ASHEVILLE, N.C. (BRAIN) — The National Bike Dealers Association released its Cost of Doing Business Report for the first time in seven years and will follow up with a webinar next week on how to better understand and utilize its data.
The report’s return was made possible through funding from title sponsor BikeExchange. The report helps retailers benchmark their results compared with other retailers by region, sales volume, store type, and more. Retailers will be able to note differences between their indicators and those of highly profitable retailers. It also can help guide suppliers and manufacturers about margins.
The report costs $399 and can be obtained from the NBDA website. Current NBDA members receive a $50 discount. BikeExchange offers a free copy to its current members and new members who join through the end of the year.
“This is a critical time for bike shops to both understand the financial structure and key performance indicators of their businesses during the pandemic-driven surge, and as consumer demand and the market shifts and changes,” said webinar host Jay Townley. “The NBDA CODB Study, at this very low, affordable cost, is the tool owners and managers need now to plan for the uncertainties of the future.”
The 45-minute Key Insights 2022 Cost of Doing Business Study webinar will be Aug. 31 at 1 p.m. EDT. The webinar, which will have a Q&A segment, is free but available only to NBDA and BikeExchange members and brands who purchase the report.
The report comes at the right time to guide retailers in a changing marketplace, said Townley, founding partner of Human Powered Solutions.
“I will spend a lot of time examining the current cost of doing business by category, revenue by category, and profit by category and will focus on bike shops establishing the benchmarks they need to establish for their businesses going forward in these uncertain times,” he said. “The Phillips Rule, while not absolute, is highly recommended. Harley Phillips, past president of the NBDA and retired successful bike shop owner said, ‘Never ever sell anything in your bike shop below your cost of doing business!’”
Retailers who supplied data receive a free copy and an individual Company Performance Report that provides an overview of strengths and weaknesses relative to the aggregated data.
“It’s the only data report of its kind and one of our most requested reports,” said NBDA President Heather Mason. “Retailers can use the information to compare their store with other retailers, both alike and of variant. This can allow them to spot differences and make corrections as needed to improve performance.
“Suppliers and manufacturers can also use it as a guide to what margins may work best for retailers. A brand that understands the real importance of taking action to help their authorized dealers earn a fair and equitable net profit will certainly appreciate the CODB study data.”
