The workshop business is booming for many independent bike dealers. But according to many, retailers are selling their services too cheaply – ultimately damaging revenues.
The increasingly popular service – thought to be particularly in demand due to cyclists repairing their bikes rather than purchasing new ones – is estimated to generate as much as 20 per cent of revenue for many bike dealers.
W Homer Cycles shop manager Adam Riley told BikeBiz: “We put prices up around 15 months back after realising that we were operating on too low a margin. The increase had no effect on the footfall of customers seeking repairs and we’ve a steady flow since.
“As a rough estimate, I’d say repairs, all completed by myself, bring in 20 per cent of revenue.”
Swinnerton’s Cycles shop manager Craig Shuff also said he believes some IBDs aren’t charging enough: “From experience, I’d say plenty of cycle shops do still undercharge, although just two years back, so did Swinnerton’s. In fact, our prices were 50 per cent lower across the board, yet the increase has done nothing to dent custom. Quite the opposite, as our workshop is very busy.”
Steve Williams, co-owner of Highland Cycles, said: “I think the industry still tends to sell itself to customers a bit cheap. Then again, this all depends on the affluence of your patch.”
To read more on the subject, and take a look at some of the sample workshop charges, head to our interviews and features section here.