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Make Money Selling Electric Bikes

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Title: Make Money Selling Electric Bikes


1
Make Money Selling Electric Bikes
  • Light Electric Vehicle Association
  • Ed Benjamin, Larry Pizzi

2
Exciting Opportunity
  • Electric bikes remind me of what I hear was said
    about cars around 1910 Interesting, but they
    will never replace a good horse and buggy.
  • The dealers that invested in cars, and taught
    their community to buy the new machines from
    them, have been the transport providers to their
    community through nearly 4 generations.
  • A similar opportunity exists today Teach your
    community that you are the source for electric
    two wheelers. You, your kids, and your grand kids
    will benefit.

3
About the LEVA
  • International association focused on the
    promotion of Light Electric Vehicles Electric
    bicycles, electric scooters, electric Trikes,
    etc.
  • 112 members from 18 countries.
  • Volume of gross sales of all members combined
    Nearly 500 million USD.
  • LEVA members are making money and participating
    in the newest transportation industry already
    4th largest category world wide.

4
LEVA Board
  • Chairman Ed Benjamin
  • Executive Director Sid Kuropchak
  • Board Members
  • Larry Pizzi, Currie Technologies, USA
  • Dr. Hon, Dahon Bicycle, USA and China
  • Masao Ono, Tokyo RD, Japan
  • Naveen Munjal, Hero Bicycle, India
  • Eddy Eccleston, MUI, Tunisia
  • Jack Oortwijn, Bike Europe, Holland

5
Mission Statement
  • The Light Electric Vehicle Association's purpose
    is to provide services and assistance to light
    electric vehicle companies by helping to
    establish a favorable operating environment, by
    providing a forum for discussion and networking,
    an industry voice on non-competitive information
    sharing issues, and to assist them in the
    promotion of their business on an international
    basis.
  • LEVA will standardize, track and analyze
    industry data by developing a glossary of terms
    and definitions and conducting surveys of members
    with follow up reporting to members.  As a voice
    of the LEV industry, we will develop service,
    quality and safety standards, as well as the
    standardization of performance.

6
USA Market
USA Sales in 2008-09, including DIY kits, are
estimated up to 200,000 units. The value of this
 business is estimated at  up to
140 million retail dollars. 
7
ebikes have had a rough history
  • IBDs have had some rough experiences concerning
    quality, reliability, parts availability, and
    vanishing vendors.
  • New industry turmoil in vendors is normal. Some
    vendors now more than a decade old. Others have
    experienced staff.
  • Quality is much improved.
  • Pay attention to warranty, and how the warranty
    is serviced.
  • There are still brand new players with OTS
    Chinese bikes that will not satisfy the IBD. Be
    wary.

8
Consumers More Interested Than Bicycle Dealers?
  • Most IBD customers are willing to sweat, willing
    to go to small specialty store, do not have
    affinity for motorized two wheelers. Maybe 5-7
    million in the USA?
  • Most Americans are very much in favor of motors,
    do not enjoy sweating, and buy primarily from
    mass merchants. Maybe 270 million?

9
Consumer Reasons to Buy LEV
  • Cost of Fuel
  • Green consciousness
  • DUI (more DUIs in your state than sport
    cyclists?)
  • Interesting gadget
  • Easier to pedal cycle all the benefits of
    cycling without worrying about the hill or the
    wind.
  • Commuters

10
Reasons for Growth
  • Cost of Fuel
  • Parking
  • Traffic congestion
  • Carbon reduction
  • Availability of Fuel

11
Interesting New Book
12
Projected Growth
  • Benjamins projection
  • By 2015, 10 of USA bikes sold will be electric
    bikes. Call it 1.5 million.
  • Butthese bikes will represent 1/3 of the dollars
    brought in by bike shops, and almost all of the
    profit.
  • By 2020, 40 of all bikes will be electric.

13
LEVs World Wide
  • China nearly 1 in 2 bikes sold are electric. 21
    million in 2008-9, 100 million in use today.
  • EU 750K in 2009, Holland 1 in 4, Switzerland 1
    in 10, Germany approaching Holland numbers. Up
    from less than 100K 5 years ago.
  • Japan, India, Vietnam, all sizeable markets.
  • 170 nations bought ebikes from China in 2008.

14
How to Make Money Selling Electric Bikes
  • Make sure that your shop is relevant in this
    emerging eBike category?
  • A window of opportunity is open, but you need to
    act now.
  • Waiting to see how it all shakes out over the
    next few years will be too late.

15
How to Make Money Selling Electric Bikes
  • Understand how Consumers view your store.
  • Consumer perception must be that you are a
    creditable source for LEVs. That requires
  • Selection
  • Presentation
  • Trained Staff
  • Demos Test Rides
  • After Sale Service
  • Dont let this be the customer experience in your
    store
  • When we would go into Bike Shops and ask about
    electric bikes, 9 out of 10 peopleyou know with
    shaved legswould sort of look at us with a
    shocked pity
  • Listen to this NPR story on All Things
    Considered by John McChesney

16
Selection of Product Vendor
  • One brand or just a few models wont do
    Consumers demand selection
  • Good, Better, Best
  • Quality products at various pricing points
  • Just like a bicycle, eBikes are function specific
  • Different models for different intent
  • Must be appropriate for your market
  • And more importantly, choose the right vendors
  • Can they support the product?
  • Warranty and Replacement parts
  • Technical and trouble shooting guides
  • Sales training and support materials
  • Will they be there when I need them?
  • New start-up or well established company?

17
Training Sales Staff
  • Right Attitude
  • Passionate about the product
  • Must be able to transfer your enthusiasm
  • Be proud of the product
  • Product Knowledge
  • Learn the details to sell and up-sell each
    product
  • Batteries, drive systems, method of motor
    actuation, user controls
  • Actively use the product and understand how it
    functions
  • Study training materials from Vendors and
    leverage Vendor reps when available
  • Manage Expectations dont rely on vendor claims
  • Understand realistic range and variables
  • Understand realistic speed and variables
  • Understand realistic motor wattage/torque and
    variables
  • Understand battery care realistic battery life
  • Know local and state laws that govern use

18
Training Sales Staff
  • Train to develop customer relationship skills
  • Ensure you ALWAYS have trained staff available
  • Ask questions to understand where they are in the
    buying process and their lifestyle reasons for
    wanting an eBike
  • Economic, Commute, Neighborhood Transport,
    Environmental, Health Fitness or Fun
  • Recommend specific models that might meet their
    needs and budget
  • Accessorize!
  • Train to develop strong Demo and Test Ride skills
  • Have a dedicated test ride fleet
  • Make sure they are regularly maintained and
    batteries fully charged
  • Develop a Safety review pre-ride checklist
  • Develop a waiver form
  • Suggest a test route, with hills if possible.

19
Answering Common Questions and
Objections
20
Demonstration and Test Rides
  • Strong Demo and Test Ride skills
  • Conduct a safety review go over your pre-ride
    checklist
  • Fit a helmet and get waiver form signed
  • Adjust saddle height and educate on use
  • Ride along if possible and do some suggestive
    selling
  • Make sure they are smiling (almost impossible
    not to) but if they are not, it generally means
    they are either uncomfortable or dont understand
    how to use the eBike.
  • Post demo test ride ask for the sale because
    generally they are thinking Ive gotta have it!

21
After Sale Service
  • Upon delivery
  • Set-up and adjust saddle and HB position
  • Check and explain importance of proper tire
    pressure
  • Review proper use of user controls
  • Review proper charger use and battery care
  • 30 Day check
  • Explain importance of coming back in for a minor
    tune and adjust or check-over
  • Great opportunity to sell additional accessories
  • Review and reiterate battery care
  • Annual Tune Up
  • Set the expectation from the start that annual
    service is required
  • Tires, Brakes, Batteries need checked and
    replaced as necessary

22
Service Staff Training
  • Assign a EV Tech Expert to the category
  • One person that can get comfortable with the
    product details and train other staff
  • Assembly and set-up
  • Mechanical
  • Electrical
  • Vendor service manuals
  • Best time to review is while setting up new bikes
  • Vendor trouble shooting guides
  • Review for understanding and refer to as needed
  • Vendor technical support
  • Develop vendor relationships
  • Ask questions if you are unsure

23
Selling Service for Better Profits
  • eBikes Generally require more service then a
    recreational use bicycle
  • Used more frequently
  • Accumulate more miles
  • Heavier the regular bicycles
  • Tire wear and tear
  • Battery replacements
  • Cycle life diminished capacity
  • Second battery pack
  • Second charger
  • Service providers are currently not readily
    accessible in most markets
  • Opportunity for premium

24
Strong Profit Opportunity
  • ASPs are higher
  • More margin dollars then regular bikes
  • European Dealers have figured this out quickly
    and are capitalizing on this.
  • GMs are generally higher on upper price points
  • 40 free freight from some vendors
  • Less price driven cut-throat competition
  • Inventory investment lower then regular bikes
  • Fewer SKUs (size and color)
  • More limited assortments
  • Increased overall store traffic
  • Bringing in NEW consumers
  • Bringing back old (aging) consumers

25
Become the LEV Source in your Community
  • It seems only natural that a bike shop is where
    consumers would look for an eBike however this is
    not currently the case
  • Bike shops have been very slow to embrace the
    category
  • And, many Dealers seem to second guess the strong
    market indicators
  • This phenomenon has left the door wide open for
    other retailers to grab this emerging market and
    become more relevant then a bike shop to the
    consumer looking to buy an electric bike
  • Take advantage of this once in a lifetime
    opportunity to help shape the market and
    establish yourself as THE SOURCE for Light
    Electric Transportation in your community

26
Make Money Selling Electric Bikes
Questions?
27
Light Electric Vehicle AssociationWould like to
thank our Interbike Seminar Sponsors
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