Executive Summary
Passé is not your average bicycle shop. Although this shop offers retail sales of new bicycles, parts, accessories, and maintenance repair services this is not our main priority. Most importantly, Passé works as a bicycle restoration shop.
The name Passé comes from the french word for past. We focus on taking the past and transforming it into something new again. This shop’s main focus is to take in older bikes of all shapes and sizes to restore them back to new for resale. At Passé, we understand that bicycles can be extremely expensive, but we try to make it affordable for all. Our shop’s mission is to provide access to a healthier and environmentally friendly form of transportation for all citizens. We make this possible by accepting trade-ins, purchasing older bicycles to restore and selling restored bikes at an affordable price.
Market Analysis
Industry Distinguishing Characteristics
In April of 2015, Mayor Rahm Emanuel announced Chicago would build 50 miles of bikeways. These bikeways would be different than most; many of them would physically be separated from motor vehicle traffic. Once the bike lanes are completed in the Spring of 2017, Chicago will become the first major U.S. city with a downtown network of protected bike lanes. Since Mayor Emanuel kept good on his promise, Chicago has become one of the largest bicycling cities in the United States. The bicycling community has just started to grow and expand among the city.
On average, a well built bike could average at least 1,000. Any bicycles under this average take the risk of being less officiant and more likely to wear down sooner. This is why at Passé, we take the time to restore bicycles and present them to our customers at an affordable price. With our regular maintenance classes, this will also help and encourage our customers to take care of their bicycles to ensure they are kept at their best performance.
Target Market
Passé’s target market focuses on individuals and families that use bicycling for transportation or recreational use. This way seem like a large market, but within it are groups broken up. With the new bicycle pathways, we want to influence individuals to make economically and environmentally smart transportation decisions. Passé focuses on the growth within families. We understand that children grow and bicycles can get expensive, especially if you’re purchasing more than one. It is our mission to make it cost effective for all of our customers with trade ins and restored bikes.
As cities start to adapt to more bicycle transportation, Passé will be able to grow within cities and expand Nationally.
Competitive Analysis
Local Competition
In April of 2015, Mayor Rahm Emanuel announced Chicago would build 50 miles of bikeways. These bikeways would be different than most; many of them would physically be separated from motor vehicle traffic. Once the bike lanes are completed in the Spring of 2017, Chicago will become the first major U.S. city with a downtown network of protected bike lanes. Since Mayor Emanuel kept good on his promise, Chicago has become one of the largest bicycling cities in the United States. The bicycling community has just started to grow and expand among the city.
National Competition
Passé’s target market focuses on individuals and families that use bicycling for transportation or recreational use. This way seem like a large market, but within it are groups broken up. With the new bicycle pathways, we want to influence individuals to make economically and environmentally smart transportation decisions. Passé focuses on the growth within families. We understand that children grow and bicycles can get expensive, especially if you’re purchasing more than one. It is our mission to make it cost effective for all of our customers with trade ins and restored bikes.
As cities start to adapt to more bicycle transportation, Passé will be able to grow within cities and expand Nationally.
Company Description
Passé is a non profit bicycle shop. It focuses on the importance of impacting the community and families through providing access to a healthier and environmentally friendly form of transportation. We are not your average bicycle shop. Although this shop offers retail sales of new bicycles, parts, and accessories; the main priority of Passé is to restore bicycles back to new. By restoring old bikes of all conditions and sizes, it allows our shop to provide affordable bikes for everyone of the community.
Our shop offers different types of classes on bicycle maintenance, road riding, theft prevention, family cycling and many more. By taking the time to educate our clients about bicycle maintenance and theft, this will hopefully ensure a longer lifespan for their bicycles. If it doesn’t then they will know just where to go in their community for a helping hand.
Organization Structure
First Year
As mentioned before, Passe is a non- profit organization. During the first year, myself, Alina Van Oostrom will be the CEO. I will primarily work on marketing, graphic design and the books. There will also be a manger, who will run the store with one other full time associate. This manager will be in charge of inventory, store maintence and supervising the associate.
Third Year
In the third year of operation, the company will be ready to add more staff members during our busier seasons. We will also hire a web specialist, who has great programming skills. We will also be adding a Programs Manager so our store can provide the community with seasonal events and classes. These classes will be taught by volunteers.
Second Year
In the Second year of operation, the manager will assist me in our internet presences. Expanding our online sales and identity will bring in more customers. We will also hire on an assistant manager and a part-time employee. The assistant manager will take on inventory and store maintence. This will allow the Manager to take on more office asspects of the business.
Fourth Year
In the fourth year of operation, we will add another full time associate positions and continue to hire part time and seasonal as needed. We will add another graphic designer to help with our marketing campagins. Our company will start to hire part time teachers under our Programs Coordinator. The classes will still accept volunteers to teach as well.
Product & Services
Bicycles
We sell new bicycles, but predominantly sell the bikes we have taken the time to restore. The types of bikes that we sell are mainly for road riding, but as well offer mountain and sports bikes as well.
Accessories
We offer a wide variety of accessories. Locks, fenders, cargo racks, comfortable seats, headlights, helmets, water bottles, child seats and trailers, bike storage racks, and auto roof rack systems are all apart of this inventory. It is not possible to carry every possible accessory, so we try to carefully choose the ones that will be most useful or desired by our target markets.
Parts
Parts generally refers to pieces or materials necessary to the basic functioning of the bicycle. Generally, parts are installed during service and are an additional charge beyond the service fees. Occasionally if you are taking a class on bike maintenance, the service fee may be dropped.
We try to maintain a basic “Hourly shop rate” at $25/hour. This shop rate is applied to tune-ups, brake adjustments,and complete overhauls. Basic standard repairs, such as a flat tire, can range any where from a 5 to 20 dollar fee based on the difficulty. With several other bicycle shops in the city, there are some price constraints based on competition. We provide the community and first time customers with Coupons and specials that can balance prices.
Marketing Strategies
Our marketing strategy seeks to optimize the knowledge of our customers. We want them to be aware of the health, environmental, and economical difference biking can cause. Most importantly we want them to see us as part of their daily experience, and a shop they can depend on for quick repairs and affordable bicycles.
Spring Special
This coincides with the beginning of spring term, but we will direct some of our advertising at the wider population as people hang up their skis and get their bikes back out.
Coupons
Once every other month we will run a coupon for a service specials in the community newspapers.
Print Advertising
In addition to our coupons, we will run a small ad campaign to remind the community that we are there for them. This series will focus on the restoration and affordable cost of our bicycles. It will highlight main key points such as: health, environmental and economic impact.
Sales Strategies
Sales may vary from season to season. Repairs and maintenance sales seem to stay steady throughout the year. During the Autumn and Winter months, accessories and rainwear sales increase. Winter sales are moderate, which encourages our push of our many different bicycle classes. In the springtime, sales pick up again as people look forward to local outdoor activities, longer daylight hours, and drier weather.
Spring
This coincides with both the return of nice weather, and beginning of Spring term. We feature new restored bicycles, and maintenance specials. It is important to have a good selection on hand at this time. When people decide they want that new bike, they want it now. If we don’t have the bike then, and make the sale immediately, many riders can decide that they really can get another season out of their old bike before purchasing another.
Year-End Holidays
This also overlaps the beginning of Winter term. The retail market demands some participation in this annual buying frenzy, yet, this sale produces lower revenue than our other two events. We sell fewer bikes, and more accessories and clothing.
First Year Projections
Fifth Year Projections
