The idea of a Scooter Store - A longer read.

[mr pibbs]

As a younger man with few ties and debt I began thinking the other day about the prospect of throwing caution to the wind and opening a Scooter Store/Shop. No, i don't have skills or money, but the Thought of working with my hands on something I enjoy seems inviting.

I considered this for a bit before remembering the tale of one scooter shop opened this past summer. It was a upscale operation that renovated a 1940's Gas Station into an inviting retro scooter store. It was in a nice neighborhood where the rent was probably not cheap.



The story is best told through some articles that are quoted below. I cut them up to make it a quicker read.
Note the Dates.

Scooter shop moves in to old SoHo gas station
A long-vacant 1940s gas station building now is home to a colorful collection of gas sippers.

SoHo Scooters opened in early April at 401 S Howard Ave. Owner Tom Anderson has renovated the art deco building, which has been unused for 15 years, into a showplace for gas-powered scooters both retro and sleek.

After gas prices shot up last year, Anderson sold his ATM business and began making plans for a scooter shop. The goal was to bring quality scooters to South Tampa, he said, offering them both for sale and for rent and providing owners with reliable service.
...
Anderson's scooters, meant for travel at speeds up to about 35 mph, range from $1,199 to $2,500 and come with a three-year warranty. Rentals start at $25 for two hours, and $65 a day.

Anderson said he plans to offer classes for new users on Wednesday evenings and Saturday mornings. Hours at SoHo Scooters are 10 a.m. to 7 p.m. Tuesday through Saturday and noon to 5 Sunday.

Article #2

...
About 20 years ago, Anderson opened a personal watercraft business, Banana Bay Ski Co., along the Courtney Campbell Causeway before joining the corporate world. He sold his ATM business to open the scooter shop.

"I felt it was about change," said Anderson, who commutes from his South Tampa home to work on a scooter. "We need to get away from our dependence on fossil fuels and find a more socially responsible way of getting from point A to point B."

He said scooters make sense for South Tampa. Although not optimal for highways, where competition with cars and the draft they produce make driving a workout, the smaller, in-town roads are perfect, he said.
...
Since opening in April, a scooter club has started gathering on Sundays at the shop to spend the day exploring town on two wheels.
...
The club, Always Looking For Fun, has grown to about 15 people. Because of the popularity, they soon will be starting a Web site.

Article #3. Note the Date.

Scooter store doesn't find enough riders
If you're looking for signs of an economic recovery, you won't find any at 401 S Howard Ave., where the scooter store that opened in April already has closed its doors.

Tom Anderson said his SoHo Scooters generated a lot of interest during three months in business, and he won raves for his retro-style renovation of an old gas station.

But the scooters just didn't sell.

"Everybody was very positive," he said. "But the people who really needed them couldn't afford them and the ones that could afford them weren't spending any money."

Anderson's gas-sipping scooters were generally priced between $1,200 and $1,500 and "people were amazed at how cheap they were," he said. "All the research I did in hindsight may have been tainted by gas reaching $4 a gallon."
...

So, I'm guessing the number of scooters sold can be counted on one hand. I don't know any details, but It sure seems like a downer. The prices seem reasonable, though I am sure they are some cheap scooters.

Any thoughts are welcome.

Links:
Article #1
Article #2
Article #3
[url=htto://www.sohoscoots.com]Sohoscoots.com[/url]

[sanjuro]

Scooter retail has got to be one of the hardest business to be in. It's so true, the people that really need them don't have any fuggin' money.

[noiseguy]

The money thing is an issue. Also, there were a lot of shops that did a lot of business b/c of the $4/gallon gas. Once that went away, consumers shifted back to cars and the shops are having problems staying in business.

I think on a shop like this, being able to arrange financing to deal with the "buyer has no money" problem would be key. You need to work within multiple price points for bikes sold (low, midrange, high) depending on your target market. And you need to hit all the bases; dealerships are about a 33/33/33 split between bikes sales, service, accessories sales. If one of these 3 legs isn't working, you're underutilizing the facility.

For a shop that looked that good, he should have been selling lattes, and get people to pay just to hang out.

[mr pibbs]

For a shop that looked that good, he should have been selling lattes, and get people to pay just to hang out.

Interesting perspective and knowledge. I think you might be right about the lattes - would have made a lot of sense with the club that formed.

I still love the idea of working on scoots all day and selling them to unsuspecting... i mean, excited young people.

[eliteguy50]

It's so true, the people that really need them don't have any fuggin' money.

true, but I was suprised at how easy it is to get one. One of my friends only pays $39/month (thats only $468 a yr) for his new ruckus and a co-worker is paying $51/month for her new Zuma.

[sanjuro]

A scooter is one thing I'd never want to finance. I'd rather save $2k and be done with it.

[eliteguy50]

A scooter is one thing I'd never want to finance. I'd rather save $2k and be done with it.

that is my feeling too. I don't remember which one of them it was, but they will be into a 50cc stock scooter for $4600

[mr pibbs]

I like to pay cash for things as well. Hope to buy my next car as such. But $40-50 is less than some folks spend on coffee in a month.

Gosh, makes me want to go buy a new scoot.

[novs86]

A scooter is one thing I'd never want to finance. I'd rather save $2k and be done with it.

that is my feeling too. I don't remember which one of them it was, but they will be into a 50cc stock scooter for $4600

Wow... The idea of paying $4600 for a Ruckus or Zuma is scary!

[wikked_spree57]

I've been selling scooters out of my garage for 3 years, and I have to say, peak of business for sales is April thru June. I have lots of used bikes by then ranging from $200 to $700 and I'll have a huge garage sale and put them out in the front yard, normally my first gig is around May when it gets into the 70's for temp, and I sell at least 2 a week during that time.

which is why I scour Craigslist all the time looking for junk bikes to restore, or easy fixers. I typically get $275 for a decent looking and good running Spree, and last year I sold two Elite S's for around $550 each. Once the sales kick is over, I'm making $20 an hour wrenching on them, making them faster, getting them running, etc and it still turns good cash around here until about August or September.

I will never move this clad into a commercial shop, since I don't make but barely enough to keep one open. I call it Super Mopeds....

[noiseguy]

I essentially did the same thing over the summer; buying and fixing bikes to sell. Gotta say, though, I only sold 1 Spree for less than $400, and that was b/c of a burnt-out headlamp. The rest sold for $400. It was good pocket money, but not enough to live on by any stretch.

I looked briefly at carrying new bikes and starting a shop. I decided I couldn't make enough to make a go of it once I figured in the overhead and opportunity cost. It's such a seasonal business; that's why the apparel and aftermarket is such a big deal.

[AstroVannin]

I essentially did the same thing over the summer; buying and fixing bikes to sell. Gotta say, though, I only sold 1 Spree for less than $400, and that was b/c of a burnt-out headlamp. The rest sold for $400. It was good pocket money, but not enough to live on by any stretch.

I looked briefly at carrying new bikes and starting a shop. I decided I couldn't make enough to make a go of it once I figured in the overhead and opportunity cost. It's such a seasonal business; that's why the apparel and aftermarket is such a big deal.

What if you DID cary the new bikes and had an arangment with an outside finance company, that way you could do it all on credit .. including a bunch of performance parts you could work into the deal. You get the proffit on the bike, parts, and a kickback from the lender.

Obviously, this doesent do ANYHTING to the seasonality curve ... but it does mean there some extra proffit in the deal, as well as allowing you to sell more bikes with inhouse financing.

Just a passing thought

[mr pibbs]

The curve of a season is not something we expirence here in Florida. While many might envy us (and california and hawaii, etc.) the truth is that it breeds complacency and lethargy.

People think that because i live in florida I am outside all day and am at the beach every weekend. Truth is, because the mostly nice weather is always there we don't appreciate it as much - we don't utilize it. Scooters sales rather than being an average of boom and bust all year reflect more sub par performance all year. Yes there is change over the year and many more variables at work, but the attitude is prevalent.

When I lived in fargo it was crazy. After 6 months of winter folks ran outside at any sign of 30 degree temperatures. It was like you steped on an ant pile and everyone ran out.

[noiseguy]

Seattle's the same way; if the sun's out the offices all clear out.

[veedubh20]

The hawaii islands,, mopeds sell fast! Here are good business, Moped rentals and repair shop. Here the gas around $3.30 . Moped are everywhere on the road.

If ,gas hit $ 4.00 a gallon. Price of a moped will goes up and high demand.


Hawaii has the best weather than any states!