Ed-Zulu Posted June 30, 2015 Posted June 30, 2015 I am in the industry, and have been for the last 12 years, I have seen a good number of shops come and go, either thru lack of funding, bad management, theft etc... If you do it, do it for passion and have firm management in place, don't think for one minute that you can open a shop and walk away to leave someone else to run it...That goes for just about anything business... Vêr van jou goed, naby aan jou skade!
Baracuda Posted June 30, 2015 Posted June 30, 2015 If you would like to see what not to do, visit the Specialized Store in Bedfordview. They have a wonderful suite of practices to ensure you never visit again: 1. Don't put prices on anything and I mean anything. 2. When client asks for costs, quote them in odd means - How much is this helmet? Answer "two two". and this one? "abouwed one eightish. 3. Sit behind the counter and play TV games while clients walk in and out. Aside from this silly shop, the ones that I see thrive (survive) are those with great bike services that happen on time and on budget e.g. Crown Cycles or BMC in Cape Town. Pure pleasure to deal with. Drop off the bike, get a telephone quote a few hours later and one is told what the pick up time is, and when you get there it is perfect and done. This sounds reasonable, but very, very few shops actually do this. Some, like the one up the road from Crown Cycles seem to trash your bike everytime you take it there. I took mine in for a cluster to replaced and when I picked it up, the bottom-bracket was stuffed. Once you have people's trust from good services and spares at reasonable cost, they may pop in for complete bikes, clothing etc. It also helps to possibly open early and close late on Monday and Tuesday so guys can drop off bikes on-route to work and pick them up on the way home. Trying to get a bike to a shop between 9-5 with a normal job is a bugger.
Eddy Gordo Posted June 30, 2015 Posted June 30, 2015 If I can give you one piece of advice: Please employ people who know what they are doing and understand their range of products. I have resorted to a default answer of, "probably not" when asked by a shop dude if he can help. The amount of times I have ended up in discussion teaching people about their own products is crazy, and I know almost nothing myself. Just 30mins ago, I was standing in a shop looking at the new Dale Evo Six, and when I asked them about the differences between the Evo HiMod and the Nano, I was told there was no difference. Luckily fellow hubber sent me a cool link just yesterday on it Point being, it's their job to know. Also waiting around a shop for 10mins to get a price on an Sworks frame is ridiculous, you should know the prices of the only two high end frames in your shop. Those shops that do well are because of knowledge! Fully agreed. Not sure to what extent reps help in educating the retailers about new products, but all staff should be present when that happens.I have been told a few times in various shops some not even bike shops, " let me get#### he knows more about it" only to be even more dissappointed with the lack of product knowledge. In the industry that I am in, our suppliers cant even furnish us with product specs etc, and I have to resort to google which doesnt always help me
big-wheel-trading Posted June 30, 2015 Author Posted June 30, 2015 Thanks for all the interesting and useful information.I really appreciate it. Just great to get so much response. Please keep it information coming.
Slowbee Posted June 30, 2015 Posted June 30, 2015 It also helps to possibly open early and close late on Monday and Tuesday so guys can drop off bikes on-route to work and pick them up on the way home. Trying to get a bike to a shop between 9-5 with a normal job is a bugger.this ! an idea for you. open at 7am and close at 9pm. Most folk have jobs. Being able to pop into a bike shop after 5pm would be nothing short of fantastic. Oh yes. Saturdays till late (depening on where you are) and Sundays for when most families can come in. My pet hate with bike shops. "no sir, you cant take it for a ride up the road and back to test" have flippen test bikes demo bikes. make sure your mechanic, salesperson, skivvie, whateva you call them is also a barista, just like cwc, great to sit and have a coffee while doing some "work" in a bike shop.
TALUS Posted June 30, 2015 Posted June 30, 2015 Don't treat people on appearance. Racing Snakes don't actually buy anything - they are sponsored. Fat middle aged wannabes like me spend more than them. Be prepared to repeat certain little talks on basic topics with newbies over and over and over. Cultivate business and loyalty - it takes time.
Spoke101 Posted June 30, 2015 Posted June 30, 2015 I am keen to learn how a typical LBS' stock keeping works.Lets consider chainrings. There are the brands: Shimano, Sram, Campag, etcthen you get the different models eg 105, Ultegra, DAThen you get different sizes Then just to complicate things every year a new model is released. (11sp etc) I cannot see how a small LBS can afford to keep stock of every single item.The only practical solution that I can think of is to keep stock of the most common sizes and to then build solid relationships with the suppliers.... and couriers. Tell me about it. I work in a shop and it's a nightmare trying to keep stock of everything and the industry keeps making things more complected. For chainrings you get to know your market and stock accordingly, but you dare not have the latest new "square" ring in stock when Mr cheque book racer comes in because then how dear you call yourself a bike store. On a side not I read an article the other day (can't find it now ) that mentioned (if memory serves) Sram currently makes +-60 different X9 front derailleurs.Now imagine BB's or Headsets.
Spoke101 Posted June 30, 2015 Posted June 30, 2015 this ! an idea for you. open at 7am and close at 9pm. Most folk have jobs. Being able to pop into a bike shop after 5pm would be nothing short of fantastic. Oh yes. Saturdays till late (depening on where you are) and Sundays for when most families can come in. My pet hate with bike shops. "no sir, you cant take it for a ride up the road and back to test" have flippen test bikes demo bikes. make sure your mechanic, salesperson, skivvie, whateva you call them is also a barista, just like cwc, great to sit and have a coffee while doing some "work" in a bike shop. Sounds great!!! But try being the one who has to work 7-9 7 days a week with no time to do anything for yourself let alone ride your bike.
Mntboy Posted June 30, 2015 Posted June 30, 2015 Thanks for all the interesting and useful information.I really appreciate it. Just great to get so much response. Please keep it information coming.I would seriously consider what Hackster said. More so if you can get your hands on a talented mechanic. You could also stock a small amount of products (equipment/kit/tools) to help draw foot traffic. Small beginnings can yield big rewards if you commit to doing everything 100% right and communicate honestly with customers.
Mntboy Posted June 30, 2015 Posted June 30, 2015 Sounds great!!! But try being the one who has to work 7-9 7 days a week with no time to do anything for yourself let alone ride your bike.Requires two teams of staff to do. And you would have to balance the weekend's so that everyone gets some time to themselves and to spend with family.
big-wheel-trading Posted June 30, 2015 Author Posted June 30, 2015 I would seriously consider what Hackster said. More so if you can get your hands on a talented mechanic. You could also stock a small amount of products (equipment/kit/tools) to help draw foot traffic. Small beginnings can yield big rewards if you commit to doing everything 100% right and communicate honestly with customers.Mntboy do you have a good mechanic in mind!!!!
Mntboy Posted June 30, 2015 Posted June 30, 2015 Mntboy do you have a good mechanic in mind!!!!I hear hubber Wolfie is quite good and he has a built up support base as well. You can read reviews of his work in the BC Cycles thread. Even if you guys don't end up working together he may have valuable advice to give you.
ByronH Posted July 1, 2015 Posted July 1, 2015 I am no entrepreneur, but my thinking would be that you would need to open up your bike shop (whether it be a virtual one, or a physical one) whilst you are still running your current day job. This will help with your cashflow, and building up capital for all the stock and salaries you need. When I read the other threads, what is clear is that the bike shop itself wont make any profit, for quite a while.. So you will need to keep it afloat from externally sourced money for a lengthy period of time. From my bit of business knowledge: 1) Do your research well in terms of the location of your bike shop... target customers, what their requirement is, are you appealing to a special niche, and is your offering a bit different to the bike shop down the road? 2) Don't just distinguish yourself on service... Good service should be a given, whether I am eating at a restaurant or getting my car serviced, the end product should be at least fair to the money i paid, but often, i want more bang for my buck. Some of my ideas: 1) Have you considered partnering with a successful franchise? And I am thinking out the box here... like BeaverCreek Coffee at Clearwater Trails, like BeanThere coffee at 44 Stanley, like Bike Rental companies existing in Stellenbosch and Cape Town. 2) Have you considered partnering with Takealot.com, Groupon etc... currently, their online offering of cycle equipment is tacky and very Sportsmans Warehouse like 3) Perhaps you should go to your main clientele at the big corporates... instead of them coming to you? Have a mobile service unit which stations a different day a week at the major corporates in your area... or even a demo day at these corporates... or even a stand in the foyer/coffee shop of these places? if you can get permission Just some thoughts, havent tested them
AREM Posted July 1, 2015 Posted July 1, 2015 http://www.academyofsmall.business Check this out, seriously good and it's free
Allrounder Posted July 1, 2015 Posted July 1, 2015 I found this last night, and decided to watch it. Actually an eye opener. Don't let other people make your decision for you. https://www.youtube.com/watch?v=Lp7E973zozc
Joe Low Posted July 1, 2015 Posted July 1, 2015 Starting a shop because you like cycling and cyclists is a really bad idea. Its an undifferentiated product which means the market will be ruled by bulk. The barriers to entry are low which means there's always a bunch of small guys climbing over each other trying to get to safety and cutting each other's throat. Cycle shop is like opening a coffee shop, a b&b or a corner store, anyone can do it, few can make money. You can see here how the Hubbers are advising: open long hours give great service give free mechanical services for life on a bike all while keeping prices as low as the internet If your competitors don't put you under, following the wishes of your customers will! Open a cycle shop because you have got a killer idea and a sound business plan. Where is your advantage going to be and how are you going to keep it and build on it. Knowing & liking cycling is a nice to-have, necessary even, but it doesn't get you to 1st base in business.
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