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Rockman Are Bastards...


ogre

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  • 2 weeks later...

And how much profit do tarty bikes make just by selling the bits on?

Pretty much bugger all.

When you look at the price of the full bikes and the total price of all the individual components themselves,

I find it crazy to find they can sell them at that price and yet be sustainable.

Good Job guys!! ;)

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not enough, Rockman seem to charge a high trade price on their stuff which eats into any profits as it would be unfair to charge the "correct" price on a lot of their stuff. Margins on trials stuff is pretty crap in general, especially compared with other industries and even normal MTB stuff.

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And how much profit do tarty bikes make just by selling the bits on?

Well they probably make enough profit to pay the wages, rent, electricity, website hosting, freight, increase stock levels, invest in workshop tools etc. Hopefully after this they also make a profit which will keep them in business for many years to come.

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Well they probably make enough profit to pay the wages, rent, electricity, website hosting, freight, increase stock levels, invest in workshop tools etc. Hopefully after this they won't show any profit which will keep them in business for many years to come.

mended ;)

Edited by Matt Vandart
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Nope, he's got a point. If you've made a 'profit' to pay all of your expenses, then you're already pretty much guaranteed to continue to trade - why would you need profit on top of that to get taxed on?

EDIT: I know the answer to that is growth, but that wasn't the original point.

EDIT2: See different between gross and net profit for more that I can't be arsed to remember.

Edited by JD™
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Nope, he's got a point. If you've made a 'profit' to pay all of your expenses, then you're already pretty much guaranteed to continue to trade - why would you need profit on top of that to get taxed on?

to pay the bills at home? Buy food? If your business just makes it even, other than pleasing trials riders what would the point be?

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to pay the bills at home? Buy food? If your business just makes it even, other than pleasing trials riders what would the point be?

That's kind of the point of him including wages ;)

And mark, cos multi quote doesn't work on the phone, surely sponsoring riders and events and suchlike would also be a business expense? That's the point... Profit is wasted money unless split into dividends (which should happen anyway to the shareholders which in my case is me) or reinvested into the business.

Or maybe my business a level, accountant and experience are totally wrong...

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That's kind of the point of him including wages ;)

And mark, cos multi quote doesn't work on the phone, surely sponsoring riders and events and suchlike would also be a business expense? That's the point... Profit is wasted money unless split into dividends (which should happen anyway to the shareholders which in my case is me) or reinvested into the business.

Or maybe my business a level, accountant and experience are totally wrong...

I guess the point I wanted to make was that after expenses a business (Rockman, Tarty, my own) needs to make a profit (doesn't need to be a huge one), what they do with this profit through creative accounting, reinvesting, donating to charity or distributing to shareholders is up to them. I just know from experience that if your business is only breaking even it only takes one unexpected change and everything can start to look very bleak. A clever business will find ways to give back to their customers through things like event sponsorship and as a result their customers will be happy to keep them profitable.

There is certainly a balancing act here, overcharge for your products and your customers will soon desert you. To return to the orginal post if to many Rockman parts become available on Ebay under other brand names then they will need to innovate or loose their market share.

lol lets face it money is what makes the world go around

Very true, we could always become freegans but I would rather ride on bins then forage through them so I'll stay in the economy for now.

Edited by Lilley
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