funkmasterp – Member
Still a grand for the frame and fork. Is it definitely the same frame as those outlined above? Seems like a bit of a crap thing to do if it is.
I’m not exactly an On-One apologist, their website and hyperbole drives me nuts so I don’t shop there very often anymore (although I do have an Inbred hooked up to a FollowMe Tandem), but what are you expecting from a retailer?
The costs below are absolute guesses, I’m not in the cycle trade, but I reckon they’ll be pretty close. Lets say they buy the frame for £450 including shipping (nett of import tax which I’m pretty sure will be recovered as input VAT).
Selling at £999
Deductions and allowances per unit
Output VAT £167
Warehousing and staff processing costs £30
Warranties and returns write downs £50
Marketing £100 (allowing for future promos or end of line clearances write downs/write offs)
Cost of frame £450
Delivery to customer £10
Total deductions £807
So, selling at full retail they’ll make £192. Or, at least they will before Corporation Tax, another 20% assuming a year end profit, so £160 profit.
The director then pays himself a dividend, let’s say it’s about 30% tax – so £123 at the end of it all, for considerable risk and investment. He should open a chippy instead…