Local Bicycle Shop Unscathed By Slow Economy

While most business owners are experiencing a gloomy economic climate, South Gate’s on Longbeach Boulevard has found itself in a surprisingly favorable market.

“I thought that things would slow down during the recession, but it has been steady,” said Bryan Elias, 18, the manager of Elias Bicycle Shop, a three-year-old business owned by his father. “There are bikes everywhere.”

The bicycle industry has remained quite healthy during this difficult economic market. A total of 19.8 million bicycles were sold in the United States in 2010, the highest annual number sold in a decade, according to the National Bicycle Dealer Association.

Sales at Elias Bicycle Shop have grown since its inception; the shop estimates its profits have increased by 10 percent during its second and third years. Several factors can be attributed to this, but high fuel prices is among the key reasons for the healthy sales.

“It has a lot to do with the price of gas,” said Nestor Diaz, 31, a mechanic and sales associate at Elias Bicycle Shop. “[Gas] is very expensive and people don’t want to pay so much for it.”

Bike repair services are also doing well as an increasing number of people turn to the shop to revive old bicycles.

“We have gotten a lot of people who have bikes that have been sitting in the garage for 10 years,” said Elias.

Some of the bikes can be fixed for under $100 and that is a cheaper option for those who don't want to pay over $150 for new bicycles. “We will completely restore your bike, so it doesn’t hurt your wallet as much,” he said.

Since prices for a bicycle can be high, the shop has a layaway program that has been particularly successful in bringing customers who are struggling financially.

“[Our layaway program] has been very useful for the people who do not have the resources,” said Diaz.

Half of the store's profits from the past two years have been a direct result of the lay away program.

“You want to make it easier for the customer to get what they want,” said Elias. “It has been working wonderfully for the shop.”

Saving money has not been the only reason for increasing bicycle purchases. Taste trends have also fueled the higher demand. Among these has been the rising popularity of fixed-gear bikes, which are better known as “fixies.”

“The demand for fixies has been growing,” said Elias. Cyclist using this type of bicycle can ride in reverse, stop without using brakes, and go at high speeds due to its simple engineering. “The trend is hot right now.”

The popularity of fixies is so high that Elias Bicycle Shop estimates that it accounts for approximately 85 percent of its bicycle sales. Some bikers have even bought one out of curiosity.

“I started with a beach cruiser and now I am also using a fixie,” said South Gate resident Jose Rodriguez, age 36. “The youth are all over that and I was curious.”

Rodriguez started biking 10 months ago out of a desire to save money.  He estimates that his bike rides are saving him an average of $70 a week on gas money. However, he said he will not stop biking after the economy picks up.

“I lose weight every time I ride my bicycle,” said Rodriguez, who estimates that he has shed around 10 pounds since he started cycling. “I have noticed how good it is for my health.”

As the popularity of cycling catches on, city governments are moving to encourage bicycling. and lanes throughout the city. on its own bicycle transportation project. These projects lead bicycle shops to believe that the interest in bicycling has yet to peak.

“It will give the community the assurance that when they ride their bikes they will be safe,” said Elias of the bicycle projects. Some people have come into the shop but ultimately do not buy a bicycle out of fear of riding in the streets. Dedicated bicycle trails and lanes, he said, are "a very good thing.”