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"On April 9, Specialized Bicycles informed its retailers that it is listing the 10% tariff surcharge on a separate line item on B2B invoices after May 1." Wond

• readthenotes1 1y ago
  That's pretty predatory. 10% on the wholesale price is probably much less than 10% of the retail price
  • icegreentea2 1y ago
    Retailer gross margins on bikes is ~50%. As in you normally sell a bike for roughly twice the wholesale price. But apparently a typical bike store runs a net profit on the order of 5-10%. Having your COGs jump 10% is pretty significant then your net profits are that slim. It would wipe out a 5% net profit for example. https://www.bicycleretailer.com/opinion-analysis/2013/06/14/blog-formula-high-profit-bike-stores https://www.bicycleretailer.com/opinion-analysis/2013/06/14/... https://sharpsheets.io/blog/how-profitable-is-a-bike-shop/ https://sharpsheets.io/blog/how-profitable-is-a-bike-shop/
    • readthenotes1 1y ago
      So if gross margin is 50%, tarrifed bike will be a lot less because it doesn't include r&d, marketing, support, whatever app track has etc. The 2017ish 10% tarrifs increased retail costs 1-2%--unnoticeable vs background inflation
  • SonOfKyuss 1y ago
    It’s a good thing we still have consumer protection agencies to look into predatory practices…