Good morning.
I watched part of the video mainly hooked by the remarks about cheapish tube sets being assembled into ridiculously priced frames by artisans. Having had many good miles on a production line 531 Raleigh and Holdsworth frames I can certainly relate to that view.
But, I also noted that he referred to a £150 tube set, now I don't have access to a Reynolds or Columbus price list but I was under the impression that 525/631 tubes tend to come in at around the £20-£30 mark per tube and 725/853/921 double/triple this. I have no idea about 931 or 953. Given than a frame has 11 tubes (tubes, stays, blades and steerer) I started to suspect hyperbole over substance.
If you go to Argos, the catalogue shop, it is clear that for many goods the mark-up is 100% or more, much more, I wouldn't be surprised at 400%-700% on some items I have bought. Certainly this is needed to offset the low margins on the £5 toaster.
By the time I lost interest in the video I had the impression that the creator didn't really understand retail and was just having a rant, had I stuck it out my view may have changed.
Let's not talk about genuine warranty claims and operational costs, and how many times have people acted unreasonably and then demanded "their legal rights".
When the distance selling regulation came into being the intent was to protect the consumer from seeing one thing on a web site and then receiving something completely different. They weren't created with the intention of browsing at home and returning things just because the customer felt like it. Catalogue businesses like Grattans had gotten along fine without such a law, mainly by reflecting their costs in their prices.
Even the big boys in distance selling are now starting to look at customers who buy with the intent of returning.
So yes there are large margins on very specialised products like £1,000 bike wheels and if you operate from a bedroom you can possibly make quite a few quid, especially if you don't intend to be around for a long time.
The video maker refers to a wheel wholesaler, apparently that business hasn't realised how much profit they are losing by not opening a string of websites and taking over the whole of the UK retail market for top of the range wheels.
Bye
Ian