thetruejb
- Member since Sep 24, 2005 O+
-
Vancouver , British Columbia
- 4 Followers
- 716 Trailforks Points
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thetruejb dariodigiulio's article
May 24, 2023 at 12:18
May 24, 2023
Interview: Talking About Tires With Bontrager, e*thirteen, Michelin, and More
@pink505: No seriously, what do you think they are? Have you heard of 'normal profits'? If MTB accessories made so much more money than any other product, why would anybody make road goods? Or anything else at for that matter. Tons of investors would be frothing to get in on it, then over saturate the market, causing prices to fall.
In all fairness that is kind of whats happening at the moment but traditionally they make the same margins as most businesses, even less considering everybody are after 'buddy-bro' deals all the time.
As a whole, anything that actually sells hard goods is making less than other services like software, rentals, transportation, subscription based businesses, tax services etc. because the bike industry actually have to MAKE something as opposed to just paying people, which the bike industry has to do anyway.
Standard profit margins will be 5 to 10% like most industries but that's not going to be the case for a few years at least, so enjoy the deals on product at the moment, and appreciate that most bike stores and honestly businesses are passion projects and not run by money grubbing venture capitalists.
Save your ire for your bank that will charge you a monthly fee to take your money, and reinvest it 4x over to make 3-10% ROI a year on it while giving you .125% interest on anything you save.

thetruejb dariodigiulio's article
May 24, 2023 at 9:12
May 24, 2023
Interview: Talking About Tires With Bontrager, e*thirteen, Michelin, and More
What do you think the margins are on mountain bike products? road bike products? A t-shirt at your local mall?