Business For Sale

Iconic Cycling Shop - $130k SDE + $200k Inventory

Leucadia, CA
San Diego County


Asking Price: Annual Revenue:
$325,000 $600,000

Retail: Sporting Goods, Recreation


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RE: Iconic Cycling Shop - $130k SDE + $200k Inventory Broker: Nick Mercuro
License #: 02050937

Quick Facts

Asking Price: $325,000
Annual Revenue: $600,000
Net Profit: Not Disclosed
Cash Flow: $130,000
Total Debt: Not Disclosed
FF&E: $10,000
Real Estate: Not Disclosed
Year Established: 1978
Employees: 1990
BBN Listing #: 617752285
Broker Reference #: Not Disclosed

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Business Overview:

Includes ~ $200,000 in Time, Klein, other high end (Carbon Fiber) frames owned well below wholesale.

Located in the picturesque beach community of Leucadia, in the city of Encinitas is a cycling business that has endured and prospered for the past 40-years. The current owner, Fred, has operated the business for nearly 3-decades. He’s now ready to retire and pass the business on to a highly energized new owner.

Fred was perceptive regarding the competitive challenges and risks the internet would present to the retail cycling industry. He recognized it represented a game changer for the industry and sought a way of insuring Leucadia would continue to remain a viable retail business in the years to come. While there will likely always be a place for a brick and mortar bike shop, given the need for repairs, maintenance and professional advice, product sales and accessories were being put under intense pricing competition from the internet.

Given his years in the industry Fred recognized that frame manufacturers had periodic cash flow pressures given their long sales cycle from design, to manufacturing, to sales to bike shops to finally getting paid. He took advantage of manufactures frequent need for cash by offering them immediate payment on large orders of highly discounted frames.

Using available capital he had accumulated, Fred would buy frames by the container from top brands like “Time” & “Klein” for pennies on the dollar. This has enabled Fred to price his fully customized and built-out bikes at highly competitive prices all while working for great margins.

Fred continues to retain a considerable inventory valued at $200,000 (original cost) of these high quality frames that he’s willing to include in the sale price of the business, all at his original cost. This will permit a new owner to continue to be highly competitive while enjoying great profits. The business currently generates nearly $600,000 in sales and $130,000 in net profits, in spite of Fred scaling back his hour’s considerably in recent years.

Leucadia continues to enjoy high margin new bike sales creating new loyal clients that returns again and again for tune-ups and accessories, etc. Given frame manufactures propensity to marginally decrease quality in order to maintain pricing, Fred’s inventory is not only priced well below replacement, but is also generally superior in quality to this year’s models.

A new energized owner can build on Fred’s years of hard work and large loyal client base. There are clearly things a new owner can introduce in order to grow the business from its current status. Over the past few years Fred has begun to scale back his hours. He also admittedly has not used social media or re-engineered an updated website. He’s delayed introducing increasingly popular motorized bikes, although he does do a robust business in high end tandem banks.

Please refrain from contacting the owner directly. If you would like to learn more about this opportunity please submit a request for an NDA and we will get all available information to you and facilitate any data requests.

It’s difficult to envision a more idyllic location to own a bike shop than in the cycling inviting community of Leucadia/Encinitas!

To request more information regarding this listing, simply check the ADD TO REQUEST INFO BASKET button and when you are done searching and have made all your selections, simply click on the REQUEST INFO button at the bottom of the page.

Reason for Selling:

Retirement

Additional Details:

  • The property is leased.
  • The owner is willing to train/assist the new owner.
  • This is not a homebased business opportunity.
  • This is not a franchise resale opportunity.

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