Ace’s Cycle finds success in retail incubator program

In its first year of business, Mike Applegate and Doug Knudsen have made their business, Ace's Cycle, one of the top 10 dealerships in the country for Genuine Scooters. They've also taken their business from the idea stage, through 18 months in the downtown's retail incubator, to graduation from the program.

In the retail incubator program coordinated by Downtown Kalamazoo, Inc., businesses receive rent at a reduced rate so they can build cash flow in the critical early stages of start-up. They also participate in a training in customer service and sales, marketing, inventory control and human resources as part of a program administered by the Small Business Technology and Development Center.

For Ace's Cycle, the rent subsidy was a huge benefit, says Applegate. It allowed them to spend more on inventory than they might have been able to if they had to pay higher rent.  

They sold enough scooters from their shop at 346 S. Kalamazoo Mall that they caught the eye of Vespa. "We were at a dealer expo, they noticed our shirts and they said we were on the list of people they wanted to talk to," Applegate says.

That attitude was quite a switch for the maker of some of the most coveted scooters. When Ace's co-owners first explored selling Vespa scooters they were told they were not established enough and would be required to invest a huge amount of capital. The company's policies changed and now the store offers Vespa scooters along with bikes by Piaggo, Aprilia, Sachs, TGB and Genuine Scooter.

Service continues to be a big part of the business. It has grown from 50 to 60 percent, Applegate says.

Gas prices that have been the bane of car owners, have been good for Ace's Cycle. "As gas prices continue to rise," Applegate says, "we're seeing a lot of interest in fun, economical transportation."

Writer: Kathy Jennings
Source: Mike Applegate, Ace's Cycle