if the bikes they have in stock are suddenly worth a grand more then the bike I’m sending back is also worth a grand more – it’s zero sum
Unless that’s subsidised by the supplier. I don’t deal with bike retail but, used to deal with supermarkets, often the “sale” price was taken off the unit by us after the sale, so if they sold 30k boxes in the week long £1 off offer we’d refund the cost of 30k afterwards. The supermarket’s margin never changed, the sale is swallowed by the supplier.
It sounds like I’m contradicting myself here sorry as I’m missing the important bit.
They make the same £ profit on the sale at full price or reduced. ifand it’s a big if, they can restock and resell at new price, the £ number stays the same but the return is lower.
For argument sake:
At full price the bike is 5500.
Crc make 1600 ish on that.(40% markup)
That’s a return of 30%
The bike was reduced to 4400
Crc make 1600 on that
That’s a return of 36%
That % figure is very important. Much more important than the £ & pence figure.