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If you'd asked someone about their online shopping habits 10 years ago, they probably would've wondered what you were even asking. But the percentage of online sales has steadily increased, and Web shopping is projected to represent 8 percent of all retail sales in the United States by 2014. This is great news for people like George and Dale Majors whose products are sold primarily online.
George and Dale are the owners of Salt Lake City-based Bikewagon, which specializes in providing high-end bicycle parts and cycling accessories to customers all over the world. Bikewagon has a small storefront to service local pick-ups and walk-in customers but the company focuses on selling its selection of around 10,000 products through their website, bikewagon.com, and on eBay, Amazon.com and other third-party channels.
Since its launch in 2004, George says Bikewagon has doubled in size every year, and this year's sales are poised to continue that trend. Effects from the recession have been minimal, which George attributes the company's international presence and the fact that it sells close-out items at competitive prices. The company's strategy of maintaining a focus on business development to increase revenue and looking for ways to manage costs has proven to be a reliable way to stay competitive in today's market.
The idea for the company came from Dale, who started selling items on eBay during his senior year of high school to earn some extra money. The venture was lucrative, netting around $400 per week although he worked only a few hours. Shortly after he graduated, Dale's father, George, decided to join the business, which he kept up for the two years Dale was serving a mission for the LDS Church. After his return in August 2004, father and son decided to take the company full-time.
Providing a high level of customer service and shipping products quickly are essential to the company's continued success, George says, since most customers' first contact comes through a website. He and Dale hope to see Bikewagon become the premiere bike parts entity while carefully controlling growth.
For Zions Bank Speaking on Business, I'm Chris Redgrave.
