Skylar_Ouellette wrote:
Hi everyone. Long time bmx boy here.
Been at myself to try starting a bmx shop up here in Canada. In the city, no bmx shops for 100s of kms.
My city is trying to get people going and be more active and I think that's a good opportunity for my business. An indoor park is also on its way in the near future.
I'm not really asking if I should go for it, because i'm pretty convinced already lol I'm just wondering if you guys could help me with info like profit margins, distros, just info really. Bike shops are pretty private with that info (understandable, i guess lol), so i thought i'd come here.
Thanks!
Profit margins: Expect to break even at the very best, especially if you plan to focus on BMX.
One of my close friends runs our local shop, and he works from 10AM to 10PM+ most days to keep up with the work load, and unfortunately still isn't making enough money to afford full-time help (he is basically a one-man army.)
He tries to focus on BMX (mostly old-school repairs/restores,) but at the end of the day, road bikes are what keeps the shop open.
This is also in the U.S., where we don't have any additional upcharges on bikes & parts. In Canada, the costs of parts are ridiculous, so I'm sure that is damaging to the profit margin.
Here's just a few tips I can think of;
1. Don't focus primarily on BMX or stocking a wide variety of BMX stuff, unless the demand for it becomes present & consistent. BMX is unfortunately like a black-hole when it comes to finances.
2. Advertise heavily towards the road bike scene, they will likely be your #1 customers. And who knows? Maybe when their kids are of age, they may bring them into your shop to check out a BMX.
3. Create a "hang-out spot" inside your shop where riders can lounge, buy a drink, rest up, etc. This gives the shop a good friendly vibe. I know from experience that customers love walking into our shop when there's a group of dudes in the back chilling & talking about bikes. It gives the store a better vibe than "welcome to our dull & boring bike shop."
You could even capitalize off of having a small concession stand or vending machines in this area.
4. And I hate to throw this out there, but unfortunately it is a fact..
SCOOTERS. Fucking scooters.
They are quite literally the biggest money-making, rideable objects in the action sports industry. There are certain private-owned skateparks in the U.S. that literally keep their doors open by selling "pro" model scooters.
Every kid wants one, and most parents can actually afford them or find them to be less dangerous than a bicycle.
I'm not saying you should stoop so low as to sell scooters, but if you're interested in making easy money that you can then use to fund BMX-related stuff, well that's the most fool-proof way to do it.
5. Host events from your shop!
Road bikers love getting together at a bike shop and going for massive group rides. Hosting said rides once a month or so will bring lots of customers your way & help create a solid reputation for your shop. Not to mention, when you get so many bike riders together, they tend to want to spend money!
You should also definitely do BMX events, but I wouldn't focus on doing them as often. It may be beneficial for you to keep some mobile ramps around so you can break them out in the parking lot for such events. Things like flat-ledges, up-ledges, a-frames, kickers, flat rails, etc. are what kids would be looking to ride.
And lastly, the golden rule;
If you're doing this hoping to make a living from it, you're likely going to be disappointed..
If you're doing it because you love bikes, then there's a fair chance that you can make it to the point of making a living from it, but it sure as hell won't be easy.
Refs : SnM An1mal, GThompson121, Chuck8273, blizzbikes, bmxsteve99, kevin.brock.338, zinum, Brian_Griffin, billyhandyjunior, riverM, tomdon
Instagram : @timhankinsbmx