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Should bike shops charge for new bike assembly, on top of the bike's "sticker price"?

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Discussion starter · #1 · (Edited by Moderator)
LBS: We charge for bike assembly. The industry should support the idea

This is an older article from 2020 from Bicycle Retailer guest editorial.

I was kind of surprised when I went by an LBS and they wanted
almost another $150 on an Urban-type bike that retails for $1200 for a total of around $1350.

Added:
I should have made the fees they charge clearer.
The bike assembly cost $ 130+ $15. Oregon bike tax for a total of $145 on a Kona Dr. Dew.
I did not ask or look at any other bike to see what the assembly cost was. Had cash too.as I was also interested in a gravel bike they had in stock.

So when I got home I searched "extra charge for bike assembly" and this was my first hit.

www.bicycleretailer.com

Guest Editorial: We charge for bike assembly. The industry should support the idea.

Portland retailer Erik Tonkin charges a bike assembly fee on top of the "sticker price." He says it's a better solution to shrinking bike margins.
www.bicycleretailer.com www.bicycleretailer.com

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I'm not sure how common this charge is, I did find one other shop in my state that also has a builders fee.

Some thoughts:
It stopped me from making a bike purchase because the fee caught me off guard for one thing.I already own two Aluminum urban/ flat bar bikes, but wanted a steel urban-type bicycle with disc brakes.

Lots has changed since 2020

Running an LBS is getting tougher, if it wasn't already tough for many shops. Demand is down and so many brands are going DTC
When REI starts selling Canyons will probably be another nail in the coffin.

I'm on the fence about the fee.
I wrench on my own bikes , like many others. If the shop was closer and I had a relationship with them, would probably gladly pay the fee.

right now the last LBS closed in my city, but they carried mostly lower-cost bicycles and I had to drive about 15 to 20 miles to my favorite LBS.


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#2 ·
Well, they would get payed this way for their work, so I have no problem with that, but ONLY if a customer would be granted the choice to do assembly him/her self (sticker price) or have it done by the LBS (for a fee.)
 
#4 ·
I think bikefit setup and adjusting bike for buyer is part of the reason buying new bike.
I paid $300 to get my road bike built and after that got all the tools to do it myself. Except PF bottom bracket and wheel truing (never done).
 
#7 ·
So does that mean the default method of sale is they just give you the bike as boxed from the supplier?

If they were going to charge for assembly then they better damn well do everything properly, including but not limited to facing all the brake mounts, head tube and bottom bracket shell. (re)torquing all bolts and preloads to correct spec, (re)tensioning all spokes to correct spec, shorten brake hoses and gear shifter cables to correct length, aligning brake calipers and pistons.
 
#8 ·
It's fair in theory if it's warranted. I recall when I was working in a shop building up new inventory that some of the higher end bikes required more work than low end bikes to varying degrees. For instance a low end bike would normally be 90% assembled except the front wheel and handlebars while a high end bike would be a nearly complete build with all the parts and frame in the box all separate. Most high end bikes had to be ordered in and the costs would be explained to the buyer prior to ordering.

However, it's hard to see as a potential buyer what work has been done once the bike is on the showroom floor between different bikes. I could easily see scenarios where the fee is too high relative to the work completed. If the shop is upfront and the work done is honestly communicated to buyers, the fee could be justified.

Ideally, there should be enough profit margin between the msrp and cost the shop for the fee to be unnecessary, but that's probably not the case once shop overhead is factored in.
 
#9 ·
I think that if a shop wants to charge you, that is fine, but then you need to check out alternatives.

If a bike is $4500, for instance, at a shop, without assembly, then you should compare that price to an online price. If you can buy the same bike online, with shipping, for $4200, then you should buy the bike online and pay the shop $150 to assemble.

One of the biggest reasons that I hear for bikes at shops costing more is "professional assembly." I get that. But if you are going to include that in your justification as to why the bike costs more, then it has to be included in the price.

My last full suspension bike was already built up when I bought it, so build cost was not an issue. And when I bought my single speed, it was a custom spec and quite expensive, so there was no charging me anything extra. But I can see an argument on some bikes in some situations, especially with newer riders who are going to take a lot of time in the selection/purchase process and then bring the bike back a lot for "tweaks" like changing brake angles or whatnot. If I had to pay for professional assembly you better believe that anything that was not perfect would be returned to the shop to address. You can't half ass the build and charge me for it. If I don't pay for assembly I view it as a "best effort" and I'll deal with any adjustments myself.

But in general terms, shops should not be charging for assembly but I understand why sometimes they need to charge.
 
#10 ·
Ktse said:
It's fair in theory if it's warranted. I recall when I was working in a shop building up new inventory that some of the higher end bikes required more work than low end bikes to varying degrees. For instance a low end bike would normally be 90% assembled except the front wheel and handlebars while a high end bike would be a nearly complete build with all the parts and frame in the box all separate. Most high end bikes had to be ordered in and the costs would be explained to the buyer prior to ordering.

However, it's hard to see as a potential buyer what work has been done once the bike is on the showroom floor between different bikes. I could easily see scenarios where the fee is too high relative to the work completed. If the shop is upfront and the work done is honestly communicated to buyers, the fee could be justified.

Ideally, there should be enough profit margin between the msrp and cost the shop for the fee to be unnecessary, but that's probably not the case once shop overhead is factored in.
Click to expand...
As you say, cheaper bikes usually require less assembly, which tends to reflect their low profit margins.

in theory more expensive and complicated bikes have higher margins which should offset the greater labour to build them up.

I say in theory, because those high end bikes have been on fire sale for a good part of last year, so many shops are struggling to stay profitable.
 
#12 ·
A very small amount of shops in my area were charging for assembly when I was shopping for a new bike. I wouldn’t buy from them for that very reason…and the one I go to for the vast majority of my service (yearly fork/shock service and tuneups).

If I purchased a bike else where…charge away. That is not the bike shops problem (that you bought elsewhere).
 
#13 ·
Back a few years ago when I was looking at some bikes, when inventories were sketchy at best, I am pretty sure that at least one, I want to think Giant, indicated that you buy a bike through them, they send it to an LBS, the LBS would assemble it for you, and it would be ready to go at no additional cost.

Which indicates to me that the manufacturer, even when selling from their site, has some assembly cost built into their pricing structure.

At the end of the day, it doesn't matter if the assembly cost is a line item on the receipt, or it is a subcost of the actual bike, itself. Is the "out the door" price acceptable to the customer or not is what matters? That said, consistency in the industry is what matters. And right now, I believe the "standard" is that the assembly cost is a subcost of the bike. I even had one bike built from a frame during the supply chain nightmare, becasue that was the only way I was getting a bike - and was not charged for any assembly (and I just verified that looking at a scan of the receipt).

At any rate, it sounds to me like the OP was experiencing an LBS that was trying to get away with an additional fee. And I'm not judging them on that, it could be a way they use to either help makes ends meet, or reduce sales of low margin bikes (maybe they don't charge this for higher end bikes?). But if that is against the norms, they risk agitating their customer base.

HOnestly, I think the biggest thing the LBS' should be harping for is discounted components whenever the manufacturers put things on sale, and/or sticking to MAP strategies. I checked with one of my preferred LBS' when Fox was selling shocks for 50% off, and I could buy the shock directly from Fox for less than their dealer cost (I asked the owner if Fox was giving them a break on the shock, so he checked). I'm sorry, but that is flat out wrong, and it s working against the LBS' ability to stay in business.
 
#14 ·
teK-- said:
in theory more expensive and complicated bikes have higher margins which should offset the greater labour to build them up.
Click to expand...
If anything margins on expensive bikes are lower. Profits are of course higher though.


teK-- said:
So does that mean the default method of sale is they just give you the bike as boxed from the supplier?

If they were going to charge for assembly then they better damn well do everything properly, including but not limited to facing all the brake mounts, head tube and bottom bracket shell. (re)torquing all bolts and preloads to correct spec, (re)tensioning all spokes to correct spec, shorten brake hoses and gear shifter cables to correct length, aligning brake calipers and pistons.
Click to expand...

How much would you be willing to pay for such an assembly? $150 sure ain't going to cover that.
 
#15 ·
Are they charging the assembly fee for off the floor bikes they have already assembled? I could see this leading to customers wanting a discount on a floor model or expecting a new in the box one if they will be paying for assembly.
 
#16 ·
Assembly and setup is included in the price. It is part of the warranty terms on almost every bike. "Must be assembled by a professional bike shop".

Add to that most bikes in the shop will be assembled in 20 minutes but an $11 an hour high schooler, you really can't call this anything other than a way to make your sticker price seem lower than it really is. It is every bit as sleazy of a scam (and it is a scam) as airline fees and pdi on a car. Just cause other industries do sketchy things, doesn't mean the bike industry should follow.
 
#17 ·
smashysmashy said:
Add to that most bikes in the shop will be assembled in 20 minutes but an $11 an hour high schooler
Click to expand...

This just isn't true.

Margins keep shrinking and costs keep rising. Whether or not anyone cares (and I'm not saying you should) bike shops are in real trouble.
 
#18 ·
The only bike I have bought in the last 20 years that was already built on the floor of a shop was my '22 Stevo and the bike was on sale at such a low price they could not have charged anything extra. I would personally not be interested in paying for a bike build since the first thing I am going to do when I get it home is tear it down to the frame and grease everything and reassemble it correctly.
 
#19 ·
No

A few years back, local Specialized dealer charged $150 destination fee.

Like cars. There is no way I will pay for that. Same for OP case. Just no.

here we are arguing to support local businesses, local bike shop….this is why not.

There are many choices out there now that not only will not charge assembly fee, but actually have many bikes on sale.
 
#20 ·
From personal experience building hundreds of new bikes—mostly entry level mtb and hybrids—out of the factory box, that process takes at least one hour of skilled labor per bike. People who say they can do it faster are either unaware of how many aspects of factory assembly were done badly, or have a decade or two more experience than I do to work more efficiently. It's still a lot of little tasks that most home mechanics are not equipped to handle.

But I think assembly and a few basic adjustments should be included in the cost of the bike. That's one of the few services that LBS has to offer over DTC bikes. After seeing some of the horrific ham-fisted things that people do to their DTC bikes, I can only imagine what a shitshow the warranty reps have to deal with every day.
 
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