LBS and RRP

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S.Giles

Guest
Saves me having Pay-pal, which I don't trust...

I lost £80 into thin air once using Pay-pal. I was trying to purchase some books from the USA. The vendor claimed they had not received the funds, but Paypal insisted they'd paid them. I had no way of knowing who was telling the truth so eventually, after many bad-tempered phone conversations (it's very difficult to get through to a real person at Pay-pal), gave up and took the £80 hit. So much for Pay-pal infallibility (see what I did there?:-).

I grudgingly use Pay-pal now, but only because life would grind to a halt without it.
 

Cuchilo

Prize winning member X2
Location
London
There are loads of variables in running a business so just buying from the cheapest source isn't always the best option . I know I could spend all day searching for the cheapest prices only to find I get an inferior product . You also have to take into account deals that are done with suppliers . Some may offer sale or return on clothing . A 30 day account on goods . Both of those options are very nice for a high street shop as they get to sell stuff without paying for it so the prices may well be fixed beyond their control .
I could go on .... I might actually do that later :laugh:
 

Kevoffthetee

On the road to nowhere
I run a mobility business and would rather supply a product than loose out to the Internet, although I will not match the Internet price. Everything has an RRP but each supplier decides on their own margin, I our case it usually brings the price significantly lower than the RRP yet £100's of pounds more than t'internet.

I do play a little on my aged clients emotions who are shopping round by askingif they were happy with the level of service I had given while they were in the showroom, what is the Internet site returns policy and do they provide a loan product during repair or servicing but this doesn't always work. I also mention that even if I supply the same product from a manufacturer, I do not uphold anyone else's warranty

I'm happy to split the different for a cash sale or knock 10-15% off and throw in a free service which costs me nothing other than time.

That said I'm an Internet shopper because most LBS don't offer the level of service I offer my customers, plus I'm very handy when required and nothing in bike maintenance phases me.
 

Tojo

Über Member
I can't match Wiggle/CRC even getting through my trade account as I pay VAT to my supplier and I'm not reg for VAT as a sole trader as I turn over next to nowt, so by the time I have a big enough order to not get charged postage, I may make on a groupset for instance a couple of quid, as customers just turn round and say they can get them from the afore mentioned if I try to make anything over about 3-4 quid, so all I make is on labour and pence on small items like brake pads and cables. I contacted one of my suppliers to discuss this and they basically said they couldn't compete with afore mentioned again, to sole traders on smaller orders in the cycle businesses, I cannot disagree on their part as they have got overheads and have to buy in large amounts of stock to have available to the trade, they actually did say to me to use the big two if I only need parts here and there........There you go.... truth, whole truth and nothing but the truth........:thanks:
 
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bpsmith

Veteran
My post about not being able to get my LBS to price match and them saying they can't buy it for that price is because they are a larger store with a big online presence and multiple large shops, and so definitely VAT registered and just lying about the price match to get you in store.

Your reply is more interesting, for the smaller shops though, @Tojo. I can see where you're coming from. I also wondered why anyone would buy from a supplier for more money than some online stores sell for, just like your supplier suggested.

What are the benefits for you from getting from the supplier?

Why not buy from the online guys, for a cheaper price and with free postage too, and make more of a profit?

Serious questions, to give us all a better understanding of the background mechanics that is consumers don't see.
 

Tojo

Über Member
@Tojo - dare I ask which lbs you are?

I haven't got a shop just slowly trying to drum up a bit of work usually through my mates, as I'm going to hopefully set up as a mobile mechanic when funds come through just getting bits and bobs together when I have the money at the minute until I am set up that way then get a van and kit it out ,spent a load on tools.....!
My post about not being able to get my LBS to price match and them saying they can't buy it for that price is because they are a larger store with a big online presence and multiple large shops, and so definitely VAT registered and just lying about the price match to get you in store.

Your reply is more interesting, for the smaller shops though, @Tojo. I can see where you're coming from. I also wondered why anyone would buy from a supplier for more money than some online stores sell for, just like your supplier suggested.

What are the benefits for you from getting from the supplier?

Why not buy from the online guys, for a cheaper price and with free postage too, and make more of a profit?

Serious questions, to give us all a better understanding of the background mechanics that is consumers don't see.


If I put in a big enough order I get free P&P which I have done a couple of times and can make a couple of quid on components but I have to match or slightly undercut the big Two and therefore I am talking about making say a fiver on a groupset its not really worth the outlay on my part...! The stuff I tend to buy is the likes of tyres and tubes which I can get at a good price but the small items your only making pence but they are the sort of things you always need to have in stock.
 

John the Monkey

Frivolous Cyclist
Location
Crewe
I'm not sure it still happens, but one local/internet oddity used to be the difference in pricing between the online arm of Edinburgh Bike Co-Op and its shops.

I can remember a jersey in their online sale being offered at full price in the Manchester shop a few years back. When I asked about it, the chap on the counter said that local retail and the online shop set prices independently.
 

bpsmith

Veteran
I haven't got a shop just slowly trying to drum up a bit of work usually through my mates, as I'm going to hopefully set up as a mobile mechanic when funds come through just getting bits and bobs together when I have the money at the minute until I am set up that way then get a van and kit it out ,spent a load on tools.....!



If I put in a big enough order I get free P&P which I have done a couple of times and can make a couple of quid on components but I have to match or slightly undercut the big Two and therefore I am talking about making say a fiver on a groupset its not really worth the outlay on my part...! The stuff I tend to buy is the likes of tyres and tubes which I can get at a good price but the small items your only making pence but they are the sort of things you always need to have in stock.
I totally see where your coming from, trying to make a living from this. I would love to do the same, but sadly I am not able to risk it due to family, etc. Good luck to you though.

On the flip side, I can totally see the point of your mates when they see prices on the Internet and don't expect to pay much more for the parts alone. I guess the build is where you can charge a bit, but I assume that most punters are surprised at how long stuff takes and hence equates to in value for your time. Tough business, but nice if you can make it work.

A local guy does very well from his garage. He is a well respected local rider and big in one of the clubs. Everything he does is word of mouth and he has his regulars. Certainly appears to make a full time equivalent wage though.
 

Tojo

Über Member
I totally see where your coming from, trying to make a living from this. I would love to do the same, but sadly I am not able to risk it due to family, etc. Good luck to you though.

On the flip side, I can totally see the point of your mates when they see prices on the Internet and don't expect to pay much more for the parts alone. I guess the build is where you can charge a bit, but I assume that most punters are surprised at how long stuff takes and hence equates to in value for your time. Tough business, but nice if you can make it work.

A local guy does very well from his garage. He is a well respected local rider and big in one of the clubs. Everything he does is word of mouth and he has his regulars. Certainly appears to make a full time equivalent wage though.


Time wise Its ok replacing old for new parts or building new, your time goes when you get handed a bike with probs that someone has left till its nearly un-ridable all gummed up and in need of TLC, cleaning,de and re-greasing, checking alignment, truing wheels and setting it all up again, and when they pick it up and say "it didn't need all that much doing ,did it"....!, on the other hand the better reaction is " cheers it looks spot on " and they ride it and it works properly....:thanks:...:cuppa:
 

Pale Rider

Legendary Member
@Tojo

I have an idea for a cheap workshop where you could get some walk-in trade.

There is a barber's shop opposite Edinburgh Bicycles in Byker.

Half the premises are empty and available to let for, at a guess, no more than fifty quid a week.

Might sound daft, but you could create a bicycle business cluster with you, EBC, and Newcastle Cycle Centre down the road.

EBC, in particular, won't like it, but a bit of cheeky shop window/pavement board marketing on your part could work.

Doing stuff while you wait, or same day, would be an attraction compared to the 'we can't do it until next Tuesday' attitude at EBC.
 

vickster

Legendary Member
Don't forget to add proper insurance to your costs if fixing bikes for others, especially for money
 

Tojo

Über Member
@Tojo

I have an idea for a cheap workshop where you could get some walk-in trade.

There is a barber's shop opposite Edinburgh Bicycles in Byker.

Half the premises are empty and available to let for, at a guess, no more than fifty quid a week.

Might sound daft, but you could create a bicycle business cluster with you, EBC, and Newcastle Cycle Centre down the road.

EBC, in particular, won't like it, but a bit of cheeky shop window/pavement board marketing on your part could work.

Doing stuff while you wait, or same day, would be an attraction compared to the 'we can't do it until next Tuesday' attitude at EBC.


Canny idea, but I was going to set up mobile workshop and then I got the advantage of taking the workshop to the customer and service / repair their bikes maybe while they are at work and have it ready for them to ride it home....;)
 
I'm a very keen shooter I buy a lot of stuff online but I also spend a lot of money with my local gunshop the help advice and after sales service is 2nd to none. I would hate to see them go out of business. On some items they cannot compete they have rent rates staff insurance etc that online stores sometimes do not. I think it's a balance
 
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