Bike dealerships are threatened by a wave of dismissal, says the bike retailer – the reason for the government’s decision
Government|According to Velosport’s CEO, consumer behavior is not so strongly reflected in traditional bike shops.
The abstract is made by artificial intelligence and checked by man.
Juho Kahra, Managing Director of the Electric Biking Center, says that the sale of bike shops has fallen due to the plan of the government.
The government intends to abolish the tax benefit of the employment bikes, but the exact details are not yet clear.
According to Kahra, many bike traders have halved, which can lead to redundancies in the industry.
According to Jani Lundberg, CEO of Velosport, the change is more hit by new stores.
Government The plan for the abolition of the tax benefit of the employment bikes is already reflected in the sales of bike shops, says the CEO of the Electricity Bike Center Juho Kahra.
The exact schedules or other details of the tax benefit are not yet clear. According to Kahra, many consumers are therefore postponing the purchase decision.
« Also some of those who would like to get a bike sits on their hands, because they wondered if the benefit continued. »
In practice, consumer caution has been reflected in the shock to sell bike dealers. Sales at the electric bike center even got hotter at the beginning of the year, but after the government announcement at the end of April Sales started to decline.
« For many merchants, sales are 50 % of what should be at this time of year. It without helping it leads to many companies to reduce staff. »
Kahra says she had discussed with several competitors on the subject. Many have stated that there are probably jobs to reduce jobs or layoffs.
The electric bike center was founded in 2019 and, according to Kahra, employs six people. Employment bikes account for more than half of the company’s turnover, he says.
Kahrakin has had to warn his employees that the company may need to reduce its staff in the near future.
In Helsinki CEO of Velosport, who has been operating for more than 40 years Jani Lundberg has also noticed that the sale of electric bikes has fallen after the government announcement. According to Lundberg, the average price for electric bikes sold for employment is well over € 3,000.
Lundberg also recognizes the shock effect mentioned by Kahra.
« Of course, it would be desirable that when the government comes out with something to tell how it will happen. »
Velosport is part of Nordic Bike Group Oy, which includes five independent bike shops. The oldest movement in the chain is 90 years old.
According to Lundberg, the overall effect of the future change on the Group’s shops is still in such a short term. Compared to last year, in some stores, sales are slightly increasing, while in some it is slightly declining.
According to Lundberg, whether the chain’s need to reduce their staff in the future has not yet been discussed.
« (The impact of a government decision) for older shops is clearly smaller than our newer stores. »
Traditional stores also come with hobby bikes, equipment and supplies. For example, Velosport’s sales account for about 20 percent, says Lundberg.
« And about 60-70 % of the share of that share. »
Lundberg According to the popularity of cycling has grown steadily for about twenty years, and the whole industry has received major growth heart rate first and then from the tax benefit of the employment bikes, which entered into force in 2021.
As a result, many new players have entered the market, some of which may have built their business, for example, strongly around the sale of employment bikes. The law change that comes to such actors is louder, Lundberg estimates.
In the long run, the overall market will probably decrease, he believes.
Lundberg has over 20 years as a bicycle dealer. There have been many turns on the trip.
« Our market has been more or less confused for the last four years.
Fact
This is how the employment bike benefit works
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The employer can offer his employee a bicycle benefit, which means that the employee has access to a bike without having to pay tax. This benefit is tax -free up to € 1,200 a year.
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Employment cycling works in practice so that the employer concludes the contract with the leasing company. After that, employees can go to buy a bike at the leasing company and choose it quite freely, for example, from a Finnish stoneware store or a foreign online store.
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The employer pays a monthly rent for the bike during the contract period determined by its price.
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At the end of the lease, the employee is offered the opportunity to redeem the employment bike permanently. In most cases, this also happens.
