Bike Sales Skyrocketing

I recently read on M-bike.org that bike sales are skyrocketing. This is good news being related from a survey from Bikes Belong. Additionally, there are some very interesting details in the survey results that certainly would help with the service department at bike shop.

First, the survey highlights from Bikes Belong:

The majority of retailers who responded said their sales of transportation-related bicycles, accessories, and service have increased in 2008 compared to 2007:

• 73% said they are selling more bikes.
• 84% said they are selling more accessories.
• 88% said they are selling more service.

Is this increase in sales because of high gas prices? Most retailers who we surveyed think so:

• 95% of shops said customers cited high gas prices as a reason for their transportation-related purchases.
• 80% of retailers said gas prices were helping them sell more bikes for transportation.
• 86% thought accessory sales were getting a boost.
• 89% said they were selling more service because of high gas prices.

Sounds like good news? Well, it is, but the most interesting tidbit from this survey I think comes from the service side. The survey also found that a vast majority of surveyed shops believed that 75% of summer business was from people bringing in old bikes to be repaired, vs. 25% who shopping for a new bike. One shop is quoted as saying this is up from 50% in 2007.

As a shop finds their service sales increasing because of increased use of older bikes for transportation, the customer service in the service department may have to adapt to a new type of customer. Specialized shops that are used to the lycra crowd will have to make sure that their service folks are ready to respectfully and profitably serve those who don't know a sprocket from a spoke and just want a bike that goes.

Here are three key customer service items that shops need to make sure they're addressing:

• Match recommendations to the rider - If your shop specializes in tri-bikes, but you are starting to see older single or three speed bikes, make sure your techs know what sort of parts are going to give the best value (cost vs. performance) to these types of riders (or partner with another shop that you can endorse for these folks).
• Watch your mouth - Most techs are ARDENT cycling fans (this is great - they wouldn't be very good at their jobs if they weren't!). They tend to be able to talk very specifically about which parts are better for bikes. But customers who are switching to bikes for transportation are unlikely to be able identify specific Shimano shifters, and may not even understand some basics (like the difference between one-piece cranks and higher quality three-piece cranks). Make sure that all techs are assessing and talking with customers at their level, not the tech's level. If you don't think they can, have someone else talk to the customers.
  
• Service follow-up - it astounds me how almost no bike shops do follow-up to make sure the service experience was satisfactory. I've only ever had one shop follow-up with me after service. Yes, this can take some substantial time in the high volume months, but even if you just follow up with new customers, it gives you a chance to make a real connection with customers.

How does your shop service rate? Don't know? Try having one of your friends mystery shop your service department.

Reference:
"Bikes Belong Survey Report: Impact of Gas Prices on Bike Sales" - August 2008 - Bikesbelong.org (pdf)