You'd lose that bet and your sum of money
mtnbiker1973 said:
I've never owned a bike shop, nor would I want to. I would be willing to wager a large sum that thier money maker is selling product(i.e. bikes, camping gear, what ever they carry), not labor they get for repair.
I know of a couple of shops that stay in business ONLY because of their repair jobs and the labor they charge. And I'm talking about shops that are not overcharging by any means, and in fact I've seen one regularly under charge (the owner is the kind of guy who's a bit of a pushover, the more a customer asks for a discount the bigger the discount).
As a former service manager for a pretty large shop that had a huge repair business, I know that we made a much higher profit on labor and repairs, again without overcharging, than we did on anything else we sold.
Factor in that the typical shop rat (one qualified enough to do repairs more difficult than fixing a flat) makes 6 to 10 bucks an hour. Granted, there is the cost of purchasing tools, and some get expensive (head tube reamer, for example), but most have a really long life and pay for themselves in the first year.
Of course, a good shop sells service the way they sell a product, and a really good shop sells necessary service, and not just something to make money that the customer doesn't need. Selling unnecessary service is an easy way to make a quick profit but doesn't do much for keeping customers long term.
How a good shop handles the OP's situation is this: if they buy the product from the shop, tell them the normal labor charge, then tell them they get a discount off this. If they buy the products somewhere else, you simply charge them the original quoted labor price. The shop is still making money off the installation, and the customer doesn't get justifiably disgruntled. This also gives a bargaining chip for the shop: I used to tell customers that I could probably come close to or match the internet/mo price, but then I couldn't discount the labor. Most understood this, and its a happy medium and helps build shop loyalty.
Shops should also have labor charges and typical service charges (flats, various installations, tune ups, etc) posted in a conspicuous place. This way a customer knows they're getting the regular price and not some jacked up price. I recall quoting customers and even giving them a written quote (which we kept a copy of) having them approve it, and then when they came to pick up a repair and pay telling me this isn't the price I quoted them. But with posted prices, I could simply point to the board and say, hey, if you don't believe this written estimated on the repair tag which you were also given a copy of (and now claiming you never saw, but you don't say that to the customer), our prices are clearly posted.
