# Is It Normal For An LBS to Sell Above MSRP



## ch3360 (Jun 30, 2012)

This seems crazy to me.... After leaning pretty hard toward a Cannondale and doing more research I've actually decided on a Specialized... A local LBS, Spokes in Naperville and Wheaton Illinois is selling Specialized bikes for $150 over the MSRP as listed on Specialized's website. Is that common? I sent them a question asking why with no response yet.

Fortunately there are several other Specialized dealers in the Chicago area who are selling the bikes at or slightly under MSRP. However Spokes is a little closer to me.

Thanks!


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## young-nyc (Oct 28, 2011)

woah, that's nuts...unless the bikes are premium models that they just can't keep on the shelves, then yes, but I've never heard this type of behavior before.
good luck,,
and what bike are you looking to get?


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## ch3360 (Jun 30, 2012)

It's my first so the Allez Apex


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## Golfster (May 13, 2010)

Try the Cannondale dealer in Geneva, or the Mill Creek Cyclery in Oswego. I don't believe they are charging a premium. Same goes for the Specialized dealer in Geneva, at least the last I was there (I have a home there).

Here in CA, both brands start at around 10% off, except maybe the highest end Venges (Mc, Proj Blk). The balance, including S-Works Tarmacs, sell at discounts even on the price tag with a little wiggle room left for a few accessories or perhaps a free service. Same goes for the Cannondales.

I guess the Chicagoland dealers try to make up for shorter cycling seasons by sticking you with a premium...but come December, they become happy to see your business.

Good luck with the search.


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## young-nyc (Oct 28, 2011)

great bike to start with! good luck man...I'm looking for my first road bike too..was considering Roubaix for the longest time, now thinking of pulling the trigger on the Tarmac


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## desertgeezer (Aug 28, 2011)

Nope, not normal. If the Allez is a 2012 model, you should be getting it for a big discount. I bought a 2012 Roubaix Apex (MSRP $2200) for $1700 from a Specialized dealer. It was on the floor priced at $2000. The store had a big sale and discounted it by an additional $300. I'd find another dealer.


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## young-nyc (Oct 28, 2011)

desertgeezer said:


> Nope, not normal. If the Allez is a 2012 model, you should be getting it for a big discount. I bought a 2012 Roubaix Apex (MSRP $2200) for $1700 from a Specialized dealer. It was on the floor priced at $2000. The store had a big sale and discounted it by an additional $300. I'd find another dealer.


 That's a pretty good discount, over 20% =):thumbsup:
hope you are enjoying your ride man..


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## ch3360 (Jun 30, 2012)

Yeah, I've seen them at a few other places for just shy of $1200..... I may hit up Kozy or another dealer in Tinley Park.


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## PlatyPius (Feb 1, 2009)

ch3360 said:


> This seems crazy to me.... After leaning pretty hard toward a Cannondale and doing more research I've actually decided on a Specialized... A local LBS, Spokes in Naperville and Wheaton Illinois is selling Specialized bikes for $150 over the MSRP as listed on Specialized's website. Is that common? I sent them a question asking why with no response yet.
> 
> Fortunately there are several other Specialized dealers in the Chicago area who are selling the bikes at or slightly under MSRP. However Spokes is a little closer to me.
> 
> Thanks!


It is more common this year than others. Shortage of bikes has led to some dealers charging over msrp. I don't, but the other Scott dealer near me has been apparently.


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## ch3360 (Jun 30, 2012)

PlatyPius said:


> It is more common this year than others. Shortage of bikes has led to some dealers charging over msrp. I don't, but the other Scott dealer near me has been apparently.


Fortunately I have other options as far as dealers go. However I may see if they'll price match a competitor. I've heard good things about them.


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## jeffmuldoon (Aug 12, 2011)

My LBS sells at what they call the "low msrp". It's not listed on the manufacturers website but every bike I've gotten has been less than the price on the manufacturers website. I do get discounts now but I've seen bikes priced lower than msrp so it seems like this low msrp is real. This includes S-works bikes and Trek Madone 6.whatevers.


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## old_fuji (Mar 16, 2009)

Yep, it happens quite frequently.


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## Sworker (Jul 22, 2010)

Hell no way you pay over MSRP. If they will not sell it to you at MSRP or even below just keep shopping. 2012 was a year the bike companies didn't make enough bikes, but OVER MSRP days are long over. I wouldn't even pay MSRP for a Specialized bike EVER, they are typically in the Bay Area at least always priced below.

If you really like that shop go back and tell them "I want to buy from you, but I can get the exact same bike for XXXX from another shop, help me out" and see what they say.


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## tednugent (Apr 26, 2010)

MSRP is an acronym
Manufacturer's *Suggested* Retail Price

Specialized is only suggesting the retailer charge this price. Same thing happens with cars. If during a time, a car has extremely high demand, car dealerships will inflate the price and call it something like "Market Adjustment"

Personally, would I pay over MSRP? No. I would shop elsewhere


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## tlg (May 11, 2011)

Ever hear of supply and demand? Right now demand is high and supply is low. So they'll charge what ever people are willing to pay. 
Their thinking could be that if they set their prices lower, sell out their inventory, and can't get stock from the mfg's then their showroom floor will be empty. Which doesn't look to good to customers walking through the door.


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## surfinguru (Jun 17, 2004)

I don't know. I suppose it could be as tlg pointed out, but at the end of the day, that doesn't sound right. I just picked up a 2012 Tarmac Pro for *well *below MSRP. Not a 2011, but a 2012.

Might be time to find another shop to patronize....

edit to add: shop is not a high volume dealer either


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## ch3360 (Jun 30, 2012)

tlg said:


> Ever hear of supply and demand? Right now demand is high and supply is low. So they'll charge what ever people are willing to pay.
> Their thinking could be that if they set their prices lower, sell out their inventory, and can't get stock from the mfg's then their showroom floor will be empty. Which doesn't look to good to customers walking through the door.


Don't think Supply and Demand applies here.... Several local places have the stock


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## ch3360 (Jun 30, 2012)

tlg said:


> Ever hear of supply and demand? Right now demand is high and supply is low. So they'll charge what ever people are willing to pay.
> Their thinking could be that if they set their prices lower, sell out their inventory, and can't get stock from the mfg's then their showroom floor will be empty. Which doesn't look to good to customers walking through the door.


Yes..... I'm aware of Supply and Demand but at least in the Chicago market there is stock (supply) available.


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## Bluffplace (Jul 30, 2008)

Specialized is discounting bikes with Apex components. My LBS has the Allez Comp, msrp $1549 sale $1199


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## mpre53 (Oct 25, 2011)

tednugent said:


> MSRP is an acronym
> Manufacturer's *Suggested* Retail Price
> 
> Specialized is only suggesting the retailer charge this price. Same thing happens with cars. If during a time, a car has extremely high demand, car dealerships will inflate the price and call it something like "Market Adjustment"
> ...


True, but there is also such a thing as "Fair Market Pricing" where manufacturers require retailers to sell at MSRP, and there, the "Suggested" part is a REAL misnomer.

Saturn pioneered this in the auto industry, and Scion adheres to it. It beats me why people pay sticker price for a Scion, when they can buy a mechanically identical Toyota for below sticker--sometimes just a few hundred above dealer cost. 

Fortunately, bicycle/component manufacturers don't seem to be imposing it. But, Shimano is very ruthless in demanding adherence to it in their fishing tackle division.


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