Pedelecs and e-bikes reach the highest average price in the German bicycle trade. Customers pay for additional comfort and functions––a great chance for bicycle dealers.
According to ExtraEnergy estimates, 250,000 electric bikes were sold in Europe in 2007. In 2008, this number will be higher. All the positive media reports have created a new perception of electric bikes among people of any age. They are not the strange granny's bikes anymore but a serious alternative to cars and other polluting vehicles. This change of trend was obvious at the bicycle shows Eurobike and IFMA this year. Visitors were very open towards pedelecs and e-bikes and showed positive interest and curiosity towards new forms of mobility and vehicle concepts.
Pedelecs sell for highest average price
On September 4, 2008, the German bicycle dealer magazine SAZ published a research, which showed that people in Germany spend more money on pedelecs than on any other bicycle category. This statement means that the customer is really paying more money for the added value he gets from an electric bike com-
pared to a regular bike (faster and more comfortable, riding uphill or against head wind with ease, carrying loads more easily). The average sales price for a pedelec in Germany is 1,685 Euros (last year it was 1,639 Euros). This is a little less than in Holland where a pedelec typically costs 2,000 Euros.
Other bicycle types cost less
According to the SAZ survey, the average retail price of other bicycle types in Germany is lower compared to pedelecs:
1,523 EUR full suspension mountain bikes
1,456 EUR special bikes
1,353 EUR racing bikes
743 EUR hardtail mountain bikes
702 EUR trekking bikes
520 EUR all-terrain bikes
517 EUR city bikes
273 EUR kids' bikes
Price gap will increase
In his presentation at LEV Conference in Cologne on September 19, 2008, Hannes Neupert refered to the SAZ statistics. The President of ExtraEnergy antici-
pated that the price-gap between electric and non-
electric bicycle types will increase in the future. He still sticked with this prognosis when admitting that there will be more low-priced pedelecs in the German market also. But these will still cost around 1,200 Euros with acceptable quality, said Mr. Neupert.
Retail happier with e-bike sales
In summer 2008 SAZ asked 365 german bicycle dealers how satisfied they are with their sales of different bicycle types. The dealers represented dealerships and retail stores of 250,000 to 5 million Euros turnover per year. Covering such wide range they provide a repre-
sentative picture of the German bicycle market. According to the dealers's statements, sales of electric bicycles are better now than in previous years. 17% of the interviewed dealers rated their electric bikes sales “very good” compared to only 12% last year. 13% rated their electric bike business “very bad” which was a big improvement to 20% last year, SAZ found out.
The article in the September issue No 15 further reports that prices have also changed compared to 2007. The number of low-price electric bikes has decreased from 18% in 2007 to 6% in 2008. Consequently, 34% of the dealers sell their electric bikes at prices up to 1,700 Euros. Other 31% of electric bikes sell between 1,700 and 2,000 Euros. Due to this price shift, the average retail price increased from 1,639 Euros in 2007 to currently 1,685 Euros.
Winners and losers in retail business
On the basis of the SAZ analysis Mr. Neupert con-
cludes that bicycle dealers, who let the pedelec pass
by their business, will have to cope with a significant decrease in turnover. Dealers who become experts in electric bikes, however, have the unique chance to increase their turnover and make more profit.
Great chance for dealers
It should be worth the effort, if sales numbers really
rise as ExtraEnergy predicts. For the year 2018 Mr. Neupert’s organization expects sales between 1.5 and 3.25 million pedelecs per year––in Germany. Compared to the number above 120.000 pedelecs, which will probably sold in Germany this year, seems almost nothing. The industry, however, celebrates this year’s sales as great success – and they are right when looking back at the tiny sales only a few years ago. Trade magazines such as Bike Europe talk about the break through of electric bikes with turnovers that remind of the mountain bike boom. When looking at the mentioned potential, we are now at the very beginning
of a new era in transportation. This new type of two-
wheelers may bring huge profits to the retail business.
ExtraEnergy tries to draw the attention of bicycle dealers to the chances and challenges in LEVs. Providing important information for a successful business is the major task of events such as the dealer training at IFMA 2008.
Statistics on average prices and sales ratings
October 19, 2008