How much profit do bicycles offer to their shop?

[mikki]

Just wondering if anyone knows our of curiousity, how much profit does the LBS get for high end bikes? Depends if they build the wheels, etc. of course, but average for frames, etc.

Just wondering. Didn't seem like alot when I saw at Interbike what the cost price was, but I was only guessing at the retail prices for many of them at that point..

Have a great weekend everyone!

:D

[Ti Designs]

Second question: How much do long time bike shop employees make?

(hey, if you got the answer to one you probably got the answer to both)

[yeehawfactor]

lolz

[Ligero]

Generally the higher the price of the bike the smaller the percentage of profit they making. They are making more off of a $5000 bike then a $500 but the profit percentage is smaller. Also the higher the price tag the more people expect to get a discount.

[yeehawfactor]

cost of bike
+ shipping
+ paying to have bike built
+ paying a bro to sell it
+ time spent fitting
+ maintenance package

then you have your bills to pay

[mikki]

I figured by seeing the cost pricing at Interbike that the profits for a shop must be slim...I guess the way they really make it more profitable is by the services that they offer their clients..

Am fantasizing about a bike shop when we sell our current business or in addition to, who knows? The best bike shop around is slammed and getting even busier; my husband and I have been thinking about investing in one in our neck of the woods but the profit look pretty small in a smaller shop...

Anyone have experience in being a previous or current owner?

[Ligero]

I figured by seeing the cost pricing at Interbike that the profits for a shop must be slim...I guess the way they really make it more profitable is by the services that they offer their clients..

Am fantasizing about a bike shop when we sell our current business or in addition to, who knows? The best bike shop around is slammed and getting even busier; my husband and I have been thinking about investing in one in our neck of the woods but the profit look pretty small in a smaller shop...

Anyone have experience in being a previous or current owner?


Most bike shops make money off accessories and repairs, that is what keeps most shops open. There are very few shops that make the owner rich but most people don't open a shop to get rich it is because they love bikes.

[learlove]

I worked in a shop in high school from 89 to 92ish. It was the typical small family own shop in suburban PA. We sold Scwhinn/Fuji/Marin, this time peroid was the begining of the mtb boom, however the bread and butter at least in 89/90 was the 210.00 dollar schwinn caliente 10spd.

Averaged about 2 sales (of the caliente) a day then when the equiv level mtb bike came out sold the same for somewhere in the neighborhood of 300 bucks. I think as far as bikes go the owner made a bigger profit on the lower end bike than the higher end stuff we sold (less of a markup on higher end stuff)

I think most of the revenu came from repairs. We did about 8 repairs per day and i say the average repair was 35 bucks of which 15 was for parts. So 15 for part ment 5 profit on parts then about 20 profit on labor. So 25 time 8 =200/day on repairs.

Just a guess from what I remember - I'm starting to forget in my old age

[yeehawfactor]

you don't make money off of $350 bikes

[mikki]

A post-script on this:

My last 25+ years I have been "working" at a "job" that I used to offer free...massage therapy. Feel unbelievably lucky to have something that I LOVE to do each day rather than just going through motions to make a buck.

I love bikes too. Am crazy about riding. So is my wonderful husband who got me into this in the first place. We have been talking about what it would be like to own a really good bike shop in our neighborhood. We are very accoustomed to working for the absolute joy and love of what we are doing, but would like to be able to work for a little more profit base IN ADDITION to doing what we love. If we hired the top mechanics (which we would want to do) etc. it seems as though we would be in the same situation that we have now...working nearly all the time just to pay the higher and higher lease and the increasing expenses that happen all the time. (we use only the best now and would want that same level of quality for a bike shop).

So what I hear is that we could sell junkie bikes for kids/adults and make more $$ than selling the bikes I would want to sell...Hmm...Not what I would feel excited about.

Good info.

[David Kirk]

"Pro" or high end sales in a retail shop are not money makers for most shops. They sell the high end stuff because it's fun.

There are a number of strikes against this working well. In my view one of the biggest ones is that very few folks who are buying high end bikes actually pay retail. They are either racers that get a deal from the shop or they are preferred customers/friends of the shop and they get the bro-deal. That coupled with the fact that many shops really want to sell high end bikes because it's fun and/or prestigious means that shops will compete hard on price to get that business. A Pro bike also takes much more time to order and assemble than a $500 Trek when you have to get the right color spoke nipples and bar tape.

I worked in retail for over a dozen years before getting into framebuilding. I worked in shops in Florida and NY. Everything from little Mom and Pop places to high end pro shops. I can tell you from my experience that the shops that market and price well are few and far between. I'm not talking about the Serotta dealers that stock Meivicis but the shops that call up Gita 4 or 5 times a year and order a Pinerello or Giordana. The really good shops charge what the product is worth, they don't discount the bike because it's expensive (it cost you a lot because it cost them a lot of both money and time) and they provide no holds barred top end service.

I ran a shop for a short period of time and the owner was always giving stuff away for next to nothing. I would nurture a high end sale and the boss would then feel guilty about taking so much money for the product that he'd shoot us in our collective foot and give the stuff away. This experience cured me of the urge to have a retail shop of my own someday and pushed me toward building.

The real place where there is money to be made in retail is clothing and accessories. When selling a $500 bike I could pocket just as much money by selling the guy a helmet and shorts. .........and the clothing doesn't need to be assembled or tuned up or warranted...........a wonderful thing.

So..........support your shop if it's good. They need all the help they can get and if they do a good job they deserve your money.

Dave

[Ahneida Ride]

"

So..........support your shop if it's good. They need all the help they can get and if they do a good job they deserve your money.

Dave


Amen ...

I have a great shop .....The few extra bucks I spend by NOT internet shoping is well worth the frn.

[Ken Robb]

I think the gross mark-up on whole bikes is 30-35% but the shop has to pay shipping and then assemble the bike so their margin is considerably less. "Lifetime tune-ups" are an on-going expense after the sale. Clothing and accessories have 45-60% mark-up so that's where the $$ is and the shop hopes for sales thereof when the customer copmes in for his free tune-up.

I think few employees are paid $15 or more per hour including techs. Not possible to own a home of any kind or even have a nice rental on $15 X 40 hours a week in San Diego.

When I look at a $350 bike for sale I have a hard time understanding how the designer, manufacturer, importer/distributor and retailer can all make some profit and sell the bike for so little. I won't be investing in any bike shop soon. :beer:

[hansolo758]

caveat emptor. I once saw a Waterford R-33 in a shop with an Ultegra and D/A component mix (no high-zoot lightweight/Ti bits) that was "marked down" from $6699 to $3349. The original price made no sense. I asked how much they wanted for the frameset and was told $3000. List on an R-33 is $2000 and an Alpha-Q fork is $375. There was no special paintjob or other feature that made a mark-up of this magnitude justifiable. The same shop was selling another bike as "marked-down" but what they had done was to substitute lower grade components on it while trying to pass it off as original spec. Everyone has anecdotes. I wish I could say my experiences were unique to this shop. Unfortunately, they are not. My current LBS is a one-man shop whose owner/fitter/mechanic is a great guy and whom I would always give first crack at for my cycling needs. I don't mind paying him what he charges. But it took me a while to find him. So while I agree you should buy local, some bike shops don't make it easy for you to patronize them.

[SoCalSteve]

caveat emptor. I once saw a Waterford R-33 in a shop with an Ultegra and D/A component mix (no high-zoot lightweight/Ti bits) that was "marked down" from $6699 to $3349. The original price made no sense. I asked how much they wanted for the frameset and was told $3000. List on an R-33 is $2000 and an Alpha-Q fork is $375. There was no special paintjob or other feature that made a mark-up of this magnitude justifiable. The same shop was selling another bike as "marked-down" but what they had done was to substitute lower grade components on it while trying to pass it off as original spec. Everyone has anecdotes. I wish I could say my experiences were unique to this shop. Unfortunately, they are not. My current LBS is a one-man shop whose owner/fitter/mechanic is a great guy and whom I would always give first crack at for my cycling needs. I don't mind paying him what he charges. But it took me a while to find him. So while I agree you should buy local, some bike shops don't make it easy for you to patronize them.

I have found this to be true time and time again.

Steve

[dave thompson]

I often wonder if the troubles finding a good bike shop emanate from the "public" refusing to pay a price that would allow a bicycle shop to make enough money to find, pay and retain good employees. A good motorcycle dealer has highly trained mechanics that can make in excess of $25 an hour. A good bicycle shop mechanic makes $12~$15 and hour, hardly a living wage.

Back in the day, before the interweb and Wal Mart, we based our notions of value on things other than price alone. We based our buying patterns on our perception of value, which was based on the goods and the purveyor of those goods. Now it seems that our perception of value is based solely on price and nothing else.

I was, successfully, in the motorcycle business for over 20 years. There are many similarities between the motorcycle and bicycles business, except the profit margins of motorcycles are lower while the dollars are higher. For the last 5 years I considered getting into the bicycle business but have come to the conclusion that unless one starts quite big or finds a very special niche, it is an extremely difficult business in which to make even a half-assed living.

[David Kirk]

caveat emptor. I once saw a Waterford R-33 in a shop with an Ultegra and D/A component mix (no high-zoot lightweight/Ti bits) that was "marked down" from $6699 to $3349. The original price made no sense. I asked how much they wanted for the frameset and was told $3000. List on an R-33 is $2000 and an Alpha-Q fork is $375. There was no special paintjob or other feature that made a mark-up of this magnitude justifiable. The same shop was selling another bike as "marked-down" but what they had done was to substitute lower grade components on it while trying to pass it off as original spec. Everyone has anecdotes. I wish I could say my experiences were unique to this shop. Unfortunately, they are not. My current LBS is a one-man shop whose owner/fitter/mechanic is a great guy and whom I would always give first crack at for my cycling needs. I don't mind paying him what he charges. But it took me a while to find him. So while I agree you should buy local, some bike shops don't make it easy for you to patronize them.

I couldn't agree more. I've seen this too many times.

In my view one of the core issues is that many shops are started and run by cycling enthusiast who have no business experience. It's the old " I like bikes and I like riding them so I'll open a bike shop" thing. Most everyone can ride a bike but very few know how to sell them properly at a profit. It's so often treated as a hobby business. Unfortunately this makes it very hard for the good shops to profit.

Too bad.

Dave

[Mud]

The gold standard is 40 points, sometimes a little higher, sometimes a little less. It depends on your "open to buy" and guaranteed volume. Within the level you are at are freight allowances based on quantity.

So the reality is when a customer beats you over the head on a $250 Haro that costs $150, and you give a year's service, and pay freight and the mechanic, there is nothing in the bike.

High end stuff gets very competitive since you start with a frame and go from there. We have to make $1000 on the bike to cover our time. We will refit the rider after he/she has had a chance to ride the bike. It is time consuming and expensive to do it.

When a customer comes in to buy a bike he/she has been everywhere to get the lowest price on parts/ frames, wheels, etc. Most times he knows exactly what he wants and has seen the price for the frame in England for $500 less ignoring customs, shipping, etc. It is not an easy sell especially if he comes in with an advisor who "knows" more than we do.

It is great for shops to sell, Giro, Bell, Assos, Pearl, etc etc. but if that is what you sell you go broke. There is no money in that stuff either. But shops survive because they don't treat it as a hobby but as a business and you can make some money, although you don't get rich.

[mikki]

Hm...this thread has again brought several things to my attention:

1) I am visiting Bill Holland on Monday to get an up-close and personal look at the Exogrid and explore paint/no paint with Joe Bell. I have a wonderful LBS who has loaned me a Serotta, a Seven and has an IF frame to be built for me to try sometime this week. With this final bike tried, I will FINALLY make the decision as to which manufacturer will build my dream bike. I am feeling somewhat guilty when I think that I might buy a Holland since the LBS has been so great in loaning me the other bikes. After reading the input here on the forum, I have decided that I will definately have the LBS put the bike together, components and all AND am going to pay for the shipping and putting the IF together for me to test. I had been struggling with how I could be honorable in the event that happens...

2) My husband and I are competent in business (he has an MBA and I am in addition to being a therapist, have an undergrad degree in Marketing).Ours is successful now, although it certainly doesn't make us rich. It has however, provided enough for us to buy a condo and have a lifestyle we have fun with. However, we are not getting younger and wouldn't really want to work 24/7 in order to make the bills if we owned a bike shop.

3) I wish everyone would remember to look at the whole picture when making a purchase, rather than just getting the cheapest deal as several on this thread mentioned. On one thread a couple of weeks ago, I told of a HORRIBLE series of experiences with cbike.com where the owner sent me a USED & BROKEN Garmin GPS and then refused to let me return it. (I'd spent over $400). When I contacted Garmin, they told me he was an unauthorized dealer and they would not send me a new GPS...only a refurbished one. For over $400!!! The owner tried to completely stick it to me....yet the majority of responses here on this forum were like "cbike is the cheapest and the best" so I will continue to purhase from them...etc. etc. How do we make people chose integrity, customer service, honesty as more important than always getting the cheapest?! :crap:

[thejen12]

Hm...this thread has again brought several things to my attention:

I am feeling somewhat guilty when I think that I might buy a Holland since the LBS has been so great in loaning me the other bikes. After reading the input here on the forum, I have decided that I will definately have the LBS put the bike together, components and all AND am going to pay for the shipping and putting the IF together for me to test. I had been struggling with how I could be honorable in the event that happens...

Hi Mikki,

I did the same thing when I ordered my custom bike. Got the frame, fork, headset, and stem from the builder (the fork and stem were painted to match the frame, plus I wanted the builder to put the frame/headset/fork together), then paid my LBS to take the parts off my old frame and put them on my new frame, buying any other necessary new parts from my LBS.

Since my frame builder was a 2-hour drive away and my LBS is a 5-mile drive, I knew I would be having my bike serviced at my LBS. Thus it made sense to have them put it together, and also gave them some business since they have been very good to me!

Jenn

[Mud]

Many companies put out their marketing hype with list prices which we let the customers have for easy access. Things like Sidi, Giro, Bell, Easton, Look have MSRP and we will sell at that price. No choice in the matter. By charging full retail you also get the service that goes with it. We are not a Garmin dealer but will buy from QBP which is and will warrantee it. Polar has been fine with us but now has changed over to a middleman system.

Sometimes I can actually buy stuff at lower prices than we have to pay for it because of differences in the exchange rate. This is especially true of tires. But we stock, high end Vittoria, Michelin, Vredestein, some tubulars and every kind of tube and stem length to make you happy. The owner is entitled to his margin because of his investment. You come into the shop at 10AM and need 2 Michelin Pros so you can ride at 11AM, you pay $55 a piece for them and be glad we have them.

People can spend their money any way they want and I begrudge no one for doing it "their way" but the shop has been in business 15 years trying to make people happy, and that is why I like to work there PT.

[mikki]

Hi Mud,

You aren't from cbike.com, are you? I think you mean you love working in your local shop because of the service, etc.

I guess I rather do begrudge buying styles a bit... the fact that we all want high customer service and fair deals but yet will give our business to a lowly store just because they can purchase for a few (or lot) of pennies less than paying a tad more to support honest, fair, high customer service shops. In fact, it is my humble opinion that when so many DO purchase that way, it puts the truly good places either out of business or makes them struggle and be forced to make a ridiculously low profit.

Of course it is a free country and all...just wish people would consider the whole picture when ordering from a website for example with a mere 7 day refund policy or who sends out broken/used equipment and then refuses to exchange it for a new one. (like cbike). But, they ARE CHEAP!! :confused:

[SoCalSteve]

I am having a problem with the seatpost collar on my Hors Cat. I need to replace it. I want to ride it tomorrow. I call the 3 largest retail bike stores in Los Angeles. NOT ONE of them has a seatpost collar in stock. Not even one thats not in my size, color or style...Nothing, zipp, nada.

I let my fingers do some walking on Google and found exactly what I was looking for at a big mail order Internet house. It will be here Tuesday or Wednesday.

Just sayin'

Steve

[samtaylor1]

I work at a bike shop and get paid little, but what I enjoy is selling not the high end bikes, but the kids bikes, and the comfort/ hybrid bikes. I at least get a great feeling convincing someone that is overweight and feels bad about themselves that they can do something about it with a relatively cheap purchase. Or seeing a kid get a bike for his or her birthday. That is the enjoyment. If the enjoyment is solely selling high end bikes I can't imagine that working out. Not enough of them sell.

Peace Sam

[David Kirk]

I work at a bike shop and get paid little, but what I enjoy is selling not the high end bikes, but the kids bikes, and the comfort/ hybrid bikes. I at least get a great feeling convincing someone that is overweight and feels bad about themselves that they can do something about it with a relatively cheap purchase. Or seeing a kid get a bike for his or her birthday. That is the enjoyment. If the enjoyment is solely selling high end bikes I can't imagine that working out. Not enough of them sell.

Peace Sam

Word to that!

Dave

[swoop]

I am having a problem with the seatpost collar on my Hors Cat. I need to replace it. I want to ride it tomorrow. I call the 3 largest retail bike stores in Los Angeles. NOT ONE of them has a seatpost collar in stock. Not even one thats not in my size, color or style...Nothing, zipp, nada.

I let my fingers do some walking on Google and found exactly what I was looking for at a big mail order Internet house. It will be here Tuesday or Wednesday.

Just sayin'

Steve


if you're in a bad way for one. i'm sure I've got something to lend you....

[SoCalSteve]

if you're in a bad way for one. i'm sure I've got something to lend you....

I'm good. I'll ride a different bike until the one I ordered arrives. E-Richie is sending me a couple as well.

If both those options dont pan out (size wise) I will contact Serotta and have them send me a new one. The original one that they sent me worked for awhile and then stopped clamping well. I want to try a different way before I contact them.

Thanks!

Steve

[weiwentg]

I figured by seeing the cost pricing at Interbike that the profits for a shop must be slim...I guess the way they really make it more profitable is by the services that they offer their clients..

Am fantasizing about a bike shop when we sell our current business or in addition to, who knows? The best bike shop around is slammed and getting even busier; my husband and I have been thinking about investing in one in our neck of the woods but the profit look pretty small in a smaller shop...

Anyone have experience in being a previous or current owner?

no experience, but I've heard it asked: how do you make a small fortune?

A: take a large fortune, and open a bike store.


probably derived from jokes about the airline industry, which in the US is not profitable either. If I were making a comfortable living with massage therapy, I'd stick to that rather than 'invest' in a bike store. massage therapists can work wonders on people.

[mikki]

I hear ya. And I DO love what I do. It has given me the opportunity to support my LBS also.

I really enjoyed hearing from the guy who is blessed by selling a bike to someone who feels terrible about themself but is doing something about it. Or getting a child into cycling. Bravo. (a future Armstrong, perhaps)

And I certainly can appreciate So Cal Steve getting something you can't find at your LBS over the internet....just hope it wasn't with a company that isn't honorable. Just my 2 cents but if I were you, I'd borrow the part from a friend (as Swoop did you) or my local BS until they could get what I wanted rather than support a business that isn't trustworthy..

:cool: :cool:

[sbrjw]

I work at a shop, I read on another message board that described it as being run like a business, not a bike shop. I'm not sure what that was supposed to mean. The only other shop in town went out of business last summer. According to the owner, he has seen over 15 shops close down in the 30+ years he has owned the shop, so he must be doing something right. Before I worked here I always thought the prices a little on the high side, I tried shopping around, tried other shops but always ended back for the service and the feeling that I was important. They never, and still don't give "bro" deals or discounts. Everyone is treated the same. We try to give the best service and the best prices, and in some cases we are a bit under msrp. When a customer tells us that so and so is cheaper, well there will always be someone selling at a lower price. Very few if any one gets rich in the bike business, they are here for the love of the sport and/or business. The owner does'nt ride much if at all, he describes himself as a bike industry enthusiast. Any shop that discounts, gives the "bro" deal, tries to undersell his competitors by a excessively large amount is doing a disservice to themselves and the industry as a whole and typically won't be in business long. Well, I think I've rambled on enough, just me two cents

[bhungerford]

This is a rather interesting thread....i'm about to get my MBA this week, and quit my current job (in the business aviation industry) and find a bike shop to buy...from the research i've done so far i'll never be "rich" but can make a living, whether it's a high end shop or a family shop. If it's high end, i believe that you'll make your money on the service and accessories, who buys all the fancy carbon race bits? you're typical amateur racer who wants to be a pro, they guys/girls with the money to spend on it, or the younger racers that just spend every dime they have on their bikes. if it's a family shop, selling the 300 dollar bike, you just have to sell volume, sure not nearly as much fun, so i'll definitely be trying for the high end. either way, from what i've researched so far, both will be making about the same profit at the end of the year, i think the more important part is location, a shop in southern cali will make more than one in Michigan...

i'm lucky in that i do have the money to basically dump into a shop to do something i love for the rest of my life, which is much more important than being "rich"

oh, does anyone know an owner in Cincinnati, or at least the midwest that wants to sell? i've got a bag full of money...

[David Kirk]

I work at a shop, I read on another message board that described it as being run like a business, not a bike shop. I'm not sure what that was supposed to mean. The only other shop in town went out of business last summer. According to the owner, he has seen over 15 shops close down in the 30+ years he has owned the shop, so he must be doing something right. Before I worked here I always thought the prices a little on the high side, I tried shopping around, tried other shops but always ended back for the service and the feeling that I was important. They never, and still don't give "bro" deals or discounts. Everyone is treated the same. We try to give the best service and the best prices, and in some cases we are a bit under msrp. When a customer tells us that so and so is cheaper, well there will always be someone selling at a lower price. Very few if any one gets rich in the bike business, they are here for the love of the sport and/or business. The owner does'nt ride much if at all, he describes himself as a bike industry enthusiast. Any shop that discounts, gives the "bro" deal, tries to undersell his competitors by a excessively large amount is doing a disservice to themselves and the industry as a whole and typically won't be in business long. Well, I think I've rambled on enough, just me two cents

Go to this man's shop and leave some money. This is how it should be done.

Dave

[bhungerford]

exactly, i think most shops have good intentions, but are run by bike people, not business people that happen to love bikes. I truely believe that you can charge a resonable price for what ever you're selling and if you have the service and knowledge to back it up, people will come back time and time again. especially the high end stuff. a lot of shops that sell the high end stuff just seem to be lacking in the service to go along with their products. a local shop here let me demo a very nice bike for 4 days (not going to mention names), when i returned it and wanted to talk about what i would like changed, as it was a custom, the owner didn't have time to take 5 minutes to come from the back and chat for a bit, guess they didn't want my 7-8k...

just a customer service thing, in the business av world, i'm dealing with the richest 10% in the country, it's easy to give them what they expect, mostly it's common sense, just takes a few minutes to get to know a high end client and cater to them and their expectations...

[davep]

My LBS recently expanded - moved into a new storefront 3 - 4 times as large as their original store. The number of bikes and manufacturers seemed to stay the same, but the accessories and clothing, especially clothing, was greatly increased. Seems obvious where the money is.

[Mud]

is going. There is a place in the market for MO as well as the LBS. Sometimes you just can't get what you need at the right time. I spent hours today trying to get a Campy 50/34 Record Crank from a distributor. One dealer told me I had about as much chance to buy a unicorn. Everything is on the next boat.

There is a whisper in the market for shops to get out of bikes and into parts, accessories and labor only. It is all about product mix. The investment is in bikes but you need a niche to fit into.

This forum deals with high end toys. You have no idea how difficult it is to deal with a volume manufacturer like Trek, Cannondale or Specialized. We don't. It is hard to keep the margins high and protect the overall marketplace when you have quotas you have to meet constantly or lose the franchise. Enough said that we used to carry.........

We were a Colnago dealer for 15 years. Not anymore since Colnago changed distributors and quotas for dealers changed.

Insofar as working in or owning a shop, think about this. I work PT, I do very little selling or heaving lifting. I don't wrench anymore, or work on bikes. I am totally beat at the end of 4 hours.

The shop has 1 FT mechanic, 1 PT highschool kid and the owner. We are open 7 days a week. I am only there an average of 14 hours a week. It is hard work for everyone. I never have a chance to sit for 2 minutes. But I get a discount on parts. Life is good.

[rpm]

The local chapter of the American Marketing Association has presentations by successful businesspeople at each of their meetings, and next month they're featuring a bike shop owner sharing his secrets of success. I'm curious because his stores don't appeal to me that much, and embarassingly for us in higher education, I don't think he has spent a day in college. I remember when he opened his first shop as a teenager, in close proximity to a large well established shop. He thrived when many other nice, competent shop owners didn't.

"Always Pedal...Never Coast; How Erik Became the Bike Man
Erik Saltvold, Founder/Owner/CEO
Erik's Bike Shop, Inc.

The year was 1977: Erik Saltvold, age 13, started Erik’s Bike Shop in the barn of his family’s home in Richfield, MN. He had one workshop and he was the only employee. Fast forward to 2007: Richfield is a developed, first ring suburb and Erik’s Bike Shop has 13 stores In Minnesota and Wisconsin. He employs 125 people and the stores carry more than just bikes.

In 30 years of business, Erik has learned some valuable lessons on the bike path to becoming “Erik the Bike Man.”

About Erik Saltvold:
With an entrepreneurial spirit and the money he saved from his job as a paperboy (the only other job he’s ever had), Erik began his bike business. He started buying used bikes, repairing them and selling them at a reasonable rate.

At 18, Erik moved his business out of his parent’s barn and opened his first store in Richfield. His business cornerstone remains firm: professional, knowledgeable service in a friendly store environment.

Erik enjoys working at the shops and helping customers find that perfect bike In fact, he often meets a “Third Generation Shopper” of a customer from his original backyard barn shop.

About Erik’s Bike Shop:
Erik’s Bike’s Shop has 11 MN locations: Bloomington, Burnsville, Eden Prairie, Oakdale, Vadnais Heights, St. Louis Park, Maple Gove, Dinkytown, Coon Rapids, Roseville, and Rochester. Erik has expanded brand of service into Wisconsin where “They have really taken to the Bikeman!” A second store in Madison, WI opened in Feb. 2007.

Erik’s Bike Shop has a selection of products and services for casual riders to racing enthusiasts. During the winter season, Erik’s carries the hottest products in snowboarding, keeping the “Bike Shop” very busy all year round.

Erik’s Bike Shop has received both local and national recognition. The stores consistently rank as the #1 Best Bike Shop in the Twin Cities in rankings by City Pages, Twin Cities Sports, MN Parent and Lavender. Nationally, Erik’s Bike Shop has been recognized as a top dealer.

WHAT TO EXPECT:

Service, Selection and Satisfaction. Repeat business is the best advertising

Product Selection and Pricing: The importance of buying the right stuff at the right time for the right price.

Systems are the key: Integrate systems into all aspects of your business. The investment will be paid back many times.

Memorable advertising: Stand out from the pack.

Culture: Create an environment where your customers and staff can share your passion for the business and the products you sell."

[JF636]

I'm curious because his stores don't appeal to me that much, and embarassingly for us in higher education, I don't think he has spent a day in college. "


I'm not quite sure how to take that comment.... :rolleyes:

I hope your not saying that you have to go to college to be smart or sucessfull. :no:

[rpm]

I'm not quite sure how to take that comment.... :rolleyes:

I hope your not saying that you have to go to college to be smart or sucessfull. :no:

Nope, didn't mean to imply that at all. I think it's cool that he has learned marketing and management principles that we try to convey to business students, for a lot of money, and not necessarily successfully.

[rounder]

Nope, didn't mean to imply that at all. I think it's cool that he has learned marketing and management principles that we try to convey to business students, for a lot of money, and not necessarily successfully.

that was good rpm. it doesn't matter so much where you learned it so much as that you learned it. bill gates went to harvard but didn't graduate. i heard that he delivered newspapers to the neighbors as a kid...maybe that's where he learned it.

[Z3c]

bhungerfold,

You might want to consider a subscription to Bicycle Retailer as the classifieds often list shops that are for sale.. Can also be a good source for trends and issues in the industry..
I work in and have a VERY small ownership share in a 6 store LBS chain; from what I see, I don't really desire to be overly involved. You get to deal with the public and in today's world that is often very unpleasant. The manager of the store in my town worries enough for everyone involved. Finding help at affordable rates is tough, everyone who rides 2x week wants(feels they deserve) a discount, and most folks think the Schwinn's at WalMart are great bikes.. Conversely, for me it is great as I am very fortunate to work week days only. I have pondered owning my own shop but at this point I simply don't want to take-on the work load.. Money can be made but it is tough, just like everywhere else, however in retail the hours can be relentless and destructive to your personal life.

Good Luck,

Scott