Devil in the detail

2 May 2004

I was looking at some Bike industries just trying to figure out what was going on with the retail margins that are being used. And this is what I came up with (I’ve mangled the numbers a little– but the proportions are right):

| Where| Total| FirmA| FirmB| FirmC| FirmD| FirmE| |—-|—-:|—-:|—-:|—-:|—-:|—-:| | Bike stores| 340| -90| -42| -52| -90| -90| | Dept. stores| 540| 190| 105| 125| 120| 0| | Sports stores| 660| 220| 135| 135| 165| 0|

So what does it all mean? Well, not a lot if you don’t know the retail margin or the amount of extra support being given. But I’d suspect that one firm has an explicit strategy in this area.