[bikingisbetter]

I'm taking a highschool marketing class this year, and the unit is starting and running a new store. I, suprisingly, am starting a bikeshop. The current assinment is "how much money does the average person spend at you store each visit"

If any of you guys have estimates of how much a bike shop makes a month, how many ppl stop by in a hour/day, or how much they spend...it'd be cool of you to help me out!


I guessed I'd get $11155 a month in sales and the entire class is using 100% mark-up, so cost of goods is $5577...

am I even close??????????

 

[maxyedor]

The mark-up is way off. As for the amount people spend, that differs greatly, the shop I used to work at/ do the books for, we averaged $7500/day and the # of customers varried between 1 and 50 but the money earned stayed about the same, but some shops average $500/day or less. It all depends on the market, product in stock, ect. but does having accurate numbers really matter for a H.S. class?

 

[blue]

No.

Whats the markup on a complete bike? 30%, or thereabouts?

Do repairs count as sales? How do you factor in labor?

Smaller, cheaper items have higher markups at the bike shop (IE, tubes are usually around 300%), but you aren't going to make 11k a month selling bike tubes. More expensive (complete bikes, more pricey parts) stuff brings a lower markup.

 

[blue]

but some shops average $500/day

I worked at a shop that probably made $1000/day. They might sell a single low end bike at 300-700$, and the rest would be from repairs. Very few people came in and ordered higher end parts.

 

[bikingisbetter]

well i jus need an estimate, but the number must be believable, thanks

 

[blue]

I'd estimate 50% markup as a VERY rough average.

 

[bikingisbetter]

our teacher made everyone use the same markup so I cant change that

 

[Wumpus]

You might find something useful here --> http://nbda.com/index.cfm

 

[blue]

OHHH. Okay.

$30k a month. 10 people an hour. You do the math.

 

[bikingisbetter]

$30k a month. 10 people an hour. You do the math.

that made it easy... thanks

 

[Ascentrek]

accessories are marked up around 30 to 40%.
Bikes can be between 5% to 20%
Service is calculated by time (your labor to fee ratio)

You don't make money at a bike shop...

Own a liquor store.