Local Bike Shops – Are they really doing OK?

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  • #20880
    Shades

    To my shock the other day, my LBS, which I have a great rapport with, just closed. It might reopen but I fear the worst. Standing forlornly outside wailing, “I’m sorry I bought that seatpost from Wiggle”, the daunting task of building a similar relationship with another shop seems like a daunting task; and there’s some bad LBSs out there. This isn’t an ‘agony aunt’ article (Therapist: What do you want to talk about?…..Me: My LBS closed down!) but got me thinking in these days of struggling high streets (council rates and internet), albeit with a booming cycling industry, just how well are LBSs doing? What drives profits? Are the chain stores taking the lions share with economy of scale? Most of the bikes you see parked up in town look like they’ve never seen a bike shop in years. Are the keen cyclists who spend lots of money actually a small minority? Does a LBS need a strong on-line presence, but it must be impossible to compete with the likes of Wiggle? LBS’s sometimes don’t help themselves when they haven’t got spares etc and I hate not being able to talk to a mechanic about what work is needed, so perhaps good business sense and knowing what the customer wants is key to success just like any shop?

Viewing 14 replies - 46 through 59 (of 59 total)
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  • #778903
    0
    drfabulous0

    Gkam84 wrote:
    Don’t you

    Gkam84 wrote:

    Don’t you believe the parts supply issue to much. Trying to get a trade account from anyone if you are working from home is at best an absolute fricking nightmare. I haven’t been able to get one.

    So long as you are a legitimate business with proper stationary and insurance there are loads of suppliers who will give you a trade account. Have you tried Moore Large, M&J Distributors or Massi? to name but a few who are paying attention to how the trade is changing.

    #778901
    0
    S13SFC

    Our town’s LBS is excellent
    Our town’s LBS is excellent for servicing etc if you have Shimano. If you don’t they won’t touch your bike.

    Strange that any business will turn away ££ as those of us using Campag etc now take our spending elsewhere as we have no need to walk through their door.

    That said, the LBS close to work that I now use is excellent.

    #778899
    0
    Super Domestique

    mooleur wrote:I often wonder

    mooleur wrote:
    I often wonder how they survive,… mine keeps getting bricks thrown through its window at the moment :*(

    Stop throwing them then! 😉

    #778897
    0
    Neil753

    Gkam84 wrote:oozaveared

    Gkam84 wrote:
    oozaveared wrote:
    They charged her £40 for a “silver” service on a practically brand new bike. There were no broken parts just gear adjustment but they claimed to have checked brakes etc etc etc. This was a straight forward rip off. It almost certainly just needed a barrel adjustment on the rear derailleur.

    If it were my bike shop that would have been free. Free and make a friend. As it happens not only will me colleague not use that shop, nor will I and now nor will the 8 or so cyclists in my office.

    I have just opened a repair and servicing workshop, a large wooden workshop in my garden. What you have said is right, that was a rip off, but I also wouldn’t do it for nothing if the bike was not bought from me. I would have charged something nominal, like £5, just because my time is worth something, unlike what some people think. So not making a killing of your friend, while not underselling myself.

    bashthebox wrote:
    My LBS is small but rushed off their feet. No job too small or too big, simple advice, charming service.

    That is just the same as my LBS, hence opening my own workshop, on their advice, with them giving me overspill and contracting me in to help when they are busy, without having to worry about doing tax and things for me.

    Neil753 wrote:
    A cycle mechanic now has the ability to make a good living from repairing bikes from home or at clients’ premises. Parts supply chains are no longer a problem.

    Don’t you believe the parts supply issue to much. Trying to get a trade account from anyone if you are working from home is at best an absolute fricking nightmare. I haven’t been able to get one.

    Very soon I hope to be mobile and going out to peoples home or business aswell. So spreading myself further afield and taking on a sportive or two.

    So while I am working in conjunction with my LBS, they have kindly let me piggy back on their orders

    I agree, traders will do everything they can to keep trade accounts for themselves; that’s human nature. But using the on line suppliers, such as Wiggle, and just making money on your labour, is still way more profitable than having to stand the fixed costs of a LBS. Good luck with your venture.

    #778895
    0
    Gkam84

    oozaveared wrote:They charged

    oozaveared wrote:
    They charged her £40 for a “silver” service on a practically brand new bike. There were no broken parts just gear adjustment but they claimed to have checked brakes etc etc etc. This was a straight forward rip off. It almost certainly just needed a barrel adjustment on the rear derailleur.

    If it were my bike shop that would have been free. Free and make a friend. As it happens not only will me colleague not use that shop, nor will I and now nor will the 8 or so cyclists in my office.

    I have just opened a repair and servicing workshop, a large wooden workshop in my garden. What you have said is right, that was a rip off, but I also wouldn’t do it for nothing if the bike was not bought from me. I would have charged something nominal, like £5, just because my time is worth something, unlike what some people think. So not making a killing of your friend, while not underselling myself.

    bashthebox wrote:
    My LBS is small but rushed off their feet. No job too small or too big, simple advice, charming service.

    That is just the same as my LBS, hence opening my own workshop, on their advice, with them giving me overspill and contracting me in to help when they are busy, without having to worry about doing tax and things for me.

    Neil753 wrote:
    A cycle mechanic now has the ability to make a good living from repairing bikes from home or at clients’ premises. Parts supply chains are no longer a problem.

    Don’t you believe the parts supply issue to much. Trying to get a trade account from anyone if you are working from home is at best an absolute fricking nightmare. I haven’t been able to get one.

    Very soon I hope to be mobile and going out to peoples home or business aswell. So spreading myself further afield and taking on a sportive or two.

    So while I am working in conjunction with my LBS, they have kindly let me piggy back on their orders

    #778893
    0
    Neil753

    A cycle mechanic now has the
    A cycle mechanic now has the ability to make a good living from repairing bikes from home or at clients’ premises. Parts supply chains are no longer a problem. From a sustainability point of view, it’s far better to have a small town being supported by a number of independent mechanics, earning good money, rather than one LBS owner on very good money, paying his staff much less, and the rest of us having to pick up the tax credit tab through general taxation. Also, almost all the money stays in the community, and the resulting reduced labour rates mean punters have more to spend elsewhere, so increasing the whole community viability thing.

    But there’s plenty of scope for a LBS too, perhaps to become a community focal point, with fantastic food and entertainment, integration with local cycle culture, clever manipulation of social media, and maybe based on a co-operative business model that provides a decent wage for a number of people, are just some of the possibilities to be considered by LBS owners reading this right now, hunched behind the till because they can’t be bothered to even stand up when a customer walks into their shop (like the owner of my LBS who thinks the world owes him a living).

    The potential for savvy individuals, or indeed LBS owners with ingenuity and passion, especially as we enter an era where the cost of car ownership is likely to be increasingly tenuous for huge numbers of households, is enormous .

    #778891
    0
    drfabulous0

    The traditional LBS is a
    The traditional LBS is a dying breed, the economics of it is unsustainable. Take a bike which retails at £1000, to start with practically everyone expects 10% off or a price match, so from the selling price of £900 £150 goes straight to the taxman leaving £750, the shop will have paid around £600 for the bike. From the remaining £150 the shop has to pay the sales staff to sell you the bike, the mechanic to build it and give it it’s free service, probably some office staff too to order it and do the admin. After that they have to take into account other overheads including rent, rates, power and insurance. As well as this they are expected to keep good stock levels of various bicycles and parts which conform to a vast array of different standards. Some shops can find a point of difference and will survive, but many are closing down or struggling. As a result it’s the customers who are getting ripped off with crazy labour prices and the only ones making a profit are the big distributors and greedy landlords. From what I saw when I worked in bike shops it is these two parties who are causing the problems, not the big chains and online retailers. The factory gate price on a £1000 bike is typically about $30.

    At the same time there are new shops and mechanics springing up all over, these tend to sell only parts and used bikes and offer labour at far more realistic rates, they are also usually run by people who have worked for a long time in bike shops and care about what they are doing, this is pretty obvious to customers which is why it’s easy enough to set up and build a loyal customer base. The overheads for this are also far lower and although the traditional bike trade are trying to protect themselves by denying us trade accounts there is a whole alternative supply chain for parts now available.

    #778889
    0
    Hoester

    Many local shops don’t help
    Many local shops don’t help themselves, with poor knowledge, uninspiring stock selection and high prices. Two out of three and you might secure some business from me, but not all three. Here’s some real life examples;

    – If you are cock sure adamant that 53/39 is a compact crankset, you won’t get my business.
    – If you can order me tyres into the shop in a weeks time, and sell them to me at RRP, you won’t get my business.
    – If you charge kids over £10 to fix their puncture with a fresh tube instead of selling them a puncture kit and 15 minutes of your time to show them what to do, guess what, you won’t get my business.

    I’m not looking for local shops to beat the internet on price, I’m looking for valid reasons to pay more than the internet.

    #778887
    0
    bashthebox

    My LBS is small but rushed
    My LBS is small but rushed off their feet. No job too small or too big, simple advice, charming service. Such a lovely thing to have practically on my doorstep, I’ll pop in there every couple of weeks in the knowledge that my bike problems will be fixed very reasonably, and a nice chat will be had.
    And this business model leads me into being enthusiastic to the idea of the shop building me some wheels, maybe getting them to order in an exotic part or find me something second hand without having to trawl through forums, and it really doesn’t need to cost any more than buying online.
    So, take the time to make friends with local shops. It makes you happier to live in a nice place.

    #778885
    0
    stubrant

    I have 2 excellent shops near
    I have 2 excellent shops near me but I do think they could do themselves a favour by opening later in the evening and on Sundays if they want to compete with online. If I want something quick and can’t wait until Saturday I have no option but to go to a Cycle Surgery near my work or order from Wiggle for fast delivery, as they shut at 6. I cycle past it every night around 6.45 and the number of times I wished it was open…..

    #778883
    0
    notfastenough

    I commented on the Cervelo
    I commented on the Cervelo R5ca hanging on the wall at mine, something to the effect of “that must cost you a fortune just to hang it on the wall”, to which they replied that they had sold 5 in the last eight months. That’s just one model, generating over £40k in revenue. God only knows how many £2k bikes they sold in that time. They’ve also just extended the shop.

    To be fair, they are the extreme I guess, but I think it depends on knowing your market and all the other business-focused stuff. There is a little shop in Knutsford that used to be run by a nice old guy, who I heard having a grumble to his mate that times had never been as hard (maybe 18 months ago). Then I walk in a few months later to see a new younger guy running the place (he’d bought the business), the cheaper bikes and kit have gone, and there’s a couple of Scott Foils and CR1s hanging up. I mentioned what the previous guy had said, and he told me he’d sold 3 CR1s that month.

    #778881
    0
    oozaveared

    There’s plenty of room for
    There’s plenty of room for LBS to do well. The old model still works. But not if you don’t know anymore about bikes than the punter. Ok Halfords is not an LBS in my book and gets away with a business model of scale and not really catering to more experienced cyclists. BUT there’s is a model not to follow. I have on occasions asked questions of the mechanic in there only to find that I knew more about bike mechanics than he did and he didn’t actually answer the question. And this was not on high end stuff either.

    People will go to their LBS if they know what you are talking about. If they offer good advice with the products that they sell because if they don’t then it’ll be cheaper on Wiggle and CRC. If their staff are actually cyclists not just some kids that have a bike. If they offer more than you can get online. And something absolutely not related to bikes or cycling ie great service.

    I’ll give you an example of bad service. My female colleague a newbie to cycling new bike cycl to work scheme had a mechanical issue on the way to work. Gears grinding badly adjusted, cable stretch probably. But she didn’t know and worried about getting home she popped the bike into the LBS.

    They charged her £40 for a “silver” service on a practically brand new bike. There were no broken parts just gear adjustment but they claimed to have checked brakes etc etc etc. This was a straight forward rip off. It almost certainly just needed a barrel adjustment on the rear derailleur.

    If it were my bike shop that would have been free. Free and make a friend. As it happens not only will me colleague not use that shop, nor will I and now nor will the 8 or so cyclists in my office.

    For crying out loud when I took my Smart Car for new tyres I discovered that I didn’t have the locking nut. So I took it to Mercedes in Guildford. They got out the Master Set. Found the right one by trial and error. Unlocked the ones on there and replaced them with ordinary ones. They gave me the reference number of the size needed and said I could buy the right tool online if I wanted which would be much cheaper than their OEM one. They gave me back my locking nuts cleaned and charged me £10 for the ordinary bolts. Nothing for Labour. On my way back to the tyre shop. They basically had me over a barrel and they didn’t take advantage. Now that’s good service.

    #778879
    0
    Miles253

    I would be interested to read
    I would be interested to read something from an owner, about the difficulties invved with the running of an lbs

    #778877
    0
    mooleur

    I often wonder how they
    I often wonder how they survive,… mine keeps getting bricks thrown through its window at the moment :*(

Viewing 14 replies - 46 through 59 (of 59 total)
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