I had an interesting experience when a quote came across my desk for a damaged bike from a well known SA bike shop, and the cost on the Ultegra (non Di2) shifters was a hefty $699 (plus labour)
I paid nowhere near this for my shifters and called my local for some advice and was told the RRP on these from the manufacturer was $649.
Given that the RRP is usually the high end and the street price is normally lower than this, I was a little surprised. I don't really see how charging more than retail for an item can be a competitive business model, especially in the global online market that exists today.
I guess the cynical part of me thinks that the particular shop may be just trying to capitalise on the goodwill of loyal customers - which begs the question, would you be willing to pay more than retail just to support your local bike shop - and where is the line between loyalty and being ripped off?
Interested in thoughts.
Unless that's their sticker price so they can tell customers they're getting a $50 discount at RRP but give the sticker price to insurance which we then peay back though higher premiums. If I owned a business I may act differently but as I toil at a computer for someone else I want to trade as few work hours as possible for parts.
Insurance work always costs more.
Look at cars for instance.
Insurance companies add all the extra costs because they want things done their way.
Who should pay these costs?
I hope you don't thing other people should.
My wife calls it PIA fees.
(PIA = Pain In the Ass)
This isn't really paying to support LBS, rather its how much does your LBS charge on insurance jobs, IMO.
A year ago I wrote off a bike, budget chinese carbon frame with 105 gruppo and RS20 wheelset. Really only damaged the frame significantly enough that it was not repairable. As the bike was considered a 'custom build', the price submitted to the insurer enabled me to walk out of the store with a comparatively high end carbon frame with full Ultegra and Ksyrium Equipes.
Not saying who the insurer is or the LBS. Not sure who, if anyone, is in the wrong here. I certainly didn't complain. So I guess if it's wrong then I'm just as guilty.
As for supporting my LBS, I get discount prices on everything I buy, great service, free checkups for minor mechanicals, and good advice. Oh, and great insurance reports. Try getting that online. I am certainly supporting my LBS.
The retail price and an insurance price will often be different for many reasons. It might be because the LBS knows that an assessor is going to carve the profit out of the labour on the job so they put some fat into the parts. For motor claims it might be that the repairer needs to offer extra services to the client that they don't with retail jobs (concierge service, life time guarantee on repairs etc). The other issue is that with insurance jobs the payment is often on 30, 60 or even 90 day account so the LBS has to cover the outlay for a long time before getting paid. This is a bit different to paying cash over the counter.
It would be interesting to know what the price would be from the LBS for a retail customer.
Bike shops feel free to chime in here,but I imagine the retail price of the Ultegra Brifter set to be about $536.00
and then plus Bar Tape & Poss Gear cables to fit !
My 2 cents worth !
Maybe. + lab+ freight?
eBay sellers are also not renting shop space, paying to keep stock for display and paying staff wages to man the shop.
Rider B you are spot on in terms of how we quote to insurance companies.
Leaving aside insurance issues and this specific case...To the broad question "How much extra would I pay to support my LBS"
Maybe up to 20%.
Perhaps even more than that for clothing or shoes that I really need to fit carefully, or things I need mechanical help with.