Cycle Gear tire deal, how they do it

jellyrug

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Just dropped off my wheels at Cycle Gear and negotiated a deal outside of the deal, but related to the deal. Long story short, got a 55 instead of a 50, which will give me about 3.1% more speed at the same wheel RPM and make my speedo a little more accurate. They say better tuck in? ???

So this is how they do it:

They wait for low stock on their fast runners, this being the BT-016 and Q2.
Then they organise a volume deal with the two manufacturers, estimated at around $2 million each. (About 100 tyre sets per store from each manufacturer)
Next thing is a sale, on the sale days the stock left in their stores sell out and the rest of the sales are on order.
Monday morning, after the sale, they place orders with the manufacturers, being all the orders they received from the sale, plus enough to stock them for the next cycle.
The volume discount takes care of the sale, with some more margin for them after the sale.
Pretty smart business and with 100 stores out there they have the muscle to pull it off.

Sorry, but whenever I walk into a business, first thing that happens, is I try and figure out how they make money and ask some innocent questions. :whistle:
 
It's how Walmart grew to where it is today. except now Walmart has the power to make companies drop their prices of their products wholesale cause Walmart will just use one of their competitors instead otherwise. Was a big specail about how it had a double effect on the economy.
 
i hate walmart, but at the same time, i have purchased more products for my bike there than any other single store on the planet... i hate their business i like their products...
 
Well I took advantage of this and have 2 sets of Q2s waiting for me tomorrow for pick up!
 
Actually dunlop is having a sale on tires. Buy 10 get 2 free or something like that. A local shop is having basically the same deal on the Q2, $209 a set.
 
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speaking of tires anyone know were a fellow could get a good deal on a mich pilot power for the rear? Also i have a 190/50/17 now stock, what difference would it make if i switched to a 190/55/17? handling etc?
 
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