Is owning a bike shop profitable in South Africa?

Learn if owning a bike shop is profitable in South Africa.

Is owning a bike shop profitable in South Africa?

Do you dream of opening a bike shop of your own in South Africa? Do you want to find out if it will be a successful venture to run your own bike shop in South Africa? In order to give you a better knowledge of what to expect, this article will break down the profitability of an average bike shop in South Africa.

Not that long ago, there was a golden age of bicycles when they were super cool and everybody wanted to get one. That was largely influenced by how people used to socialize at the time, social media now keeps people busy and some don’t see a need to own a bicycle.

Does that mean there’s a dying bicycle industry in South Africa? No!-No! Far from that in most countries around the world, there is still a massive market for bicycles in South Africa. As there are individuals who ride bikes for a living as a sport, bicycles can never die out. This ensures that the market for better bikes will still be there. Let’s look at some of the expenses involved in starting a bike store in South Africa.

Cost of starting a bike shop in South Africa

  • Licenses or permits in South Africa – Licenses or permits can mean just making sure you are licensed with your company in South Africa. There are no special permits required in most countries to operate a bike shop.
  • Operating premises in South Africa – In deciding how successful your bike shop is in South Africa, operating premises can play a huge role. Generally, relative to smaller towns, running premises in major cities would be more costly.
  • Inventory – You’re going to have to pay some inventory dollars; these are the bikes you’re going to be selling in South Africa. At least you can start with a minimum of 10 bikes, depending on your target market, how much they cost. This is only to provide a broad option for your customers to choose from in South Africa. If you do not run the company alone and other costs that primarily involve utilities such as stationery and day-to-day operating expenses, other costs can include recruiting workers.

How much do bike shops make on average in South Africa?

The average profit made on a $3000 bike sale will be around $600 when all costs associated with operating a bike shop are taken into account in South Africa. If the costs are minimized, this number may be taken down. On bikes, the average profit margin is 34%, which is a good amount.


It is lucrative to own a bike shop in South Africa, people who run these shops are typically people with a passion for biking and they seem to do a much better job of creating a thriving bicycle business. Do you have any questions or thoughts? feel free to comment below and share

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Keith Rainz

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