Thursday, 14 May 2015

Cycle Tech UK The Bicycle Workshop - Bike Shop

If you are thinking of opening your own Bike Shop Then there are something's to think about.

Some of our mobile mechanics have done just that, after just 2 years running their own mobile business have decided that a Workshops/Bike Shops is the way forward.

What makes them successful?
The main reason is knowledge, they say after 3 years of trading ,they would have done things differently in the beginning, if only they knew!

There is a lot to learn before your shop will become successful. But before you even open a bike shop, you should have put a plan together. To include, Shop location, size, layout, monthly outgoings, Stock list of parts & accessories, stock of bikes, trade suppliers, insurance, security, marketing and employee's. You may like to read Setting-up a bike business 

Both Cycle Tech Eastbourne &
Cycle Tech Snowdonia have both opened bike shops after running as a mobile outfit.



Knowing what bikes your customers will buy

Sales of bikes

£250 hybrids or £3000 plus carbon road bikes? Will it be down to the colour , will you have the right size in stock, can you order from your supplier next day? It will mean a lot of money tied up on the showroom floor. Price Range £300-2,000 is the price range to aim for.
At the end of the day bike sales will rely on getting people in the shop, having bikes outside your shop and the amount of passers by it draws into the shop is remarkable.
Bike sales change each week and season, you don't need to stock every size bike.

What to charge?
Labour for bike repairs; Bike shops charge on average £35 - £45/hour including VAT and have a minimum of 30% mark-up on parts.
VAT Reg?
If you sell cycles your turn over will increase, also you can claim vat back on your stock and van. You can also sell cycles on the cycle to work scheme. Remember you will need to stock a number of bicycle to sell one.
If you stock it will you sell it?

Epos system – to manage stock, bikes and booking in jobs. Also linked to trade suppliers stock. 
Its easy to buy too much of the wrong items that only sell twice a year and then it may go out of date.
Knowledge of what to stock is key to your success, Cycle Tech UK supply a stock list and a list of trade suppliers to its Members.
EPoS stands for Electronic Point of Sale. They can be used as a replacement for the old fashioned cash register, and can greatly improve the efficiency of your business.
The software used with EPoS systems is capable of a wide range of tasks that include monitoring stock, weighing items, taking payments for products, and keeping track of what has been sold and by whom. This allows you to keep better track of what's going on in your business, which will lead to better productivity and staff performance. An EPoS system helps your customers too, by reducing the amount of queues.
Specialise in the best on EPoS systems for you - Is Citrus - Lime
 
With an EPoS system, you'll get the following benefits:
  • A system that can monitor the transactions made by your business. What's been sold, how much stock there is, and who's sold what.
  • More functionality than the traditional cash register, a must for any business seeking to keep themselves modern and in the know.
  • A high degree of integration, meaning all your different machines can communicate with each other and work together better.
  • The ability to make use of touch screens and other technology that can reduce the amount of queues in your stores.
 Stock control using EPos

Customer care and decision making
The key is trust and the customer feeling comfortable in your shop. Along with your knowledge and decision making.
  • You will need to keep a balance of workmanship/customer care Between being a busy fool and not getting angry with customers.
  • Every job you take on is individual to the bike and customers needs 
Territory

Location location is key to the success of your bike shop but in the bike trade, if a shop 20 miles away is selling a top brand, the chances are you won't be-able to sell it! Do your research with local shops and suppliers.

Size

Will your bike shop be big enough, to stock new bikes, show products and have room for repairs.

Turnover & Expenses

Running a bike shop you will have bigger bills to pay each month, where's a mobile mechanic will have a much lower running costs and will probably make money in his first year where's a bike shop could take 4 years to make any profit. You will have to work longer hours to cover costs and more worry in the quite winter months until you become known.
Can you afford to employ a mechanic?

Its down to you to make your business work. They say in the bike trade, to make a million £££'s you need to invest 2 million!

No comments:

Post a Comment