Good morning and welcome to Episode 60 of The LeaseSmart Commercial Real Estate Podcast, brought to you by LeaseSmart.com. Your host is Craig Melby, the founder of LeaseSmart, whose objective is to find companies the best facilities and get them the best terms, making their business more profitable and less vulnerable to future, unpredictable circumstances.
In today’s episode Craig welcomes guest Todd Grant of the
National Bicycle Dealers Association. The NBDA boasts 1000 members and 20 years in leading bicycle shops.
When it comes to retail bicycle shops, a large space needed to show and sell bikes. You need a lot of inventory and bikes aren’t small. If we examine the needs of bike shops over time, the size needs are the same but recently the habits of the consumers have changed. Consumers want to have more things available to them. Bicycle dealers are opting for larger spaces so there can be more inventory on the floor, even at the effect of smaller back rooms.
The typical bike store does about a million dollars of revenue per year. And, that’s in about 3500-5000 square feet, which is a little bigger than they used to be.
The smaller back room does make the receiving, assembly and maintenance of bikes a little tricky, so bicyble dealers are having to take all things into consideration, as repair income is about 15% of their business.
Yelp is changing the market a little bit, too. When someone is a new city, instead of noticing a bike store on main street, they’ll just look up a bike store on Yelp and go to it, whether it’s on main street or off the beaten track. So, it would seem that, thanks to Yelp, location isn’t as critical as it used to be.
The great thing about the bike industry is that it is an industry of abundance. Bike dealers aren’t too worried about where you buy your first bike, because they know that you’ll come to them eventually. The more bikers in the world, the better. They just want people to ride.
Thanks for tuning in and have a fantastic day!
Give Craig a call if you’d like to learn more. He can be reached at 800-962-2419.
For more information, be sure to visit LeaseSmart.com
Feel free to reach out to Todd Grant by email or phone: