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[Closed] Apparently our business model is wrong.

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Otherwise what does your LBS offer that you can't get at CRC? A LBS can't compete on price so it must compete in other areas.

Well, one of the things the LBS offers over CRC is the capacity to fit your tubes for you. But if they can't charge for stuff like that then what have they got?

I know I'm paraphrasing a bit, but if an LBS can't compete on price with CRC etc. and so can't rely on people buying stuff (at least not at enough margin to be worth it) then it needs to rely on other services. But if the model for charging for these services is heavily skewed towards showing goodwill and helping people out in the hope they might feel like paying for something sometime in the future (which is the impression you get from this thread) then where does that leave the LBS?


 
Posted : 26/07/2014 5:14 pm
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If we fitted tubes for free I'd never get any other jobs done. And seeing as I seem to get further behind each day as it is and can't find the time to ride my own bike, I'm happy to keep charging for fitting tubes.

We do a fair few free jobs for people but not for those who expect things for free


 
Posted : 26/07/2014 9:06 pm
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I do a few days a week spannering at a small but very busy bike shop. The workshop is rammed and we can hardly keep up. Whilst the actual job of swapping a tube takes 3 or 4 mins, by the time you've spoken to a customer about why they got a puncture, why their tubes have funny twiddly bits on them, booked the bike in, got it into the workshop, put a tube in, faffed with the inevetiably crappy brakes/gears/wheel bearings,lubed the chain, called the customer, had another chat with them about what caused the puncture, taken payment etc, you're getting on for 20 minutes at least.

For the last three days I've done 6 tubes each day. Anyone who thinks that an appropriate model for a small business to adopt is to do 2 hours of free work a day is bonkers. Anyone who thinks that fitting tubes for free will cause customers to buy more stuff is also bonkers, as orangeboy says, it just means we'd be fitting tubes for free all day long.

If a customer is genuinely interested we'll get them into the workshop and show them how it's done. We're always friendly and chatty, after all we are bike enthusiasts, and we bend over backwards to help customers out when we can. I often feel the boss under charges for work we do, especially given how hard I feel I work!


 
Posted : 26/07/2014 9:26 pm
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The closing down sale would be a good event

So true. 😆

It honestly took me 4-5 months before I was comfortable with charging LBS labour rates without feeling embarrassed.

I was shown how to service my 205 GTi when I had it. 30 minutes work, plus consumables. But I still paid a mechanic to do it at £50 an hour, or whatever they charge. It was cleaner, less hassle and it meant I could go to work and get paid.

Unfortunately you need to charge to make a living. You have skills that others do not - nothing embarrassing about charging for you using them to benefit others.


 
Posted : 26/07/2014 9:48 pm
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Anyone who thinks that fitting tubes for free will cause customers to buy more stuff is also bonkers, as orangeboy says, it just means we'd be fitting tubes for free all day long

There's a thing called Dr Bike. May well still exist, the idea is for one day a bike shop will do free simple repairs for anyone who asks, it's often done at events and the like. It's sold to the bike shop as a good way to get lots of new customers.

When I was young and foolish I did it a few times. And what happened is lots of people who I'd never seen before would turn up with the most horrible, wrecked, rusty bicycle-shaped objects and demand I fix everything that was wrong with them. Then, once I'd done my best, they'd leave and I'd never see them again.

The problem is if you don't charge for something, people think it's valueless. If you don't charge for your time, people think your time is of little value.


 
Posted : 26/07/2014 10:41 pm
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"The closing down sale would be a good event"

I believe it was, desperate for some cash flow at the end. infact still see some of the stuff from the shop that stw advised on here in the classifieds occasionally.


 
Posted : 26/07/2014 11:14 pm
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There's obviously a lot of business expertise amongst those who are recommending free stuff in a bike shop.

Seeing as it is such a good business model, perhaps one of these experts could start a bike shop and show us how to do it.

Our gratitude and the huge profit that they would make should be sufficient reward....


 
Posted : 26/07/2014 11:41 pm
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It is quite telling that everyone in a LBS here has said they don't do anything for free.

Pretty sure none of us really said that...
Just tubes, I do loads of small jobs for free if it is someone who doesn't assume they will get it for free and is nice to me. People who assume they get discounts/free stuff are less likely to get it. A kid with a banged up old bike and not much money got his work done at half price and I gave him some free grips because his were dangerous (to give an example)


 
Posted : 26/07/2014 11:45 pm
 br
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[i]The problem is if you don't charge for something, people think it's valueless. If you don't charge for your time, people think your time is of little value. [/i]

This.

And it's not just in LBS's, but covers all work.


 
Posted : 27/07/2014 8:37 am
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So quick google and my idea doesn't seem too far fetched

http://www.cyclesurgery.com/workshop-events/content/fcp-content

It's a competitive market, a little imagination doesn't hurt!


 
Posted : 27/07/2014 10:00 am
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Lost count of the number of times you have to fiddle with the brake or gears when you refit a rear wheel just so the bike is safe. That's all for free.


 
Posted : 27/07/2014 10:56 am
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THM - you'll note they say they only demonstrate on their own bikes, not customer bikes - they're not daft 😉

I'm all for educating people, I've designed my workshop so people can see what I'm doing, and I'm very happy to chat about any of the work I do. For one thing, it helps people get a more realistic idea of what's actually involved in building and fixing bikes. If I had the space and time I'd definitely run courses.


 
Posted : 27/07/2014 11:03 am
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DanW, don't be taken in by the myth of the loss leader. With the exception of milk which has become politically difficult to stiff the supplier quite as badly for as it used to be, all promotional items you see in a supermarket or the likes of halfords will either be margin maintained by the supplier or have 'marketing funding' charges applied to the supplier. These are tools for revenue generation not available to small players (and yes this includes own label).
As for what is a fair price for the lbs to charge, I can and do home spanner, especially on hacks and project bikes but since I have so little ride time, as long as the cost of parts plus fitting is less than internet plus my hourly rate, the lbs gets my cash. And I use the saved time to ride the other bike. Oh and with clothing I buy it where I try it


 
Posted : 29/07/2014 12:14 am
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since I have so little ride time, as long as the cost of parts plus fitting is less than internet plus my hourly rate, the lbs gets my cash.

The problem is you don't get paid for 24 hours in every day so a few hours on a rainy Sunday evening are "free".

I find most of the time it is quicker to fix stuff at home than call the LBS, make an appt, take it in, pick it up, check the work etc.


 
Posted : 29/07/2014 9:06 am
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charging appropriately for fixing puncture?

its called "idiot tax" in the bike industry for a reason, you know...


 
Posted : 29/07/2014 9:19 am
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