Retail survey shows workshop to account for a third of profits in most stores - BikeBiz

Retail survey shows workshop to account for a third of profits in most stores

42.2 per cent of those who participated report 20 to 40 per cent of revenue sourced from repair work.
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During November, BikeBiz gathered the thoughts of 95 independent bicycle retailers in the UK on a variety of topics. Here are the last of the resutls:

What percentage of annual profit comes from the workshop?

1% to 20% 36.7%
20% to 40% 42.2%
40% to 60% 10%
60% to 80% 8.9%
80% to 100% 2.2%

Comment: Though seemingly growing in popularity, entirely workshop-based businesses still represent a tiny fraction of those surveyed here. The majority are accounting for up to 40 per cent of their annual profit via cycle mechanics.

Is the workshop more or less important to the business than this time last year?

More 51.1%
Less 3.3%
The same portion 45.7%

Comment: If your workshop rates are calculated correctly, the workshop has the potential to provide the healthiest margin of any ‘sale’. BikeBiz has previously found that many stores charge up to £80 for a full service, without complaint – are you still selling yourself short?

In the past year, which of these sectors have seen a notable increase in in-store demand?

Leisure/sit-up and beg style bikes 55.8%
BMX 27.9%
Road 58.1%
Hardtail MTB 15.1%
Full-suspension MTB 9.3%
Tandem 3.5%
Recumbent 1.2%
Downhill 4.7%
Cyclocross 7.0%
4X 1.2%
Folding 16.3%
Electric 17.4%
Fixed gear 12.8%
Touring 12.8%
Time Trial 3.5%

Comment: There are two clear winners here – road bikes and the leisure sector. BMX is typically very in demand in the run-up to Christmas, so the timing of this survey may have boosted the 20-inch stats. Electric bike interest appears to be creeping up.

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