Are bike shops surviving in this economy?

[Groot Lem]

Or wholesalers, with the credit crunch and the RAND!!! Will bikes be 30% more expensive than '08. And if no one (or few) can afford it, will your LBS stay in business?

[Groot Lem]

Bike shops just used to survive no matter what, but this one seem a bit tough. But the big importers, who will survive? Or are they so rich it doesnt matter?

[Dirtbreath]

 

Oh' date=' I thought it was a trick question, to which the answer would be: "does the pope **** in the woods?"...

[/quote']

 

What exactly are you saying here?

 

Spoke to a LBS round the corner (quite a boutique shop) and he said they are doing really well. Was expecting the credit crunch to hit but has had the exact opposite effect. Maybe the money that people were spending on cars and houses is being pumped into top end bikes.

 

[niterider]

Speaking for myself, I've just been on a spending spree, with the intention of beating any imminent price-hikes. I know a few others that have done the same.

[Jules]

I have no doubt that a few bike shops will go under. It might sound a bit callous, but I can't help wondering how to take advantage of it. Are the tools/stock sold on auction and if so, where does one hear about it?

 

 

 

 

[porky]

Maybe a few badly managed operations will go to the wall, but that would probably have happened anyway.

 

In my opinion the credit crunch is only in a lot of peoples minds, fuelled by a media who are mind bent on publishing the worst possible news available.

 

But, anyway, high end items and specialist markets are not usually so exposed to this kind of issue, people who can afford to buy a R10 OR R20 K (for example) bicycle are not too concerned about the credit crunch.

 

Warren Buffet once said, "People who want to play golf usually know how much it costs and are prepared to spend the money. For these people supporting a high ticket item will not mean the cost impacts on the dinner table".

 

As we see now, the pain is felt in markets heavily relient on credit like cars and houses, but even here Ferrari and Porche will come out stronger than ever, their client is not effected by the credit issue, unlike producers who targeted low income markets and have been hugely effected.

 

[Hog_]

While it is tough times for everyone, we still need basic things - tyres, tubes, lube, chains, rear derailleurs, bike services. I think most shops make a fair amount of their income on these 'wear & tear' items. I mean, I tend to spend a few 100 ZARs whenever I enter my LBS, but I still only have 1 bike. 

 

 

 

[porky]

I have no doubt that a few bike shops will go under. It might sound a bit callous' date=' but I can't help wondering how to take advantage of it. Are the tools/stock sold on auction and if so, where does one hear about it?

[/quote']

 

Yes, if theres anything left to take it will be sold on auction.

 

Generally its advertised in the local newspaper or occasionally in the Sunday Times business section if the stock is of sufficient value.

 

But the best thing to do is, if you know the area where the shop was operating before the goods were siezed, you could call the area sheriff and ask when the goods are going on auction and where, or they even sometimes advertise it outside their offices on notice boards, then just pop along on the day and bid, remember though its generally cash or cheque, credit cards arent readily acceptable by the Sheriff.!

 

[Dirtbreath]

 

I have no doubt that a few bike shops will go under. It might sound a bit callous' date=' but I can't help wondering how to take advantage of it. Are the tools/stock sold on auction and if so, where does one hear about it?

 

[/quote']

 

Yes, if theres anything left to take it will be sold on auction.

 

Generally its advertised in the local newspaper or occasionally in the Sunday Times business section if the stock is of sufficient value.

 

But the best thing to do is, if you know the area where the shop was operating before the goods were siezed, you could call the area sheriff and ask when the goods are going on auction and where, or they even sometimes advertise it outside their offices on notice boards, then just pop along on the day and bid, remember though its generally cash or cheque, credit cards arent readily acceptable by the Sheriff.!

 

 

VULTURES! The lot of you. Anyone pick up any bargains and keen to share, let me know.

 

[mallo]

Last week at one of the LBS I was in there was three sales done within an hour of the best bikes he had on display. The one guys spent R76000-00 without blinking on his new stead. I guess the credit crunch is only for a select few. Cleary some LBS will not be hard hit in these times as said shop is at least 56years old and the owner has been through it all before. His motto count the pennies and the pounds look after themselves, treat man off the street the same as your biggest spender.

[Captain Fastbastard Mayhem]

exactly right there...it only affects those who had to "save" to buy things, not those who only need to travel one less time to the Comores in order to afford the bike...

 

It's a very interesting dynamic...

 

bottom line: if you could afford that high ticket bike before, you can afford it now. No problem. If you were saving to get towards that R8,000 Merida, chances are that you're feeling the pinch and have put it off for a while...

 

[pastapouch]

I think the smaller ones have more worries. But , bike shops may make it big because soons everyone will have to cycle to work because fuels gonna go through the roof. Or not!

[AndreZA]

But this is where that price fixing thing comes in. So that the shops can make more so that they can survive. Nevermind selling more for less. They want to sell one or two to make up the months rent instead of selling 10.

 

 

[fatcyclist]

I spent a bit of money at two shops this week, and both seemed to be doing ok, but they did ask if I could do internet transfer payments, so they don't have to pay the switching fees for the transactions via speedpoints etc. Obviously trying to save money where they can... I obliged and got a nice discount for it at the one shop..

[Dirtbreath]

I see it like this.

 

Bob has some cash to blow because he has worked hard and wants to reward himself. He cant really afford the new BMW which he would have got any other time. Decides to get a new carbon Spez because it strokes his ego just as much but doesnt burn his pocket for 48 months.

[AndreZA]

I see it like this.

Bob has some cash to blow because he has worked hard and wants to reward himself. He cant really afford the new BMW which he would have got any other time. Decides to get a new carbon Spez because it strokes his ego just as much but doesnt burn his pocket for 48 months.

 

well, either way, he is buying crap.