Did you hear?… Bicycle shops report average dealer profit margins

Bicycle shops reported average dealer profit margins of 36 percent for bicycles, 43 percent for clothing, and 49.7 percent for other goods. In expense categories, payroll represented 17.7 percent of total gross sales, occupancy expenses were 7.8 percent, and general expenses, 14.8 percent, according to the National Bicycle Dealers Association’s (NBDA) new 2002-2003 Cost of Doing Business study, High profit firms (those in the upper 25 percent based on net profit before taxes to total revenue) did a better job of controlling expenses. They reported payroll expenses of 17 percent, occupancy expenses of 6.2 percent, and general expenses of 10.7 percent. NBDA has the full report. www.nbda.com.