Viewing 40 posts - 41 through 80 (of 150 total)
  • Apparently our business model is wrong.
  • Jujuuk68
    Free Member

    To be honest, I’m sort of with thebuyer of the tube.

    Supermarkets don’t sell milk and bread cheaply for no reason, they do it so you go there, and whilst there, spend a lot more than you probably needed to, on other things.

    If you’d fitted his inner tube, he’s have told 10 people about what a cracking little bike shop he’s found, they’d have told 10 people ect. Out of that word of mouth, you might have, over the course of a year, sold half a dozen new bikes at RRP and converted them from Halfords shoppers to LBS shoppers.

    Last couple of times I went into my lbs for trivial things (a bmx chainring of a 1pc crank) it took 30 secs. I was expecting to be charged at least a fiver proabably a tenner – they had the tools and knowledge – it doesnt matter if its a 30 sec job if I can’t do it!. No charge, so I bought a bundle of inner tubes, and have been back since for locks, lights ect – even when I suspect the local large store in walking distance might be cheaper.

    Sometimes, its not about the price, but the value. OP seems to have forgotten that to buy an inner tube, you need to have bought a big ticket item like a bike first, and no one goes through life with one bike! Wasted opportunity, if the sop was quiet, to build a relationship with a customer, put them in “moral debt” to you and win some cheap praise.

    timc
    Free Member

    Or he would go home, tell nobody & continue to shop online…

    Charging is fair although £6 for 5 mins seems steep compared to my lbs rates.

    Last week had a new valve supplied & fitted to my car for less £5 🙂

    johnnyboy666
    Free Member

    Actually after reading Jujuuk68’s comments I’m changing my mind. Maybe you have loads of customers and don’t need the extra business but what would be the reason for that guy to come back to your shop ever again over anyone other LBS? If you were busy then maybe not but if quiet, a “normally £6 but we are quiet, I’ll bung it in for free since it’s your first visit” type deal would have more than likely seen a won over customer who would be returning or at the very least someone who would go away and tell others about “that local shop were super helpful, you should go there”. As I said above the LBS can’t compete price wise so labour and service is where they have to be where they win. Also from a purely psychological point of view nothing is more satisfying than coming out of a shop feeling like you got a bargain.

    Also good point on moral debt, my local coffee guy always works on a tab if you haven’t got any cash with you even a lot of first time visitors. Only once has someone not returned and settled up with him.

    br
    Free Member

    Its the “I should be England manager line” isn’t it

    Everyone is an expert

    Yep. Try working in IT.

    bencooper
    Free Member

    I’d have been tempted to say 1600

    I sometimes get people saying ‘Can you do anything with the price?”

    “I can put it up if you like” is my answer if they’re annoying me.

    johnnyboy666
    Free Member

    Surely anyone with any common sense then looks for the bike online, 9 times out of 10 finds it cheaper and ultimately you don’t sell anything?

    wilburt
    Free Member

    sometimes get people saying ‘Can you do anything with the price?”

    “I can put it up if you like” is my answer if they’re annoying me.

    Then complain on here that cyclist would rather deal with a web page?

    mudshark
    Free Member

    Some shops give discounts and some will throw in freebies; worth asking really.

    CaptainFlashheart
    Free Member

    Some shops give discounts and some will throw in freebies; worth asking really.

    Be sure to ask next time you’re at a supermarket. Or your local corner shop for a pint of milk. After all, they’re only there to give you a discount and some freebies. You deserve it, just for asking, no matter what. They’re not there to provide a service, and woe betide that anyone should be allowed to actually make a living out of it….

    FFS.

    johnnyboy666
    Free Member

    I’m assuming when you buy a car or house you just offer the asking price straight away then?

    wilburt
    Free Member

    Be sure to ask next time you’re at a supermarket. Or your local corner shop for a pint of milk. After all, they’re only there to give you a discount and some freebies. You deserve it, just for asking, no matter what. They’re not there to provide a service, and woe betide that anyone should be allowed to actually make a living out of it….

    they don’t usually stretch the elasticity of a an items value quite so much as a lbs does or if they do its not on high value items.

    mudshark
    Free Member

    CaptainFlashheart – um really you serious? Supermarket?! Doesn’t really help your argument.

    cynic-al
    Free Member

    Midshark in what other shops do you espect free work?

    What work do you do for free?…

    if it wasn’t for these numptys/lazy people local bike shops wouldn’t exist anymore.

    So you can fix everything you own/use?

    If you’d fitted his inner tube, he’s have told 10 people about what a cracking little bike shop he’s found, they’d have told 10 people ect. Out of that word of mouth, you might have, over the course of a year, sold half a dozen new bikes at RRP and converted them from Halfords shoppers to LBS shoppers.

    He clearly rarely uses bike shops. Likely his mates are less likely to. Do Halfords fit tubes for free?

    If we did every tube fit for free we’d lose a bit of £. In 15 months in this shop I think he’s the first to expect this for free. I’m happy for him to trawl the other local shops and find no one does it for free.

    Chances of him coming back to apologise?

    wiggles
    Free Member

    The average person who needs a tube fitted has just pulled their 15 year old bike out of the shed and doesn’t know how to fix it.

    99% of people who want a tube fixed don’t buy anything else, as most people who ride bikes for a hobby and spend money on bikes generally know how to do it themselves.

    mudshark
    Free Member

    Midshark in what other shops do you espect free work?

    None – I didn’t say that.

    nach
    Free Member

    Customer suggestions to make things cheaper or do them for free seem to be based on anecdata, and uncannily aligned with whatever’s best for them rather than whatever business they’re dealing with. A race to the bottom on pricing isn’t going to do anyone any good. If bike shops trended towards doing stuff for free, the ones that survive would probably have to accompany that with a much harder sell.

    A softer approach is building community rather than just appealing to people’s wallets. I know of one LBS that luckily has a lot of space. They’ve built a cafe at the front, a load of ramps in the warehouse out back along with a venue to host parties, and are hoping to also put in a pump track and maybe a foam pit too. I hope it works out for them.

    brooess
    Free Member

    One of the problems the internet has brought us is many things that consumers used to pay for are now effectively free. For a web-based business this is fine as the marginal cost to the business of supplying one more unit is zero. That works well for software and other IT or service-based products.

    But for a owner-managed bricks and mortar shop where sales assistant time spent fitting a tube for free, has an opportunity cost attached to it e.g. the other customer who wanted to spend £1k on a bike who leaves because the shop assistant was too busy to deal with them.

    Customers need to learn that businesses only survive if they make a profit – especially small businesses, and stop acting like spoilt children. What’s partly offensive her IMO is the customer telling Al how he should run his business, when his opinion wasn’t asked for…

    I remember when I was in ad agencies having to explain to a client that if they didn’t pay for the time it took to make all the amends they wanted, I’d have to make one of the account managers redundant… there’s a moral obligation to expecting stuff for free in many circumstances…

    mikewsmith
    Free Member

    It simply sums up as a lot of people have no concept of value anymore, price is king. RRP is a notional value that is seen as an insult and peoples time is free. While spending 10-15mins sorting out somebodies tube for free (nothing is ever straight forward) your not doing paid jobs (or calling customers back) or selling bikes.

    batfink
    Free Member

    Was the customer a bell-end? Yes, definitely. Should he expect to go into a shop and get something for nothing (particularly when he’s not buying anything else)? No.

    However, I’m inclined to agree that some LBSs need to look at their business model. Doggedly following the same path, hoping that consumer attitudes to small businesses are going to change for the better (before they go bust), is crazy.

    Ultimately, this guy has left the shop feeling what? Angry? Ripped off? Determined to change his own tubes in future? You have just converted an LBS shopper into a home mechanic.

    Why not charge him a fiver for changing his tube, but give him five pounds off a future “service”. You’ve still charged him the same fiver, but he leaves the shop feeling like he’s got some goodwill – and you’ve potentially converted a 5 quid customer into a 50 quid (or however much) customer. Not to mention all the parts you can sell him when he comes back to have his bike serviced.

    But maybe you’ve already tried that.

    JoeG
    Free Member

    Part of the issue from a customer’s view may be how the cost compares to a whole new bike, especially a cheap one.

    For instance, Walmart sells this bike for $80. Your 11 GBP tube and fitting is about $18.75, or 23% of the cost of the whole new bike! From that perspective, I can see how it seems ridiculous.

    But you’re a UK mechanic working on a used bike, so your costs are higher. And if you think about it, you have to remove the wheel (bolted on BSO?), remove at least one side of the tire, remove the old tube, check for a thorn, insert the new tube, reseat the tire, inflate it, and reinstall the wheel.

    A Chinese worker on an assembly line doesn’t have to remove the wheel from the bike, remove the old tube, check for a thorn, or any of that stuff. And he’s dealing with all new materials, and may only be responsible for one small step in the process.

    Stuff is manufactured on assembly lines because it is very efficient. Repairs are one-offs and can’t be done that way, so the cost is bound to be higher.

    Pawsy_Bear
    Free Member

    All prices are an offer to treat legally and can be discussed. It’s not a case of getting something for nothing. Why not discuss the cost of a bike? He or she may become a regular customer so securing long term cash flow they may also buy accessories helmet or want a bike service. I’m sure when I go in to a car dealer or house purchase I expect to discuss the price. Yes business need to make a profit but simply refusing to discuss the price isn’t the business model for any industry. And on a point of law you can go into a super market and haggle the price of a loaf or milk (legally).

    http://en.m.wikipedia.org/wiki/Invitation_to_treat

    If your in large industries no price is offered but you submit a sealed bid that’s opened along with the rest seeking to be awarded the contract. So maybe it’s time to look at your business model

    thisisnotaspoon
    Free Member

    If you’d fitted his inner tube, he’s have told 10 people about what a cracking little bike shop he’s found, they’d have told 10 people ect. Out of that word of mouth, you might have, over the course of a year, sold half a dozen new bikes at RRP and converted them from Halfords shoppers to LBS shoppers.

    No, his 10 mates would have turned up for free puncture repairs too. You’re kidding yourself if you think offering something half price is going to encourage them to pay full price next time. I’ve vague memories of seing sales figures for Frijji and Ben and Jerries when the suppliers do a half price offer. It’s something daft like a 1000% increace, followed by a temporary 10% increace in full price sales.

    Last couple of times I went into my lbs for trivial things (a bmx chainring of a 1pc crank) it took 30 secs. I was expecting to be charged at least a fiver proabably a tenner – they had the tools and knowledge – it doesnt matter if its a 30 sec job if I can’t do it!. No charge, so I bought a bundle of inner tubes, and have been back since for locks, lights ect – even when I suspect the local large store in walking distance might be cheaper.

    Free fitting on a chainring (£30 part, quick job) is different to a £5 inner tube (which probably takes about the same ammount of time but involves the customers dog shit smeared rim and if he’s that incompetent* and arsey already, probably a “warranty” claim when he next punctures).

    *it’s an innertube, you could change it in the car park quiker than waiting for the mechanic to finish his current job!

    trail_rat
    Free Member

    No bike shop really wants to spend their day fitting tubes.

    If your business model is built on changing tubes …………..

    martymac
    Full Member

    when im at work i get paid.
    if im late back at the garage by 5 mins, i get paid the extra time.
    when i go to the supermarket/mcdonalds/local paper shop etc i buy stuff and pay whatever amount rings up on the till, i wouldnt dream of asking for discount.
    i dont understand why people automatically expect a discount (or work to be done for free) in their lbs.
    although, i dont see the harm in asking, i wouldnt on my first visit though.
    EDIT: ” his 10 mates would have turned up for free puncture repairs too”
    this is what would happen.

    Nobeerinthefridge
    Free Member

    I’ve never asked for a discount at my lbs, not once. However, after using it for many years, the guys in there give me 20% off everything, except stuff that they don’t make enough from or aren’t allowed to discount. If you are good enough, people will come back, bugger all to do with fitting inner tubes for free.

    Must be a nightmare in bike shops at times, so many bloody time wasters.

    dunmail
    Free Member

    Is there really one correct answer to this?

    There’s a bike shop near me that for some undefinable reason I don’t particularly like, I don’t know why but … However, it’s convenient and I’ve been in for small sundry items: cable anti-rub patches, that sort of thing and they’ve just gone “no charge so long as you come in again and buy something” which to be honest I have done and continue to do so.

    Bricks and mortar shops have quite a lot of fixed overheads that have to be paid for somehow and those costs can’t be paid for simply by once a month someone walking in and buying a £3K bike. If I went to the above shop with a wheel out of true and asked them to fix it then that takes time so if they don’t charge me for that time then they need to recoup it by charging someone else a little bit more.

    Do I “showroom” (try stuff in the shop then buy online?), very, very occasionally but equally if I see an item on the web let’s say for £100 and the shop has it for £110 then I’ll often just get it from the shop as I may have to take a bit of time off work or other hassle to take delivery of it from the web store so it’s swings and roundabouts.

    Getting a shop to do something for you rather than doing it yourself? Well if you work out what your time is worth it might be surprising: take your annual salary (or wage) and round to the nearest thousand; divide by a thousand then divide that figure by two. This gives you your approximate hourly rate. So if you are on the national average salary of £26K your hourly rate is £13/hr. It’s up to you to decide if what the LBS charges for a job is worth it in your particular case.

    br
    Free Member

    Getting a shop to do something for you rather than doing it yourself? Well if you work out what your time is worth it might be surprising: take your annual salary (or wage) and round to the nearest thousand; divide by a thousand then divide that figure by two. This gives you your approximate hourly rate. So if you are on the national average salary of £26K your hourly rate is £13/hr. It’s up to you to decide if what the LBS charges for a job is worth it in your particular case.

    Unfortunately that is what people do, and compare their salary hourly rate with an LBS’s ‘charge’ rate – rather than compare their ‘cost’ to their company. Which is probably upwards of twice their salary.

    I even had this at work once with an Accountant. My dept had to be self-funding so I was charging at £400pd, and he said that was twice what he earned. I then showed him how his £50k salary actually worked out at +£85k cost…

    hilldodger
    Free Member

    Hmmm, imgaine the customer’s position (you are in retail after all)

    First you have to deal with a grumpy shop operative refusing to help, then you see yourself slagged and ridculed on a bike forum.

    Hope your technical skills are better than your personal skills or the shop’s **** 😛

    DezB
    Free Member

    But would you have let him borrow a 4mm allen key if he’d just spent £50?

    mudshark
    Free Member

    when i go to the supermarket/mcdonalds/local paper shop etc i buy stuff and pay whatever amount rings up on the till, i wouldnt dream of asking for discount.

    No-one would – except perhaps for a large order at a local shop I suppose.

    Certainly charge a workshop rate for fitting tubes – and advise if tyres are in a bad way. Maybe free fitting if they buy a few spares/tyres (if got the time spare)? Must be a good mark up on tubes’n’tyres.

    dunmail
    Free Member

    Unfortunately that is what people do, and compare their salary hourly rate with an LBS’s ‘charge’ rate – rather than compare their ‘cost’ to their company. Which is probably upwards of twice their salary.

    My mistake – I didn’t mean to suggest comparing customer “hourly rate” with what an LBS charges as there are the the hidden costs to consider – business rates, rent, insurance, that sort of thing. Even as an office worker my salary cost is only about half what it actually costs the company to employ me.

    cynic-al
    Free Member

    First you have to deal with a grumpy shop operative refusing to help, then you see yourself slagged and ridculed on a bike forum.

    I wasn’t at all grumpy – but your assumptiongives away your bias.

    I did help – I provided what the customer needed at a reasonable price, and offered to repair at a reasonable price.

    cynic-al
    Free Member

    I love this:

    Must be a good mark up on tubes’n’tyres.

    There just “must be”. LOL.

    You imply both that you you dont know at all, but also that you do, to get the “fact” that you want.

    muppetWrangler
    Free Member

    The only time I’ve asked for a discount in a bike shop was when buying a new bike from a shop that was heavily promoting interest free credit. I asked what the cash price would be, assistant came straight back at me with the offer of accessories to the value of 10%. Which seemed a fair deal for me and the shop. Deal done.

    mikewsmith
    Free Member

    There just “must be”.

    Of course there must Al, otherwise how do all the bike shop owners have fast cars and supermodel girlfriends.

    Again internet pricing has distorted the market, add in the OEM & grey imports and it’s hard to know what retail prices are.

    mudshark
    Free Member

    You imply both that you you dont know at all, but also that you do, to get the “fact” that you want.

    I do know. I was being helpful but never mind.

    Adam@BikeWorks
    Free Member

    Apparently you don’t know, because like most other things the margin on decent tyres and tubes has become more and more squeezed.

    mudshark
    Free Member

    OP said £5 a tube. I suggested as a business idea, if got spare time, to do a free tube change instead of charging £6 if the customer bought several more tubes and tyres. I say that £6 will be covered by the additional sales and potentially gives the customer a sense of getting a nice deal which is always good.

    As I said – it’s just a suggestion, don’t have to do it and I don’t care as I change my own tubes.

    ampthill
    Full Member

    OK I get it now

    Your LBS should fit inner tubes for free and carry out minor repairs for free. That will get loads of customers into the shop. You can then teach them to repair their bike so they can buy their new bits online. You can then advise them on what new bike will work for them and perhaps offer set up advice and a test ride. They will then ask how much the bike is and then be deeply offended that you want feel full retail and buy that online as well

    I really can’t see why that won’t work

    hilldodger
    Free Member

    I wasn’t at all grumpy – but your assumptiongives away your bias

    Oh sorry, I assumed that someone who felt strongly enough to post their retail provider experiences online must have issues, maybe not grumpy then, just cranky

Viewing 40 posts - 41 through 80 (of 150 total)

The topic ‘Apparently our business model is wrong.’ is closed to new replies.