- Bikes/kit profit margins.
be open to reading up on a manufacturer as to why they are what the are.
I spent a lot of time deciding between a Specialized Propero II helmet (£70) and a Prevail (£160). They look virtually identical and I could not see a material ‘performance’ advantage with the more expensive one.Posted 4 years ago
I would be amazed if there wasn’t a significantly larger margin on the more expensive helmet.scrumfledMember
marketing folks call it ‘value based pricing’, but in reality its ‘charge what you can get away with’.
The cosmetics industry makes sports goods providers look like caveman at this.
Mind you, if you buy an expensive brand you’re the source of the problem, not the victim 😉Posted 4 years agothisisnotaspoonMember
Got it the wrong way round, must have waited a month for them to go down, and it was 13 years ago.Posted 4 years agochief9000Member
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%.
Couple of quids worth of materials squirted ito a mold and retails at £90
These are very true statements. I believe that helmets are one of the biggest earners in the bicycle industry, precisely because they are only a few pence worth of materials squirted into a mould.
Moulds can be quite expensive of course, but they are usually made in the east (approx 35%cheaper than the UK) and of course the cost is amortized over all f the helmets made. Not to mention that some are modified to produce next years helmets.
If coal is cheap and iron ore cheap, why are cars so damn expensive?
Only 50% of a car cost is manufacture related. The remainder comes from marketing, forecourts bla bla bla. A typical car body in white comes in at just over 100quid fully formed and welded.Posted 4 years agoti_pin_manMember
its sad, but we all want cheap stuff and I used to get annoyed when I found out the retail industry typically buy something at 50% of what they are selling them for.
A 10 quid top, they buy for 5.
That 5 quid usually costs 2.50 to produce the top.
So it sounds mad to pay 7.50 on top right?
But having recently done a lot of work sourcing raw materials for a clothing line and the cost of prototyping, manufacturing, marketing etc chances are most of us are getting good value. on top of that the shop has to pay rent/rates/wages/utilities and to hold stock…
… I reckon you got a bargain and they were selling to clear space for new stock or new lines coming through. Either way well done.Posted 4 years ago
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