FarHorizon

I've found 500+ brand-new, in-the-box bicycles from the 1970's. The bikes are mostly steel-frame, midrange models from (primarily) Raleigh & C-Itoh. They mostly have 5-speed freewheels & downtube shifters (except for the models that have suicide brake levers & a shifter box atop the stem). The upper-midrange models have decent tubing, and a few, (about 25-30) have Reynolds 531 tubesets.

The boxes have been kept in a dark, climate-controlled environment, and the rubber tires (27x1-and-a-quarter, mostly) and brake hoods show little or no sign of dry rot. The sizes run in an inverse bell curve between the small and large, with most of the 56-58cm sizes gone.

The owner is eager to recover his warehouse space and is willing to deal. Assuming that I'd have to rent my own warehouse, a truck to transport the boxes, and labor to move them; also assuming that I'd have to advertise the bikes on e-Bay over a long-enough time frame to keep from interfering with my regular "irregular" job (as a safety conultant); and also assuming that I'm doing this for profit, not for giggles; what price should I offer per bike to take the lot?

The owner also has an additional 500 or so children's bikes of the same vintage (mostly with 20" wheels). The owner may be willing to sell those as well. What additional price per bike should I offer for the children's bikes using the same assumptions as above?

This question may be beyond the scope of this forum, and paying for the advice of a business consultant may be advised. I've sold bikes (all used, all personal) on e-Bay over the past two years, but this is a new scale for me. Also, if I opt to do this, the enterprise becomes a business and taxes must also be taken into account against eventual profits.

Pardon the ramble, but I'm thinking as I go here... Yet another option would be to buy just the 531-tubeset models and walk away from the rest. I certainly won't get as good a price, but the profit may be the same with less work.

What say you businesswomen & men?

NOS88

Yeah, it's tempting, but you're right. Check with a business planner/consultant.....and, save one of th 531 framesets in a 54 - 56 cm size for me!

FarHorizon

I solemnly promise to offer the best stuff first to the 50+ forum!

linux_author

- have you ever indulged in this type of venture?
- are you aware of the tax implications?
- do you know what can be deducted as a viable expense?
- are you ready to track inventory?
- are you ready for insurance appraisal of the inventory?
- do you have the money for insurance and warehousing rental?
- do you want to create a SEP IRA for the period you operate as a sole proprietor?
- are you ready for quarterly estimated IRS payments on income based on last year's sales? (IOW, you will owe [be liable for] 90+% of what you pay on your earnings in this year during next year)
- do you have a CPA?
- are you going to sell 'as is' out of the box, or will you do prep and/or repacking?
- will you have a family member helping you?
- will any earnings from this venture push you and your family into a higher tax bracket?

just a few questions...

oh, and save me a 'med' (52/53cm) of one of the nicer rides - i'll send cash!

:-)

dminor 

Sounds like the makings of an ebay experience Give us a heads-up when you start tricklin' them out there.

FarHorizon

I already have all the above as a self-employed consultant. I would plan on selling boxes "as is," listing them as "New-Old-Stock still in original box." The warehouse, I would have to rent out of pocket (as well as paying for the inventory up front). I have the capital to do this, but wish to achieve a reasonable return on investment. This is a step beyond what I have ever done before, but not at all out of line with what I feel able to do.

The current inventory owner has held this stock in his warehouse since the '70s waiting for it to sell locally. It hasn't happened. The only thing I think I bring to the table that the original owner doesn't have is e-Bay experience. I think that NOS 70's bikes would sell for reasonable rates as nostalgia items. I also think that even if the buyers weren't interested in the bike as a unit, they'd still buy them to get a brand-new 70's steel frame to convert to a fixed-gear.

I might even be able to work a deal with the owner to use his warehouse, selling the bikes on e-Bay on a shared-profit percentage. This reduces my overhead to near zero and provides me only with taxable income. Options, options, options...

dminor 

That 'shared-profit angle sounds like a great way to limit your exposure and make it a win-win deal. You might pattern your ebay marketing after ediscountbike's model. He sells off a lot of oddball, discontinued and overstock stuff.

BluesDawg

I'd sure like a chance at a 58cm 531 tubed model. What a find!

cyclezen

gettin late in the year to load up on inventory thatz seasonal

I'd be 'plannin' for next year

Maybe talk the current owner into throwin up a test balloon on ebay for a reality check.

bike shoppers are funky, quirky, often fowl-tempered miscreants - not sure iffn I'd want to expose myself to this lunatic fringe

DnvrFox

Seems to me that not renting your own warehouse, and not paying to move 500 bikes and not having to prefigure a price on an unknown sale are distinct advantages, and would allow you to sell the bicycles with an almost zero risk factor on your part.

I like the test balloon idea. ALso, I guess 500 bikes at one time would be a significant flooding of the market, and you might want to spread this out over some time.

I have been watching the guitar selling on EBay, and have been amazed at the number of absolutely cheap imports which seem to go for the shipping and handling costs plus a couple of dollars. But the shipping and handling generally run about $35-$40, which it seems to me is how they make their profits. I am sure the actual product is pretty much junk. Even the "Buy it Now" feature is only $1.99.

So, what about shipping and "handling?"



Good luck.

fthomas

HEY HEY HEY!!

56 cm high end (if you have that) Count me in! AS IS WHERE IS! I'll even drive by on my way to Memphis and pick it up.

A unique opportunity!

bkaapcke

This guy hasn't got a whole lot of potential buyers out there. Old bikes in limited sizes wouldn't appeal to too many wholesalers, or retailers either. Try to work a deal where you just sell them for him and get a cut of the dough. That way, you wouldn't have to move and store them. Yeah, he wants his warehouse space, but why did he store them all these years only to be in a big hurry now? For purposes of negotiating, focus on what he needs, not what he says he wants. If you can figure that out, you can work a win-win where you may not have to put out any $ at all. This is definately a think outside the box problem. Partners for this venture may be the solution. He puts up the bikes, you put up the sales effort and both of you agree an a reasonable sales split. Just remember, there won't be lots of wholesale buyers kicking down his door. If there were, the bikes would already be sold. bk

sch

You have checked the area of the warehouse and specifically ALL the boxes for hurricane damage?
Baton Rouge may be ok but just in case...

FarHorizon

The owner is in no hurry at all. He'd be happy to sit on them for another 40 years. His warehouse space is of low priority to him just now (although his employees are eager to recover the warehouse space). The owner's currently offering the bikes at retail for 50% of the list 1970's price, plus tax with no takers. I believe I can move his inventory and plan to make that offer to him. That way, I can do it at my pace. This model makes more sense than me having to buy, move the inventory, and rent new warehouse space. All I'll need to add is a tax number. With a copy of the 1970's catalogs, I can scan, get specs, and write descriptions for posting. I think the children's bikes would be good pre-Christmas items.

I'll keep youse gals & guys posted as to what I have as I get it, assuming the owner likes my proposal. Thanks so much for the good (and prompt) feedback - you have earned your "first chance" at the inventory!

linux_author

- good Gawd, man! PLEASE let me know what you have in my size!

:-)

jm01

why bother with consultants...its only 500 bikes the retro-girls in Toronto would line up to pick up one of these bikes...see if you have a niche market in your area...they usually sell for about $150 (cdn)...more if they're in good condition

roccobike

Great find FH. Yeah, I would be interested as others are in obtaining one or more of those bikes.

bkaapcke

50% of 1970s retail (bikes were cheap then) with no takers. There is your sign that this seller must be flexible in order to sell them at all. Creative thinking could well make a win-win deal possible. The "I can wait another 40 years" is just negotiating talk. 50% of 70's retail is probably a close approximation of what he paid for them. He is starting high.

FarHorizon

As soon as I can get a full inventory, I'll get started with negotiations. Thanks again for the input.

TysonB

If you paid $5000 for the lot, it would be fair enough for both parties.

Sure, fixed up and ready to go, anyone of the prime sizes could fetch $100 or more.

BUT, you need to put them together, move and market them. There is a limited market for these bikes. Not everyone spends 2 hours a day on Bike Forums, you know. (You DO know that don't you? )

Tyson

Barrett

I owned 12 bicycle stores in the '70s in New Orleans, Houston, and Baton Rouge and would be interested in working with you to sell the 500 bikes. My computer company is now in Covington with all the necessary licenses and procedures available. I am well known in bicycle circles and we might have friends in common.

Call or email:

Barrett Leibe
3433 Hwy. 190, Ste 267
Mandeville, LA 70471
504-451-5721
72377.3634@csi.com

FarHorizon

Thank you, Barrett. I'll keep you in mind. Also, should I end up not making this deal, I'll be happy then to provide the contact to you so you can pursue it instead. My "finder's fee" will be that you take me to lunch some time!

stonecrd

IMO, I would first check on the vintage forum to see what people may be willing to pay. From there you can determine your revenue potential and decide if it is worth it. I would probably not take the children's bikes since I think the market for used kids bikes on e-bay is probably pretty small since most parents just go to Walmart or somewhere else to get a cheap bike and may not find the price difference between a new bike and a 70s vintage worth the effort and shipping expense.

geo8rge

1) Calculate the storage and insurance costs to hold them. If you did that you might find that you need to dunp them fast, or perhaps you could hold on to them.

2) Contact bike shops, or any discount shops, in New York City. Merchants and others in NYC may not be able to stop Bin Laden but Wal*Mart, praise the lord has been sent packing to the hinterland of Arkanasas and New Jersey. I think the bikes might be sellable to customers at the $300+ range in NYC for the higher end stuff.

3) With the economy cooling, and the summer over you might want to move fast. Not sure if xmass is bike buying season. I suspect spring is when people notice that hole in their life where a bike might be.

jm01

also keep in mind the original 1970's cost of these bikes...I bought four 5 spd bikes back then, very similar to the ones you describe...two CCM Elites at mfg cost which was $25.00 cdn (US was at par back then) and 2 Free Spirits (Sears) at $49.00 cdn each