It’s summer, which means I’ve been spending a lot of time behind the handlebars. I’ve also been spending a lot of time in bike shops – broken wheel, bend chainring, frayed shifter cable… its been a rough summer on both the road and mountain bikes. But this has gotten me in to talk with and hang out with some of the great folks that run independent bike shops around town. Based on these conversations, I can tell you that its both a good and bad time to be in the bike business.
Let’s take a closer look:
First, inventory is a huge challenge for bike shops. Most of the bike shops I’ve visited have got their inventory under control. They have been focusing shifting their mix of inventory towards the products that are selling (basically away from mid-range road bikes) and reducing overall inventory. This is a tough balancing act for bike shops, particularly in the summer.
Next, as with all businesses in a downturn, its very important to find the “right” niche and keep laser sharp focus on that niche. This is where many shops are struggling. The high-end bike business has been hit particularly hard by the downturn. Shops that depend on this high-end bike business are going to have to be focused on connecting with their customers in a valuable way (rides, accessories, sponsorships, etc.). Shops that are focused on mid-range bikes are finding increasing competition from online and big box shops. Either way the solution remains the same focus, focus, focus.
Finally, I have found that shops that have the traditional bike shop attitude are losing the battle. If you ever shopped at a bike shop in the 1990’s, you know the what I’m talking about. The “holier-than-thou” talking way over your head attitude that I am constantly railing against. Most shops are doing much better with this, but I still run into it. Particularly for some reason in shops that work with a lot of triathletes (Do they like that attitude? Seems doubtful).
Is it a good time to be a bike dealer? Well, its definitely a tough time, no question. But there are opportunities if you can nail down a specific niche market that you can market to, reduce inventory costs, and still keep service friendly and with a smile.
#1 by Jamie on July 6, 2009 - 11:43 pm
Quote
Even though I only bought one bike and it was not of the high-end variety, it WAS in the 90s and I STILL got the attitude. What is that about in all seriousness? Why would anyone — poor OR rich — want that? I ask you. And the ether.
#2 by jimbotr0n on July 7, 2009 - 8:34 am
Quote
Triathletes are the most likely to know what they're looking for, and know a lot about what they're looking for, so they're the least likely to invoke (or in the bike dude's mind, deserve) shop guy scorn. To me, "bike shop attitude" is just like the snobby music store – more likely to lose you business than gain any. A shop in the South Oakland County area has lost me as a customer as a result – but American C&F picked me up as a result of their friendly crew at the Zoo de Mack fixit station – they've helped my wife and friends a few years in a row, always with a smile. That ties in with your comment on finding new ways to engage with customers. Good points, Dave!
#3 by Mac on July 7, 2009 - 11:44 am
Quote
Yup, good points. I did the bike shop hop from San Diego up to SFO a few years back hiring bikes from place to place. And found a really wide range of attitudes.
In the area I've found B3 in Grosse Point to be cool – if you turn up with a simple bike repair you get as much advice as if you were turning up to make a major purchase. Interestingly the various C&F stores in the area I've found very variable with some more interested in high end selling than advising on parts and repair (once they've sold you a bike).
#4 by Dave Hurst on July 7, 2009 - 12:08 pm
Quote
I think there are those who like to get that … um, I'll call it "exclusivity" attitude. In my opinion, I think it stems from the amount of time and energy they've put into the sport. They don't want to be treated like a newbie, and they don't want advice that would serve someone who isn't "elite" (as in racing classification, not Marxist class warfare type elite).
I hear the music store comparisons pretty often. Some folks want to be the only one in the store that knows what the techie is talking about. But those are a dying breed and they aren't sustaining shops anymore.
Mac, I've not been in B3, sounds like I need to get over there. There is definitely a fine line between advice and the sales push. It comes down to being able to read the customer. I don't think customers mind the high-end selling if that's really the direction they're headed or if the shop can point out why they should be without turning them off. No doubt its a fine line, but a lot of shop employees can walk it very well.