Thinking of opening motorcycle clothing/accessory store
 

Afternoon all,

I've been thinking of starting my own business over the past year or so. One think that I have considered is opening a small retail store selling motorcycle gear/accessories/clothing etc etc.

Now, I am at the beginning, so am doing a little research and would like to get some opinions of feasability. I have not yet put together a business plan, made any cash forecasts or stock markup/research.

A little background about the area:
The catchment area has a population of 130,000. Withing this area, there are 3 motorcycle retailers. 2 of which have a small range of clothing. The other sells mainly FM/cheapo style helmets. They are quite 'shoddy' looking stores, with your typical biker dudes working behind the counter. When I first started riding, I almost felt 'looked down on' when asking them for advice. I hate this attitude, and would like to bring some decent customer service to bikers new or old.

When I have been buying gear myself, to find the brands I wanted I find myself having to look online. None of these stores stock Alpinestars, Dainese, Arai, Shoei etc etc. In the area that I live, there are a very large number of bikers. I feel that there is a good business opportunity.

Things that I need to know are the following:
If an Alpinestars Jacket is sold at £279.99, what would the markup on this be. Same with an Arai lid? How much is the markup on exhausts etc?

Like I said, its just an Idea at the moment. I know lots about retail, but in the mobile communication industry, not motorcycle clothing! I have been running a successful retail store for 2 years now on a busy high street so have pretty good business sense and a good idea for customer care. The time has come when I've had enough of making money for other people. Even though I'm earning a decent salary, theres always the thought there of being my own boss.

Any thoughts on this?

Suggestion for you... Hein Gericke are a franchise operation, speak to them. They'll have tons of info for prospective franshisees for one thing

Advise great caution.
There are plenty of other outlets selling this stuff to a fairly small market.How often do we actually buy new clothing ,helmets and boots?
There are also plenty of bike busnesses that have gone under in the last couple of years and that has been seen as a boom time.I would suggest there are much harder times in the offing.
That all sounds really downbeat,Sorry about that. :lol:

Don't be sorry, its all good advice! I hear what you are saying with regards to frequency of purchasing. But then we have retailers that are still here and have been for a long time.

Any comments/thoughts are appreciated!!

I could really use a shop like that near me!

Where are you? Location makes a huge difference.

Can you hook up with a local training school? or garage? or bikers hang out cafe? The more reasons people have to be coming near your shop the better.

Retail margins are, on average about 30% - but I know nothing about the motorcycle industry so it might be different

That's actually not quite the case. HG own the store, the stock and employ the staff, however the Manager is "Self Employed", although he/she has the last say on staff and any additional stocking.

It's an intersting concept, and I spoke to the Manager at the Slough store about it at some length, I have even considered applying for a position as a Manager, but don't fancy all the problems that go with being self employed.

.

I personally think that the biggest threat to reatailers of this kind is the internet. I have purchased almost all my gear over the net, due to the massive savings that can be had. That said it is often necessary to "try before you buy". If you were to do something my suggestion would be to firstly make sure you have an excellent and competitive web site, also offer a service that others don't, be more than a shop (rideouts etc).

Good luck

Dan

on the majority of things you get 50% for accessories, generally for new business you get discount off retail which slowly increases as you negotiate better terms over time rather than a set maark up, expect 20-30% discount accross the board.
I have often considered doing a similar thing but would not want to be tied into a franchise like Gerric as you dont get to cherry pick the stock you have to have what gerric sell. as in no dainese, ft, richa, and any other make.

On the face of it, it sounds like the catchment area isn't that big if you're considering adding another retailer to an already pretty full market.

One observation I would have is that the range and quality of stock is paramount, particularly if your location is not near other motorcycle outlets.

I'll give you an example. I will happily browse motorcycle accessories at the main dealerships in Edinburgh / Glasgow because I'm also there to drool over some of the bikes they have on show. I'll also visit Hein Gericke because they have a good store in a convienent location with a wide range of decent quality stock. But there have been / are other accessory only shops in Edinburgh / Glasgow that I just won't visit because their location is akward and / or they don't carry an extensive enough range of quality stock.

Personally I would also go the internet route.Minimise your overheads. Let people try things on and find what they want by going to the established stores and then you beat them on price,simple!

You could have your own web site as well as advertising an item on ebay which would lead people to your "store". You may be able to do all of this without having to hold any sytock yourself also. By setting up a network of suppliers who will provide what you need when you have a buyer.

I know my idea needs some meat putting on the bones but Internet is the way forward I believe. :wink: