Profit Margins | Electric Bike Forums

" If you want to make a million dollars in the bike industry, you need to start with two million dollars"

The reason for that it, bicycles are one of the oldest industries and perhaps more established than automobile industry. As a result, most of the manufacturing has been relegated to Asia.
Just like how it is impossible to manufacture a in the US.
If everything that goes into Apple iPhone was made in the US, they would have to sell the device for $30,000.

Having said that, if you are very shrewd, partner up with the right social media influencers and catch some flies with honey, you could sell some bikes with decent profit.

This bike with Gates belt, Bafang Ultra motor and Sturmey Archer 5-speed hub can be purchased for $ and with volume, for $.
https://www.alibaba.com/product-det...spm=a.galleryofferlist.0.0.452d43ebH4V4gp

The same bike can is being sold for $ by some american resellers:
https://boltonebikes.com/collections/ebikes/products/warthog-mid-drive


Only the gullible customers fall for it. Because, to truly engineer a bike frame, motors and batteries, it takes A LOT of capital.

So, in a few years, those companies without long term vision will drop out of the market. It is simply not going to work.

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It brings up the question, why is Rad Power bikes doing well and how are they doing it?

That is a different topic in itself

There is a saying within the bike industry and it applies to some other industries as well.The reason for that it, bicycles are one of the oldest industries and perhaps more established than automobile industry. As a result, most of the manufacturing has been relegated to Asia.Just like how it is impossible to manufacture a in the US.If everything that goes into Apple iPhone was made in the US, they would have to sell the device for $30,000.Having said that, if you are very shrewd, partner up with the right social media influencers and catch some flies with honey, you could sell some bikes with decent profit.This bike with Gates belt, Bafang Ultra motor and Sturmey Archer 5-speed hub can be purchased for $ and with volume, for $.The same bike can is being sold for $ by some american resellers:Only the gullible customers fall for it. Because, to truly engineer a bike frame, motors and batteries, it takes A LOT of capital.So, in a few years, those companies without long term vision will drop out of the market. It is simply not going to work.------------------------------------------------------------------------------It brings up the question, why is Rad Power bikes doing well and how are they doing it?That is a different topic in itself

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Motivation of employees

If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.

Longer Sales Process

A eBikes business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.

Low margins

The gross margins for your eBikes business are typically around 36%, which can make it more challenging to incur new expenses and maintain profitability.

Taxes

As a eBikes business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

Stressful work

This line of work can be stressful for both you and your clients. This type of transaction is a significant financial decision for your client, so expectations are very high for you. Although this career path can be very rewarding, it also comes with its challenges and stressful moments.

High overhead expenses

With starting an eBikes business, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.

You may need to charge sales tax

If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out this article

Churn

If you are looking for more details, kindly visit Custom E Bikes for Sale.

In this business, customers can cancel their membership or subscription for your services - which can make revenue forecasting challenging and unpredictable. It's important to focus on your churn rates and trends so that you can prevent this as much as possible.

Time commitment

With starting an eBikes business, all responsibilities and decisions are in your hands. Although this is not necessarily a negative thing, work life can take over at times. This can place a strain on friends and family and add to the pressure of launching a new business.

Difficult to build trust with your customer

With starting an eBikes business, there can be minimal face-to-face interaction, which means it can be a lot more difficult to establish trust with your customers. You'll need to go the extra mile with your customer to grab their attention and business.

Impatient customers

You may offer an engaging user experience for your customer, but customers expect a lot and may be impatient if they aren't pleased with your product or service.

Learning Curve

When you start your own business, you no longer have upper management to provide you with a playbook for your roles and responsibilities. You should know the ins and outs of every aspect of your business, as every decision will come down to you.

Equipment Breakdowns

Over the years, your equipment can get damaged, break down, and may need repairs which can be expensive. It's important you prepare for these expenses and try to avoid damages/wear & tear as much as possible.

Technical issues can be frustrating

Technical issues are common in this business. If you struggle with the technical side of things, you may want to consider outsourcing this responsibility to save yourself the time and frustration.

More challenging to earn passive income

It can be more of a challenge to make passive income in this business. Often times, the amount of revenue you bring in is limited by the amount of time you have in the day.

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