Whether you sell, supply or rent bikes, you probably have an impressive two-wheeler catalogue that would make Tour de France riders jealous. But what do you do with bike overstock? Here are several strategies to clear out your shops and turn this problem into an opportunity.
Widespread overstock after the spectacular Covid boom
Since lockdown, and with soft mobility going mainstream (more cycle lanes, more and more e-bikes), France has seen a spectacular surge in bike sales and rentals.
The bike industry is now facing unprecedented overstock. According to data from the World Bicycle Industry Association, annual bike production rose by 15% over the past year, reaching a total of 150 million units, while demand grew by only 5%. This gap has left retailers and manufacturers with a large surplus of unsold bikes.
Rental is not spared either: according to the latest data from the International Association of Bike Rental Operators, bike surplus increased by 35% over the past year. 📊
In this article, we explain how to turn overstock into an opportunity for your business!
The magic of promotions🚴✨...
One of the first weapons in your anti-overstock arsenal is the magic of promotions. Picture this: "buy a bike, get a free pair of sunglasses!" Customers love offers they can't refuse, and a well-designed promotion can turn bikes gathering dust into cash machines.
For example, look at how "BikeBonanza" cleared its overstock with exclusive offers. By pairing bike rentals and sales with free accessories, they created a memorable shopping experience, attracting new customers while selling off their surplus in a fun way.
... And partners to take overstock off your hands 🤝
Another option: find strategic partners. Imagine teaming up with the local café to offer coffee + bike packages. A happy customer can become a regular, and your surplus bikes get a new lease of life.
Example: "Ride&Rise" worked with a local tourism company to create all-inclusive packages including bike rental, guided tours and even local food tastings. This partnership not only broadened their customer base, it also turned their overstock into a complete experience.
Roll out a whole series of events ...
Events are a secret weapon against overstock. Organise:
- Friendly races
- Themed night rides
- Bike repair workshops.
Example: "CycleFiesta" turned its overstock into opportunities by organising monthly events. These gatherings built a community of cycling enthusiasts, generating revenue and building customer loyalty at the same time.
... And offer DIY bike kits 🧰
For those who like a DIY approach, DIY bike kits are a clever solution. Provide everything cycling enthusiasts need to build their own masterpiece on wheels. It's like building Lego, only much cooler.
Example: "BuildYourRide" used this approach successfully. Their DIY kits became popular with cyclists who like to customise their ride. By offering this option, they reduced their overstock and created a new revenue stream.
Sell your bikes back to suppliers...
Why not consider selling bike parts to suppliers?
Manufacturers and retailers want to make the most of their resources by buying specific parts that can be resold to other players in the supply chain. This lets you recover part of the costs invested in production and strengthen relationships within the industry.
Suppliers get spare parts at a lower cost, which can help ease the effects of the overall overstock. This strategy is therefore good for the whole cycling ecosystem.
... And diversify your strategies for maximum profitability 🔄...
Diversifying your approaches can help you maximise the profitability of your bike overstock. Explore online sales by creating an e-commerce platform dedicated to selling:
- Used bikes
- Older models.
This opens a new window of opportunity, reaching a wider audience while clearing your surplus efficiently.
Example: with its in-depth knowledge of the sports sector, Decathlon developed an online sales strategy for the surplus bikes from its bike rental service. This initiative not only broadened its customer base, it also positioned the brand as an online reference for cyclists looking for good deals.
Expand your business 🗺️...
Explore new geographic areas to extend your reach. Look for:
- Areas with strong tourist activity
- Fast-growing neighbourhoods to open new sales or rental locations. This can be a winning strategy to clear overstock while catching the attention of new customers.
... Balance profitability and efficiency 💰
Look closely at the costs of managing your overstock. Adopt a strategic plan to:
- Cut unnecessary storage costs
- While making the most of the space available in your shop.
This helps you keep spending down and improve the profitability of your business.
Create a sense of urgency ⏳...
Introduce special promotions on bikes for a limited time. Announce exclusive offers for a set period to create a sense of urgency among customers. This approach can boost sales by encouraging customers to act quickly, while freeing up space for new models.
Example: In September 2023, Armony Bikes ran a three-day clearance sale of its e-bikes at its warehouses in Formigny-la-Bataille (Calvados, Normandy, France). These time-limited offers sparked immediate interest and generated a steady flow of sales.
... And/or donate some of your bikes to charities
If you can afford it, an altruistic approach could also be to donate this overstock to charities.
These organisations, often focused on education, sustainable mobility or access to transport for disadvantaged communities, can redistribute the bikes to those who need them most. This generous gesture also helps improve your brand image and create a positive impact on society by providing affordable, sustainable transport to the people who will benefit most.
Use Loewi if you are a Lokki rental business
To speed up the circular economy and make it even easier for bike rental businesses to manage their fleet, Lokki has partnered with Loewi, the French leader in refurbished e-bikes ♻️ ⚡️🚴🏻♂️.
- You make the offer in a few clicks on Lokki: just list all the bikes ready for a second life.
- Loewi assesses the offer and sends a personalised buy-back quote
- Contract details and pick-up: once the rental business accepts the offer, Loewi handles the contract details and collects the bikes from your shop.
- Bike inspection and payment: once the bikes reach Loewi's workshop, they are carefully inspected, and the rental business receives a bank transfer, depending on the service chosen.
Overstock: it can go from nightmare to opportunity!
As you can see, behind the bike overstock nightmare there may be a new opportunity. Promotions, partnerships, events and DIY bike kits are all tools at your disposal.
Pick one of these strategies, adapt it to your routine, and turn overstock into extra income! 🌟
FAQ: everything you need to know about managing bike overstock 🤔
How can I use my bike overstock to maximise the profitability of my bike sales or rental business?
To maximise profitability, consider a range of strategies such as selling online, expanding into new tourist areas and running special offers on items for a limited time. These approaches help you clear overstock while attracting new customers.
How can I reduce the costs of managing overstock in my bike shop?
To reduce costs, take a strategic approach: cut spending on unnecessary storage and make the most of the space available in your shop. This keeps costs down while improving overall profitability.
Is expanding into new geographic areas a viable way to manage overstock?
Yes, expanding into new areas can be an effective strategy. By identifying areas with strong tourist activity or rapid growth, you can open new rental locations, broadening your customer base while clearing overstock.
How can I build data protection into the management of my bike overstock?
Build in data protection by drawing up a clear policy in line with your terms and conditions of sale. Make sure you comply with current standards to strengthen customer trust, which is essential for long-term profitability.
Can time-limited offers on specific items really boost bike sales?
Absolutely. Time-limited offers create a sense of urgency among customers and encourage them to act quickly. This can boost sales, free up space for new models and help you manage overstock efficiently.
There you have it: all the innovative solutions to maximise the profitability of your business! 🚴♂️💼
And if you still have questions, feel free to contact us 💙
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