American based transportation company which is the leading manufacturer of their own moderately priced and high quality bicyles in the brand name "KHS". Distributors are located worldwide in 30 countries around the world. One of the best manufacturer of bicycles for road, track, mountain, tandem, folding, cruiser, and youth fun. Visit the site for complete business information.
2840 E. Harcourt St., Rancho Dominguez, CA 90221
One of the well known bicycle dealer who is a corporate member of the League of American Bicyclists and having stores located in places like Boston, Natick, Norwood, and Westboro, Massachusetts. Helping customers with with the best bicycle products and service available. Visit the site for complete business details.
890 Commonwealth Avenue, BOSTON, Massachusetts 02215
Bicycle is the common vehicle of people belonging to all classes. So its a perfect idea of anyone to start this type of transportation business. The craze for vehicles like bicycle is getting increased in all generations. Sportsmen and people who like to keep their body fit are choosing bicycle ride as the best option for their travel purposes. The rapid increase in the sales of bicycles is because they are eco friendly, needs no fuel to run and very economic. Even in the recession times during olden days and now, the sales of bicycle vehicle is not affected. To start a bicycle shop one will be needing approx. $20,000 to $90,000. This amount covers renting a land area of 1,000 sq. ft floor space. If they want to go for more space, the cost obviously goes high.
The amount mentioned above covers money for paying deposit to gas and electric company, purchasing racks and other machinery for stores. Price of dealers for bicycles will be varying from $50 to %453 depending on the brand of the bicycle. According to the repost generated by National Bicycle Dealers Association, bicycle dealers now are getting profits varying from $25,000to $500,000 if they are ready to start their business for the above mentioned amount. Average estimated marginal profit in case of this business is around 37% according to NBDA.
Advertising for bicycle shop need not require major funds. You can go for occasional classified ads, small displays in your area. There are many famous brands in the market that attract many riders. Due to the heavy competition between different transportation brands that produce vehicles like bicycles, there aroused many models like bicycles with gears, electronic bicycles and motored bicycles. The recessions that took place from 1970 had made the bicycle market boom, but not going down. For example, their sales in 1974 were 7.3 million according to National Bureau of economic research. This report shows that the sales during recession at 1975 increased to 14.1 million.
During recession at 70s the most affected business was bike business and this lead to the improvement in bicycle business as people needed them to travel in nearby areas with spending any money in fuel. Fact behind this is very simple. When people do not have money, how can they spend money for fuel? Date collected from the retailers of bicycles say that 40-50% of total retailer turnover will be from the servicing section, repair section, sales of parts and the labor charges collected from the customers. Combining all these statistics, it can be stated that there will billions of business going in the vehicles market.
Bicycles for adults are the major cause for the boom in transportation industry. For every one cycle sold to kid or a young person, there are minimum 4 bicycles sold to adults. This proves that the misconception of public that kids love bicycles more than adults is wrong. The average bicycles produced worldwide during the year reached to 107 million while the car produced stood at 43 million. The ratio of bicycles sale in America between adults and kids is 1.42 against 1.
The sales sheet of vehicles like bicycles from the year 2000 to 2005 is shown here. The total adult bicycles produced in America during the year 2000 were 213,427 and it was continued with 232,994 bicycles in 2001, 135,843 in 2002, 60,622 in 2003, 110,970 in 2004 and 130,724 in 1005. Coming to the list of brands that are pretty famous in bicycle market, MTB got 73.5%, road got 9.6% and Comfort got 17.0% rise in the shares market during 2000. Later on it is followed like this. MTB got 65.2%, Road got 14.2% and Comfort got 20.6% rise during 2001 followed with MTB by rise of 72.3%, Road by rise of 11.3% and Comfort by16.6% in 2002. In 2003 its race made reach MTB to raise its market share to 68.6%, Road to 11.4%, Comfort by 20.0%. In 2004 it is followed as MTB rise to 70.7%, Road raise by 9.7% and Comfort by 19.6%. Later in 2005 MTB got a raise of 69.8%, Road got a hype of 11.5% and Comfort got its raise by 18.7%. All this data shows bicycle business as evergreen business.