Bikes/kit profit margins.

Home Forum Bike Forum Bikes/kit profit margins.

Viewing 8 posts - 46 through 53 (of 53 total)
  • Bikes/kit profit margins.
  • I seem to remember buying a Xen in a hurry for £70 as they were going up by 20% the next month.

    really?

    VAT

    Mister P
    Member

    There is definitely no VAT on cycle helmets.

    brakes
    Member

    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.
    I would be amazed if there wasn’t a significantly larger margin on the more expensive helmet.

    you’ll make more on a more expensive helmet but the percentage margin will stay the same.

    generally helmets spend longer ‘baking’ and will have more inmold features, better materials going on.

    scrumfled
    Member

    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 😉

    Got it the wrong way round, must have waited a month for them to go down, and it was 13 years ago.

    http://www.bikebiz.com/news/read/its-no-joke-vat-dropped-from-cycle-helmets/05400

    chief9000
    Member

    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.

    ti_pin_man
    Member

    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.

Viewing 8 posts - 46 through 53 (of 53 total)

The topic ‘Bikes/kit profit margins.’ is closed to new replies.