[bikesdirect]

The bicycle shortage does not seem to be letting up soon. In fact, many in the industry expect low inventory condition to be even worse next spring.

It seems to me, the industry and cycling community could use more used bike shops. Located in low rent spots and mainly run by one person, these stores could be profitable and useful by saving bikes that already exist. At least, that would be how I could see it working.

Maybe existing stores could do this function, but they have so much overhead built in that it could be difficult. Of course, on expensive bikes this function is easier. However, I am thinking how can the millions of MSRP $500 bikes be put back in use.

Has anyone seen a shop do this in your area? Or maybe an individual during it out of their garage?

 

[chazpat]

Definitely see people on CL who do this. And there was a shop that only did used that would advertise on CL as well, not sure if they are still around or not.

 

[hoolie]

I think the retail markup on new bike parts in a store is about 40%. I imagine full bikes are similar. I see most people on Craigslist offering USED bikes for about 10% off of what new retail would be. You save tax too of course. Until sellers decide to let go of their used stuff cheaper, I doubt a Used bike retailer will be able to pay for their monthly lease for a store front.

 

[fos'l]

Problem is socal, IMO, would be cost of operation (especially insurance) for a store might make the concept infeasible. However, there seem to be some individuals (and maybe a few "stores" - places with multiple bikes for sale, but don't know if it'a a facility) using CL for this

 

[Nat]

My town has a couple of used outdoor sporting goods stores and they always have several bikes on consignment. Bikes aren't their only items though. In the late fall they convert to mostly winter gear then in spring they're back to summer gear. They also repair damaged gear. I had them fix a bad zipper on my tent.

This particular shop has been in business for several years so they've got the hang of it. What a clever business model. The customers provide the merchandise, they stick a price tag on it and make the money.

Used Bike, Ski, Outdoor Gear Consignment and Repair Shop | The Gear Fix | Bend

Welcome to The Gear Fix! We sell high quality used clothing and outdoor gear including skis, bikes, climbing shoes, camping gear, and more. We are a full service bike shop and ski shop. We also resole climbing shoes and fix outdoor gear including snowshoes, backpacks, jackets, tents and more!

www.gearfix.com

 

[shadowsports]

Prices will remain high regardless of how a product is delivered until there is no more constraints or shortages on parts or frames. Once available prices will adjust accordingly for used stuff.

I like the used concept and business model. As far as feasibility, we'll have to see. It can help to put good bikes in peoples hands that they might not be otherwise be able to afford. (or choose to buy)

Biking however as a whole will never be what it once was. If you want a premium bike you will pay a premium price moving forward.

 

[Harold]

I've never seen for-profit used bike shops manage to persist.

I've seen several pop up, but they can never actually make it. Profits too low, insufficient margins, low quality products, low foot traffic.

And the traditional bike shops that try to sell used bikes usually get out of selling used bikes because they can't move them and make money. So they switch over their floorspace to something that will actually sell.

The places I DO see managing to last in the low cost used bike market are nonprofits.

 

[sgltrak]

We were no Pro's Closet, but a business partner and I had a used bike shop from 1982 through 1987 and did reasonably well. We primarily dealt in lower end adult bikes and kids bikes. We always bought right and had a low rent location and our margins were higher than those on new bikes. My partner did a lot of shopping at garage sales and estate sales and auctions and we had a lot of folks who directly came to us to buy their used bikes. We ran serial numbers on all of the used bikes we bought to make sure they weren't stolen. Our repairs and reconditioning were good quality and the buyers got a good product. We had an account with one of the industry wholesale distirbutors from whom we could buy new parts to recondition the bikes. That distributor had a warehouse about an hour away, so we were able to keep a smaller parts inventory and run down there for things we needed on short notice. We did start selling some new MTBs in 1985, but that was a limited number.

A store that was one of our used bike competitors at the time is still selling used bikes here in town 35+ years later and appear to be doing reasonably well. They have expanded to do repairs, sell new bikes, sell new and used parts and accessories, rent bikes, and sell fitness equipment along with their used bike sales. They own their building so that helps their overhead.

 

[r-rocket]

One thing holding that back is that selling used bikes on craigslist or pinkbike or fb actually works. It is relatively easy and you get more for your bike than selling it to a place like Pro's Closet.

It used to be common for bike shops to sell your high end used bike on commission for you if you were buying a new bike. I don't see that much anymore.

Right before covid struck, I was shopping for a new bike. The guy at the shop said I should bring in my bike and see what they could do for trade-in. As he was taking pictures of it, I noticed he was entering everything into the Pro's Closet sell a bike page.

 

[J.B. Weld]

I've never seen for-profit used bike shops manage to persist.

I've seen several pop up, but they can never actually make it. Profits too low, insufficient margins, low quality products, low foot traffic.

And the traditional bike shops that try to sell used bikes usually get out of selling used bikes because they can't move them and make money. So they switch over their floorspace to something that will actually sell.

The places I DO see managing to last in the low cost used bike market are nonprofits.

We used to sell a ton of used bikes at our shop and the margins were actually quite good, better than new bikes for sure. Also they moved really quick, usually they wouldn't last more than a week on the floor. You do have to sell more of them because lower prices mean less profit per bike. Still accessory sales were the same though.

The main negative issues are uncertain supplies (kind of like new bikes now) and the fact that buying used bikes tends to attract a sketchy crowd.

 

[Harold]

We used to sell a ton of used bikes at our shop and the margins were actually quite good, better than new bikes for sure. Also they moved really quick, usually they wouldn't last more than a week on the floor. You do have to sell more of them because lower prices mean less profit per bike. Still accessory sales were the same though.

The main negative issues are uncertain supplies (kind of like new bikes now) and the fact that buying used bikes tends to attract a sketchy crowd.

For sure, you have to be extra diligent about checking to make sure someone's not trying to sell you a stolen bike.

I think a big part of potential profitability is what bikes people are trying to sell you, and what the local market desires. In the examples I know of where either the shop failed or the shop stopped dealing in used bikes altogether, I think there was a disconnect between what people were selling to the shop, and what their customers wanted to buy. So the used bikes they purchased sat on the sales floor too long. I definitely remember certain bikes being around for way too long.

I wouldn't be surprised if the shops were also buying at an overly high price, or being willing to buy absolutely anything, failing to adequately account for the cost of service needs and a realistic estimate of what the bike could actually fetch. I think a fair number of these example bikes were probably cases where the cost of repairs was greater than the value of the repaired bike.

 

[FortOrdMTB]

I could see this working with high end bikes… a 2 year old top end s-works or Santa Cruz at a decent discount. But that would require people trading in their bikes and buying a new one. The biggest with this is why would I buy a used, older model bike for 10% off when I could just get the newest model for a tad more. If you’re spending 5k-10k are you more worried about saving $500 or getting the best bike?

I see the bike market eventually becoming build to order. You buy the bike and then they build it and you get it in 6-8 weeks. If that is the case, the “I get it now” used bike market could thrive.

 

[BansheeRune]

I could see this working with high end bikes… a 2 year old top end s-works or Santa Cruz at a decent discount. But that would require people trading in their bikes and buying a new one. The biggest with this is why would I buy a used, older model bike for 10% off when I could just get the newest model for a tad more. If you’re spending 5k-10k are you more worried about saving $500 or getting the best bike?

I see the bike market eventually becoming build to order. You buy the bike and then they build it and you get it in 6-8 weeks. If that is the case, the “I get it now” used bike market could thrive.

When the sticker is closer to 10k, I'll be sending a .dwg file to a frame builder since that places the budget there.

 

[noapathy]

No, we don't need used bike dealers. I already hate car shopping (both new and used, even pre-covid). Why in the **** would I want that experience anywhere else in my life? Slimy middlemen taking their cut more and more.

 

[Nat]

I see the bike market eventually becoming build to order. You buy the bike and then they build it and you get it in 6-8 weeks.

You guys don't already do it that way now?

 

[slimat99]

The used market has always been huge. We don't need retail outlets for the used market. Even a lot of new stuff is going direct sales, why would we take used from direct to retail?

 

[Nat]

The used market has always been huge. We don't need retail outlets for the used market. Even a lot of new stuff is going direct sales, why would we take used from direct to retail?

I use my local second hand sporting goods consignment store frequently to sell my gear because I can't stand selling directly via Craigslist, Facebook marketplace, etc. I'm happy sharing the profit with the store if it means I'm not wasting my time answering dumb questions, waiting at home on a day off for someone to no-show, having randos come to my house, and on and on.

 

[prj71]

However, I am thinking how can the millions of MSRP $500 bikes be put back in use.

$500 or $5000?

 

[ronhextall]

I have broken a carbon frame and a steel frame in the past couple years. No way would I pay much for a used bike without some sort of iron clad warranty.

The margins just won't allow a bunch of bike shops to pop that up as their bread & butter.

 

[Old school dude]

There is one used store in my area. They sell used bikes and I believe other used sports gear too. It seems to do pretty good. It's been there a long time in business. Everyone that I know that buys used bikes/parts shop on the local classifieds, eBay. If I buy used bikes it's just been from local classifieds. I'm want to see and touch something before I buy it used, especially I bike. I have a friend that builds and sells used bikes and he has found lot of good deals and stuff shopping online.