Originally Posted by
Kontact
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.
That's exactly right. This one guy has figured out how to make it work for him, but it may not be possible for other shops. He's in an unusual area. His repair business is pretty steady. I think he is selling merchandise (accessories and components) at a decent rate.
Two blocks away from that shop, we had another rentals-and-repairs-only bike shop. It survived for a few years. The owner claims Citi Bike coming in ruined him, and I'm sure it was a factor, but I don't think that was all of it.