the workshop

This area should be given equal attention to the sales floor. Don't be misled into thinking an odd corner to prepare a bike for sale or repair will do.

Workshops can and should make a positive contribution to turnover, rather than being an under-priced service which becomes a drain on resources.   Not only can the workshop and your technical services be highly profitable, they can also help you to establish a key USP and are a great way to win customers.  Plus when the sales are slow your workshop should help to keep things ticking-over.

Setting up the workshop must be costed carefully as professional tools can be expensive whilst layout needs to be carefully considered to ensure maximum use of space. Investing in good quality tools ensures workshop jobs are done properly and efficiently, reducing damage, wastage and time. Many shops will have used tools for sale which are worth considering if they are in good condition.

If the workshop is visible to customers it will almost certainly reflect on the professionalism of the business so make sure it works for you and not against you.

Workshop Survey Results

Here is a summary of results from the 2008 workshop survey which are worth considering in relation to your new business:

1. The Business of Running Workshops

• Workshop generated income contributes on average 24% of total turnover
• Over 70% of specialist cycle retailers state that workshop turnover is increasing
• Lack of space is the biggest challenge to workshop development

2. Pay & Training

• The average wage for a mechanic is less than £14,000 p.a
• Over 60% of cycle shops currently employ mechanics with Cytech qualifications

3. Pricing & Services

• Workshop labour charges are increasing
  
• Over 50% of shops charge more than £20 per hour for labour
• The 3 most common workshop jobs are: Fitting / replacing an inner tube, new bike build and PDI
• Price competition is NOT a material factor in the development of workshop business.
• Retailers need to be more confident with regard to introducing clearer pricing, especially for higher priced jobs, in order to strongly promote their true differentiator of service & value.

Full Workshop Survey Report Available

A complete 8 page report into the results of the 2008 Workshop Survey conducted with nearly 200 independent cycle shops, can be purchased for £55.80.  You will also receive the 2007 survey report free of charge. 

If you are planning to open a cycle shop or offer workshop services this will give you a valuable insight which can directly benefit your new business.

To purchase the Workshop Survey report call 08704 288 404 or email us