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Bike Shops
See also:
Costs of Distribution Channels
The Bike Shop is a specialty store that stocks only bikes and bike related products (often called the boutique shops of the bike market).
The Store assistants are trained specialists in bikes, and are good at identifying which bike would suit which customer. Thus many customers who are unsure of which bike they would like to buy will usually go to a bike shop (especially if the bike is required for a specific purpose). Bike shops will stock an extensive range of different models, catering to all types of bike purchasers. Bike shops generally stock bikes in the mid to high price range - the bikes they stock in common with the Department Stores are often priced slightly higher than in the Department Stores. They are thus perceived as the quality bike vendor (at the cost of being perceived as the most expensive bike vendor). Bike shops rely on their higher margin to gain a profit, so are not as likely to discount their stock - many of their customers are less price sensitive than those in the Department and Discount Stores.