Open a New Bike Shop

[Shebeen]

My cycle buddy and I started a cycle repair shop (just mechanical work, no new bikes) in the Southern Peninsula at the end of last year.  It had been 'unofficially' running from his garage for years, it's now just more formal and structured.  We spent time getting the shop setup (I was here already, and we've just restructured the space to keep what I had here in the back - we're both still working our previous jobs) and have only really started marketing recently.  We've found a niche in that nobody is offering what we are here.

It's hard work, an endless money pit, nightmare supplier lists and supplier stock availability, and constant juggling.  All money that we're making is being pumped back into the business (the benefit of still having our old jobs), but we are seeing growth.

It's great doing something that you really enjoy, and we're really having fun with it!  

If you've got the funds, passion and drive for it then go for it!  Just not if you're in the Southern Peninsula... 

 

www.cranx.co.za

cool stuff good luck!

[Mntboy]

 

 

Yes it does...But now put yourself in the position where a guy walks in and spends an hour dealing with X and gains confidence in that sales person, comes back tomorrow to show his mate/missus and now deals with Y who has no clue what is going on. Don't get me started on commissions in this situation. I know there are solutions but I have seen it happen more than once!

That's where honest communication between staff is key along with ultra clear guidelines wrt commission. Basically the owner/manager needs to keep a firm hand on the comms between staff members and ensure that no unhealthy rivalries creep in. Rather obviously good conflict resolution skills are also needed and not just for staff conflicts. Having a plan in place for such situations should hopefully either calm things down or prevent a serious fall out but don't count out human nature. People can sometimes behave very different when money is involved.

[Skylark]

We did that at the one shop I worked at, Guess who/what comes out the woodwork after hours? - all the skelms...when you are on the "graveyard" shift between 6 and 8pm and you get a group of non cyclists come in and fondle every piece of clothing (and this is no lie) and when the next guy opens the shop in the morning and discovers 3 winter jackets (at a cost of R2k each) missing cuz the "non cyclists" did a bit of "affirmative shopping" on your watch...

 

And this is in one of the most "upmarket" centers in JHB...

 

I have heard similar stories from retailers that stay open late.

 

Also a security risk in general, probably will be one of the lone shops open after 5pm/6pm, all the skoteni's start doing shop invasions and hold-ups right about then. No one around, limited traffic/foot traffic - just you, the baddies and a store full of goodies. Obviously that depends on the area/location but even having a shop/workshop in a business park and having it open for foot traffic after hours can spell a visit from the crooks.

[Skinnyone]

That's where honest communication between staff is key along with ultra clear guidelines wrt commission. Basically the owner/manager needs to keep a firm hand on the comms between staff members and ensure that no unhealthy rivalries creep in. Rather obviously good conflict resolution skills are also needed and not just for staff conflicts. Having a plan in place for such situations should hopefully either calm things down or prevent a serious fall out but don't count out human nature. People can sometimes behave very different when money is involved.

Agreed, but like you say human nature/greed will step in at every opportunity...

[Skinnyone]

I have heard similar stories from retailers that stay open late.

 

Also a security risk in general, probably will be one of the lone shops open after 5pm/6pm, all the skoteni's start doing shop invasions and hold-ups right about then. No one around, limited traffic/foot traffic - just you, the baddies and a store full of goodies. Obviously that depends on the area/location but even having a shop/workshop in a business park and having it open for foot traffic after hours can spell a visit from the crooks.

Doesn't matter where or when...just the other day we had two characters walk in and while the one guy spoke to the one sales person, the other one is off scouting to see what is removable - this was at 11 in the morning....

[myveonix]

Do not waste your money or time. The market place is over saturated.

['Dale]

Like has been mentioned - unless you have a couple of bar (millions of Rondelas) stuffed in your mattress don't bother...Shop fitting alone I would hazard a guess at R500K, then but tools etc for workshop R100K (to do it properly - you are doing it properly right???) POS equipment and software another R100K. Now here come the crux STAFF (more than one) who KNOW what they are doing and share your passion of keeping the doors open, better make sure you have enough cash flow to pay them at least 3 months salary now...

 

NOW to stock your shop, every supplier is only going to supply you on COD terms, so budget on 50-70K per (top end) bike that you want to keep and 8-20K per mid range bike...(wholesale values) then start with clothing,shoes accessories. Once done there make sure your workshop is well stocked with spares so that when you open your doors on day one you can start servicing most bikes that may roll thru your door without looking like a tool and having to say "I'll have to order that chain in"...

 

Now pay me for my consultancy fee...How can I tell you all this? I have been involved in opening a few stores in JHB....Oh yes remember the staff thing? I have been involved in a store where the owner ran out of money 6 months in and couldn't pay me never mind the suppliers...Don't let it happen....

Realism... It hurts

[Oufy MTB (Roadie)]

If I look at Revolution Cycles, Cycology, Olympic Claremont the only issue I have with these stores are parking. Luckily, my drop offs are by foot cos my LBS is around the corner from my work.

 

So if you opening an LBS, make sure it is in a place where there is safe parking

[Eddy Gordo]

Revolution at least still has some parking around their store, even though its a premium!

[UpShift_Cycles]

its called hard work. Its called breaking the rules. Its called differentiating yourself. And not all the staff have to be there from 7 - 9.

 

Heck come to think of it. Every bike shop in my area closes at 5.30pm. If I was an owner I would know my customers and know that most of them work till late. Heck if the times are a worry, open at 10 and close at 10.

 

and then onto that how about an after hour service?

 

and yes there are people who have worked like that for a year or 10.

10 - 10? What happens to all your customers that drop their bikes off for service on their way to work at 7am? Poof goodbye customers

[Frosty]

Most of the bike shops I've supported are owner-managed, with virtually no sales people.

They work 9-6, Monday - Friday and a 3/4 day on Saturday.

Moderately stocked, with the most common parts in stock.

All of them know their products, and have been trading for a number of years.

Their prices are not the cheapest, but they're not over the top.

Maybe that's the secret to them still trading - they do the hard work and don't leave it to others.

[scotty]

Most of the bike shops I've supported are owner-managed, with virually no sales people.

They work 9-6, Monday - Friday and a 3/4 day on Saturday.

Moderately stocked, with the most common parts in stock.

All of them know their products, and have been trading for a number of years.

Their prices are not the cheapest, but they're not over the top.

Maybe that's the secret to them still trading - they do the hard work and don't leave it to others.

You don't get more owner managed than George himself, guy even sleeps in his shop. 

[eddy]

Most of the bike shops I've supported are owner-managed, with virually no sales people.

They work 9-6, Monday - Friday and a 3/4 day on Saturday.

Moderately stocked, with the most common parts in stock.

All of them know their products, and have been trading for a number of years.

Their prices are not the cheapest, but they're not over the top.

Maybe that's the secret to them still trading - they do the hard work and don't leave it to others.

 

You have put your finger on it.

 

Having the owner there all the time is not a guarantee of success, but him being absent is a guarantee of failure.

 

I do not support bike shops, I support owners whether they are called Mike, Grant or Anton. their presence is my guarantee

[Joe Low]

Most of the bike shops I've supported are owner-managed, with virtually no sales people.

They work 9-6, Monday - Friday and a 3/4 day on Saturday.

Moderately stocked, with the most common parts in stock.

All of them know their products, and have been trading for a number of years.

Their prices are not the cheapest, but they're not over the top.

Maybe that's the secret to them still trading - they do the hard work and don't leave it to others.

 

 

That can give a guy a living but is it the best return he can make on his efforts and investment?

 

Opens up another set of questions re: quality of life and realistic options.

[Sharkie 2]

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.

Nice idea for the time however not for the people that work in the shop....I was one of them, they also have families and lives of their own, that being said retail industry is a bugger and the hours are crap. Bike shop owners are generally the only ones that make money and there are not many, I am sure many of the LBS owners live month to month

[Frosty]

That can give a guy a living but is it the best return he can make on his efforts and investment?

 

Opens up another set of questions re: quality of life and realistic options.

Does open another set of questions.

 

For me, the best return on an investment is a happy customer base - not making plenty moola. Sure, the shop would need to sustain the families involved in running it, but the satisfaction of helping other people with a new bike, gear, or a simple repair is (for me) a million times more satisfying than a healthy bank balance.

 

One example is my pending new bike build - the bike owner said he can't charge me for the build, it's not something he does. But I am supplying all components except for the frame and one or two other bits and pieces. I think it's fair that in this case, that I pay for the frame and the build - otherwise how does he make a living.