How much of an LBS premium are you willing to pay?

[Climb01742]

I do my best to support my local LBS. 90% of that is because of a mechanic who works there. He's wrenched my bikes for years. He's a great mechanic, incredibly meticulous and a really good guy to boot. If the shop stays in business, he stays employed, and I'm all for that.

Our own Ergott built me a set of wheels and they're going on a bike the mechanic is building up for me. I need a 6800 cassette for the wheels. I asked my mechanic what the shop's price was. $100 was the price quoted. A quick search told me Competitive Cyclist has it for $55 with free two-day shipping (the Amazon Prime effect) on orders over $50. I told the shop I'm willing to pay them a premium for what they do/offer that the internet can't but a 100% premium was too steep. They came back and said Shimano's MSRP on that cassette was $65.99 (wholesale was $43) and that was now their price. I said cool, I'm willing to pay a $10 (20%) premium to support the shop.

Which got me thinking. (Let's put aside for the moment the first attempt to charge $100.) I'm trying to work out exactly what supporting my LBS is worth to me in dollars and cents. How much of a premium am I willing to pay them over what an internet outlet would charge me? The shop and mechanic are willing to hang parts on my bikes that I bring in and I appreciate that. But most of these are parts I already have, or are moving from one bike to another, so I don't see that as a huge deal. I get that shops have a harder time hanging brand new parts on a bike, parts they sell too. I'm all for buying parts at my LBS, but it must make financial sense, right? (As an aside, there's a mechanic I know who works out of their home and is 110% cool with hanging parts you bring to them that you bought on the web. So there are options, but I'd rather support the shop that employs my pal.)

So where would you draw the line? How much more would you pay to support your shop? 10%? 20%? 50%? Where's your line?

PS: Want to add, as Eric notes below, I'm happy to, and do, pay their going service rate for all work the shop/mechanic does. I never quibble for a dime on service rate, because a good mechanic is worth every penny.

[EricEstlund]

Any time I walk into a shop I am happy to pay straight list for an item, and a reasonable service rate if I am asking them to do any work for me.

[echelon_john]

I don't really use an LBS for anything, but my rule of thumb would be an inverse relationship between % markup/upcharge vs size of purchase.

For example, I'd have no problem going in and buying a tube or two for $8-10ea even though I can get them online for $2-4. Same with a water bottle, or a cable.

But if I were looking at wheels or a frame, for example, I might be willing to pay 10% more at the LBS but definitely not more.

[benb]

My LBS has drastically reduced prices on components and does some price matching.. it seems they are solvent on selling Trek and Specialized bikes/components/accessories. People coming in looking for cheap prices on components are a sliver of the customer base so they just decided to keep the business and match so that you keep coming in the store and inevitably buy other stuff that is more profitable for them.

[54ny77]

Ditto.

While I don't go there often, frankly I'd be embarrassed to haggle on parts or service at my go-to LBS. If I'm there, it's for a reason and whatever they charge, they charge and I pay it. The risk of me ham-fisting a part install or certain types of adjustments far outstrip the costs of a professional job done once and done right.

Originally Posted by EricEstlund

Any time I walk into a shop I am happy to pay straight list for an item, and a reasonable service rate if I am asking them to do any work for me.

[josephr]

Originally Posted by EricEstlund

Any time I walk into a shop I am happy to pay straight list for an item, and a reasonable service rate if I am asking them to do any work for me.

this -- I buy a lot online and also do a lot of my own maintenance, but if they're installing a headset or gonna help keep a wheelset true, then I buy through them...I want them there next time I need a part on the fly, etc. I also take them beer occasionally.

[Mr. Pink]

Just don't charge me list in this day and age. That's just insulting.

[malcolm]

I'm willing to pay 10-20%. If it's wrenching I'm after I pay what they are asking. I do very little business with any of out local shops. They don't really sell the things I like and if they order it takes forever and the cost is way higher than what I can get it for myself. An example an older mtn bike of mine had hope brakes and I broke the lever mounts on both sides. I mostly keep it for others to ride so I didn't want to invest in hope brakes so I brought it to the shop to have them install XT brakes which I could have done myself. Well it would up taking twice as long as expected due to delays in shipping and for the cost I could have installed hopes or xtr and had plenty $$ to spare.

I really like the guy that owns one of our local shops and he has a long time wrench that is awesome. I have bought multiple kids bikes and my wifes first road bike and mtn bike and our townies from him. I refer beginners and people that want big box stuff and don't do their own work to him all the time, so I do support him but not directly.

I don't think we should feel a compunction to support any business. If they can't come up with a model that works then they need to go out of business and something that works will replace them. I guess what I'm saying is if you have to determine how much you are willing to pay extra then something isn't right. You should go in and lay your money down and feel good about it or exercise other options.

[Seramount]

depends on which shop...

have a national big-box shop less than a mile away that I'll occasionally use for the most basic items that I need asap. but, normally I try to avoid it if at all possible.

there's a very high-end place that just got some business from me for a build, but there were extenuating circumstances that precluded me from using a more cost-effective option. normally, I'm not one of their customers.

then there's the young-guns who run a funky little shop that principally caters to the university crowd but who do decent work and will often offer to do a minor fix while I wait.

[jmal]

Originally Posted by Mr. Pink

Just don't charge me list in this day and age. That's just insulting.

In my area, this is standard practice these days. When I worked in shops years ago we always charged below list. I'm not sure if this is a regional thing, or if the industry has changed their pricing structure.

[Joxster]

Originally Posted by Mr. Pink

Just don't charge me list in this day and age. That's just insulting.

Prey tell, what is your occupation?

[zap]

Originally Posted by Mr. Pink

Just don't charge me list in this day and age. That's just insulting.

So, in the grocery store............

[FlashUNC]

I don't quibble much on product or service. Unless the price for a product is just outrageously over what you can find elsewhere, then I might bring it up.

But the reality for me is I like that I can walk down the street and get a problem fixed when I need it, and I'm willing to pay a premium for that. If me spending a couple extra bucks there keeps the lights on and puts beer money in the mechanic's pocket, so be it.

[oldpotatoe]

Originally Posted by Mr. Pink

Just don't charge me list in this day and age. That's just insulting.

You are being close-minded about margin. I won't use the other word that describes the above better. A bike shop should know their margin to break even. Generally accepted as 35 points(divide cost by .65) to break even, zero profit, zero net loss. In the example, $43 cost(assuming no shipping $ and not considering the shop cost to order, unpack, price and store-not free, and yes, should not charge $100, but not 'list'), $43 divided by .65 is $66.15. If they sell for less, they lose money. Be insulted all you want but do some research first. The 'playing field' is not flat.

[parris]

I think that for me a red flag would be the rapid change in price that a shop would flip on. The cassette was initially $100.00 but when the price difference was brought up it was quickly changed to what the shop claims is msrp.

Most of us have been around this and other activities where we realize that a physical location that actually offers a service needs to charge enough to keep the lights on. Many of us want to support those places and do it gladly. But the flip side of that is that any business that wants to stay open needs to not play pricing games.

For me like some others I'll pay a premium for item's that I need "right now". Otherwise my limit is 20-25% for big items that I can wait on.