What would the 'Books' of a LBS look like?

[BigonaBianchi]

Just say...for the sake of this thread that I set up a LBS. What would a medium sized LBS make/cost etc roughly...what overheads etc?....I am guessing that it would need a competent resident mechanic, arrangements to supply decent bikes..gear etc and a good web sales operation as well just to break even?

We have LBS here but nothing any good...and I dont trust any of them....so perhpas I'm not the only serious cyclist out there with the same worries...

...there is a well located shop up for rent right now... and I could walk there in 2 minutes...just a stupid thought....maybe there are slower ways to tip money down the toilet??

 

[Will1985]

If you wait until July, I'll come and help you!

 

[bikepete]

If you're serious, go to

http://www.bikebiz.com

and ask nicely for a password, then check the Bikebiz forum for previous discussions on starting a shop, margins etc.

Also relevant advice at:

http://www.thecyclingexperts.co.uk/opening-a-bike-shop/

(the UK independent bike shop trade body)

 

[Hugo15]

I was having a chat to the guy at my LBS and he said it took a number of years to build the shop up to where he wanted it to be. As an accountant I am always amazed at the cash they must have tied up in bling carbon bikes hoping that someone will come through the door and buy it before the supplier needs paying.

 

[fossyant]

I was having a chat to the guy at my LBS and he said it took a number of years to build the shop up to where he wanted it to be. As an accountant I am always amazed at the cash they must have tied up in bling carbon bikes hoping that someone will come through the door and buy it before the supplier needs paying.

Same here - that's why you often have to wait for stock - the LBS just can't afford to have a few boxes of the latest bling sitting about !

 

[dudi]

I'm free after september if you want a partner...

 

[cheadle hulme]

I mulled the idea of buying one a few years back. It was freehold premises with a flat above, the business was effectively valued at around £30k plus stock.

Takings were £50k pa and gross profit around half that. The owner was running it himself, like Lee says for the love (frame building specialist) rather than cash.

Theres no way it stacks up on its own terms and will probably close when he retires.

http://uk.businessesforsale.com/uk/Cycle-Shop-For-Sale-1.aspx

 

[wafflycat]

The books will probably look dirty - degreaser.. lubricant... crud from frames rubbed off on to the hands then on to the books.. tea rings from where the mug of tea was placed...

 

[ChrisKH]

Oh waffly!

They will be fully computerised it's just the keyboard that will be a bit greasy.

 

[BigonaBianchi]

...well I do love riding...but I have no intention throwing money away...or time for that matter. I'd need to do it different somehow to the others...and it would need to be a money maker...not taker. I heard cycling is the new rock n roll and that it's becoming the new networking sport of choice for the suits over golf etc.

 

[Smokin Joe]

To make serious money you would have to become a major internet retailer like Ribble or Wiggle, carrying a huge stock and undercutting High Street retailers. However, you would need a large amount of money to even get such an enterprise off the ground.

 

[dudi]

Running my own company is still my aim... Just not a good time to do it at the mo!

Not sure whether i want to run a LBS or a Garage though... love cars, but love bikes more. but i can make more money out of motorists!

 

[vernon]

Running my own company is still my aim... Just not a good time to do it at the mo!

Not sure whether i want to run a LBS or a Garage though... love cars, but love bikes more. but i can make more money out of motorists!

My LBS gets a lot more money out of me than may garage does! The owner must be doing well because he's increased his staffing by 2 and had a major refurb and now has a lot of carbon bling on display that doesn't hang around too long before being replace with new stock.

Equally my local garage is getting more trade coming his way as a none franchise because main dealers charge 'northwards of stupid' per hour for labour.

 

[spandex]

I was having a chat to the guy at my LBS and he said it took a number of years to build the shop up to where he wanted it to be. As an accountant I am always amazed at the cash they must have tied up in bling carbon bikes hoping that someone will come through the door and buy it before the supplier needs paying.

All the bike shops I know think it is good if bikes turn round in

low end bikes 1 or 2 months (£100-£350)
mid range bikes 2 to 4 months (£350-£600)
high end bikes 4 to 7 months (£600-£.....)

That is a rough guide but but your average LBS will have spent at some time over £100.000+ just to keep the stock in the shop.

 

[BigonaBianchi]

ok..I've decided there are easier ways to make money