Guide to growing your e-bike business
Fly up hills. Scoff at the wind. Haul a heavy load. Take the long way home.
no sweat
don’t miss out The electric bike business is here and in full force. E-bike units imported into North America
2012
72K
2013 2014
160K 230K
North American e-bike sales Total market share $320 million If Trek retailers gained market share to match Trek's current city bike market share, Trek retailers would realize $120 million more in retail sales!
Trek retailers’ market share - 2%
Trek city bike market share - 40%
There’s never been a better time to get on board. It’s not an intricate formula—it just takes awareness and focused effort. Follow the advice in this guide and you’ll cash in on the benefits of building a loyal customer base. There are an estimated 500+ e-bike specialty retailers in North America, with an estimated average retail price of $2,500! IBD retailers can deliver better service and a more comprehensive accessory offering than e-bike specialty retailers. Don't miss out.
get in the game Follow these five simple steps to focus your efforts on the real goal—more customers enjoying a better shopping experience—which will lead to greater sales.
1 Have an e-bike champion 2 Test ride the product 3 Stock the product 4 Merchandise the product 5 Train the staff
who to target Your target customer is a diverse one The electric bike market is an extensive group of customers with a wide variety of needs. These riders can range from a pure commuter who is looking to save on gas, parking, and car maintenance, to the rider who, for health reasons, cannot ride with the same amount of effort as they could in years past. Comprehensive market research has lead the Trek development and engineering teams to create three separate platforms to appeal to all types of e-bike customers.
XM700+ Fast commuter XM700+ is the first of its kind: an electricenhanced bicycle that delivers a new dimension in commuting, offering riders the freedom and flexibility that comes with sustained speeds of up to 28mph.
conduit+ Power up your commute Conduit+ is a hard-working, lightweight, electric-assist commuter bike. Smart features like a smooth mid-drive motor and onboard lighting make quick, fun work of your commute.
lift+ Comfort with power Lift+ is a lightweight, electric-assist recreation bike that pairs an ultracomfortable ride with the smooth, controlled, unbelievably fun power boost of our mid-drive motor.
e-bike retailer success Jeff Palmer, General Manager of Spokes Etc. in Vienna, VA How is the e-bike business for Spokes Etc. Vienna overall? We’ve certainly seen a lot of interest in electric bikes over the past several months. From when they were introduced back in June, we’ve sold over 20 e-bikes at our Vienna location alone. What specific model(s) do you sell the most of at your location? Definitely Conduit+. A close second is a mix between the regular and lowstep Lift+ models. The customer category showing the most interest (at least in my area of D.C.), are those that are primarily commuters. It’s also worth noting another trend we’ve seen. The ‘older generation’ come in, trying to ride in a group ride, and can’t keep up with the group. E-bikes then quickly become the bike for that person who has a road bike but wants to go out on a 40 to 50-mile group ride at a brisk pace but for whatever reason, they can’t go at that group ride speed anymore. There’s also a mix of couples wanting to ride together but again, for whatever reason, aren’t aligned in ability levels. The e-bike fixes this problem. What’s the hardest part of selling e-bikes to your customers? The biggest hesitation we hear is that ‘it’s heavy and it’s cheating’. We rebuttal by having them ride the bike first without any assistance, followed closely by riding in ECO mode. They change their minds pretty quickly.
Also, many customers are worried about transporting the bike to wherever they are looking to ride. This problem is easily fixed by making sure they’re aware that all Trek e-bikes fit on a standard car racks, if you remove the battery. Last but certainly not least is actually getting them to test ride. To combat this, we have brand new bikes built up and advocate as much as possible for people to go out and test them in the wild. This is when we instruct them to ride first without any assistance, then gradually work up to the highest assist level. How often are your e-bikes test-ridden? We do roughly 2-3 test rides per week. These are all new customers that we’ve never seen in the shop before. How do you advertise e-bikes in-store? The people that come in to the shop looking for an e-bike generally have researched it already, and know that they want an e-bike. That’s why we have them on display directly in the front of the store. We make them pretty difficult to miss, even to the customers who have never seen them before. Anything else you’d like to share? Selling Trek electric bikes is easier than any other brand in my opinion. They’re good-looking bikes that have been thought through to the end. Everyone is behind them because they are well-made products that work.
“They are good-looking bikes that have been thought through to the end. Everyone is behind them because they are well-made products that work.” – Jeff Palmer, General Manager of Spokes Etc., Vienna, VA
2015 TREK E-BIKE BUSINESS SCORECARD Completed by
HOW DO YOU RATE?
Date
100 = Success awaits you
Retailer name Total sales
80 - 99 = In the game 60 - 79 = Average 0 - 59 = Continuous improvement is your savior
Rep name City/state
Use this scorecard to honestly evaluate how well you’re reaching out to e-bike customers in the key areas of store environment, customer engagement, and store staff. Answer the questions below through your e-bike customer’s eyes. If the answer is “yes”, give yourself the points associated with the best practice.
1.
Yes (10pts)
No (0pts)
Have a storewide goal for e-bike test rides per week
Yes (12pts)
No (0pts)
Have demo bikes ready for immediate test rides
Yes (14pts)
No (0pts)
Have an e-bike in a trainer on the sales floor at all times
Yes (14pts)
No (0pts)
Have a stocking floor plan
Yes (10pts)
No (0pts)
Actively adjust product mix accoridng to what has been sold
Yes (10pts)
Have an e-bike DRI (Direct Responsible Individual) in each retail location 2.
3.
4.
TEST RIDE THE PRODUCT
STOCK THE PRODUCT
No (0pts)
MERCHANDISE THE PRODUCT Yes (10pts)
No (0pts)
Train staff in Trek University, Shimano T.E.C.
Yes (10pts)
No (0pts)
Have a designated e-bike service area
Yes (10pts)
Have a focused e-bike area on the shop floor 5.
Pts
HAVE AN E-BIKE CHAMPION
TRAIN THE STAFF
No (0pts)
TOTAL SCORE
ACT ION
FOLLOW UP DATE
1. 2. 3. *E-BIKE DRI NAME: *E-BIKE DRI EMAIL ADDRESS: TARGET SCORE
OWNER
have an e-bike champion Assign a DRI to build and own your e-bike business plan Appoint a Direct Responsible Individual (DRI) to own the e-bike business at your store, and set the strategy to grow e-bike sales. Your DRI will build a plan-within-a-plan that aligns with your overall business strategy.
Formula for growth A single Ride+ retail location can expect to add an additional $50-$60,000 in sales if the plan is executed.
$60K
$0 6 stocking units @3 inventory turns = $60k
“Now that we’re doing well with the initial offering, we’re looking at expanding into another category or two in E-bikes to continue growing the business there.” – Jeff Palter, Cycle Loft, Boston, MA
test ride the product Test rides are absolutely essential to selling e-bikes “I had a couple come in to buy two 7.2 FX’s, about a $900 sale,” said Jay Wolff of Helen’s Cycles in Santa Monica, CA. “After I talked with them and found out their riding needs, I simply asked if they had ever heard of Trek e-bikes. When the answer was no, I explained the bikes and immediately got them on a test ride. When the couple returned, the woman said, ‘I wish you would not have shown us these bikes!’. They both then proceeded to purchase the Lift+, a $6,000 sale.” > The test ride is crucial. The minimum demo order required is 3 units for all certified retailers. > Before a customer leaves for a test ride, make sure that he or she knows how to regulate the power assist levels and shift the gears.
stock the product Make sure you have what they’re looking for You cannot sell what you don’t have. Make sure this isn’t a barrier to a sale by stocking the appropriate products for your location and customer base. See below for a complete view of the requirements. A total of 9 units per location is the minimum requirement.
RIDE+ program
Minimum stocking order
6 units
Minimum model count
2
Minimum demo order
3 units
Demo pricing
15% off Level 1 pricing
Freight (not UPS compatible)
Normal freight rules apply
Terms
1/3 each 4/10, 5/10, 6/10 or 1% 4/10 net 5/10
Stocking order price protection
Through 6/1/2016
POP kit
Yes
Stocking retailer exclusivity
Yes
Retailer Locator call-out
Yes
merchandise the product
It’s all about the display A full e-bike POP package including base mount sign, trainer cover, and handlebar talker is available for display and is a strategy crucial in leading to test rides. Make sure this is a two-part process: First, getting customers on the trainer to experience what electric assist is in the retail environment, and second, getting customers out the door and on your demo fleet to experience the product in a real environment.
train the staff You can only sell what you know Make your staff e-bike experts quickly with the full archive of e-bike modules available on Trek University, Shimano S-Tec, and Bosch online training programs. The products your staff know best are the products that sell best. A voluntary study of select Trek retailers showed employees earning Ninja status in Trek University sold $16 more per hour worked (on average) than their non-Ninja co-workers.
Top 5 most frequently asked questions 1. Is it legal to ride on the bike path?
4. How long does it take to charge?
Yes. However, laws can vary from state to state, depending on local municipality. Make sure you’re familiar with what the laws are in your specific region.
2. How much does it weigh?
All Trek e-bikes weigh roughly 45lbs. Although this seems like a lot, weight is a minimal factor when the bike is moving.
3. How fast does it go?
The XM700+ has a max assist speed of 28mph. The Lift+ and Conduit+ have a max assist speed of 20mph.
A battery takes roughly 4.5 hours to charge if a full charge is needed.
5. How far can I go on a single charge?
The XM700+ can go up to 25 miles on a single charge at the max assist level (28mph). Because the Lift+ and Conduit+ have a lower max assist speed (20mph), a single charge can go anywhere from 30-40 miles, depending on the chosen assist level.
Go Electric What millions around the world have known for years is finally gaining traction in a place electric bikes may have the biggest impact. The electric bike’s time has arrived. Trek Ride+ bikes are designed to extend your ride, bringing your cycling to new levels of comfort and performance with the gentle assist of a powerful frame-mounted motor. The technology behind Trek’s comprehensive line of electric-assist bicycles has been refined over years of development, in the United States and Europe both, where thousands of Ride+ bikes are ridden each day on streets from Los Angeles to Zurich.
An unfair advantage? If having fun, riding longer distances with less effort, and ditching the car gives cyclists an unfair advantage, then so be it.
Guide to growing your e-bike business - v1/JAN. 2016