What is the general markup on bikes sold in stores, specifically bikes sold in bike shops, i don't care about the markup in stores like wal-mart or target.
asked Jan 24, 2017 at 19:30
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1 Answer
This can vary a good bit based upon the brand, quality of bicycle sold, and the agreement reached between the shop/brand. In general more volume=better deal, higher end=lower markup percentage (but higher dollar amount as the overall cost is higher as well).
A high margin would be 40-45% (66-80% markup), low end would be around 20% margin (25% markup) in my experience (as an employee). so for a $500 bike a 40% margin is $200, $300 original cost to the shop. In markup terms, a $500 bike that costs $300 wholesale is 200/300 = 66% markup.
Keep in mind this is not profit. Many bikes take an hour or more of labor to assemble, and this is before factoring in base costs of space, utilities, tools, etc.
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No that's fine, I was just wondering, I usually buy my bikes used anyways, but a shop had a $1000 U.S. off a last years model Salsa horsethief $3299 now $2299 and I was wondering how he could do that... seemed like a good deal for a NEW horsethief! Commented Jan 24, 2017 at 20:46
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yeah so at that price, that is probably what the shop is able to buy them for. Salsa is somewhat complicated in terms of dealer structure and pricing– PaulCommented Jan 24, 2017 at 20:48
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i'm surprised, i'd think he could sell that puppy online easily at that price, maybe if salsa found that out he'd get in trouble or something... Commented Jan 24, 2017 at 20:49
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3As part of Salsa's dealer structure, you are not allowed to sell their bicycles online (and in many cases even advertise them online). Also they cannot be sold unassembled or tuned. These terms are probably true for many companies.– PaulCommented Jan 24, 2017 at 20:52
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1May I suggest that you rework this to answer the question? OP asked about markup, not margin.– andy256Commented Jan 24, 2017 at 21:04