(MONEY Magazine) – What small business owner doesn't dream of making more with less? Lucien Orza of Briarcliff Bike Works has managed to do just that. After seven years of selling mostly recreational bikes at his suburban New York shop, Orza, 42, decided to go after the top end of the market. Although he still stocks children's bikes, mountain bikes and road bikes, he now carries primarily high-end dual-suspension bikes from makers like Santa Cruz, Ellsworth, Maverick and Seven, which go for $3,000 to $8,000 apiece. Who buys them? So-called cycling enthusiasts--the estimated 5% of bikers who ride often and consider biking their No. 1 hobby.

This shift carries risks. "It's a big capital outlay," says Orza. "If they don't sell, you gotta dump them somehow." But the rewards are rich--profit margins are as high as 40%. So far, the gamble has paid off. Though Orza is selling the same number of bikes as last year, his average monthly sales are up 10%. "It's the difference between getting by and having some breathing room," he says. "You can spend all day Saturday working very hard and sell 10 bikes for $300 apiece, or you can spend a couple of hours selling a $5,000 bike once a week."

The biggest payback has been priceless. Briarcliff Bike Works' new look means Orza spends less time at the shop and more with wife Dawn, 39, and children Catherine, 11, and Lucien Jr., 9. "Monday is now a family day," says Orza. "I cook on Mondays." --FARNOOSH TORABI