Trek announced recently that they were giving consumers the added option of buying bicycles on trekbikes.com. This move raises lots of questions for local retailers. Other bicycle brands are considering direct-to-consumer sales online and a number of them have already implemented these strategies. And, Amazon is now offering same-day delivery in select markets, and overtook Google last year as the primary starting point for online purchases according to Forrester Research.
Understanding how much of your Bike Shop’s budget to allocate towards marketing can be tricky. On one hand, anytime you’re able to invest in marketing and have a positive impact on net income, you should probably do so; on the other hand, not all marketing investments are good ones and most have a point of diminishing returns. Investments in marketing aren’t just about attracting new customers: the right kind of marketing drives business from existing customers in ways that are often significantly more cost effective. Of course, the best marketing plan in the world won’t help your business if retailing fundamentals like strong merchandising and good customer service aren’t there to support it.
Topics: bicycle retail management