Originally Posted by
noglider
The nearest shop to me (Waterfront Bicycle Shop) is very small. They don't sell new bikes! There isn't room to stock them. Somehow they get by. They do repairs, they rent bikes. It's a touristy neighborhood. They sell parts and accessories, and they usually have a few used bikes. I've seen the owner build some project bikes and put them up for sale, such as something with a Velo Orange frame, but that may not make any money.
Bikes are the least profitable at only a 33% margin, give or take. Service, parts, accessories are much better. The problem is getting people in the door when they don't have new bikes to offer.