Why does the bicycle industry lack a common UPC (universal product code)? What are the implications of such a non-standardization within the bicycle industry supply chain? How does this problem affect the bike store owner?

I had an epiphany, as in a sudden insight into reality, in May at a meeting where a long time friend in the industry offered the opinion that the U.S. bicycle industry is in a classic state of perfect competition. My immediate response was "...that sounds like a good thing!" My friend, who went back to graduate school after working in a bike shop, for a major component manufacturer and prominent bicycle brand quickly responded with "...no, you don't understand." He went on to explain that when he studied economics in graduate school he became aware of perfect competition which is a term of art in economics for the most competitive market imaginable - one where the companies and businesses realize the bare minimum profit necessary to keep them in business.

Jay's recommended reading list

Updated June 7, 2006

Are you wondering why you aren't making the money you should be?  Did you know the "typical" bike shop doesn't make money on the sale of new bicycles?

Stop and think about what I have just said.  The typical (based on a median) bike shop in the U.S. didn't make a profit on the sale of new bicycles last year - and in fact hasn't for the last 12-years!