Industry Analysis & Industry Trends
While revenue for the Bicycle Dealership and Repair industry has grown over the part five years, many dealers had difficulty staying in business during the recession. The industry has fared well overall as cycling has gained popularity for its health and environmental benefits, and as rising disposable income has encouraged consumer purchases. However, despite rising consumer demand, external competition for bicycle sales from mass merchandisers, which can provide less expensive bicycles from low-cost brands, has steadily increased. While this competition is expected to continue to temper sales somewhat over the next five years, as consumers earn higher incomes and are better able to afford luxury items like specialty bicycles, sales and profit for dealers are expected to grow... purchase to read more
Industry Report - Industry Products Chapter
Industry operators vary in the range of products they sell and the type of services they provide depending on their location and market. Dealers will typically offer more than just bicycles in order to diversify sources of revenue and to keep customers who already own a bicycle interested. According to the National Bicycle Dealers Association, the revenue breakdown for a typical bicycle dealer is as follows: 47.4% bicycles, 35.5% parts and accessories, 10.7% bicycle repair, 0.8% bicycle rental, 1.9% fitness equipment and 3.5% other.
As the bulk of revenue flow for dealers, bicycles are highly differentiated through design, purpose and size, with most dealers focusing on quality over price due to many customers being cycling enthusiasts... purchase to read more