FT article about bike shop margins and Cycle to Work scheme

[Dewey]

Bike retailers saddled with lower margins in state cycle scheme | Financial Times

Complaints by manufacturers lead to talks with Cycle to Work providers about size of commissions

www.ft.com

I thought Robert Wright’s article was good, describing how the mandated 15% service fee eats into bike shops 30% margin, particularly affecting retailers of ebikes and cargo bikes. Due for reform?

 

[mark sutton]

Almost certainly, though it is a more competitive marketplace that it was. 15% commission on a sale for most bike shops is totally untenable on slim margins. 5% seems to be the sweet spot where all parties get along and that does exist (i won't name suppliers as i've no agenda to promote). Many are now being forced to turn away this business and lose the customer. Very much a rock and hard place, so yes, some adjustment needed.