The Independent Bike Blog was hosted and usually written by Fred Clements, then vice president of the National Bicycle Dealers Association (NBDA). This blog is currently in sleep mode but change is a known known.

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Hello, I like your Blog. Would you happen to know how I can find out how many car bike racks are sold each year?
Thanks
Doug

The top installed software systems for bike shops are: Ascend, Merchant OS, Lightspeed, Microsoft Dynamics (RMS), Edge, AiMSI (Tri Technical) and Cam Data.

Whilst your discussion on margins and overheads is mathematically correct it ignores the business fact that overheads are relatively fixed and stable and not a percentage of every sale. Therefore once you have achieved sufficient sales at a margin to absorb your monthly or annual overheads every $1 of sales after overheads are recovered achieves a net profit of whatever the margin is. For example if a store has fixed overheads of $180 and sells 2 bikes which each cost $100 for $200 each at a margin of 36% means that $144 of overheads have been absorbed in these two sales leaving only $36 of overheads to recover before the store breaks-even..Therefore if the store sold just one more bike on the same terms and costing after absorbing the remaining $36 of overheads there is $36 of net profit generated. After that, assuming margins are consistent, every bike sold will return 36% of its sales value as net profit. The focus should not be on overhead percentages as they are a generally known absolute. The emphasis should be on margins, pricing and volume sufficient to generate a profit after breaking even.

Hello, I like your Blog. Would you happen to know how I can find out how many car bike racks are sold each year?

Thanks

Doug

Hi Doug,

The only source I know of would be Leisure Trends Group of Boulder, Colorado. They do sales tracking from independent bicycle dealers.

Good luck,

Fred

I’m looking for the most popular software that bike shops use for customer history, inventory, accounting, etc.

The top installed software systems for bike shops are: Ascend, Merchant OS, Lightspeed, Microsoft Dynamics (RMS), Edge, AiMSI (Tri Technical) and Cam Data.

Whilst your discussion on margins and overheads is mathematically correct it ignores the business fact that overheads are relatively fixed and stable and not a percentage of every sale. Therefore once you have achieved sufficient sales at a margin to absorb your monthly or annual overheads every $1 of sales after overheads are recovered achieves a net profit of whatever the margin is. For example if a store has fixed overheads of $180 and sells 2 bikes which each cost $100 for $200 each at a margin of 36% means that $144 of overheads have been absorbed in these two sales leaving only $36 of overheads to recover before the store breaks-even..Therefore if the store sold just one more bike on the same terms and costing after absorbing the remaining $36 of overheads there is $36 of net profit generated. After that, assuming margins are consistent, every bike sold will return 36% of its sales value as net profit. The focus should not be on overhead percentages as they are a generally known absolute. The emphasis should be on margins, pricing and volume sufficient to generate a profit after breaking even.