Pemium bike sales grow as customers 'trade-up' on big ticket items
Posted on in Business News , Cycles News
UK retail sales increased by 1.8% on a like-for-like basis in June compared to the same month last year.
The figures published by the British Retail Consortium and KPMG in their monthly shop price index show that the growth was the strongest since January 2014, excluding Easter distortions, and compares with a 12-month average of 1.6%.
Helen Dickenson of the BRC said "We saw welcome signs of growing consumer confidence, with people more willing to ‘trade-up' and spend a bit more on big-ticket purchases, likely boosted by the growth in the supply of credit and other factors such as low inflation and rising real incomes.
"Some of the measures outlined by the Chancellor in last week's budget are likely to help boost consumer confidence even further, with measures like the continued freeze in fuel duty and the increased personal tax allowance ensuring consumers have more money in their pockets to spend."
In a separate report released today, Halfords have announced that a 3.5% rise in first-quarter like-for-like sales were driven by sales of premium bikes and its cycle repair services.
Sales of premium bikes rose 8%, while revenue from cycle repair jumped 24%. Overall cycling like-for-likes rose 2%.
Give your customers the opportunity to 'trade up'
Consumers like the idea of being able to "buy now, pay later" and have even come to expect some sort of financing option alongside a large purchase whether it's a car, bike, furniture or electronics.
With Retail finance, the customer gets the bike and accessories of their dreams immediately at a price they can afford, whilst for the retailer, finance is a great tool to upsell and increase the average spend.
Research has shown that consumers who use retail finance either purchase more goods or higher priced goods. It helps retailers to introduce the idea of a premium product or add-on accessories by helping to make it more affordable to the customer.
Start offering retail finance today!
There are currently over 750 retailers offering finance through the ACTs Ride it away scheme, accounting for £60m of new sales every year!
If you aren't currently offering finance, you are missing out on the growing number of consumers wanting to purchase high-end bikes. With over 750 retailers offering the service, your customers could soon find their way to competitors who do offer the finance options they're looking for.
Ride it away is available to any cycle's business who will benefit from:
Free V12 set-up worth £495- Personal support throughout the application and FCA authorisation process
- No minimum finance turnover requirement
- Payment issued by V12 same day and in your bank within 4 days
- National promotion on the Ride it away and Take it outdoors consumer websites
- Access to FCA compliant POS material
- Access to web banners for use on your own website
Click here for more information about the Ride it away scheme
Get started for free
The FCA announced on 18th March that retailers offering limited retail finance options are no longer required to be authorised by the FCA. Retailers who offer 0% (interest free) finance up to 12 months will no longer have to be authorized and regulated by the FCA, or be liable for the annual fees and charges involved with being regulated.
However, whilst retailers no longer need FCA authorisation to offer the basic 0% option, ActSmart and V12 have created a wide range of product options which enable retailers to offer their customers different APRs and protect their margin. In order to fully utilise all the product options available you will still require FCA authorisation, which costs just £100.
With more customers feeling confident in their ability to pay back their loans, the interest bearing options are just as popular with consumers as the 0% options.
What next?
Click here to find out more and request your free application pack or contact us on 0845 618 7256.