Not a Rant or a Rave but is this the Reality?

[Fox3]

Yesterday whilst out riding, we stopped at the Trek shop in Durbanville (Best Bikes) for Coffee. My friend has been waiting for a small cover for a cable hole on his Domain after a Stellnebosch Trek Shop has "ordered" it on 3 occassions.

 

He got chatting with the owner, who promptly removed a cover from a shop floor model and installed it on his bike. The ordered one can go on the shop model he said.

 

NOW THAT IS SERVICE!!! And his stolen mountain bike will suddenly be replaced by a Trek come the new year - from Best Bikes

 

And not very difficult.

 

LBSse must unfortunately become service enterprises. Charge Service Fees - stop guaging on parts. And be truthful about the the attrouches service you get from agents.  And call them out by name. And ask customers to e-mail brands directly. If it is really the problem, mobilise the customer base, you will be surprised the power.

Great shop that. Great guys and good service as well

[GLuvsMtb]

I own a bikeshop, and I can assure you its no easy job. My frustration is that the local distributors are making it very difficult for local bike shops. In recent months it had been a lotto when ordering from one of the larger suppliers. If you order 10 items, most likely half of these are out of stock. As a shop I use the correct channels, and it can prove frustrating. You look like a twit to the customer...you feel like a twit too. Last week I had a customer ask me to match the price of pedals on CWC. But when the pedals in question are R5 cheaper from CWC than my VAT exclusive price from the supplier, it makes it tough for me to support the local distributor.

The other bugbear that I have is that the public seems to believe the bike shops are killing it. Believe me, from my point of view thats not the case. I can never compete on price compared to online. People tell me I must charge a fortune to fit online parts for customers...but I cant. I cannot add to the adding hatred for the LBS in a digital era. Bike shops used to be the church for cyclists, we would gather and share stories, seek advice and perv over the latest offerings. In our SA economy, this is hard. I cannot have a full compliment of bikes as I need to pay upfront for them. Customers often comment "jeez, bikes are crazy expensive"...yes, I know. Believe me. I had to pay for them first!! And even when you do have stock, shops are so desperate to make a sale that they will sell bikes at cost (and there is no profit)...so either you match price or you sit with a bike you cannot sell. This may seem like a feel sorry for us post...but its not. The reality is that we as a bike shop need to be mindfull of the current situation and change our approach. Yes...calling someone back may seem trivial. But I am alone in my shop because I cannot afford to hire extra help because business is that thin...of the 200+ daily whatsapp's, emails and phone queries...it becomes difficult. I will always return a call, even if its 2 days later...and all the local shops know that the same guy is pitting you against each other for the best price, with no intention of buying from any of us because he is comparing to an online site in the UK...I will return the call. Guys...its a tough industry. Its not what it was a decade ago. Just be aware that the brick and mortar shop you are going into costs money to be there. Rent, salaries and stock. You will miss us when we are gone. And I see us going soon if I am honest.

Great post and thanks for sharing. I just have a few questions / comments:

What are you doing to future-proof your business? You’ve recognized that the most likely growth area / profit center is the workshop. Are there ways to make this department run more efficient?

Customer satisfaction > Price when you look at the value proposition (unless you work on cheap commuter bikes and Makro specials). How are you rating customer satisfaction to work out where you can improve?

How often do you give feedback to agency principals / brand HQ in Europe / US or the East? It may be worth-while attending product launches, workshops, Expo’s etc. to continue to build relationships with key agencies / suppliers and to come up with collaborative solutions to supply / stock issues.

 

Rest assured that you are not yet selling and servicing fax machines in an era where everyone are on mobile phones and computers. Just remember not to try and do business like it was done 20 or 30 years ago.

 

 

 

Sent from my iPhone using Tapatalk Pro

[Patchelicious]

Great post and thanks for sharing. I just have a few questions / comments:

What are you doing to future-proof your business? You’ve recognized that the most likely growth area / profit center is the workshop. Are there ways to make this department run more efficient?

Customer satisfaction > Price when you look at the value proposition (unless you work on cheap commuter bikes and Makro specials). How are you rating customer satisfaction to work out where you can improve?

How often do you give feedback to agency principals / brand HQ in Europe / US or the East? It may be worth-while attending product launches, workshops, Expo’s etc. to continue to build relationships with key agencies / suppliers and to come up with collaborative solutions to supply / stock issues.

 

Rest assured that you are not yet selling and servicing fax machines in an era where everyone are on mobile phones and computers. Just remember not to try and do business like it was done 20 or 30 years ago.

 

 

Simplest advice... Cigar butt smoke the crap out of the retail business while you still can, while making your 5 year plan moves.

[GrumpyOldGuy]

I own a bikeshop, and I can assure you its no easy job. My frustration is that the local distributors are making it very difficult for local bike shops. In recent months it had been a lotto when ordering from one of the larger suppliers. If you order 10 items, most likely half of these are out of stock. As a shop I use the correct channels, and it can prove frustrating. You look like a twit to the customer...you feel like a twit too. Last week I had a customer ask me to match the price of pedals on CWC. But when the pedals in question are R5 cheaper from CWC than my VAT exclusive price from the supplier, it makes it tough for me to support the local distributor.

The.....snip snip,snip.......

......I will return the call. Guys...its a tough industry. Its not what it was a decade ago. Just be aware that the brick and mortar shop you are going into costs money to be there. Rent, salaries and stock. You will miss us when we are gone. And I see us going soon if I am honest.

Its a nicely put post and I am sure its tough, all small retail now is tough, there's no free ride, however, I think you are missing a very important point, or perhaps you are just ignoring it,.....

 

....but that is the point of "Value".

 

I spent 35 years in my own business so I learnt a bit, but what always stuck with me was from a seminar I went on many many years ago in the USA on "The value chain in business"....... Simply put its like this, "What value are you adding to the product sale"

 

That's it,...... because you can only charge extra for that value.

 

If you are simply buying a product and adding a profit and trying to sell it on, its a losing game, you are doomed to compete with the lowest price, its simply a race to the bottom as to who gets the sale. Usually not you.

 

So, lets take your pedal example, what value did you add for the customer?

 

...because if you simply said my price is Rxyz.00 and he can get it at CRC for Rabc.00 and its cheaper than you, why I ask, should he support you.?

 

I wouldn't, it makes no financial sense. You wouldn't either in my shoes.

 

Everyone cares about value, its what motivates them to open their wallet,.. so lets use an example, would you buy milk from the poor struggling road side store 20 kms away and pay R10.00 a litre more than you can get it from your local Checkers 3 kms away.?

 

Of course you wouldn't, its stupid, but if the little road side store had a petting park and your kid could ride a pony and feed a goat, you may consider going there every second purchase, why?... because its an added value for your to see your kid enjoy herself, and that motivates you to open your wallet.

 

Why do you think McDonald's grows annually, do you really think its because they make a great Hamburger?. No, of course not, but when your kid wants a burger and McDonald's is handing out toys for free, where are you going to go?

 

Right again, they add value!.

 

Buying and adding profit and trying to resell is finished, it died 20 years ago with the advent of the internet, if you are not adding value to the sale, the customer will buy at the cheapest price, that's just the way it is.

 

The other issue I see is the distributor out of stock, that's poor form, and frankly they should be held to a higher standard, it may be a small inconsequential sale to them, but to the small retailer its lost profit, and that could be the difference between staying open and closing up shop.

My suggestion, you have to look after yourself, if possible import your own requirements, add value and tell the customer this is the extra value I give, many customers don't realize it,.. tell them,... don't be afraid!.

 

Finally, the brick and mortar shop will never disappear, don't fool yourself, if you close, someone else with a better business plan will open and make a success of it,.... don't think the customer needs you, its a fatal mistake, "you" need the customer, the customer has choices, you don't, remember that.

 

But I liked your post, I wish you luck.

[forgotten1]

Grumpy Old Guy...I could not agree more. You are correct. With regards to the guy with the pedals...he bought from CWC, even after I explained that there was no way I could match the price. It is what it is. But...I have since rebuilt his bike because he likes my service.

I started out not too long ago, have built a new shop, added a coffee shop for my customers, all in the vein of adding value. As a small business, I have to. Otherwise I am going to close my doors.

I have an awesome washbay...and guys love the fact we can quickly wash n lube their bikes...my store is on a known cycling route, so it helps to have a coffee shop and washbay facility.

I agree...I will always need the customer, and I try to go above and beyond wherever I can.

With regards to the local suppliers...and stock. Its a huge problem. I wont lie. And shops like myself have to buy and pay upfront, unlike the bigger retailers who get 180 days. (Personally I prefer paying upfront) And the bigger retailers get the first pick, and they take the bulk of the stock...leaving the smaller shops who pay upfront to fight for whats left. Its a completely messed up situation.

Please dont think I am sitting crying and complaining...I love my shop. Seeing someone excited for their new bike is always a blast. And the regular customers make it so much fun.

[BaGearA]

Grumpy Old Guy...I could not agree more. You are correct. With regards to the guy with the pedals...he bought from CWC, even after I explained that there was no way I could match the price. It is what it is. But...I have since rebuilt his bike because he likes my service.

I started out not too long ago, have built a new shop, added a coffee shop for my customers, all in the vein of adding value. As a small business, I have to. Otherwise I am going to close my doors.

I have an awesome washbay...and guys love the fact we can quickly wash n lube their bikes...my store is on a known cycling route, so it helps to have a coffee shop and washbay facility.

I agree...I will always need the customer, and I try to go above and beyond wherever I can.

With regards to the local suppliers...and stock. Its a huge problem. I wont lie. And shops like myself have to buy and pay upfront, unlike the bigger retailers who get 180 days. (Personally I prefer paying upfront) And the bigger retailers get the first pick, and they take the bulk of the stock...leaving the smaller shops who pay upfront to fight for whats left. Its a completely messed up situation.

Please dont think I am sitting crying and complaining...I love my shop. Seeing someone excited for their new bike is always a blast. And the regular customers make it so much fun.

Shop on the spruit ?

[forgotten1]

Shop on the spruit ?

Nope. Much further south.

[Shebeen]

Grumpy Old Guy...I could not agree more. You are correct. With regards to the guy with the pedals...he bought from CWC, even after I explained that there was no way I could match the price. It is what it is. But...I have since rebuilt his bike because he likes my service.

I started out not too long ago, have built a new shop, added a coffee shop for my customers, all in the vein of adding value. As a small business, I have to. Otherwise I am going to close my doors.

I have an awesome washbay...and guys love the fact we can quickly wash n lube their bikes...my store is on a known cycling route, so it helps to have a coffee shop and washbay facility.

I agree...I will always need the customer, and I try to go above and beyond wherever I can.

With regards to the local suppliers...and stock. Its a huge problem. I wont lie. And shops like myself have to buy and pay upfront, unlike the bigger retailers who get 180 days. (Personally I prefer paying upfront) And the bigger retailers get the first pick, and they take the bulk of the stock...leaving the smaller shops who pay upfront to fight for whats left. Its a completely messed up situation.

Please dont think I am sitting crying and complaining...I love my shop. Seeing someone excited for their new bike is always a blast. And the regular customers make it so much fun.

good luck, and thanks for adding the perspective from your side of the till.

 

It's an industry in transition, so keep your eye on the ball and if you're good you will survive and prosper. This is not a new discussion, bike shops mean moaning about CRC for a decade now!