What makes a successful shop to you?

Triathlon Forum
41

It has been said plenty of times in this thread, but the internet can kill you (not just bike shops, but any retail).
There are some customers who absolutely want to buy brand new. Others will scour ebay/craigslist/ST classifieds looking for the right bike, part, helmet etc.
It would be cool if a shop could find a way to embrace the Ebay shopper and add value to these purchases. Something along these lines:
Custome: “I am looking for a bike. I prefer to buy something used to save some money.” -Today customers might feel “weird” stating this to a retail shop.

Shop: “Hey, that’s great. We have great prices on new bikes, but completely understand the desire to buy a used bike. We actually have a service for people just like you.
First, you want to make sure that you buy a used bike that fits. We offer fitting services for $xxx.xx. Once we get you fit right and you find the right bike, bring it in.
We offer a special “bike inspection” service for $xx.xx. We will tell you if the frame is in good working order and make recommnedations on any parts that might need to be serviced/replaced.Our prices are very reasonable if anything needs to be serviced.
Chances are that your bike will need a tune-up. We offer that for $xx.xx. If you need any parts, we include our labor charges to install any parts that you buy directly from us. If you bring in your own parts, our labor rate is $xx.xx per hour, with a 1/2 hour minimum.
The fitting that you buy from us also includes our “professional” opinion on whether a bike that you might buy used is a good deal or not. Just give us a call or send an email with the bike that you are considering and we will tell you what we know about it”

This “used bike buying service” may actually earn you more money than selling a $3,000 bike. If you buy the bike wholesale for $1,500, there is potentiall $1,500 in profit in this bike. The used bike service could earn you:
$150.00 for the fit
$25.00 for the inspection
$75 for the tune-up.
$100 for new parts (bar tape, tubes, tires are definite replacements. Cassettes, cables, chain etc are other possibilities)
You are taking in $350.00 of straight profit right there. No inventory to stock 4 sizes of the same bike to sell 1. No discount at the end of the year to make room.

This same customer will probably need shorts, jersey, socks, etc. And they will come back in for nutrition and consumable parts when they need them.

42

Befriend coaches, elite athletes, etc. These people direct an amazing amount of business. You don’t have to sponsor them or give them the store, either. Just give them a place where they feel comfortable sending friends.

Fits - good lord. I’ve yet to find anyone in Dallas who knows what they’re doing re: tt/tri fits.

Do a deal for the TNT/rally crowd. They think 10% off is superkalifragiawesome, and they actually need to buy stuff, unlike us ST types.

Clinics - teach people how to change a tube. Your mechanic is probably back there in the shop on facebook anyway, let him actually work. And, you get to sell tubes and seatpacks and C02s.

Just some thoughts.

43

have a cute girl on staff

I think you may have another reason in mind for that, but I do note that more than a few of the very successful tri and bike shops have women heavily involved in the business. Makes sense, with apologies to the ladies, who does most of the shopping in the family? I guarantee you if you are a guy and you buy, set up and merchandise a store how you like it, you may be sub-consciously alienating a sizable number of your customer base( almost all women)

Well never mind that more and more women are getting into cycling and triathlon these days, and the ‘traditional’ LBS model with a bunch of greasy 20something male wrenches standing in the corner chatting isn’t a very friendly environment for a female newbie or wanna-be cyclist to walk into.

44

bump… thanks.

45

I don’t see why anyone would get in the bike business. Reading the comments posted here, I see people want:

-engaging, knowledgeable staff who know the sport but don’t push sales
-Reasonable repair costs…even gratis if small enough but done by decent bike mechanics who don’t f*** up even basic repairs
-Don’t nickel and dime your loyal customers
-Have a lot of inventory
-Have lots of useful, obscure small odds and ends parts in the store that you will give away.
-free coffee but good coffee
-cater free weekly rides with free pre-ride coffee, bagels and OJ.
-get INVOLVED with whatever is going on in your community. Kids, schools, races, group rides, free coffee… whatever.
-sag-wagon service
-and sell all the products at not much more then the Internet stores

Where are you going to make money? How are you going to pay rent, salaries, utilities, and all of the other costs?

I see how you think all of these things would be a false economy, but I think all of these things generate customer loyalty and increase profits via repeat business and referrals.

Bike/multi-sport shops are cool places to hang out with your mates and chat with the friendly staff. Sitting in your basement ordering a DA 10spd chain on the internet is not a cool place to hang out………if you do this too much of this, it could be harmful to your social skills.

Not so long ago the ‘experts’ said online retailing would destroy conventional brick and mortar retailers. It was bullshit then and it is bullshit now: going shopping is a favorite social pastime for most people. A trip to the mall is exciting!! And, nearly every shopping trip involves a meal, as food is always at the center of important social events. Thus, the LBS must spend a few $$ once a week on grub and beverages for the Saturday morning ride.

Further: look at the Kindle and other e-readers. Sure, they are convenient, but hanging out and browsing at bookstores is way more fun than sitting in the Lazyboy and downloading the latest self-help book.

The other obvious LBS advantage is unless you’re waiting on a special order, whatever you need you can get now.

One thing I forgot to mention in my earlier post but is extremely important: Be judicious and careful with Bro-Deals and Bro-Pricing. You can only have so many Bros. If one of your ‘Bro’s lets slip that he got a bro-deal from you the word will get out that you are playing favorites and next thing you know, everyone will be asking for a Bro Deal.

Solution: Make everyone your Bro!! Offer a 5% discount on all future purchases (anything in the store) to anyone who buys a new bike from you. On a $5K bike offer 10% and for a $10K bike, 15%. Play with the percentages depending on your margins, but margins should allow you to pull it off and still generate a nice profit. The future discount angle will generate a lot of referrals and return business. .

46

The point about ensuring you have passionate, knowledgeable staff and give back to the community cannot be stressed enough.

When I lived in Toronto, my LBS (La Bicicletta) was not only thoroughly knowledgeable, but polite, efficient and gave a great fit. Above all else, their staff were riders – I’d frequently see and chat with their staff on local group rides, and other staff members instructed at the local 'cross clinic. And they had no attitude.

Accessible. Credible. And passionate. These are the people you want working for you.

47

My parents got me a gift card for completing my MBA to BGI in Indy. I left the gift card on the dinner table and didnt realize it until the following evening. I called the restaurant and of course no gift card to be found. I called BGI the next morning and they replaced the gift card for me. BGI isnt the closest bike shop to my house, but I will definitely go out of my way to make purchases there from now on.

48

Hire Andy Lanier of Schellers in Lexington Kentucky. He is an incredibly picky mechanic… and a fabulous manager.

49

Well never mind that more and more women are getting into cycling and triathlon these days, and the ‘traditional’ LBS model with a bunch of greasy 20something male wrenches standing in the corner chatting isn’t a very friendly environment for a female newbie or wanna-be cyclist to walk into.

Strangely, there are still shops that have this look and this attitude and they are loosing out big time on women customers and a lot of potential business.

50

A point I take very seriously considering 80% of my clients are women.