Electronics – Good Things Come in Small Packages

By Phil Latz | 25th June 2020 |

No segment of technology changes more rapidly than electronics.

In the case of cycling products that you can sell through your store, this category includes GPS units, heart rate monitors, power meters, ‘traditional’ cycle computers.

If you think back just a few years, it’s quickly apparent how much things have changed and what were once four separate devices can now be combined into a single device.

Then of course, there is the ever increasing range and sophistication of smart phone apps. You don’t get to sell the phone or the app, but at least you can make high margin sales selling handlebar mounted smart phone holders!

Starting at the most basic level, despite more sophisticated GPS units offering all of the traditional cycle computer functions, there’s still a market at the family / volume price point for old style small cycle computers.

When your customer says, ‘I don’t want anything fancy, I just want the old thing!’, you’re not going to make a big sale selling a $30 wired or $60 wireless computer, but at least the percentage margin on these is typically higher than on the more sophisticated devices.

GPS units, often incorporating heart rate monitor and basic cycle computer functions, can retail for anything from around $100 for the most basic to $600 or more for larger units with full colour mapping and fully customisable displays.

Because technology progresses so quickly and margins are lower, you certainly need to be careful with your stock levels and be keeping your ear to the ground regarding new model release timing.

Power meter sales vary greatly from one bike shop to another, depending upon its core customer base. A low-end, family bike store might not stock any at all. But a store selling plenty of high end road and tri bikes, should offer ‘good, better, best’ options, either within a brand or across brands, because it’s a perfect upsell for these high end bike customers.

In summary, electronic devices for bicycles may not amount to a huge proportion of your total turnover and the margins tend to be lower, but on the upsides they take minimal space in your store and you don’t have to worry about colours or sizes like some other product categories. In order to attract and keep the right customers in your store, it’s important that you have the appropriate electronic products in stock to meet their needs.