Why your LBS Should Love Big Box Bikes

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Re: Why your LBS Should Love Big Box Bikes

Postby dddd » Mon Jan 02, 2017 7:19 pm

I don't think that the margin from cost up to msrp is more than about 60% on complete bikes, but parts/accessories often sell at a margins closer to 100%.

Shops are always having to juggle sales margin with inventory levels, so that aging inventory doesn't cause losses. Then they have to juggle staffing and compensation on top of the regular rent, utilities, insurance and promotion/advertising.
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Re: Why your LBS Should Love Big Box Bikes

Postby poorguyonabike » Thu Feb 02, 2017 10:35 pm

A lot of LBS shops make most of their money repairing the bikes.. The way to tell a popular LBS shop is if they have a waiting list to get your bike repaired and you see a bunch of bikes in the repair area. When I had spokes repaired by one a few months ago, they had a 5 day waiting list before they got to it.

Now in saying that, LBS should welcome repairs of "Big Box BIkes", one for profit margin and also to potentially sell them a bicycle. About the only repair service I use for an LBS is spoke repair and the only bike I have had that done to is the Schwinn Tourist (Pacific bikes) that honestly is a POS when it comes to the wheel but solid otherwise.

The one around here is skeptical on any big repair on a box store because he feels they will not show up to pick it up and just buy another box store bike and they will eat the loss. Which I do understand. He will assemble "Big Box Bikes" for $65, which is a good wad of cash.
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Re: Why your LBS Should Love Big Box Bikes

Postby NYMXer » Fri Feb 03, 2017 9:31 am

There are many valid reasons to buy a lesser quality bike from a big box store. Maybe you are just starting out and do not know where you level of interest will take you, do not know that these big box store bikes are of poorer quality, maybe buying for your kids and they will destroy any bike, etc.

The bottom line is that any bike will need repair and maintenance and if you can't do it yourself or don't have the time, then you LBS is the place to go. They win twice because they make money on the repairs and God knows there will be many of them. They also will be the first to up sell you to a better quality bike and accessories. Maybe some energy gels, tire pumps, tubes, helmets, jersey, tires, etc. You get the idea and when a LBS gives you the cold shoulder for not buying from them, go to another one.

If I owned a bike shop and you brought you Walmart bike in for repairs, I would welcome you because chances are, you're going to spend some time and my shop and drop some money into my register, and that is why I am in business! Plus, the local shop will have a variety of bikes that might be more suited to your specific taste and riding styles.
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Re: Why your LBS Should Love Big Box Bikes

Postby poorguyonabike » Fri Feb 03, 2017 8:43 pm

There is a set of videos by an LBS owner "BikeManforu" on youtube. And he trashes *mart bikes right and left, he also welcomes the repairs as he says "don't fight it but make money off of it". However, his videos are quite informative to learn how to do repairs and maintenance on our bikes. I finally figured out why my rear brakes on my bikes always get sticky "water gets into the cable and settles in where the bend is". So simple yet I never knew that.
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Re: Why your LBS Should Love Big Box Bikes

Postby blammo585 » Mon Apr 24, 2017 7:07 pm

poorguyonabike wrote:There is a set of videos by an LBS owner "BikeManforu" on youtube. And he trashes *mart bikes right and left, he also welcomes the repairs as he says "don't fight it but make money off of it". However, his videos are quite informative to learn how to do repairs and maintenance on our bikes. I finally figured out why my rear brakes on my bikes always get sticky "water gets into the cable and settles in where the bend is". So simple yet I never knew that.


I had watched some of his "how to" stuff in the past and never got the BBB hate, but I looked him up again and saw a lot of that in his videos. I guess he can get away with his prices where he's located. Sounds like he's near the Hamptons and people just throw money at someone who will do something they don't want to do or don't know anything about. There's no way I'd pay $100 or more that he was talking to put a bike together that is brought in to him. He says Giant, Trek, and Specialized is who he carries because they are the main 3.

I know as well as any one that there is a need for specialty shops. I grew up on Freestyle/BMX, and I would never use a BBB for that. But for the average joes who ride at the local paved trail or kid who cruises his neighborhood I can't see how a $300 or $400 Giant is justifiable. I was watching one of his live shows where this kid he knew brought in his Giant 24" or maybe it was an XS 26", and he had broke his rear derailleur and shifters and bikeman was talking about upgrading him. The kid or dad was leaving it to him to pick out what he was going to replace them with at, apparently, whatever price was OK. He said something about it being a good bike. I mean, it's not like whatever he put that through that a BBB frame would just be trashed but because it was a Giant it was able to hold up.
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Re: Why your LBS Should Love Big Box Bikes

Postby EngineerD » Thu Sep 07, 2017 8:07 pm

Regarding of manufacturing and fabrication, most brands will outsource the fabrication of their frames. Specialized is not going to employ welders or order bricks of aluminum from McMaster Carr to fab their bikes. They will likely supply drawings to a machining house to do that work. More likely than not, that machine house is located in China due to labor pricing. Trek, Giant and all other brands will likely do the same. People don't realize that welding equipment, staffing, facilities cost a lot so none of these name brands will waste money on that. Also the machining house will have stock piles of aluminum or carbon fiber to make any bike for anybody, so don't think Specialized or Trek aluminum is any different than Huffy.

Now here's the difference, Specialize MIGHT assemble the bikes in the US for higher end models. Walmart may have it all done in china to cut costs. Name brands will populate the frames with name brand components from this year. Walmart will populate components with lowest bidder.

When you see people complain about cheap bikes, 99% of the time it's with the components and not the frame itself. And lucky for buyers, components are easy to change out.

End of the day, if u buy a Walmart bike and upgrade components, you'll get the same quality bike as you would Trek or Specialized with the only difference being that you don't have a Trek employee number.
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Re: Why your LBS Should Love Big Box Bikes

Postby bikesRfun » Fri Sep 08, 2017 9:20 am

Giant makes their own frames. They even make their own frame tubes. They also make frames for other well known LBS brands.
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