Say I’m opening a new multisport and coaching facility in your town. What would YOU most want to see or experience there? What’s some keys to success and longevity? Your input is greatly appreciated.
Basically you have to find ways to add so much value that people would rather give you money than shopping on the internet. I would therefore focus on everything thew internet can’t do and hope the bike and part sales follow:
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Don’t be snooty. Spend as much time as it takes to hire engaging, knowledgeable staff who know the sport can talk to customers and treat everyone the same whether they’re buying a P4 or some cable ends.
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Don’t pursue short-term profit over long-term relationships. If a part can be fixed for $5 tell me that before ordering me a new one and I’ll be so grateful the lost sale will end up being more than repaid. Consider fixing minor issues for free out of goodwill, let people heading out on a ride fill up their waterbottles and tires for free.
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Offer a sag-wagon. My favourite local store will pick you up from anywhere in the area if you have a major mechanical and take you back to the store. The only time I’ve ever had to use the service I was so grateful I bit the bullet and replaced my cassette and tires while I was there. Had they not offered the service I’d have taken a cab home, replaced the parts over the internet and probably still saved money.
I’m sure there are more these were just the first three that came to mind…
Great stuff… keep em coming!
Have a lot of money upfront and be prepared to not see it come back for some time. Small business is about relationships and those take time to develop.
Reasonable repair costs…even gratis if small enough. I ran into my LBS a few weeks ago just a day before a “c” race…had a slight issue shifting. They threw it on the stand and fixed it in 3-4 minutes. Could have charged me $10-15 for “repairs”…but didn’t. I don’t get a discount on parts/bikes. It’s this small stuff that is important and keeps me coming back and paying full price for other stuff. I have other options (with 10-15% discounts) but have to schedule an appointment for something as easy as this.
Have part of the shop for CT usage. - I pay plenty to ride at my LBS and from riding twice a week/almost every week, that the owner and I have built a relationship so I trust him and I only buy important items from him. i.e. bikes, Zipps, Garmins - (all plural)
Know your stuff - Don’t try to sell me a Cervelo P-4 if the Jamis T-2 fits me better.
Don’t nickel and dime your loyal customers. We will pay for everything, but if we need a small adjustment to the bike, just do it.
Don’t judge people. The guy that looks like a bum may do that intentionally, yet he may be the one to buy your highest margin bike.
Have a lot of inventory. This is a double edge sword, but if you don’t have it, you can’t sell it.
The local shop I make all of my major purchases at hooked me by helping me setup and do minor tweaks to my fit, and then not charging me for it. I had just purchased $250 of gear the day prior, and now I’m definitely going to be spending my money there as long as they have reasonable prices on stuff that fits, even if the internet is a few bucks cheaper.
Very simple…CUSTOMER SERVICE!!!
You only have one chance to make a first impression. Take care of the customer, listen to them and they will support you…can’t run a shop without customers.
http://thebikeworks.com/merchant/388/images/site/denny.JPG
http://thebikeworks.com/merchant/388/images/site/glen.JPG
KITTIES!!!111one!!!
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Carry the crap that people actually need. I don’t know how many times I’ve gone into an LBS and needed a tube, cap to something, or some other small part and they don’t have it in stock. I can’t believe it sometimes. I say have a bunch of tackle boxes full of odd stuff, nuts/bolts/caps/whatever so that you have your bases covered.
If you tried to open a bike shop that catered specifically to me, you’d be bankrupt very quickly. Having said that, this is a conversation/transaction I had with a local LBS - one of my favourites:
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Background:
I needed a Campy lockring with a 26mm OD thread (9spd hub) and a 38.5mm flange (12t small cog or larger). I went to one LBS (best place to get Campy) and walked out with a Miche lockring - 26mm OD and 38.5mm flange. $25CAD. Unfortunately the machining of the teeth was all messed up, and I couldn’t get my tool to fit. Back to the shop where the owner digs around and finds another (Campy this time) lockring in 26mm OD, but with a 35.2mm flange (for an 11t small cog). He says that it will fit, but to try it and see what I think. If I don’t like it I can bring it back and he can either order me one, or he’ll give me my money back. I try it, it fits, but I really don’t like it.
Call up LBS #2. Owner picks up and I tell him exactly what I’m looking for.
LBS Owner: Those are the old style right? Damn dude… I don’t think…
LBS Owner: (mumbling) Shimano, Shimano, new style, new style, Shimano… HOLY SHIT!!!
Me: You’ve got one?
LBS Owner: Holding it in my hand. Just measured it. This is the one.
Me: (noting that the time is currently 17:48) What time do you close again?
LBS Owner: 6pm
Me: If I leave now and come right over, will you wait?
LBS Owner: Yeah, I’ll be here.
I show up ~15min later and he’s got the right part. Charges me $10, and I’m out the door a happy man.
You won’t make the rent on transactions like that, but it’s transactions like that that sell bikes to friends of mine who ask me where they should go if they want a bike, or that enable future higher dollar sales down the road when another of my DIY projects goes sideways.
I’ll second the part about having useful, small stuff in the store. If I come to buy some gel/gu/bar I’ll see your nifty swim tank and come back to try it out. Right now I need replacement buckles for my specialized shoes and the LBS says no problem I’ll order them and call you. Well 3 weeks later I;m still waiting. Now I may call the shop or just buy it online…Either way I’m likely to buy more than just the $10 part.
my $10.02
Employ decent bike mechanics who don’t f*** up even basic repairs. Nothing pisses me off more than getting a bike home from the shop and having to tune gears / brakes etc because a shop mechanic is inept or lazy.
Last time my wife bought a bike, the shop insisted on giving the bike a tune up before we could take it home and made us wait half an hour in the shop while they did it. First ride revealed that brakes were not centred (V brakes with mis-matched tension), brakes were set miles away from the rim and chain dropped off front chainring on first shift. I tuned it myself. I’m not exactly sure what the mechanic actually did as he supplied a checklist and ticked all the boxes but failed to actually service the bike.
free coffee but good coffee also 
Smiling face’s , fast service price matching to a point or at least try a little. Most important of all. None of that look down at you, I am better then you attitude. Treat everyone as you expect to be treated. Also greet everyone when they come though the door and let them know thet it might take 10-15 minute’s to get to them. If the guy or lady you are heping does not like that guess what he would end up being more a pain in the ass later down the line if he buys something.
I like your style. Since “Longevity” is important to you, here are my thoughts:.
**Multisport Shop Operations 101 **
Relaxed environment: Your shop should be a place where folks can come and hang out and shoot the shit without being pressured to make a purchase. Set up a little ‘lounge’ with free coffee, a sofa, stools, chairs etc. This was vibe at Tribe Multisport in Scottsdale, AZ when I lived there. I think they have since moved to a new location on Indian School Road that I have not visited yet, but I am certain the vibe remains the same because the relaxed environment is part of their business model…and is why they are so successful.
Organize rides/runs from your shop that fit around the schedules of normal people ie: not 10am on Wednesday morning!! On weekends, cater it with free pre-ride coffee, bagels and OJ.
Special orders: if a customer cannot find a particular product at one of your competitors shops, and comes to you, get it done!! This is where you could gain or lose a lot of business. Even if it’s a low price item like tire levers, get it done. Example: a few months ago I went to a shop……let’s call it a high end cosmopolitan snobbish roadie shop on the Westside….and asked if they carried Bontrager 700x23 Thorn Proof tubes. The answer was “No” and the dude proceeded to tell me how these tubes are too difficult to mount, they’re too heavy, etc etc. He never offered to special order them for me and via the attitude I got, I did not even ask.
I’ll never shop at that store again. Which gets to my next point: Don’t act like you are smarter than your customers….even if you are. Do less talking and more listening.
If it is also going to be a coaching facility, don’t be too exclusive with your own brand of coaching or get too exclusive with one or two select coaches. Let’s say you have the computrainer multi-rider set-up, an endless pool and a few treadmills. It is cool to use this to establish your own little coaching empire, but also offer it up as a place where coaches who have no association with your shop can bring their athletes to train. This will bring you a steady and repeat flow of new business.
Triathlon Starter Packages: Do like Nytro and a few other shops do: a new bike, helmet, wetsuit, singlet, shorts, goggles all for about $1200.
Stock close-outs, impulse items and new (low $$) products close to the cash register = last seasons fuschia compression socks, CO2’s, tire levers, goggle defog, gels, magazines, new nutrition items, etc.
Pressure your vendors for free literature, brochures, decals, posters, calendars, temporary tattoos, etc of their products and place those items by the door. Many people love to walk into a shop with nothing and walk out with something. Be sure your shop logo/information is conspicuous on every piece of freebie promo literature.
Be nice to your vendors: take advantage of whatever they offer you: your vendors are there to help you build your business. Often, they have promos, samples, freebies, giveaways……they might want to demo a new product in your shop = be open to it. You don’t want to be the shop that they X’d off the list for the free bike raffle because you treated a salesman poorly.
Excellent points! Colorado Multisport does a lot of this right (in Boulder). Even the coffee–! One thing I’d add is that make sure of is FOLLOW THROUGH. If a customer is waiting on you for something, a quick email for a status on an order or voice mail to them goes a LONG way. If you (the shop) say you’re going to do something for a customer, do it. Don’t say, “I’ve been soooo busy I haven’t had the time to do “x” yet because we’re soooo busy.” Make it happen, it’s your job & your livelihood. Service, service, service, and keep the arrogance out of the shop. There are 2 pros that work at Colorado Multisport (one is one of the top 10 US XTERRA guys), and none of them are cocky. Be competitive too but don’t give away the store. Stick to MSRP and you’ll sink eventually. Online stores & other stores will chip away at you no matter how good your service is–the service will impress new clients & reasonable prices or rewards to long term clients will keep those long term clients as well as likely keeping them loyal.
This is really helping… thanks so much… the more the better… you guys rock.
1.) Don’t be jealous/unfriendly to customers who didn’t buy their bike / wheels / parts from you. I’m sorry, but I just will not buy STI 105 shifters from an LBS for $400 when I can buy Dura Ace on Ebay for $250. There are people who will… but don’t run off the guys that don’t. I still spend plenty of money in my LBS (tires, lube, wiring, tubes, etc) that another shop missed out on by being unfriendly because I didn’t buy “their” bike.
2.) Be Helpful in spite of making the sale. The first bike I bought was not even remotely my size, but the guy at the shop sold me on it because I didn’t know d*ck about bikes. Once I learned some things… I never visited that shop again.
3.) Be ready to TALK to people… a lot. People who don’t want anything from you other than to just talk about the new speed concept. I own my own car lot, and a lot of people come in, just to tell me “I used to have a Mustang GT just like that”… do I care? No. Do I listen and chat with them anyways… yes. That way when they leave, they have only good things to tell their friends.
4.) Referral rewards my friend. If a guy sends his buddy to your shop, tells you the guys name and buys a bike from you… give the dude that sent him something ($50… free labor…whatever) He DID just do 90% of the work for you.
5.) Reasonable rates on labor. Yes, you are in it to make money… but my God, when I wrecked my bike and broke my collarbone, I went in to have the tube replaced in my front wheel (with a sling on my arm mind you) and told the LBS just to do it for me. It was $40 for a tube and labor!!! I told them there was no way I was paying $38.50 for 30 seconds of labor. Make your money, but leave the gun and mask at home. This is a business, not Point Break.
6.) Maybe most importantly… get INVOLVED with whatever is going on in your community. Kids, schools, races, group rides, free coffee… whatever. DO IT.
7.) Advertise. Big Sign, word of mouth… get your name out there. Get Jersey’s made with your name on them (nice ones even!) Hell… if you were to give most triathletes a tri top with your name on it, they would wear it to race religiously at events just because you “sponsored” them.
Offer a sag-wagon. My favourite local store will pick you up from anywhere in the area if you have a major mechanical and take you back to the store. The only time I’ve ever had to use the service I was so grateful I bit the bullet and replaced my cassette and tires while I was there. Had they not offered the service I’d have taken a cab home, replaced the parts over the internet and probably still saved money.
First I have heard of this. Now that, is an amazing idea. That is the kind of service that when applied, really let’s customers know you are looking out for them.
Tomorrow doesn’t work. Have the goods on hand. A new shop opened up locally and each time I have gone in to buy something it is on order and will be in “tomorrow”. The first time it was over a week. Too long, lost interest and couldn’t trust their word so I don’t waste my time returning. The last time they couldn’t even sell me a gift certificate, they would have some more “tomorrow”. Lost sales on small things can result in lost sales in larger items.
+1 on all of leegoocrap’s posting.