This article was written by our expert who is surveying the industry and constantly updating the business plan for a bicycle shop.
Thinking about the service revenue percentage in a bicycle shop? Here is a clear, numbers-first guide based on current (Oct 2025) benchmarks observed across independent retailers.
Service is usually 10–25% of total shop revenue in normal conditions and can temporarily reach 60–65% when bike inventory is tight. Labor on repairs is the highest-margin activity and should anchor your profitability model.
If you want to dig deeper and learn more, you can download our business plan for a bicycle shop. Also, before launching, get all the profit, revenue, and cost breakdowns you need for complete clarity with our bicycle shop financial forecast.
Independent bicycle shops typically earn most revenue from product sales, while service drives a smaller share of revenue but a larger share of gross profit. Use the following numbers as practical planning guardrails for staffing, pricing, and monthly targets.
Aim for a strong service department with clear pricing, efficient workflows, and systematic upselling to lift ticket values and stabilize profits year-round.
| Metric | Typical Value / Range | What it means for a bicycle shop |
|---|---|---|
| Service share of total revenue (normal) | 10–25% | Baseline for planning; adjust staffing and bays to comfortably deliver this mix. |
| Service share in inventory shortages | Up to 60–65% | Hedge against supply swings; keep backlogs and scheduling tight. |
| Labor-only share of total revenue | ~10–15% (can exceed 25%) | Core profit engine driven by repairs, tune-ups, custom builds, fittings. |
| Service-related parts & accessories share | +5–10% of total revenue | Common add-ons: chains, cassettes, pads, tires, cables, small hardware. |
| Hourly labor rate | $90–$120 (typical) | Floor at ~$80 if you must; premium markets can price at $120–$150. |
| Average service ticket (labor + parts) | $50–$120 | Lift with structured packages, checklists, and proactive replacement policy. |
| Monthly service tickets (average shop) | 100–300 | Scale staffing: ~1 full-time tech per ~120–160 tickets/month at standard SLAs. |
What is the usual split between service and product sales?
Most bicycle shops see 10–25% of total revenue from service and 75–90% from product sales.
In tight inventory periods, service can temporarily reach 60–65% of revenue. In normal conditions, expect service to stabilize closer to 15–20% as product availability improves.
Shops with strong service brand equity (fast turnaround, advanced diagnostics, custom builds) can hold 25%+ service share sustainably in urban markets. E-bike servicing and fitting also lift the service share in commuter-heavy locations.
Anchor staffing and bay capacity to your target mix, then adjust during seasonal peaks.
Set monthly mix targets and review every four weeks.
What percentage of total revenue comes from labor services (repairs, tune-ups, custom builds)?
Labor alone typically contributes ~10–15% of total shop revenue.
In service-led shops or after supply shocks, labor’s share can exceed 25%. Fit services, custom wheel builds, and e-bike diagnostics add high-value labor line items.
Track labor utilization (billable hours / available hours) and aim for 75–85%. Tie lead times to scheduled capacity to avoid margin erosion via rush discounts.
Price labor to your market and inflation, not to competitor coupons.
Review rates each quarter and index to wage/overhead trends.
How much revenue is generated from parts and accessories sold with service jobs?
Expect parts and accessories attached to service to add another 5–10% of total revenue.
Typical attach items are chains, cassettes, brake pads, tires/tubes, cables/housing, bar tape, and minor cockpit components. Bundle parts within tune-up tiers to standardize recommendations and improve conversion.
Use checklists to pre-authorize common wear-part replacements during intake, minimizing callbacks. Stock fast-moving SKUs to keep turnaround under 72 hours.
Bundle wisely and pre-price replacements inside packages.
Always explain the safety and longevity benefits of each add-on.
What are the standard labor rates and common flat fees?
Most bicycle shops charge $90–$120 per billable hour, with basic tune-ups at $60–$100 and overhauls at $150–$250.
Premium markets can push hourly to $120–$150 where expert diagnostics and quick-turn SLAs are guaranteed. Publish a transparent menu (e.g., brake bleed, wheel true, drivetrain clean, e-bike firmware updates) with clear time estimates.
Review margins by job type monthly and adjust flat fees to keep effective hourly above target. Calibrate to technician wage inflation, consumables, and rent.
Post rates at the counter and online to reduce haggling and boost trust.
Offer fixed-price packages with optional add-on modules.
You’ll find detailed market insights in our bicycle shop business plan, updated every quarter.
Here is a practical price view for a bicycle shop today.
| Service Type | Typical Price / Rate | Notes for implementation |
|---|---|---|
| Hourly labor | $90–$120/hr | Target effective hourly ≥$95 after coupons; peak capacity pricing for rush jobs. |
| Basic tune-up | $60–$100 | Safety check, adjustments; upsell wear-part replacements. |
| Comprehensive overhaul | $150–$250+ | Includes drivetrain deep clean; price higher for e-bikes & internal routing. |
| Brake bleed (hydraulic) | $35–$60 per end | Charge fluid & small parts separately; suggest pad inspection/replacement. |
| Wheel true | $20–$35 | Add spoke/nipple replacements as parts; check dish and tension. |
| Drivetrain clean & reset | $35–$70 | Pair with chain/cassette replacement policy thresholds. |
| E-bike diagnostics/firmware | $40–$80 | Bill minimum 0.5 hr; maintain charger inventory and vendor tools. |
How many service tickets are completed per month in an average shop?
Plan for 100–300 tickets per month in a typical bicycle shop.
Volume moves with seasonality, location density, and reputation. In spring/summer, expect 50–100% more tickets than winter.
Balance bays and staff to keep lead times under 5 business days in peak months. Use scheduled intake windows to flatten daily spikes.
Use KPIs: tickets/tech/day, average turnaround time, and percent on-time delivery.
Adjust staffing two months before peak season begins.
Ticket volume by shop profile.
| Shop Profile | Monthly Tickets | Operational implications |
|---|---|---|
| Small neighborhood | 100–140 | 1–2 techs; schedule blocks; prioritize safety repairs. |
| Mid-size suburban | 140–220 | 2–3 techs; dedicated intake desk; inventory of fast-moving parts. |
| Urban destination | 200–300 | 3–4 techs; specialized services; express line for flats/minor fixes. |
| E-bike focused | 160–260 | Diagnostic tools; battery storage SOPs; OEM relationships. |
| Performance/fit studio | 120–180 | Higher labor rate; appointment-only; advanced fitting equipment. |
| Mobile/van service | 120–200 | Travel time billed; online booking; curbside fulfillment. |
| Hybrid retail + rental | 160–260 | Seasonal spikes; rental turnarounds; preventive maintenance calendar. |
What is the average revenue per service ticket (labor + parts)?
Expect $50–$120 per service ticket on average.
Ticket size depends on mix: flat fixes sit near the low end; tune-ups with wear-part replacements land mid-range; overhauls and e-bike work push to the top end.
Raise AOV with structured checklists, pre-authorization for common replacements, and targeted accessory suggestions (lights, locks, fenders). Measure add-on conversion weekly.
Use SMS/CRM reminders to pull forward deferred maintenance.
Target an AOV goal and post it on the service board.
Typical service ticket composition in a bicycle shop.
| Ticket Type | Avg Revenue | Composition (labor vs. parts) & notes |
|---|---|---|
| Flat repair | $20–$35 | Labor 10–15 min; tube/tire as parts; offer sealant/liners. |
| Basic tune-up | $60–$100 | Labor majority; attach cables/housing, bar tape if needed. |
| Overhaul | $150–$250+ | Labor heavy; add chain/cassette/BB/bearings where warranted. |
| Brake service | $35–$90 | Labor + pads/discs as parts; fluid for hydraulics. |
| Drivetrain service | $40–$140 | Labor + chain/cassette/chainring; upsell lube/cleaning kits. |
| Wheel service | $20–$80 | Labor + spokes/nipples; check for rim replacement thresholds. |
| E-bike diagnostics | $40–$120 | Labor + firmware/harness parts; battery handling SOPs. |
What percentage of service customers also buy additional products?
Plan for 30–50% of service customers to purchase add-ons during the same visit.
High performers script the counter experience: safety, comfort, and convenience items first. Popular add-ons include lights, locks, multi-tools, lube, pumps, fenders, bottle cages, and contact points.
Display bundles at pickup (e.g., “rain-ready commuter kit”) and pre-stage items aligned to the repair performed. Tie staff incentives to attach rate and post the target on the service board.
Track attach rate weekly and coach with real examples.
Set tiered goals by season and product category.
How does service contribution change in peak vs. off-season months?
During peak season, total revenue rises and service’s percentage may decline; off-season shows a higher service percentage as bike sales slow.
In spring and early summer, product sales surge and dilute service share. In fall and winter, the shop relies on service, fitting, and refurb to stabilize cash flow.
Use preseason booking drives and maintenance plans to smooth the curve. Offer winter overhaul specials to secure labor utilization and parts turnover.
Plan staffing two months ahead of peaks and lock parts buys early.
Use CRM reminders to fill slow weeks with deferred work.
Peak vs. off-season mix for a bicycle shop.
| Season | Service % of Revenue | Operational tactics |
|---|---|---|
| Peak (Apr–Jul) | 10–20% | Extend hours; triage repairs; prioritize safety fixes; pre-book big jobs. |
| Shoulder (Aug–Sep) | 15–25% | Back-to-school commuters; fit services; inventory clearance events. |
| Off-season (Oct–Feb) | 20–35%+ | Winter overhaul promos; subscriptions; refurb used bikes. |
| Holiday window | 15–25% | Accessory bundles; gift cards; “New Year tune-up” pre-sell. |
| Early spring ramp | 15–30% | Intake drives; SMS reminders; hire/rehire seasonal techs. |
| Weather shocks | Variable (can spike) | Flexible staffing; mobile service; pickup/delivery options. |
| Supply shortages | Up to 60–65% | Lean into repairs; pre-buy wear parts; strict scheduling. |
This is one of the strategies explained in our bicycle shop business plan.
What are the gross margins for service vs. bikes and accessories?
Service (labor) usually carries 60–70% gross margin; bikes often sit near 35–40% and accessories around 50–60%.
Labor is capacity-driven: protect billable utilization and minimize rework. For products, rely on turns, MAP compliance, and strategic purchasing to protect margins.
Segment pricing by category and brand; use good-better-best assortments. Track blended margin weekly and pare slow movers with promo calendars.
Audit discounts that erode effective hourly and product GM.
Make labor the anchor of your profit model.
Margin benchmarks a bicycle shop should track.
| Category | Gross Margin % | Notes to maintain margin |
|---|---|---|
| Labor (service) | 60–70% | Utilization ≥75%; standardized SOPs; charge for diagnostics. |
| New bikes | 35–40% | Respect MAP; floor model turns; pre-assembly efficiency. |
| Accessories/apparel | 50–60% | Bundle with service; seasonal rotations; display at pickup. |
| Parts (wear items) | 40–55% | Stock depth for fast movers; vendor terms; private label where viable. |
| Used/refurb bikes | 25–45% | Value-add with service history; warranty tiers. |
| Fitting services | 65–80% | High skill; appointment-only; retail attach to contact points. |
| Rentals/repairs bundles | 50–65% | Cross-utilize labor; off-peak promos; subscription options. |
How much of overall profitability is driven by service vs. product sales?
Although products drive more revenue, service typically contributes a disproportionate share of gross profit.
Labor’s high margins and recurring nature stabilize earnings, especially in off-season months. Attach parts and accessories to each job to grow blended profitability.
Track gross profit by department weekly and rebalance floor space and staffing accordingly. Protect service lead times and technician productivity with clear SLAs.
Use contribution margin to guide open-to-buy and hiring decisions.
Reinvest peak-season profits into service tooling and training.
What are today’s benchmarks for service revenue percentage in independent bicycle retailers?
Current benchmarks put service (labor + service-related parts) at 10–25% of gross sales in normal conditions.
Post-pandemic channel shifts and online bike buying increased reliance on service to sustain margins. Some shops that specialize in fitting, custom builds, or e-bikes maintain a 25–35% service share year-round.
Use rolling 3-month averages to smooth volatility and update targets quarterly. Compare against peers in your market tier (neighborhood, suburban, destination).
Benchmark labor rate and AOV twice a year against local competition.
Publish your mix goal and share progress with the team monthly.
We cover this exact topic in the bicycle shop business plan.
Which strategies increase the share of revenue from services?
- Create tiered, named service packages with clear inclusions and promised lead times.
- Automate reminders (SMS/email) for seasonal tune-ups and post-repair follow-ups.
- Bundle wear-part replacements inside tune-ups to lift AOV and first-time fix rate.
- Offer e-bike diagnostics, firmware updates, and commuter readiness packages.
- Use intake checklists and pre-authorization for common parts to reduce callbacks.
- Publish transparent pricing and turnaround; sell express options at premium.
- Train counter staff to present 2–3 relevant add-ons at pickup, not just at drop-off.
It’s a key part of what we outline in the bicycle shop business plan.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.
Want to go further? Explore step-by-step guides and financial insights tailored to bicycle retailers.
These resources help you plan investment, forecast profits, and structure your service department for sustainable growth.
Sources
- Bicycle Retailer — State of Retail (Dec 2021)
- Bicycle Retailer — Profitable Service Department (Jun 2024)
- Bicycle Retailer — State of Retail (Apr 2023)
- Mack Cycle — Understanding Bike Shop Labor Rates
- Bikebook — Bike Service Cost
- Ikeono — Seasonal Trends in Bike Service
- FinModelsLab — Bicycle Shop KPIs
- Sharpsheets — How Profitable Is a Bike Shop?
- DojoBusiness — Bicycle Shop Business Plan (guide)
- DojoBusiness — Bicycle Shop Payback Period