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Was wondering if you guys know what the standard markup is for both components and bikes at a bike shop? I am trying to decide to do a LBS sponsorship (if it would be worth it) . You pay $500 and get your business name on the team gear and COST + 10% on all parts and bikes. Anyways, I am trying to find out approximately what their cost is on stuff without having to constantly call and see what everything is going to cost. For example: If a FOX Talas RLC retails for $725, what does the bike shop pay for it?
 

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Semper Fi
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204 Posts
margin is based on the wholesale cost of the item.


There is less margin in a bike than there is a tire........usually, the cheaper the retail item is, the better the margin.

I have not worked in an LBS, but I was parts manager for a Kawasaki/KTM motorcycle shop.
 

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Big Boned
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It really all depends on how much volume the shop does, and where they source their parts and bikes. If a shop orders product from a distributor (like QBP, BTI, Downeast, etc.) they'll typically mark that up 100% for sale on their shelves. For bikes, big shops that do big volume get a better price from manufacturers than small shops do, hence why you see such low prices at Performance Bikes, Bicycle Village, etc. And then sometimes, distributors (and bike companies like Giant) run sales promotions on specific components and accessories, which makes it even harder to calculate shop "cost" because they may have gotten the part on promo. A good guesstimate is to assume they're marking up at least 100% on most stuff, but that won't always hold true.
 

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In Canada MSRP is based on a 100% markup on almost everything, except bikes. Few shops charge full msrp, but generally much more than 10%. On a bike mark up depends on many things. As the price goes up the markup goes down. Also LBS cost is also dictated somewhat by when the bike is ordered; something ordered from a major producer(Specialized, Giant etc) with the seasons booking order (sometime in September or October the previous year) is cheaper for the LBS than special ordered in March.
So you should see a significant drop in your components and accessory prices, but don't expect to see much on an expensive bike.
 
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