Re: Used Bicycle Market
In article <email@example.com>,
CS112_smb29 <firstname.lastname@example.org> wrote:
>I am new to this group. There seems to be a great deal of knowledgable people in this group. For
>a project in the business college, a group and I are writing a business plan. We are thinking
>about creating a bicycle shop that has a buy, sell, trade option for customers. Is there a used
Used bikes get bought and sold all the time, but not usually in bike shops.
> This town is very bicycle friendly, and I think this would be a successful business venture, what
> do you think?
I think you'd lose money. Of course if you're playing the odds, any bike shop is a losing bet since
most of them fail and margins are poor whether the bikes are new or used.
I know a few successfully shops that started out taking trade-ins, but none of them kept doing it.
It eats a lot of your time and makes sales transactions more complicated, bikes you buy or sell may
be damaged in ways you can't cheaply detect, you may find yourself receiving stolen property, you
may find yourself the subject of rumors about stolen bikes, and you may find it impractical to
delegate bike buying to employees. Some customers won't be customers when they are offended by low
offers for their used bike, even if their ideas about its value are grossly inflated.
If you fail to discover a flaw in a used bike when you receive it, then you eat the repairs before
you can get rid of it (or perhaps it goes into the dumpster). If you sell a used bike with a serious
hidden flaw, then you can either repair/replace it out of your pocket or tell the customer it was
"as is" (better call them an "ex-customer" in that case). Plus you're competing against the
classifieds which is probably a bad idea.
If you haven't already, I suggest you visit http://www.nbda.com/
and maybe contact them to pump for