Bike Agency Business in India [bike agency kaise le] Franchise Cost, Investments, Profit Margin]
A bike is the first option to strike a man’s mind right when he becomes eligible for driving. Among the youngsters, riding a bike or scooty has become a fan-favorite. The immense popularity of bike and scooty has made manufacturers sell these vehicles even in rural areas and small towns. In fact, at present, riding a bike or scooty on road has become the best mode of traveling fast and seamlessly. Several companies in India currently are seen continuing for employing the dealers at various locations. And this offers them a profit in the business. So, in regards to the popularity of bike agency, there are people who want to try investing in developing a bike agency and making a profitable business. This is exactly the reason why investors keep an eye on the Internet to have a fair idea about how to start a bike agency business in India. To know more, keep reading on.\
An Introduction to a Bike Showroom or Agency and the business
In case you already own a two-wheeler, then you are well-aware of what exactly a bike agency or showroom is all about. But if you are one of them who hasn’t yet given the opportunity of owning the dream bike, then you should concern on knowing about a bike agency or showroom. It is a place where individuals are given the license to learn about the bikes and eventually go for the purchase. Companies manufacturing bikes in India employ the distributors as well as dealers in various cities for selling the bikes. The business is better known as the Bike Agency Business.
Eligibility Criteria for Owning a Bike Agency
The first thing that strikes everyone’s mind is that whether or not they are able to open a particular company’s bike agency. Anyone aiming at starting off a bike agency business is eligible to do so, but there are certain criteria to know. As a matter of fact, the companies offering the dealerships haven’t mentioned any educational qualification. So, the only criterion for starting off a bike agency business is to invest a minimum of Rs. 5 lakhs and above in the business.
What’s the estimated cost to start off a bike agency business?
The estimated cost of initiating a bike agency businesscan vary from companies to companies. The reason is due to the fact that the dealerships of companies offer various policies. While some companies can take brand fees, others might take other fees as well. As a matter of fact, the company can also recover those brand fees from their respective dealers. Other companies might not ask to deposit any money for the dealership. Mentioned below are some of the estimated costs.
- A bike Showroom – Anyone who focuses on building a bike agency business will have to invest a total of 15 to 25 lakhs on the workshops and interior. And the cost entirely depends on the area of the showroom.
- Buying vehicles (if necessary) –There are companies which can offer two-wheelers to their dealers on the credit. However, there are other companies which certainly don’t offer the vehicles. Hence, the business requires buying the vehicles to make a profit. However, in the beginning, the entrepreneur must keep the stock with respect to anticipations concerning the selling figure.
- Working Capital –The entrepreneur might think that he can sell a total of 100 o’clock per month. The average cost of a bike or scooty is about Rs. 50, 000. As far as this data is concerned, the entrepreneur might require working capital of 100 x 50000, which comes to50, 00, 000.
- Bank Guarantee –Anyone initiating this business would require the spare parts in order to open the agency. Hence, the entrepreneurs might also need to offer a total of 10 to 15 lakhs for the spare parts.
- Cost for Spare Parts –As a matter of fact, companies also demand the bank guarantees ahead of offering any dealership.
How do companies help in opening bike agencies?
- The support offered to the entrepreneur initiating bike agency business can vary from company to company. And various bike companies can offer various types of support to the dealers. However, the below-offered supports are offered to the dealers by the companies.
- 2. Drawing, Layouts, Interior Designs – The companies offer various kinds of drawing, layouts, and interior design. This is done in order to establish the workshops and showrooms. The entrepreneur has to set up the agency accordingly.
- Training – Any kind of training will be provided by the entrepreneurs to the dealers in order to initiate a bike agency business. Apart from that, employees who are working in the agency will also be trained with proper instructions given by the company.
- Specific training for the sales team – Marketing is a challenging affair but at the same time, it is important to increase the sales figure. Hence, the bike company will provide specific training like customer handling, specifications, and sales process.
In case the entrepreneur has enough money for investing in the bike agency, then he can imitate in starting the business seamlessly. But the ones with a marginal amount of money aren’t advised to start such a business. However, for the ones who aim at starting the business, this would be extremely beneficial concerning the earnings and sales figure.