Hi, i've just taken voluntary redundancy, i have no business brain to talk of but my wife has been running companies all her working life.

So far so good. If i wanted to start an online bike shop for instance how do i get the big boys, Shimano etc. to take me seriously, and allow me to sell their gear?

Just curious really 🙄

You won't get an account with most suppliers unless you have a brick and mortar retail premises, at least thats the official line…

Hmmm i suspected that, but even then will they take a newbie serious?

It's the only idea i have any enthusiasm for, are they easily approachable?

Gosh i got lots of questions.

I'd have a long, hard think about how you would differentiate yourself from Wiggle, Merlin, ChainReaction and the rest. They all discount heavily, and all ship quickly and cheaply (and free, in some cases).
If you're flogging the same kit as them, how would you do it better? What's in it for the customer? Most people go to an established brand that has a reputation and that they've dealt with before. Having a positive rep online and amongst friends is a huge help as well.

You are:

* unknown
* not necessarily as loaded / liquid as the guys that set up Wiggle / CR
* don't seem to have any experience of the business / any business

Bear in mind, too, that most successful online stores can buy in bulk, getting them discounts, can buy grey market kit, and can buy OEM kit in bulk.

You're trying to enter a market where scale matters, where the majority of stuff you're selling is not unique (every online shop can, for example, sell XT shifters and Avid brakes – the only difference is delivery time and price)and where there is precious little scope for what is called value-add. Bear in mind I'm not knocking these boys – they're exceptionally good at what they do. What they do is high volume, low margin sales. They do it exceptionally well.

It might be better to look at what the market doesn't have, rather than what it has. There are plenty of microbrands out there that sell odd, unusual or innovative things that people want. Examples include Cotic, Shedfire, Singular and Dialled Bikes. All sell something unique (ie, not XT shifters) and have some excellent marketing heads running them, people who know or are able to get people talking about their stuff, and buying it. This is usually because it's quite good and answers a specific need that isn't addressed by the big boys – long travel hardtails, singlespeeds, big wheeled bikes, bikes with very slack head tubes, that sort of thing.

Rather than trying to get into the distribution and retail business, which needs nice big lines of credit, warehousing and distribution, a good reputation with suppliers and clear supply lines, why not take a look at something that matches your skills better? It seems you have bags of enthusiasm, and your missus has a good business so I'd suggest you start with those two things.

HTH.

bent_udder is a nice man for taking the time to write that and he is also absolutely correct.
Find a niche and aim at that. Better still, create a niche and dominate it.

Yes thanks for that you are right, i do use CRC and wiggle myself and think they are spot on, finding a niche eh? that sounds tough.

I'm just tossing ideas around at the moment, i've only got two days left at work and i'm getting nervous now about what i'll do, i've got a descent payout so no rush.

I do sell on Ebay and wonder wether an Ebay shop might be a winner, but theres loads of them again.

Find a niche and aim at that. Better still, create a niche and dominate it.

Like Superstar….

I don't have bike industry experience, but from a general business perspective I'd consider that perhaps niches are called niches for a reason – they aren't very big.

But perhaps I've got the STW meaning of the word stuck in my head.

If the others mean selling large volumes of a limited number of popular items – rather than trying to get us all riding titanium 94ers – then that does sound like good advice.

Two ebay shops I think have got it right are Highonbikes and Woollyhatshop – both selling cheap but good quality stuff that would either be too old for the big retailers or just a sideline.

"selling cheap but good quality stuff that would either be too old for the big retailers or just a sideline"

A lot of bike shops survive through this, supporting the 'older' models/types of gear/parts that still works fine if you can get replacement bits.

Flip, as someone who's set up a bike business in the last couple of years, I can tell you that you'll struggle to get ANY suppliers unless you have a physical shop, and even then you'll probably need to be far enough away from their existing dealers.

Most suppliers will not want you to be dumping loads of their stuff cheaply onto the market via t'interweb either, as they like to be seen to be protecting their independent dealers, (while at the same time supplying the big online dealers who they daren't argue with).

As Colin implied though, it's not always the case. If you can get to talk to a rep or two, and persuade them why you should have an account, (or bribe them or whatever), you might just get somewhere.

PS. The idea about finding your own niche or unique selling point is a very good one. I did just that, and it's starting to pay off. Now if only people knew I existed… 🙄

Very good advice thanks to all, seems i may struggle 😐

Perhaps look outside online/offline bike related retail, what about related services?

Do you have to physically sell a product? what bike related services could you offer?

The default approach is often to look for that one killer product, but your looking at an sporting market segment, your customers get out and do actually things, perhaps look at what can you add to their cycling experience?

look at a couple of recent posts about this but try and get your ass down to the london cycle show because a lot of the movers/shakers/reps will be there and you can look at everything including all the niche stuff you can shake a stick at….

get a unit and reps will come! all the suppliers have fairly rigid rules about web only business's cos theres a lot of garage/bedroom so called web shops that damage there rep and job kit out…and if they do supply you be prepared for the local dealers to moan and kick off…..

Ah i am going to the Cycle show on the 10th, good thinking Batman i'll get talking to people down there.

Here's some guidance on opening a bike shop

If its something you really want to do then don't be put off, you'll never make a fortune but its not a bad lifestyle…

Have a proper business plan though if you get a unit make sure its an easy in, easy out so your not tied to a lease for the next 15yrs.

Think of costs that you might not think of, the usual rent, rates, insurance, phone, heating, advertising etc but also things you don't think of rubbish disposal, phone line monitoring (BT redcare £600yr), i got fined £464 last week for putting a Sign on a lampost 🙁

You'll soon see by the time you want to take a wage out of it too, you have to sell a lot of stuff, you'll also find that you can't buy some stuff as cheap as the online guys are selling it for, don't let it all put you off, but also be realistic you could end up owing a fortune if you just dive in…

Thanks guys for the reality check 🙄

Thanks mdb for that linky loads of info there.

have no business brain to talk of

Don't do it.

❗ niche = 650b front with 24" rear – you saw it here first! ❗

Niche? Pfft – my 29er rear end with 36er front end off road trike plans are niche! I'll make a fortune!

DAMN! Told someone.

I don't have bike industry experience, but from a general business perspective I'd consider that perhaps niches are called niches for a reason – they aren't very big.

The difference is that a one man band can actually make a half decent living from a niche – because big companies wouldn't see a market in the niche. All of the microbrands I mentioned above started / are like that. Eventually, some or all of what they do gets picked up by big brands, but in the mean time, the little guys can clean up in market segments that are simply too small for big manufacturers or distributors to mine effectively. A great example is Charlie The Bike Monger – what he sells now is definitely not as unusual as it was five years ago, but he is really good at selling his brand and his products. Plus he puts boiled sweets and stickers in with his orders. God, I'm a cheap date. 😛

Having been in the cycle trade myself a for a few years (got out a few years ago to spend more time with family, Oh the joy :|)I can tell you that yes you will need a physical premisis to get accounts with most suppliers, as they like their products to be well represented and customer support given. Also lots of bits and bobs like Shimano and rockshox (some OEM models) can be sold br CRC etc for what you pay for them trade – as these big companies have economy of sale and aquire them from sources other than the official UK importers.

If i were to get invloved in the cycle trade again it would maybe the 'production' of niche product, due to the weakness in your UK pound even export market is an attractive idea. Maybe try doing something like the 'super star' thing – but with better products, and less intrusive condemnation of customers/potential cusotmers. Then all that is needed is capital and marketing, if you pick your products right you will have less competition. There are some very well made korean components that don't have a footing in the UK market, you could have a look into that!

Good luck.