Bikes/kit profit margins.
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 guessPosted 4 years ago
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?Posted 4 years ago
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.
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 🙂Posted 4 years ago
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.Posted 4 years agoatlazMember
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.Posted 4 years agobencooperMember
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.Posted 4 years agojambalayaSubscriber
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.Posted 4 years agojamesoSubscriber
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.Posted 4 years ago
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.Posted 4 years agoblandMember
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!Posted 4 years ago
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