Sam Fletcher

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In this Pinnacle Post interview, Sam Fletcher - founder of EVO Cycles - shares his inspiring journey from humble beginnings to building one of New Zealand’s most successful specialist bike retailers. Sam discusses the entrepreneurial challenges he faced, his approach to business growth and innovation, and how EVO Cycles has become a leader in supporting Kiwi cyclists nationwide. Whether you’re passionate about cycling, entrepreneurship, or local business success stories, this interview offers valuable insights from one of Hamilton’s standout business minds.

Q: What did you want to be when you were growing up?

A: When I was in my late teens, I wanted to climb Everest or get to base camp, and then I also considered being an officer in the army. My parents were quite conservative; my dad was a minister, and my mum was a housewife, so we were relatively poor. Our family recycled Glad Wrap, which my friends still joke about. I don't know if I'd call myself ambitious in the traditional sense, but I definitely wanted a different life because we struggled financially growing up, bouncing between places like Tokoroa, Papakura, and ending up in Morrinsville. A real driver for me was to go into business early to set up freedom of time so I could be more present for my future kids.

Q: Before founding EVO Cycles, you were an accountant. Can you tell me about that period and how it led you to the bike industry?

A: I was all set to go to university after school, but then I saw an advertisement in the paper that offered to pay for my study if I did an internship with an accounting firm. This meant doing a six-year part-time degree with Wintec instead of a four-year full-time one. I applied, got in and I worked at the accounting firm.

I was halfway through my degree when the firm put me on the road as an MYOB consultant (a precursor to Xero), selling and training businesses to move from paper ledgers to software. I put my studies on hold in my fourth year to do this full-time and never went back to finish. I did this MYOB consultant role for a couple of years. One of the programs we sold was MYOB RetailManager which is a point-of-sale (POS) and retail management system that was considered groundbreaking at the time.

One of my first clients for MYOB RetailManager was a bike store in Cambridge in 2004/2005. They were behind in their bookkeeping, so I started doing bookkeeping for them on the side. When they had an opportunity to open another store in Hamilton called Endurance Sport, they asked me to come in as a minority shareholder. That venture lasted about a year before it became clear it wasn't going anywhere, and I lost my money.

However, a supplier from that shop suggested I open my own store, as they saw an opportunity with my energy and drive. So, in 2008, I set up Rocket Bikes in Frankton. It turned out this supplier was a real shark and had some questionable business practices. Their model allowed me to display expensive bikes on consignment, but they controlled the pricing, that changed from week to week. At the very first opening, we were told to sell all bikes at half price, which meant we were only making a 5% or 10% margin. This was not a viable business model. Originally I employed a friend to run the store and for two years, I kept my accounting and bookkeeping business going, working in the bike shop only on Saturdays, Sundays, and one weekday - it was a side hustle, and I was burning the candle at both ends, I even ended up getting shingles from the stress of it.

Q: The GFC (Global Financial Crisis) hit around the time that you launched Rocket Bikes. What was that time like?

A: I signed my lease right before the GFC hit in 2008. Luckily, my landlord gave me six months free rent to get me going. The GFC was brutal; the dollar plummeted, going from 0.7 to 0.54 against the US dollar. This meant bikes we sold for $1,000 now had to be sold for $1,500, and nobody had any money. I tried to sell the store, but a business broker told me I had nothing to sell.

The GFC was brutal; the dollar plummeted, going from 0.7 to 0.54 against the US dollar. This meant bikes we sold for $1,000 now had to be sold for $1,500, and nobody had any money.

Sam working at Rocket Bikes in 2008.

Q: How did Evolution Cycles as a brand come to be, and what was the early expansion like?

A: After two years, a bike shop in Te Awamutu went broke, and I bought it for just $5,000. After a lot of deliberation, we called it Evolution Cycles. Later, my former business partners in Cambridge ended up in a bit of a situation, and I agreed to take over their loans and the Cambridge store, ending up with three stores: Cambridge, Te Awamutu, and Hamilton. I wanted to break away from the supplier controlling Rocket Bikes, so I decided to brand all stores as Evolution Cycles. I ripped off the old signage in Hamilton and Cambridge, but couldn't afford new signs for about six months, so we had two black buildings - it was chaos! During this name change the original supplier turned up one day with a truck and took all his bikes away - I really don't know how we survived those early days.

I ripped off the old signage in Hamilton and Cambridge, but couldn't afford new signs for about six months, so we had two black buildings - it was chaos! During this name change the original supplier turned up one day with a truck and took all his bikes away - I really don't know how we survived those early days.

Q: What was the pivotal moment that led you to embrace e-commerce, and how did it change your business?

A: In 2012, the bank was really pressuring me because we weren’t making any money. It was a make-or-break moment. I decided to give up my accounting practice and bookkeeping jobs to work in the bike stores full-time. This was driven out of desperation. One night, my worker and I, after a few beers, created a template website and put a bunch of bikes online.

The very next morning, we logged in and had sold a $1,500 bike at full price to someone in Auckland! This was an anomaly, as most subsequent online sales were heavily discounted, but it gave us real confidence that people would buy bikes online. We then started systematically adding more products and shipping bikes all over the country.

However, over time my suppliers became concerned because our online sales were infringing on territories they had assigned to other dealers. I basically had to open more physical stores to justify being able to continue selling into those regions. This directly led to opening Pukekohe in 2014, which helped with our Auckland business, followed by Tauranga a year later, where we also started importing our own bikes. By 2016, we had taken over a store in Christchurch, reaching six stores.

In 2017, I aimed for one store a year and opened in downtown Auckland. Then, in 2018, I got a local business mentor, who helped me reframe my mindset. I was wearing way too many hats. He taught me that while 100% of my effort yields 100% return, getting hundreds of people to give 80% is a much larger multiplier. This led to hiring support staff such as an operations manager and HR, but this added a lot of overheads, and the reality was we were still borderline breakeven at best.

I got a local business mentor, who helped me reframe my mindset. I was wearing way too many hats. He taught me that while 100% of my effort yields 100% return, getting hundreds of people to give 80% is a much larger multiplier.

I realised we need to build topline turnover to realise the scale we had created in our overhead structure, so I decided to open a bunch of stores. In 2018 alone, we opened six stores, including Wellington, Northshore, Ellerslie, Rotorua and Dunedin and I was on the road all year. I couldn't afford a builder, so my team and I bought a bunch of tools and trucks, and we did the shop fit-outs ourselves. We'd secure rent-free periods in the leases, using that time for fit-outs, and then have massive online and in-store opening sales to pay for the next few months of rent. We grew rapidly, reaching 18 stores by 2019, with close to 200 staff. The staff to stores ratio was too high but we were trying to scale so it was required.

We'd secure rent-free periods in the leases, using that time for fit-outs, and then have massive online and in-store opening sales to pay for the next few months of rent.

Q: The period leading up to and during COVID-19 sounds incredibly intense. How did the pandemic impact EVO Cycles?

A: COVID hit just as we were opening our Westgate store in February 2020. It was a scary time because we weren't a profitable business yet; we were still scaling and lacked the equity to back that up.

When the lockdown was announced, the wage subsidy didn't come immediately. For about ten days, we faced the terrifying unknown of what the businesses’ future looked like during lockdown. My CFO, senior team, and I had to sit down and rank all 200 crew to decide who we could save and who we couldn't - it was brutal and incredibly stressful. Being a family-owned business, it was incredibly tough to have to even consider this, as the crew were like our family. Thankfully, the wage subsidy was announced, though we still had to ask all 200 staff if they'd accept 80% of their wages (as did many businesses).

My CFO, senior team, and I had to sit down and rank all 200 crew to decide who we could save and who we couldn't - it was brutal and incredibly stressful. Being a family-owned business, it was incredibly tough to have to even consider this, as the crew were like our family.

On top of that stress, In the leadup to lockdown I had unconditional agreements to acquire 2 stores from a competitor who was exiting the market. So, during lockdown, I managed to renegotiate those deals, which required a lot of goodwill on both parties' behalf. When we went into level 3 lockdown, myself and another staff member drove down to fit the buildings out. The rest of my team followed not long after, and we survived lockdown, and bikes were the hot product during the COVID boom.

After the second lockdown new challenges emerged. The bike industry went from famine to feast and then back to famine because the global supply chain pressured bike companies to place massive orders for anticipated demand, leading to factories producing huge volumes of stock. Then, demand disappeared, but we were still forced to take the stock. We went from little to no supply of bikes and five years’ worth of demand, to much reduced demand and five years’ worth of supply. On top of this, interest rates increased, and inflation soared. Many of my leases had CPI ratchet clauses, meaning rents automatically increased by 6-7% for three years in a row, significantly compounding costs. In 2022, we had to refinance everything and sell stock at much lower margins. Our turnover went from $50 million pre-COVID to $88 million during, but it's now closer to $80 million albeit with more stores and costs.

We went from little to no supply of bikes and five years’ worth of demand, to much reduced demand and five years’ worth of supply.

Sam fitting out EVO Cycles Dunedin in 2019.

Q: EVO Cycles is now basically the only national bike business left after many competitors failed. How did you survive these immense challenges?

A: It was a combination of hard work, teamwork, luck and divine intervention. My team and I worked our as*** off. There were countless 3 AM and 4 AM mornings, seven days a week, because online retail is 24/7, 362 days a year. We have got a really awesome crew at EVO who have all rolled up their sleeves and put in the hard work to make EVO what it is today. On top of all that I also believe we have somebody upstairs who has blessed the hard work.

My team and I worked our as*** off. There were countless 3 AM and 4 AM mornings, seven days a week, because online retail is 24/7, 362 days a year.

Q: What were the pivotal, career defining moments for you?

A: E-commerce was a huge driver, born out of desperation to increase sales when we were in a poor financial state. Spreading out of Waikato and becoming a national brand, which the web forced us to do, was also key.

I learned a concept that if you go broke owing the bank $1 million, you have a problem, but if you go broke owing the bank $100 million, the bank has a problem. This wasn't about wanting to go broke, but about the idea that if you get big enough, you can weather bigger storms. In 2018, I had a mindset shift: "What have I got to lose? If there’s a chance that I’m going to go broke, I might as well go broke big, and what happens if it actually works?" This mindset change came at a real personal cost, as I was on the road for three years after my first child was born, almost like being a being a fly-in, fly-out dad. However, as hard as that was, I don't regret it now due to the setup we have.

The other defining moment was the realisation that I need a team around me to achieve a goal, and that my own output is limited to my own need for perfection and always being capped at 100% of my efforts.

In the later years after COVID we've also managed to invest in property, providing us with the equity to make the business sustainable. Our goal now is to own our stores long-term, similar to the McDonald's property model.

Q: Do you have a high-risk appetite?

A: I think I've had to have a high-risk appetite, sometimes out of desperation. However, I've always been told, and I believe, that I'm resourceful, which is different from taking risks for risk's sake. Resourcefulness is about taking calculated risks; looking at a problem and figuring out what you have at your disposal, who to talk to, and what you can leverage to solve it. What I've done isn't for everyone; there's a lot of hidden personal sacrifice behind the perceived glamour of what we have achieved.

Resourcefulness is about taking calculated risks; looking at a problem and figuring out what you have at your disposal, who to talk to, and what you can leverage to solve it.

Q: What advice would you give someone who’s looking at starting their own business?

A: You need to ensure that it is in your DNA to be a business owner, and you must be honest with yourself. Ask yourself questions such as, “Am I a hard worker?” Seek some wise counsel at the beginning. There are so many people that go into business thinking it’s one thing but realise that it’s the other and by that time it's too late, they’ve put their parents’ house on the line and their partner’s parents’ house. You see it all the time. There is a small percentage of people who should be in business but it’s not to say don’t give it a try.

There are so many people that go into business thinking it’s one thing but realise that it’s the other and by that time it's too late, they’ve put their parents’ house on the line and their partner’s parents’ house.

Q: What are some unique challenges of running a large bike retail chain?

A: I’m convinced Bike retail is the hardest f***ing business in the world. Unlike independent bike dealers (IBDs) with a small, close-knit team (usually owner, mechanic, sales), we have grown to be a retail chain with 220-240 crew, so we have to manage a large array of crew expectations. We try really hard not to be that “corporate” type of company but unfortunately the bigger you get you simply have to tighten up in some aspects and with that it can be hard to keep that tight knit feel.

The product we sell also poses its own unique challenges. Unlike a TV you buy and rarely touch (you don't put a TV in a chairlift and ride it down a mountain), we sell highly technical and expensive products that are ridden down mountains, rocks, going off cliffs, in the wet, in the mud. The COVID bike wave brought a new type of customer into riding, one that didn't necessarily understand the maintenance requirements of a bike. We are now in an education phase with that type of customer around what you need to do on a regular basis to keep your bike functioning properly. Our industry also faces tight competition, product sourcing difficulties, currency fluctuations and tariffs, and massive freight cost increases (up 500% during COVID), not to mention legal and compliance (red tape).

There's a business simulator called "Mike's Bikes" at university, and I now understand why they chose a bike store - it touches almost every facet of business: products, product pricing models, merchandising, market positioning, cost management, branding and advertising, ecommerce, staff, landlords, property, currency hedging, legal compliance and the list goes on. The margins on bikes are also very low compared with other retail models. There are no globally recognised retail bike chains like Walmart or Apple; even major brands like Trek have acquired stores and have experienced tough trading conditions even with all their scale.

There are no globally recognised retail bike chains like Walmart or Apple; even major brands like Trek have acquired stores and have experienced tough trading conditions even with all their scale.

Sam at EVO Cycles Penrose in 2019.

Q: With such intense pressure and challenges, how do you manage stress and maintain a life outside of work?

A: It's hard because I've been doing this for 18 years, so I don't know any different. I'm definitely not a cyclist; the last thing I want to do after living and breathing bikes 24/7 is ride one. Instead, I play rugby and rugby league to relieve any stress, though my body is breaking down so I will need to find a new hobby!

Spending time with family is crucial. 18 months ago, I stepped aside from the CEO role to give my CFO Paul Gibson the reins of the day to day business. I was in a perpetual state of stress for 15 years, but relatively speaking, the current stress feels manageable. I've managed to keep my marriage strong, which is critical - my wife is awesome. Having good kids also helps ground me. It's about remembering why I'm doing this, which is ultimately for my kids' future, and to create a legacy and business that future generations can be proud of.

Q: You mentioned that you have a cool company incentive program. Can you tell me about it?

A: We have a few initiatives:

●       Commission for Service Plans: We know a bike's life cycle is about three years. To retain customers, we sell discounted three-service plans to new bike buyers, encouraging them to service their bikes annually. This isn't about making money on the plans, but about customer retention, and staff get a small commission for each one sold.

●       Staff Leaderboard System: This system isn't primarily based on sales dollars. Points are awarded for:

o   Good Net Promoter Scores (NPS) from customer reviews.

o   The number of transactions.

o   The number of bikes built.

●       Team Competition: We group the leaderboard results by showroom, allowing shops, staff, and mechanics to compete. Winners receive monthly bonuses for meals and fun activities as well as jerseys (like the jerseys in the tour de France). The scores are scaled by location, so smaller stores can compete fairly. Crew can log in anytime to see their ranking. It's a very intricate and transparent system.

Q: Looking ahead, what’s the future of Sam Fletcher and EVO Cycles?

A: The goal for EVO Cycles is to grow from our current 32 stores and $80 million turnover to about 40 stores and $100 million turnover, ensuring it's sustainable and profitable. We aim to remain an all-New Zealand business for now, as it's easier to do business here.

Other goals and initiatives include:

●       World Vision Kids: We aim to sponsor a World Vision kid for every crew member we employ.

●       Warriors Foundation: We've partnered with the Warriors Foundation, sponsoring their league and school programs. We donate bikes to underprivileged kids identified by schools as going through hard times.

●       IVF Foundation: Long-term, I want to set up a foundation to help people with IVF. I've seen friends struggle with the insane costs involved, and I believe good people shouldn't be charged so much to have babies. I'm not driven by personal wealth; I want to reach a stage where I can dedicate a lot of money to this cause.

EVO Cycles partnership with the Warriors Foundation.

Q: What advice would you give to people thinking about an Overseas Experience (OE)?

A: I think I might be more well-rounded if I had done an OE, seeing more of the world and gaining new ideas. So, my advice would be to do an OE, get some world experience, and then bring that back. I spent my 20’s thinking i was running out of time, the reality is you've got plenty of time.

Q: For young professionals in their early 20s thinking about their careers and financial futures, what wisdom or advice can you offer?

A: I wouldn't recommend my exact path; it's a bit of an anomaly. The key is to figure out if you're better off working for someone else or working for yourself. If you feel undervalued, consider proving your value by starting your own business, where your money can work for you instead of just trading time for dollars.

The key is to figure out if you're better off working for someone else or working for yourself. If you feel undervalued, consider proving your value by starting your own business, where your money can work for you instead of just trading time for dollars.

The biggest takeaway is that I now have freedom of time. If you decide to go into business, you must commit 100%. My mistake early on was trying to do both my accounting and the bike business part-time, neither thrived. I had to fully commit to the bikes before it started to work (and it only started working 8 years later!).

If you decide to go into business, you must commit 100%. My mistake early on was trying to do both my accounting and the bike business part-time, neither thrived.

Q: What advice would you give your younger self?

A: I would tell myself to slow down and seek advice earlier. Don't think you know it all. It took me ten years to get a mentor, but getting wise counsel before starting a business is crucial. My mentor helped me transform within a year, giving me 90% of the wisdom I needed.

Two key pieces of wisdom that stuck with me are:

●       "Never make a decision out of fear or lack." I can trace many bad business decisions back to being driven by fear or a sense of scarcity.

●       From John C. Maxwell: "Nobody ever finds themself on top of a mountain unintentionally." To reach the top, you have to decide every day to keep climbing, putting one foot in front of the other. It's about counting the cost and making a daily decision to keep pushing.

Q: Finally, if neither time nor resources were a constraint, what ultimate goal or dream would you pursue or have pursued?

A: I don't think I would have pursued anything different. For me, it's not about the destination, it's about the journey. I wouldn't change any of the hard lessons learned over the past 20 years, and I know I'm still learning.

Honestly, if time and resources weren't an issue, I believe I'd be "bored to s***" and likely in my grave because there'd be nothing to achieve. Having challenges and stress is what it's all about. I have a fear of getting to 75 with nothing to do and losing the drive that keeps me going.

About EVO Cycles

Founded in Hamilton, EVO Cycles has grown into New Zealand’s largest specialist bike retailer, offering an extensive range of bicycles, e-bikes, and accessories for every type of rider. With a commitment to quality service and expert advice, EVO Cycles supports cyclists at all levels—from beginners to seasoned athletes—through their nationwide stores and online platform. Whether you’re after your first commuter bike or high-performance gear for serious adventures, EVO Cycles is dedicated to getting Kiwis moving on two wheels.

Visit the website here: https://www.evocycles.co.nz/