bike shop going to retain my custom then? What's it going to offer me that I can't get elsewhere?

Nope, it's the fact that he doesn't feel obliged to buy them there that makes it outdated.

This.

Posted 5 months ago #
tpbiker - Member

I'm all for it! My LBS does price matching. I was recently looking for a full suss XC bike and saw a 2011 model Giant Anthem 3 online for £1400. In my local bike shop it was £2150. I went in, tried it for size and then told them that I could buy it for 750 less elsewhere. If they wanted to match it great, I'd rather buy it from them, but if not then it wasn't a big issue, I'd go elsewhere. They didn't have a problem with it, fully appreciated that it was huge amount of money, and said whilst they'd make very little profit they'd rather me buy from them than elsewhere.

As far as I can see they get a small profit on a bike that they wanted to get rid of and my continued custom, I get a good deal on a bike, everyone is happy.

Ultimately I agree with the poster above, I'm not a charity and look after number one. Its not like buying a loaf of bread from tescos, its a fairly substantial amount of cash that I'd rather have in my pocket than someoneelses!

Posted 5 months ago #
mudglutten - Member

I have a simple code. If I would happily buy unseen then I'll seek a LBS price match and buy wherever cheapest. Conversely, if I want to try on or seek advice, then I figure I should pay for the LBS service I've just used.

LBS's provide a valuable service and we'd be the poorer without them.

Posted 5 months ago #
druidh - Member

mudglutten - Member
I have a simple code. If I would happily buy unseen then I'll seek a LBS price match and buy wherever cheapest. Conversely, if I want to try on or seek advice, then I figure I should pay for the LBS service I've just used.

LBS's provide a valuable service and we'd be the poorer without them.
I have a similar "code" for most retailers. If I need to seek advice, touch, feel, try on then I pay for that service. I'd rather not live in a world where everything was bought "unseen" and required multiple trips to the Post Office returning stuff I decide I don't want.

Posted 5 months ago #
Zulu-Eleven - Member

Just looking after what scant financial resources I have, is all.

Well, erm, yeah, thats Thatcherism, innit! just a question of scayle. Me, me me, and damn everyone else!

Please explain how I can further Socialism by favouring one Capitalist Enterprise over another, cos I'd love to know...

Well, you know, that LBS employed, what three people? probably got a share of the profits too! without the sayle it all goes to big wayrehouses and that, which employ less people - no job for the windowcleaner, no job for the milkman delivering milk for the mechanics coffee, no kids at the local school - less taxes payd on salaries and that. LBS was a part of the community, by going to the online seller then you're stealing from society, innit

Capitalist organisations can follow Socialist ideologies, both for their staff and as part of society as a whole - look at John Lewis Partnership, look at Edinburgh Bike Co-Op, the workers own the company and share in the profits, not the capitalist pigs, what could be more Socialist than that?

Go on, say it Freddie - "Thayres no such thayng as Society"

Posted 5 months ago #
vinnyeh - Member

Depends what you mean by an LBS really- I don't know exactly what you mean by the term, but I group bike shops in three ways- independents, chains and (predominantly) onlines -ie merlin, crc etc.
I wouldn't use any of the bike shops that are immediately local to me.

I wouldn't ask an independent to price match, and don't ask them to discount - though did once ask a shop if I could take up an advertised offer.
Generally I'll happily ask Evans, or any chain which offers it, to price match- I figure they've built it into the business model, but I normally try to avoid using them.

Like most things in life, it's a bit hard to behave consistently though- I do love a bit of a bargain, and quite happily bought the heavily discounted Reverb and Garmin 800 that have been mentioned on here.

Posted 5 months ago #
jameso - Member

I have a simple code. If I would happily buy unseen then I'll seek a LBS price match and buy wherever cheapest. Conversely, if I want to try on or seek advice, then I figure I should pay for the LBS service I've just used.

LBS's provide a valuable service and we'd be the poorer without them.

iiiin one.

I'd add that anything with a service need / warranty risk such as suspension forks or wheelsets, I'd buy from a local retailer with a good service rep.

Service is worth more than the saving you can get by lining yourself up for more future faff.

I also think it's plain embarrasing to ask for a price match on small parts if there's little real difference -ie how to chip away at a retailer's goodwill- so that rounds down the items I'd ask about a price match on to maybe 30% of products: a Thomson post, a saddle, tyres etc.

Few of us can afford to buy things without any reference to price or fair market value, but all of us would do well to consider how our spending affects things around us longer-term - ie how we use our 'capitalist vote'.

Posted 5 months ago #
DickBarton - Member

Will depend on who your LBS is...if it is the likes of Merlin or CRC, then you won't be hurting them as they tend to dictate the price matching price. They buy in such a large quantity that they shaft the independent LBS as they can't match them for quantity so get a higher trade price.

Some shops have a huge mark up but they are few and far between. A price difference of that suggests that the other shop is getting rid at trade price (actually probably lower than trade).

Up to you really...have you signed any paperwork with the first shop? If so, it's not something you can just walk away from...if you get on well with both, which one do you want to remain on good terms with?

It is a lo of cash difference, but if you are putting the deposit down - do you have the bike? Is the second shop selling it as part of a End of Year clearance? In which case do either have the bike in ready for you??? Checking the price of a bike AFTER you have put the deposit down isn't going to help as there are always sales and price differences to be found AFTER you have put the money down...

I'd approach the first shop and see if they could knock some money off BUT personally, I'd be sticking with the first shop - you made the deal with them...

Posted 5 months ago #
andrewh - Member

I don't get how people will happily hunt about for the best bargain for a new telly/computer/whatever, and buy from a major chain retailer rather than a Local Electronics Shop, but seem to have some sort of 'loyalty' towards a bike shop.

Because if I'm nice to them they are nice to me. "I need this wheel built by tomorrow please, bit of emergancy." "Go on then, you're a good customer and I'll stay late tonight to do it for you." The fact that it is a small business and I see the same two staff members all the time means I get a good relationship with them. Good service is worth a couple of extra quid (but probably not 900...)

Posted 5 months ago #
Elfinsafety - Member

Well, erm, yeah, thats Thatcherism

It's not, but don't let that stop your pathetic attempts to score points. The more crap you spout, the more foolish you look.

Well, you know, that LBS employed, what three people? without the sayle it all goes to big wayrehouses and that, which employ less people - no job for the windowcleaner, no job for the milkman delivering milk for the mechanics coffee, no kids at the local school - less taxes payd on salaries and that. LBS was a part of the community, by going to the online seller then you're stealing from society, innit

I'd imagine Chain Reaction, Wiggle etc employ rather more people than a small LBS. As well as all those working in associated industries such as the delivery companies, Post Office etc. So that's the first part of your 'argument' screwed. That, and the fact that the LBS is not some State Owned industry with all profits going straight into the public coffers...

LBS was a part of the community

See, this bit is more pertinent; if LBS's offer say local guided rides, organised biking holidays and stuff, as well as things like cycling awareness/proficiency courses for local kids, maybe do mechanics training for disaffected yute dem, helped out with local charities and thayt, then fair enough. Maybe there are some that do, but how many? Most I see are simply there to make their owners money. Like any other business. Do you employ the most spensive local plumber, or electrician etc, or do you shop around?

Posted 5 months ago #
TooTall - Member

So how's the local bike shop going to retain my custom then? What's it going to offer me that I can't get elsewhere?

Given you have stated your desire to buy cheap and used, probably nothing. Your plastering all businesses as the same capitalist enterprises is shallow and trite even for you trying to make a point. Which you didn't.
You 'speek for da man' but do nothing to help him if he has the temerity to try and run a small business. I hope you get all you need from the cheapest retailers. You appear to know the cost but not the value of anything.

Posted 5 months ago #
crikey - Member

You appear to know the cost but not the value of anything.

This.

I love bike shops. They are the equivalent of tourist attractions for me, in that I seek them out and actively visit them and chat to the guys n gals who work there.

I will happily pay more in a bike shop because it's not just about the cost, it's not just about a mathematical or financial transaction, it's about talking and interacting with people who like the same stuff as me.

It's a people thing.

Posted 5 months ago #
TooTall - Member

See, this bit is more pertinent; if LBS's offer say local guided rides, organised biking holidays and stuff, as well as things like cycling awareness/proficiency courses for local kids, maybe do mechanics training for disaffected yute dem, helped out with local charities and thayt, then fair enough. Maybe there are some that do, but how many? Most I see are simply there to make their owners money. Like any other business. Do you employ the most spensive local plumber, or electrician etc, or do you shop around?

Bloke has the gall to start a small business - a bike shop. He works all hours god sends just to get it off the ground do the books, sort relationships with wholesalers/reps etc. Earns a small wage but enough for him to keep the family under a roof. You want him to then do community service before you'll use him? No wonder your utopia doesn't exist anywhere on earth.

How many Freds does it take to change a lightbulb? One - he just holds on to the lightbulb and waits for the rest of the world to revolve around him.

Posted 5 months ago #
Zulu-Eleven - Member

Of course thats Thatcherism Fred, you've been telling us for years - pure unadulterated greed, getting the most you can for your money regardless of the consequences. You're a secret right winger and you cannot admit it - you've Pwned yourself on this one mate

That, and the fact that the LBS is not some State Owned industry with all profits going straight into the public coffers...

So Waitrose is not more socialist than Tesco's then? What about all those LBS where the staff own the shop, or own shares in the shop, eh? Did you see how much the owners of CRC and Wiggle got paid Freddie? See that Wiggle got sold to a private finance company for £180 million? you'd rather give your money to them than the bloke down the road who sweats blood 7 days a week keeping his own business going? you're a bloody Hypocrite!

Surely an employee owned organisation is fundamentally socialist because the workers own the means of production - That’s the very definition of socialism.

Posted 5 months ago #