Bike Accessories Business

How Profitable Is A Bike Accessories Business? (Updated for 2024)

Pat Walls

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Updated: September 6th, 2024

How Profitable Is A Bike Accessories Business? (Updated for 2024)

So you want to start a bike accessories business?

And the first question that came to your mind was, “well, are bike accessories businesses actually profitable?”

With a market size of $29.2B - there’s plenty of business to go around.

Especially considering:

You could start a bike accessories business with as low as $6,000
Based on our data, bike accessories businesses generate an average of $9.12M per year

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a bike accessories business.

Let’s dive in!

Is a bike accessories business profitable?

Yes, a bike accessories business is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $9.12M per year with an estimated gross margin of 40%, you could expect to recover your investment within 7 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your bike accessories business.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your bike accessories business is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a bike accessories business worth it?

If you’re wondering if a bike accessories business is worth it, the answer is a big YES. With bike accessories businesses, you have the potential to earn $9.12M per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $29.2B, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a bike accessories business to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful bike accessories businesses case studies.

Examples Of Profitable Bike Accessories Businesses

Here are a few examples of profitable bike accessories businesses, and a few more details about them:

1. State Bicycle Co. ($12M/year)

Mehdi Farsi and his brother Reza noticed a gap in the market for affordable and attractive complete bicycles. With their background in cycling and business, they decided to start State Bicycle Co. in 2009. Since then, the company has grown to over $50 million in annual sales and has become a trusted and well-known brand in the industry through strategies such as sponsoring talented riders and building a strong social media presence.

Is it profitable? Yes
How much money it makes: $12M/year
How much did it cost to start: $30K

How Two Brothers Started A $1M/Month Bicycle Brand

"Co-founders of State Bicycle Co. reveal how they bootstrapped their company to over $50M in annual sales and produced over 100,000 bikes by creating a trusted brand through word-of-mouth and social media, sponsoring talented riders, limited-edition releases, and focusing on product quality."

Read this case study

Read by 11,281 founders

2. Yuba Cargo Bikes ($12M/year)

Ben Sarrazin, Founder and CEO of the Yuba Group, came up with the idea for his load-carrying bicycle business after witnessing how bikes could improve the lives of small businesses and families in remote areas. Despite having little money and no industry experience, Sarrazin invested everything he had into Yuba Bicycles and has since built a $15M company that has put over 50,000 cargo bicycles on the road.

Is it profitable? Yes
How much money it makes: $12M/year
How much did it cost to start: $6K

How I Turned My Love For Bikes Into A $12M/Year Electric Cargo Bike Business

Yuba Group has pioneered the field of an entirely new segment in the cargo bicycle industry, with a 15-year-old company that has put over 50,000 cargo bicycles on the road, becoming a $15M company.

Read this case study

Read by 4,957 founders

3. ESKUTE ($3.36M/year)

Alan Chen, founder of ESKUTE electric bike, came up with the idea during the COVID-19 pandemic when the demand for electric bikes soared. With a background in the electric bike battery field, Chen saw an opportunity to provide a safe and eco-friendly transportation method and started planning the project. Despite facing challenges and making mistakes along the way, ESKUTE has become profitable, with plans to expand production and open new stores across Europe.

Is it profitable? Yes
How much money it makes: $3.36M/year
How much did it cost to start: $25K

We Launched An E-Bike Brand During The Pandemic And Now Make $280K/Month

ESKUTE started a successful electric bike brand during the pandemic, with a team of nearly 30 staff members, and now makes $280k per month with sales across Europe.

Read this case study

Read by 3,630 founders

Learn more about starting a bike accessories business:

Where to start?

-> How much does it cost to start a bike accessories business?
-> Pros and cons of a bike accessories business

Need inspiration?

-> Other bike accessories business success stories
-> Marketing ideas for a bike accessories business

Other resources

How much can you make with a bike accessories business?

With a bike accessories business, you can make an average of $9.12M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $6,000. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 7 months.

How much does a bike accessories business make a week?

Based on our data, average weekly revenue for a bike accessories business ranges around $190K. As such, you could see monthly revenues of $760K.

To know if your bike accessories business achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your bike accessories business.

How much do bike accessories businesses owners make?

The income of a bike accessories business owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established bike accessories business is about $190K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a bike accessories business owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Bike Accessories Business Profit Margins

Generally speaking, a bike accessories business can expect profit margin of around 40%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a bike accessories business, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, bike accessories business owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, bike accessories business owners can ensure long-term sustainability and profitability for their business.

Bike accessories business owner salary

The salary of a bike accessories business owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established bike accessories business, in a prime position, might see an average weekly salary around the ballpark of $76K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a bike accessories business may be a promising business to start - but the success of your bike accessories business mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable bike accessories business.

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Starting A Bike Accessories Business: Everything You Need To Know

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