Study asks - How Does a Bike Shop Know What to Buy?
Posted on in Business News , Cycles News
A new study conducted by the Department of Industrial Engineering, Capital University of Economics and Business, Beijing, says a bike’s cost and the income of the buyer play the biggest roles in determining what will make money.
The study says, “businesses in the bicycle market face the challenge of accurately predicting sales to ensure optimal inventory management, production planning, and customer satisfaction.”
The study looked only at correlation and could only speculate as to cause. Possible economies of scale present in large orders increased profit only slightly. But when people are willing to pay more for a premium product, profit rises. The authors suggest further research into factors they didn’t explore, such as national policy, season, and local terrain.