My LBS just closed :-(

Feb 7, 17 16:09

Post #1 of 43 (7146 views)

There was a boom in the bike market here in New Zealand a while back. It seemed like there was a boutique LBS on every corner. Now the bike market is contracting.

A good buddy of mine took the opportunity to quit his job that he hated, follow his dream and become a bike store owner. He's been a passionate roadie for about 30 years and was super happy to have got into the bike market. He provided excellent advice, service and the best prices he could manage. Unfortunately the market slowed and many stores have closed. The local chain stores didn't help his plight of course. He was hoping that by hanging on as long as he could, he'd be last man standing and inherit a reasonable market and living. It wasn't to be....

Last week however, he had to accept the inevitable and close the doors. The sad thing is that he hung on so long that now it's cost him his house as well. Several staff have lost their jobs and the local mens and womens teams he sponsored have had to fold too.

I guess I don't really have a point with this post except to vent that a good buddy missed his dream (but took his shot) and the really awesome store and teams have folded. Just a sad day really. Annoyingly, his shop was across from my office so now I have to travel for bike parts and accessories. Shit!

Bikelab Auckland, RIP

TriDork

"Happiness is a myth. All you can hope for is to get laid once in a while, drunk once in a while and to eat chocolate every day"

Re: My LBS just closed :-( [tridork] [ In reply to ]

Feb 8, 17 1:18

Post #2 of 43 (6887 views)

That does suck. I did a few group rides with the Bikelab guys when I lived in NZ. Very tough market there with Torpedo & and others overseas.

_____________________________________________________
"Oh man, it's going to take days to kill all these people!" - Jens Voigt

Re: My LBS just closed :-( [tridork] [ In reply to ]

Feb 8, 17 6:35

Post #3 of 43 (6694 views)

Similar in the US here with local bike shops. My local bike shop and main sponsor shut down last year. They really struggled over the last two years.

It's actually quite sad... IMO I think the wave of the future are online stores and mobile mechanics.

Another shop opened in town that isn't a traditional sort of bike shop... fancy coffee lounge area, mechanic area and a few tires and things on the wall... all bikes, wheels, etc. are custom order. They lost their lease and are moving already to another spot in town.

Re: My LBS just closed :-( [xeon] [ In reply to ]

Feb 8, 17 8:08

Post #4 of 43 (6572 views)

xeon wrote:

It's actually quite sad... IMO I think the wave of the future are online stores and mobile mechanics.

I think this is pretty accurate. I try to support my LBS but buying tubes, bar tape, and some tires there is probably not helping them all that much. I bought an entry level mountain bike at my LBS there last year and it happened to be a closeout model in my size so ended up being $400. I find it's rare that for road bikes/TT bikes the LBS rarely have bikes in my size (58cm-60cm normally) and it's rarely something where they want to order a $1500-$2000 bike that I may not even like. Most of the LBS in my area have a large number of cruiser and hybrid bikes because that's what they sell and everything else is secondary. It's definitely getting to the point where it makes more sense for me to order a bike online and then use mobile mechanics. It's not like I need constant work on my bike. I think you lose some of the cycling community that the LBS creates by setting up group rides and supporting local cycling events.

Re: My LBS just closed :-( [xeon] [ In reply to ]

Feb 8, 17 10:06

Post #5 of 43 (6422 views)

xeon wrote:

It's actually quite sad... IMO I think the wave of the future are online stores and mobile mechanics.

I would not recommend to anyone that they start up a mobile mechanic shop. There is just not enough margin for most services to make a decent profit. Probably harder to make a profit than owning a regular bike shop.

Re: My LBS just closed :-( [nightfend] [ In reply to ]

Feb 10, 17 7:51

Post #6 of 43 (6086 views)

nightfend wrote:

xeon wrote:

It's actually quite sad... IMO I think the wave of the future are online stores and mobile mechanics.

I would not recommend to anyone that they start up a mobile mechanic shop. There is just not enough margin for most services to make a decent profit. Probably harder to make a profit than owning a regular bike shop.

I hear you... I went mountain biking last weekend with a former part time mechanic that worked at the bike shop that closed down and he mentioned doing some wrenching on the side. Like taking a bike home with him from the local mountain bike park and bringing it back a day or two later... he can become a dealer with Rocky Mountain bicycles if he does $3K/yr. and was able to secure an approval to buy from a part vendor. It would be a selective on the side gig for him. Selling Rock Mountain bikes and selectively wrenching... i.e. not working on Huffy.

That said, I think there is a need for a bike mechanic in areas where a full fledged bike shop is getting over run by online sales. Not everyone can wrench on their bikes although I realize it is probably a low margin business... the need is there.

Re: My LBS just closed :-( [xeon] [ In reply to ]

Feb 10, 17 8:27

Post #7 of 43 (6045 views)

As a part-time job, it would probably work. But you certainly won't be making over $100k a year any time soon with that business model.

Re: My LBS just closed :-( [tridork] [ In reply to ]

Feb 10, 17 10:59

Post #8 of 43 (5916 views)

I teach full time. Run a bike shop from home part time. I am in a very rural area but cycling has picked up tremendously here. Each year gets busier. I do mobile mechanic work as well. I have all the work I can handle. I don't think I could make a go of it full time unfortunately. Sad to see shops closing.

Re: My LBS just closed :-( [nightfend] [ In reply to ]

Feb 10, 17 11:15

Post #9 of 43 (5900 views)

I would not recommend to anyone that they start up a mobile mechanic shop. There is just not enough margin for most services to make a decent profit. Probably harder to make a profit than owning a regular bike shop.

With respect, I think you may be missing the bigger picture up-side here for mobile services.

Steve Fleck @stevefleck | Blog

Re: My LBS just closed :-( [Fleck] [ In reply to ]

Feb 10, 17 11:45

Post #10 of 43 (5852 views)

I'm missing it too. Can you elaborate? Do you get free beer for fixing bikes or is it a business where it is all done under the table? Are there a lot of cute girls who need bike repairs?

They constantly try to escape from the darkness outside and within
Dreaming of systems so perfect that no one will need to be good T.S. Eliot

Re: My LBS just closed :-( [len] [ In reply to ]

Feb 10, 17 11:52

Post #11 of 43 (5839 views)

Are there a lot of cute girls who need bike repairs?

I'm glad you mentioned women.

There are some good bike shops that are forward thinking and very welcoming to women, but there are also many that are not. Many women who are cyclists, would prefer to never set foot in a traditional bike shop!

They shop everywhere else, including online for all their cycling needs.

A mobile bike repair service is the perfect fit here.

Steve Fleck @stevefleck | Blog

Re: My LBS just closed :-( [len] [ In reply to ]

Feb 10, 17 11:56

Post #12 of 43 (5829 views)

These trucks require a lease or loan for over $150,000 of equipment. 90% of your revenue would go just to paying for this plus the wear/tear and fuel costs for running the mobile shop. How much would you really have left for an actual salary at that point?

Same issue Uber drivers constantly bump up against with their revenue barely covering vehicle costs, let alone an actual salary.

Re: My LBS just closed :-( [Fleck] [ In reply to ]

Feb 10, 17 13:47

Post #13 of 43 (5729 views)

After I posted I realized women was probably a better term. Just discovered the edit button.

They constantly try to escape from the darkness outside and within
Dreaming of systems so perfect that no one will need to be good T.S. Eliot

Re: My LBS just closed :-( [nightfend] [ In reply to ]

Feb 10, 17 13:48

Post #14 of 43 (5728 views)

why would you need a $150 K truck to do bike repairs. I would think the vast majority of repairs could be done with a few thousand of tools at the most

They constantly try to escape from the darkness outside and within
Dreaming of systems so perfect that no one will need to be good T.S. Eliot

Re: My LBS just closed :-( [len] [ In reply to ]

Feb 10, 17 14:35

Post #15 of 43 (5687 views)

The mobile bike stores are usually franchises and they have specific truck models they recommend that carry the bike tools/shop inside. I'm not talking about being a personal mechanic where you can just use your own tools.

Last edited by: nightfend: Feb 10, 17 14:37

Re: My LBS just closed :-( [len] [ In reply to ]

Feb 10, 17 15:50

Post #16 of 43 (5612 views)

why would you need a $150 K truck to do bike repairs. I would think the vast majority of repairs could be done with a few thousand of tools at the most

By what you are saying here, with all due respect, you are missing the bigger picture, potential and possibilities.

Steve Fleck @stevefleck | Blog

Re: My LBS just closed :-( [Fleck] [ In reply to ]

Feb 10, 17 16:03

Post #17 of 43 (5598 views)

guess I am a slow learner

They constantly try to escape from the darkness outside and within
Dreaming of systems so perfect that no one will need to be good T.S. Eliot

Re: My LBS just closed :-( [Fleck] [ In reply to ]

Feb 12, 17 11:52

Post #18 of 43 (5355 views)

Fleck wrote:

why would you need a $150 K truck to do bike repairs. I would think the vast majority of repairs could be done with a few thousand of tools at the most

By what you are saying here, with all due respect, you are missing the bigger picture, potential and possibilities.

I agree. I'm just a keen amateur, but have a dedicated bike shed to store my 12 bikes. I have a workbench, a repair stand and a mag trainer (it's just a portable bike wash stand these days). I have about $1500 worth of tools and I can fix pretty much anything bike related.

To turn "pro" bike mechanic, a basic van (work outside under the rear tailgate?) and say $3-5k in tools and you'd be able to fix most things. Even if you want to be able to do everything, you could probably get away with less than $10 in tools.

Focus on doing cycle events so you're parked up with a semi-captive audience and you're good to go. Become the on-road mobile mechanic for the local big bike shop as support for their sponsored local team, etc etc and you'll end up with more work than you handle, in a very short period of time. Have a mobile bike wash set up and hang out at the local muddy MTB park and you're too busy to spend all your money! Winter down south, summer up north and you've got a great life. Or set up as a ski tuning van in winter. Ski all afternoon, work on boards in the evenings and you're gold.

Easy Peasy

TriDork

"Happiness is a myth. All you can hope for is to get laid once in a while, drunk once in a while and to eat chocolate every day"

Re: My LBS just closed :-( [Fleck] [ In reply to ]

Feb 12, 17 12:09

Post #19 of 43 (5344 views)

Fleck wrote:

why would you need a $150 K truck to do bike repairs. I would think the vast majority of repairs could be done with a few thousand of tools at the most

By what you are saying here, with all due respect, you are missing the bigger picture, potential and possibilities.

Steve - I've always appreciated your nose on the industry. Scratching my head here too though a bit... don't see what you are mentioning in regard to bigger picture?

Do the fleets of kitted out vans take the place of LBSs all together? I.e. become the distribution point for bike sales (the people who actually build the bikes for people), mobile fit studios, and recurring repairs all in one?

Or is the bigger picture something else?

Re: My LBS just closed :-( [len] [ In reply to ]

Feb 12, 17 14:16

Post #20 of 43 (5295 views)

len wrote:

why would you need a $150 K truck to do bike repairs. I would think the vast majority of repairs could be done with a few thousand of tools at the most

Ive only used a mobile bike mechanic once maybe 10+ years ago. It was obviously his own business. He had a pt cruiser or small SUV and if I recall he just had the bike stand on the back of the car or it could have just been a bike rack. I would bet 99% of his jobs were just basic tuneups.

Re: My LBS just closed :-( [Dan Funk] [ In reply to ]

Feb 12, 17 18:25

Post #21 of 43 (5205 views)

There's certainly a need of sorts. Whether the current model offered by Beeline Bikes or VeloFix is the answer? I don't know, I'm not sure what it takes to become one.

As for Steve's point of view, I'm not certain, but I think Steve has some sort of affiliation with VeloFix, or is close with some of its founders/franchisees. Maybe he can clarify?

Re: My LBS just closed :-( [nightfend] [ In reply to ]

Feb 12, 17 18:52

Post #22 of 43 (5187 views)

nightfend wrote:

These trucks require a lease or loan for over $150,000 of equipment. 90% of your revenue would go just to paying for this plus the wear/tear and fuel costs for running the mobile shop. How much would you really have left for an actual salary at that point?

Same issue Uber drivers constantly bump up against with their revenue barely covering vehicle costs, let alone an actual salary.

Having trouble getting to 150k for the truck. While I think the Velofix picture shows a Mercedes, I chose to use the Ford Transit. Chose the biggest, tallest one they have. 39k. Bumped to 43.5k for the diesel engine. Assuming 10k to kit out the interior, 5k for the vinyl wrap, 20k for specific tools, 10k for inventory and I'm still under 90k USD.

What did I miss?

Edited to add inventory

Last edited by: FatandSlow: Feb 12, 17 19:41

Re: My LBS just closed :-( [TriTamp] [ In reply to ]

Feb 12, 17 19:00

Post #23 of 43 (5180 views)

TriTamp wrote:

len wrote:

why would you need a $150 K truck to do bike repairs. I would think the vast majority of repairs could be done with a few thousand of tools at the most

Ive only used a mobile bike mechanic once maybe 10+ years ago. It was obviously his own business. He had a pt cruiser or small SUV and if I recall he just had the bike stand on the back of the car or it could have just been a bike rack. I would bet 99% of his jobs were just basic tuneups.

There's a mobile mechanic who services my Benz. He used to work out of an E-Class station wagon, and upgraded to a Sprinter van when he hired a helper. If he can fix cars with that setup.....

ECMGN Therapy Silicon Valley:
Depression, Neurocognitive problems, Dementias (Testing and Evaluation), Trauma and PTSD, Traumatic Brain Injury (TBI)

Re: My LBS just closed :-( [FatandSlow] [ In reply to ]

Feb 13, 17 5:17

Post #24 of 43 (5061 views)

Back when I looked into it for curiosities sake, it was pretty pricey. Velofix had like a $25K franchise fee, and you had to have their vinyl kit and then stock all of the parts inventory which I think is about $50k. That is not including the vehicle or tools.

Anyway, I think if you did your own mom&pop van and setup, it would cost much less. But then you'd have to dump a lot more money into advertising to get the business. To make that a full-time job would be tough. At least I think so, which is why I mentioned that many of these mobile bike stores/repair shops will fail miserably.

Re: My LBS just closed :-( [AndresLD] [ In reply to ]

Feb 13, 17 8:59

Post #25 of 43 (4988 views)

As for Steve's point of view, I'm not certain, but I think Steve has some sort of affiliation with VeloFix, or is close with some of its founders/franchisees. Maybe he can clarify?

Andres,

Indeed - I had a short contract with them, that ended one year ago, for some Business Development consulting work I was doing for them in what was at the time their largest deployment of vans - 6 in the Toronto area. The business was growing rapidly at the time, and still is and, they took the work that I was doing externally and took it internally.

We remain on good-terms. I still believe it's a great business concept. The metro area Vancouver and Toronto franchises, have really been the mid-term test-beds for how this would all work - and I can say, that it's working very well.

Regarding the LBS's and Velofix - I'll not go into great detail here, but I will say this, the way a Velofix should be thought of is an extenstion of the LBS, not an absolute replacement for it.

Regarding what the vans can do and are doing - if you are JUST looking atbasic repairs, then as I noted you are not seeing the bigger picture of what the vans can do and provide. There are quite a few bike retail items, that are easily sold out of a Velofix van. Velofix is now very well established and has contracts with ALL the key suppliers of P & A in the business!

The above being said, a van Velofix van can't sell EVERYTHING that is in a bricks & mortar LBS - that's why in a perfect work, it's an extension of the shop. There can be co-existence.

Steve Fleck @stevefleck | Blog

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