Quote:
Originally Posted by oldpotatoe
Most shops understand margin, they aren't making anything up. They take wholesale $ and divide by .65 or so to get a margin of about 35 points...which is recognized as the minimum to pay your fixed costs and not lose money.
Problem is the wholesale they pay is what uk places sell this stuff for. This idea that they price that way isn't accurate.
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The thing is whose fault is it that the LBS pays way more wholesale for parts than the European shops can sell for? Why aren't the US shops forming some kind of group and making a stink to Shimano, etc.. to get a better rate on parts? Why aren't the Trek/Specialized/Giant dealers screaming to Trek/Specialized/Giant to get some help? If 500 dealers all of a sudden signed a letter to Trek & Shimano saying they're not selling anything till the problem is fixed I bet the problem could get fixed. We've been hearing the LBSes are getting a bum deal for as long as I've been cycling and nothing has changed in all that time.