Enduro/AM - The Weight Game

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Enduro/AM - The Weight Game
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Posted: Oct 22, 2021 at 23:41 Quote
seraph wrote:
tbeezle wrote:
PHeller wrote:
Margins matter for an employee owned business.

If someone wanted to make the most money in the bike industry, what type of business should the start?

I feel like labor has the best margins because its simply your time, and the more efficient you are the more you make.

Labor does have the best margin, generally. All you have to factor in is how much you pay your employee, and how much labor they can churn out. Last shop I was at, we charged $600 for a frame-up build. Current shop I'm at we charge $160. Eek

I would love to charge 600, right now i charge 225, and sometimes that feels low, especially if the frame needs facing/chasing

Posted: Oct 23, 2021 at 2:09 Quote
Axxe wrote:
It is not margins. Margins can be what f*cking ever. It is about what people voluntary agree to be paid. As long as there are enough of them, there is ZERO reason to pay them more. As soon as they are not around, offers will go up.
It does not matter how much money I have. I pay my gardener the going rate.
Any attempt to artificially change such an arrangement of voluntary, free, and honest market results in shit and eventually war and murder. No better system exists and will not exist and anyone not understanding that is an idiot.

Who wins in a race to the bottom?

Posted: Oct 23, 2021 at 8:02 Quote
tbeezle wrote:
seraph wrote:
tbeezle wrote:


I feel like labor has the best margins because its simply your time, and the more efficient you are the more you make.

Labor does have the best margin, generally. All you have to factor in is how much you pay your employee, and how much labor they can churn out. Last shop I was at, we charged $600 for a frame-up build. Current shop I'm at we charge $160. Eek

I would love to charge 600, right now i charge 225, and sometimes that feels low, especially if the frame needs facing/chasing

The solution is to work exclusively in Lake O where all the money is lol

Posted: Oct 23, 2021 at 8:25 Quote
PHeller wrote:
Margins matter for an employee owned business.

If someone wanted to make the most money in the bike industry, what type of business should the start?

High end mobile solo repair shop with an instagram page and some steeze to put on top

A derailleur repair company

Sell hot waffles off of ur town bike during the summer solo

Or just go burn some factories down overseas and slide in there

Posted: Oct 23, 2021 at 11:26 Quote
seraph wrote:
tbeezle wrote:
seraph wrote:


Labor does have the best margin, generally. All you have to factor in is how much you pay your employee, and how much labor they can churn out. Last shop I was at, we charged $600 for a frame-up build. Current shop I'm at we charge $160. Eek

I would love to charge 600, right now i charge 225, and sometimes that feels low, especially if the frame needs facing/chasing

The solution is to work exclusively in Lake O where all the money is lol

Lake O is also shockingly cheap when it comes to spending money on service, they will spend 12k on a bike and then not want to spend any money servicing it. I know someone who just bought a new bike after wearing out the chain and the chainrings vs just getting it all replaced because it seemed like a better deal to them

Posted: Oct 23, 2021 at 11:58 Quote
tbeezle wrote:
seraph wrote:
tbeezle wrote:


I would love to charge 600, right now i charge 225, and sometimes that feels low, especially if the frame needs facing/chasing

The solution is to work exclusively in Lake O where all the money is lol

Lake O is also shockingly cheap when it comes to spending money on service, they will spend 12k on a bike and then not want to spend any money servicing it. I know someone who just bought a new bike after wearing out the chain and the chainrings vs just getting it all replaced because it seemed like a better deal to them

Yeah we had customers like that too, but I was really good at convincing them to buy more parts, usually as an upgrade. I sold 4 complete AXS kits to customers who already had 12-speed drivetrains last year. lol AXS is such an easy sell.

Posted: Oct 23, 2021 at 13:25 Quote
seraph wrote:
tbeezle wrote:
seraph wrote:


The solution is to work exclusively in Lake O where all the money is lol

Lake O is also shockingly cheap when it comes to spending money on service, they will spend 12k on a bike and then not want to spend any money servicing it. I know someone who just bought a new bike after wearing out the chain and the chainrings vs just getting it all replaced because it seemed like a better deal to them

Yeah we had customers like that too, but I was really good at convincing them to buy more parts, usually as an upgrade. I sold 4 complete AXS kits to customers who already had 12-speed drivetrains last year. lol AXS is such an easy sell.

I could probably sell axs to half my customers if it was in stock, so many people want electronic shifting these days, they just can't get the parts.

Posted: Oct 23, 2021 at 13:40 Quote
tbeezle wrote:
seraph wrote:
tbeezle wrote:


Lake O is also shockingly cheap when it comes to spending money on service, they will spend 12k on a bike and then not want to spend any money servicing it. I know someone who just bought a new bike after wearing out the chain and the chainrings vs just getting it all replaced because it seemed like a better deal to them

Yeah we had customers like that too, but I was really good at convincing them to buy more parts, usually as an upgrade. I sold 4 complete AXS kits to customers who already had 12-speed drivetrains last year. lol AXS is such an easy sell.

I could probably sell axs to half my customers if it was in stock, so many people want electronic shifting these days, they just can't get the parts.

I'm doing a 1x12 conversion for a customer right now and I'm getting the few parts that I can get and making her buy the other parts online. I'll charge her labor for the legwork. She's happy, and I get labor.

Posted: Oct 23, 2021 at 13:46 Quote
seraph wrote:
tbeezle wrote:
seraph wrote:


Yeah we had customers like that too, but I was really good at convincing them to buy more parts, usually as an upgrade. I sold 4 complete AXS kits to customers who already had 12-speed drivetrains last year. lol AXS is such an easy sell.

I could probably sell axs to half my customers if it was in stock, so many people want electronic shifting these days, they just can't get the parts.

I'm doing a 1x12 conversion for a customer right now and I'm getting the few parts that I can get and making her buy the other parts online. I'll charge her labor for the legwork. She's happy, and I get labor.

I usually try to get customers to do that, but surprisingly they won't order elsewhere. its such a weird issue for me that they want to support the shop and not want to buy online. I wish they wouldn't because then I dont even make the labor. but they insist on waiting. honorable, but still hurts the shop.

which trek store do you work at?

Posted: Oct 23, 2021 at 14:58 Quote
tbeezle wrote:
seraph wrote:
tbeezle wrote:


I could probably sell axs to half my customers if it was in stock, so many people want electronic shifting these days, they just can't get the parts.

I'm doing a 1x12 conversion for a customer right now and I'm getting the few parts that I can get and making her buy the other parts online. I'll charge her labor for the legwork. She's happy, and I get labor.

I usually try to get customers to do that, but surprisingly they won't order elsewhere. its such a weird issue for me that they want to support the shop and not want to buy online. I wish they wouldn't because then I dont even make the labor. but they insist on waiting. honorable, but still hurts the shop.

which trek store do you work at?

The downtown one, on the corner of 10th and Salmon. Come say hi! I'm a Wednesday through Sunday guy, though I will be off next Wednesday because we're frantically moving from our apartment to our new house in the NE.

Posted: Oct 23, 2021 at 15:57 Quote
seraph wrote:
tbeezle wrote:
seraph wrote:


I'm doing a 1x12 conversion for a customer right now and I'm getting the few parts that I can get and making her buy the other parts online. I'll charge her labor for the legwork. She's happy, and I get labor.

I usually try to get customers to do that, but surprisingly they won't order elsewhere. its such a weird issue for me that they want to support the shop and not want to buy online. I wish they wouldn't because then I dont even make the labor. but they insist on waiting. honorable, but still hurts the shop.

which trek store do you work at?

The downtown one, on the corner of 10th and Salmon. Come say hi! I'm a Wednesday through Sunday guy, though I will be off next Wednesday because we're frantically moving from our apartment to our new house in the NE.

Oh nice! I live a few block away from there on 13th and washington, I will have to come in one of these days. I was in a few weeks ago cause i needed an axs charger.

Posted: Oct 23, 2021 at 21:59 Quote
PHeller wrote:
I kinda wonder where the highest margins are in the bike industry?

Probably ebikes and events. Selling machine built Chinese wheels with different branding?

Pro team jersey replicas

Posted: Oct 23, 2021 at 22:32 Quote
NorCalNomad wrote:
PHeller wrote:
I kinda wonder where the highest margins are in the bike industry?

Probably ebikes and events. Selling machine built Chinese wheels with different branding?

Pro team jersey replicas

Boom the real truth

Posted: Oct 24, 2021 at 10:53 Quote
Does anyone know who has the most recent hydraulic brake power rating test? I know a few companies have done detailed testing over the years but Google isn't being helpful in finding them.

Posted: Oct 24, 2021 at 11:00 Quote
Only i know of is Enduro Mag test, i didn't saw another test yet with numbers


 
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