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Transparent Pricing: Where Does Your Money Go When You Buy an Electric Bike?

With the  price of an electric bike in today’s market ranging between $1,500 to $15,000, have you have wondered why they are priced as they are?

For example, the EVELO Aurora model with a NuVinci N360 upgrade that retails for around $2,524.  Lets break down where the money actually goes. All of the figures are taken from our own internal planning documents for 2015.

Production Cost

42.3%

$ 1,066.67

Shipping From Factory to Our Distribution Center

1.7%

$ 42.80

Warehousing & Fulfillment Costs

1.2%

$ 31.27

Shipping to Customer

5.3%

$ 133.19

Warranty/Claims Reimbursements

1.3%

$ 32.42

Insurance Expense

1.5%

$ 36.60

Human Resources

17.4%

$ 438.62

Marketing Costs

9.0%

$ 227.70

Promotions

3.5%

$ 88.34

Merchant Fees

1.9%

$ 47.96

Interest Expense

0.8%

$ 20.82

Phone & Call Center Expenses

0.5%

$ 12.26

Web Services

0.8%

$ 20.82

Rent Expense

0.4%

$ 10.58

Miscellaneous Expenses

2.3%

$ 58.29

Profit

10.1%

$ 255.65

Read the full article here.

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