I'm looking into running a LBS in my town. The guy currently doing it is retiring shortly so a gap is there to be filled.

A major city 20 miles away has two large bike shops and a Halfrauds but locally there's nothing else. The servicing rates in the big shops are pretty high and the LBS undercuts them by nearly 50%.

The current business makes most of its money servicing and selling accessories and mainly kid's bikes. He also sells a fair number of £2-300 MTBs but few more exotic than that.

I've been a DIY mechanic for 20yrs but will put myself through a Cytech 2 course shortly. I have retail experience in the motorcycle industry but not with bicycles.

Any pearls of wisdom from those of you who've done the same thing would be welcome.

Thanks 🙂

Can you talk to him, and maybe help out in the shop for a while to get an idea of how its run- also helps you spot any things you'd want to change..

There is a book called Bicycle Retailer's Guide to Getting Rich in the Recession, by Randy Kirk.

Contact The Association of Cycle Traders, they can give some help and advice.

http://www.thecyclingexperts.co.uk/cycle-industry-jobs/
One bit of advice is do not bad mouth any competition even Halfords, one of the golden rules of retail.

There is a book called Bicycle Retailer's Guide to Getting Rich in the Recession, by Randy Kirk.

There is as well 😯

get an accountant to look over the books
Some market research via local business forum/advisers

More of an observation than experince(30 odd yrs btw);;;;

one of my lbs is also up for sale and if I could afford to jump from currnt job would have done so ages ago. This is a good, old fashioned style shop, looks untidy but delivers the goods. Changing it too much would probably cost custom.
Another, larger lbs has survived for more than 50yrs as a family business using the model yours is based on, repairs and family bikes.My very first new bike came from there over 40yrs ago!!! They got bitten at the start of the mtb revolution and stocked some good bikes but ended up flogging them off cheap just to get rid. They do stock some good bikes but not high end, high priced ones. Due to their credit rating they can however obtain almost anything. Recent builds have included a Cove DH bike, Pace and Cotic fs frames
Contrary to a lot of what is said on here a shop like yours is likely to survive longer than someone setting one up with all the bling gear. If you have been or are in retail then you will know that getting a "big" make in means you have to stock lots of stuff you may not want or can shift. Building a credit rating with the likes of Hotlines, Silverfish etc will be a/your limiting factor
The market for the up to £300 bike will always be there, the 2 above have managed to fend off a large Halfords and a couple of other attempts by others to set up in town.

Think the moral of my story is start small build slow. I know someone who was given this advice by Mike Bonny, Orange marketing manager. Failed to heed advice and lasted about5/7yrs. Started on bling and went backwards from there.Still had some of the opening stock when the doors closed.

from what i know from a mate who runs an old school road boy shop in london most of the money made is repairs as repairs dont require loads of money to be tied up waiting to be sold. he has always said there is money to be made in having a repair only shop with just consumables for sale especially if your any good at the repair side.

you may want to look at the city in guilds certificate (bike doctor i think run it) as i have heard it may become recognised as a more professional qualification as it is government affiliated/regulated i believe.

Do it, just do what you feel is right.
I started mine about six years ago and im opening another one soon

make sure you get good insurance just in case it goes tits up and you need to burn it down 8)

Customer service isn't about bending over and taking it up to the hilt. Some people are never satisfied or happy no matter what you do. So I suggest you be polite and always act in a manor that you believe is reasonable. Above all be calm.

I was recently in a small lbs when a guy came in shouting that the part worn brake pads hadn't been changed for new ones during a service?

Oh and by all means give preferencial rates to regular customers but you're there to earn a living so remember that.

Service, service and service are all important! I think any bike shop that has staff that can effectively engage with existing and potential customers has a fair chance of success. I am appalled at the complete lack of interest shown by staff in many bike shops I have been in – they have stopped me spending money (including a new road bike in one) simply due to their disinterest. I have also recommended bike shops where I have had good service to friends, and at least 2 people I know have bought as a result of my suggestions.

Chris at cycleworld is a good lad,he would be worth talking to.

http://www.thecyclingexperts.co.uk/opening-a-bike-shop/

Don't start with "mates rates" – you'll find it harder and harder to stop and you'll get more and more mates.

As has been said before, make sure that the person (people) that engages with the customers at the first point are friendly and interested in what the customer has to say (knowledgeable would be useful, but that's what the monkeys in the back are there for).

To make that real, there are 2 LBS near me. One is a large Trek / Scott dealer with all the latest bling bikes and accessories. It is nice to walk around, but the owner, and front of house first contact is lacking in the interpersonal skills department. I'm almost inclined to think that he has a bipolar personality. FWIW, the workshop service is good and the product is good, but I don't like going in and having to deal with the owner, so usually go elsewhere.

The other LBS is road / kids bike oriented. Run by an easy going older chap, who knows his onions. There are 2 mechanics. One is technically very good, but shouldn't be let out into the shop. The other I would barely trust to pump up my tyres, but he has excellent people skills and makes more sales than the other two put together. They make a great team because they complement each other.

Obviously the best combination would be an excellent mechanic / people person / sales person, but those types are few and far between.

People like spending money with the people they like!

Thanks people.

A lot of really useful info and opinions.

I've ordered the book. Doing my Cytech course next week.

Will take on board a lot of the advice and get planning. 😀

First hand observation: trying to stock everything the customers want will bankrupt you.

Know your market, know your customers, know your products. Answer emails

I'd echo what some of the others have said, you can't compete on bling but you can provide friendly customer service which a lot of the bigger stores find more difficult. Build up a good personal relationship with customers and they'll keep coming back. It's definitely not all about price either, if people are buying on price they'll be buying from the internet, people coming into the shop will either not be internet savy bikewise or will be coming in for the personal service, either way that's the key thing you need to deliver. In service terms that's what differentiates you from the competition.

When I workied in the business (a good few years ago now) the kids bikes were the basis. They may be cheap rubbish in some peoples eyes but they are the key foundation. Personally I looked at it as 'a bike is a bike' and if it gets someone else into the world of cycling then great. Give them good service and they'll keep returning in the future.

Good luck, I hope it works out for you

What people want to see and what people buy are very different things, locks and lights will always sell and usually have good margins, suspension forks sit around for ages and people will want them for £xx because http://www.biginternetshop.com is doing a deal on them.
As most people have said, repairs and obvious parts, if possible sponsor a local cycle club and give them 10% off parts, will bring them in the shop and then you can hopefully keep them as a customer.
Oh and remember the customer is always right, except for the complete ars*holes that you will no doubt encounter at some point. 😉

Be approachable.

Do what you say you are going to do.

Stock stuff that sells, not what you think you like the 'look' of best.

Concentrate on high margin items so you get some play room on the price.

Oh and be nice to people – it costs nothing!

yep i agree with most of the above…to add to the bike chain i would say pick all the local shops and mystery shop them if you can,then all the wrong things they do,do the opposite! it works a treat for me…

drop me a line if you want and ill share my font!

+1 on the service side of things.

My LBS *always* has people coming in with slipping gears, punctures, brakes that don't work. 5 minute jobs, but jobs that someone needs to be do.

Choke down fitting work on the stuff that people buy online but have no idea how to fit … Inner tubes, tyres, pumps, puncture repair kits, mudguards, gloves, lights, locks, waterproof jackets, bags and helmets always seem to sell well.

Customer service is the killer, my LBS's are great – but there are other shops locally that I wouldn't even go in to use their doormat to get the dog shit off my boots.

Make sure that people ride out of your shop on a bike that fits them properly, so they can enjoy cycling, and talk to their friends about how great it is – "Where did you get your bike", "Oh, that nice chap up the road" et cetera.

It's going to add what, 15, or twenty minutes onto the sale of a bike to get someone set up properly, but how many people ride a bike a couple of times, find it hurts, so shove it back in the shed never to see the light of day again – when a couple of mm here and there of adjustment will transform their experience of riding a bike.

We got talking to the local triathlon club. We sponsor their clothing, they buy from us.
Same day repairs are appreciated too, especially those "difficult" ones – a bike was stood for 6 months and need a service.
Have a day a week when you're open late, makes a difference.
Have a selection of regular ladies bikes, Dawes are pretty.
Get smiling, offer tea and play your music.
BTW Quality of service is everything and more.

opening late is a good one…

my LBS are a lot better than they were… they sponsor our uni club, one of our members works there, and we now get good deals and good service.

when i started uni i was building a new bike up, decided to suppport the local shop, and tbh they were crap. only in the last year or so have i started using them again, and i'm pretty glad i do. some things i do get cheaper online, but, for eg, they're gonna give me my 15% off on the new middleburn HT2 cranks, making them cheaper than i've seen anywhere.

only slight issue is slightly slow ordering now and again (not you luke, don't panic).

for me, perfect lbs = friendly, knowledgeable, able to have a laugh, open late/weekends, happy to order stuff in

Also… don't be a 'Bike Shop'

Sell the benefit of what you are selling not the product itself.

It's much easier to be excited about what it is all about and people will enjoy your enthusiasm. 🙂

No matter what magical flash products you sell or even £99 bikes..

Your staff will make or break your business.

For me in order of importance
Helpful friendly knowledgeable staff – bullshine free.
Good stock of service components – chains, mechs, pads, tubes etc
Good selection of accessories

I don't buy new bikes so don't care about that personally nor do I use shops for mechanical work

Just be nice.. simple and don't slag your competition off. It's just not cricket.

One thing I like in a bike shop is clear pricing – particularly when (at least some of it is) displayed online. For things I don't need urgently I'm happy to go to a LBS when I know it's only going to cost me a small premium over CRC, but I don't want to spend a whole day shopping around only to go back home and buy it online anyway.

Female staff that love bikes. That would be a great USP. No I dont mean staff bikini's etc. 🙄

Hora is actually right about Staff; he was entertaining me and my Staff way before he entered the world of the forum 😉 That RM9 provided us with no end of laughs!

Honesty is key with people. If you feed people BS most will never come back.

90% of commuters wanted to drop their bikes off before the shop opened and pick them up after it closed, so opening hours could be a USP.

Careful with your team sponsorship and discounted builds. Your riders will love you for it, but feel really bad when they find out they're making you broke. Be clear that you need to make a profit however close you are. I saw this first hand recently and it's enlightening to see which of your mates stick about when they have to start paying a fair price for stuff.

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