Whether you're a vendor, supplier or rental company, you've got a remarkable catalog of two-wheelers that would make the greatest Tour de France cyclists green with envy. But what can you do about overstock? Here are a few strategies to help you clear the clutter in your stores and turn this problem into an opportunity.
Widespread overstocking after Covid's spectacular rise
Since the confinement and with the democratization of soft mobility (more cycle paths, more and more electric bikes), there has been a spectacular explosion in the number of bike sales and rentals in France .
As a result, the bicycle industry is facing unprecedented overstocking. According to data from the World Association of the Bicycle Industry, annual bicycle production has increased by 15% over the past year, reaching a total of 150 million units, while demand has risen by just 5%. This disparity has left retailers and manufacturers with a considerable surplus of unsold bikes.
The rental sector is not spared by the phenomenon: according to the latest data from the International Bicycle Rental Association, the surplus of bicycles has seen a 35% increase over the past year. 📊
In this article, we explain how to turn this overstock problem into an opportunity for your company!
The magic of promotion🚴✨...
One of the first weapons in your anti-surplus arsenal is the magic of promotions. Imagine this: "buy a bike, get a pair of sunglasses free!" Customers love irresistible offers, and a well-thought-out promotion can turn bikes gathering dust into cash machines.
For example, look at how "BikeBonanza" eliminated their overstock by offering exclusive deals. By combining bike rentals and sales with free accessories, they created an unforgettable shopping experience, attracting new customers while liquidating their overstock in a fun way.
... And partners to relieve you of overstock 🤝
Another solution: find strategic partners. Imagine partnering with the local café to offer coffee + bike packages. A satisfied customer can become a regular customer, and your bike surplus gets a boost.
Example: "Ride&Rise" collaborated with a local tourism company, to create all-inclusive packages that included bike rentals, guided tours and even tastings of local produce. This partnership not only broadened their customer base, but transformed their overstocks into a complete experience.
Deploy an armada of events ...
Events are a secret weapon against overstocking. Organize :
- Friendly races
- Themed evening walks
- Bicycle repair workshops.
Example: "CycleFiesta" turned overstock into opportunities by organizing monthly events. These gatherings created a community of cycling enthusiasts, not only generating revenue, but also building customer loyalty.
... And set up DIY bike kits 🧰
For those looking for a DIY approach, DIY bike kits are an ingenious solution. Offer everything needed for cycling enthusiasts to build their own rolling masterpiece. It's like building Lego, but much cooler.
Example: "BuildYourRide" has successfully adopted this approach. Their DIY kits have become popular with bike enthusiasts who like to customize their ride. By offering this option, they have not only reduced their overstock, but also created a new revenue stream.
Resell your bikes to suppliers...
Why not consider reselling bike parts to suppliers?
Manufacturers and retailers seek to optimize their resources by purchasing specific parts that can be resold to other players in the supply chain. This recovers some of the costs invested in production and strengthens relationships within the industry.
Suppliers benefit from a lower-cost supply of spare parts, which can help mitigate the effects of global overstocking. This strategy therefore benefits the entirebicycle ecosystem.
... And diversify your strategies for maximum profitability 🔄...
Diversifying approaches can maximize the profitability of your overstock bikes. Explore online sales by creating a dedicated e-commerce platform:
- Used bikes
- Older models.
This opens up a new window of opportunity, reaching a wider audience while liquidating your surplus efficiently.
Example Decathlon: with its in-depth knowledge of the sports sector, Decathlon developed an online sales strategy for surplus bicycles from its velo rental service. This initiative not only broadened its customer base, but also positioned the brand as an online reference for cycle enthusiasts looking for bargains.
Expand your business 🗺️...
Explore new geographical territories to extend your reach. Search for :
- Areas of high tourist activity
- Fast-growing neighborhoods to set up new sales or rental outlets. This can be a winning strategy for disposing of overstock while capturing the attention of new customers.
... Balance profitability and efficiency 💰
Carefully analyze the costs associated with managing your excess inventory. Adopt a strategic plan to :
- Reduce unnecessary storage costs
- All while maximizing the use of available space in your store.
This not only minimizes costs, but also optimizes the profitability of your business.
Create a sense of urgency ⏳...
Introduce special promotions on limited-time bikes. Advertise exclusive offers for a specific time, creating 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 offered a three-day clearance sale of its electric bicycles at its warehouse in Formigny-la-Bataille (Calvados). These limited-time offers not only aroused immediate interest, but also generated a steady stream of sales.
... And/or donate some of your bikes to charities
An altruistic approach might also be, if you can afford it, to donate this overstock to charity.
These associations, often focusing on education, sustainable mobility or access to transport for disadvantaged communities, can then redistribute these bikes to those who need them most. This generous gesture also enhances your brand image, and creates a positive impact in society by providing affordable, sustainable means of transport to those who will benefit most.
Use Loewi if you are a Lokki renter
To accelerate the circularity of the economy and make it even easier for bike rental companies to manage their fleets, Lokki has teamed up with Loewi, the French leader in reconditioned electric bikes ♻️ ⚡️🚴🏻♂️.
- The offer is made in just a few clicks on Lokki: all you have to do is list all the bikes ready to be given a new lease of life.
- Loewi assesses the suitability of the offer and sends a customized trade-in quote
- Organization of contract details and collection: Once the offer has been accepted by the rental company, Loewi takes care of organizing the contract details and collection of the bikes from your store.
- Bike check and transfer: Once the bikes have been received in the Loewi workshop, they are carefully checked, and the renter receives a transfer, depending on the service chosen.
Overstock: it's possible to go from nightmare to opportunity!
As you can see, behind the nightmare of overstocked bikes may lie a new opportunity. Promotions, partnerships, events and DIY bike kits are all tools at your disposal.
Choose one of these strategies, adjust them to your routine, and turn overstock into additional income! 🌟
Frequently AskedQuestions - Everything you need to know about bicycle overstock management 🤔
How can I use my overstock of bicycles to maximize the profitability of my bike sales or rental business?
To maximize profitability, consider various strategies such as online sales, expansion into new tourist territories, and special offers on limited-time items. These approaches allow you to liquidate overstocks while attracting new customers.
How can I optimize overstock management costs in my bike store?
To optimize costs, take a strategic approach by reducing expenditure on unnecessary storage and maximizing the use of available space in your store. This minimizes costs while optimizing overall profitability.
Is expansion into new geographical territories a viable solution for managing overstock?
Yes, expansion into new territories can be an effective strategy. By identifying areas with high tourist activity or booming business, you can establish new rental outlets, thus broadening your customer base while eliminating overstocking.
How can I integrate data protection into my overstock bike management?
Integrate data protection by drawing up a clear policy in line with the GTCS. Ensure compliance with current standards to reinforce customer confidence, essential for maximizing long-term profitability.
Can limited-time offers on specific items really boost bicycle sales?
Absolutely. Limited-time offers create a sense of urgency among customers, prompting them to act quickly. This can boost sales, freeing up space for new models and contributing to effective overstock management.
Now you have all the innovative solutions you need to maximize the profitability of your business! 🚴♂️💼
And if you still have questions, don't hesitate to contact us 💙
