What Is the Profit Margin on Trek Bikes?

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Specialized Bikes and Brands

  • Specialized bikes have a 40-60% markup covering overhead, salaries, and marketing.
  • Demand has overwhelmed factories causing shortages.
  • Specialized, Trek, and Giant are good brands.
  • Check the serial number, gear indicator, and geometry before buying.
  • Register your bike with Specialized.

Quality and Pricing

  • Specialized contracts Merida focusing on quality bikes.
  • Specialized and Trek offer top and cheaper bikes.
  • Giant has more variety.
  • Specialized excels at high-end bikes.
  • Road, mountain, and hybrid bikes differ.
  • Specialized invests in research and development.

Markup and Profit Margins

  • Average retail markup is 50%.
  • Example of markup calculation: A $500 bike wholesaling for $300 has a 66% markup.
  • Markups start around 25% for bikes over $1000.
  • Bike shop markups range from 30-50%.

Buying Considerations

  • Call customer service to verify legitimacy.
  • Winter is the best time to buy a bike.

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