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Can anyone offer any advice on setting up a bike shop. I guess this may be aimed at people who own, or work in a shop of their own.
I appreciate that this is a big topic, and that there are many aspects to it - but any advice would be gratefully received.
[i]Can anyone offer any advice on setting up a bike shop.[/i]
yes. don't.
How do you make a small fortune running a bike shop
Easy start off with a large fortune
It would be cheaper and better for you in the long run just to give your money to me 😉
MJ- If you are anywhere near West Berks I would be willing to lend a hand for a small financial incentive if you can get it off the ground.
apart from the sensible advice given above. You need a niche in an overcrowded market place. commuters / kids / roadies / triathlon / Mtbs etc.
Lots of stock - ???? £100 000 worth?
My view - don't make your hobby your work - you end up losing your hobby
Spent 10 years working for large and small shops, don't try and cater for everybody find a good customer base. You deff need a good mechanic, that is prob one of the most important things you need in a good shop. Do your homework and if it looks good, go for it! 😆
judderman - thanks for the top tip... if you'll let me know your account number, your sort code, your pin number, and all your passwords, I will transfer all my money over. seriously though - thanks for the advise so far guys.... its a crazy dream - but sometimes crazy is wonderful.
Have you worked in a shop at all? I've been in one seven years so far & really want my sport back as a fun past time, like it used to be. It takes over your life, you'll think about nothing else morning, noon & night. Knowing a lot about bikes is only a very small part of it, being a good business person is far more important IMHO.
Interesting, im considering going for it and opening one. It doesn't seem easy to get your foot in the door, all people in the trade seem to hold their cards close to their chest.
One big thing to overcome is getting the brands you want. You'll find many suppliers won't sell to you if they already have a dealer not far away.
All our local shops are flying at the moment, they can not get enough stock, and having their best year for a while, a couple their best ever. make sure you understand the cycle to work scheme and good luck!
If your a keen cyclist,then don't think you could run a perfect shop as you would like it yourself. However, if your a good business mind and think long term you should be okay. A sound business plan and cash flow planned out are 2 of the most important items in any business, businesses only fail through lack of cash, not by poor profits.
Keep the cash correct, the creditors happy and treat all your friends as customers, we all know how tight us cyclists are.
If your still interested I wish you the best of luck.
as i said - 'this is a big topic'.... yes, i have worked in retail - a long time ago.... and, yes, I have worked in business (for many years)... biking is a hobby, but it is an area that i really feel is taking off. what we have seen so far (in recent years) is the tip - there is a cultural shift, in the western world back to the simple things - and biking is a simple pleasure.
the bike to work scheme has helped turbo charge this revival, but (IMHO) this is the tip of the iceberg.
my dream has been (for a long time) to own, run, work in, and enjoy a bike shop that makes money, makes friends, makes time - and makes things better.
ride on.
My view - don't make your hobby your work - you end up losing your hobby
why bother getting out of bed in the morning? remind me not to ride with you any time soon.
Majorupset, go for it, you can never have too many bike shops, cyclings on the up & up. Sign up for the Bikebiz forum if you can; you'll get lots of information on the day to day politics of the industry from there. A lot of the contributors are bike shop staff and owners. Good luck to you 😉
Garlic - check the post from golden wonder above.
I know people who have opened businesses in areas that were their hobby. They have all regretted it. As the business sapped their enthusiasm for what was their hobby. It don';t happen to everyone but it is a real risk
cheers garlic - i like your attitude... and thanks for the tip.
Hi
Just read your post.
One year on and I am thinking of doing the same.
How have things progressed?
As has been said above, it'll take over your life and you'll hardly get to ride. I managed a small bike shop for a few years. I loved it but I was ever so slightly detached from the business side.
If you're prepared to be shafted and lied to by the big boys, if you're prepared to put up with having to pay more than the big shops and chains for everyday items, if you're prepared to put up with having the rug pulled out from under you by suppliers who look after the biggest customers first, if you're prepared to have the patience of a saint with totally unreasonable customers and if you're prepared to work harder and longer than you've ever done before then go for it. It was the best job I ever had!
I long for a shop where I can drop my bike off in the morning and pick it up after work. One where the part doesnt have to be ordered and take most of the week to come and fit.
I understand the whole 'can't keep everything in stock' Im not unreasonable but with internet prices and next day availability I'm keen to give it a go myself.
I would much prefer the one to one friendly experience, but in a world of super impatience and must-have-it-now, it just doesnt work like that and I feel sorry for the shops that find it hard.
My local bike shop 'was' fantastic for turning things around fast and nothing was too much trouble, always worked late and was reasonably priced.
Yes you guessed it for all his hard work he went bust.
On the other hand another local shop has a huge amount of stock but is rude, unhelpful, arrogant and thinks he's doing me a favour by me spending money (on the rare occasion when all else fails) Rant over!!:)
If you could find a balance of stock, service and still make a good living then I hope you do well.....business plan is high up there on the essential list.
Good luck matey.
I wonder how many people on STW don't actually need a LBS anymore - only a shop who can provide spare parts? (i.e. CRC/Wiggle/etc)
Can't remember the last time I actually used one?
Serious question too! Being a cyclist, I should be the prime target of their business - yet I would never use them.
Knowing a lot about bikes is only a very small part of it, being a good business person is far more important IMHO.
Probably the best advice so far;
Candodavid - Member
If your a keen cyclist,then don't think you could run a perfect shop as you would like it yourself. However, if your a good business mind and think long term you should be okay. A sound business plan and cash flow planned out are 2 of the most important items in any business, businesses only fail through lack of cash, not by poor profits.
Keep the cash correct, the creditors happy and treat all your friends as customers, we all know how tight us cyclists are.If your still interested I wish you the best of luck.
Exactly the advice someone I know was given before starting up by Michael Bonny from Orange no less.
My lbs survives on low end and kids bikes mainly, B"W, road and bmx. Has dabbled with some high end mtb but has given up on that due to some of what Diawl says.
Just remeber not all that shines is Gold. Do not get caught up in the "everyone needs xtr, hope, campag" syndrome. Person I know did and stil had stock which was 3-5yrs old when shop closed ❗
Newest bike shop near me; http://www.nextlevelbikes.co.uk/ Mark may be able to offer some advice if you give him a call
How do you or any bike shop make it attractive to women? imo more women may be attracted to our "sport" if shops could somehow cater for their needs. Why do women feel so intimidated by bike shops, choosing a bike etc ?
its a good point xiphon and running a shop you do actually see it happen, as people learn more and get more into the sport you see less of them.
xiphon - Member
I wonder how many people on STW don't actually need a LBS anymore - only a shop who can provide spare parts? (i.e. CRC/Wiggle/etc)Can't remember the last time I actually used one?
Serious question too! Being a cyclist, I should be the prime target of their business - yet I would never use them.
Use mine all the time and yes mainly for spares, I am a motor mechanic by trade so "should" manage my own maint without problems 🙄
Got my first new bike there when I was 13, 40 odd yrs ago. Most of my kids bikes came from there. Now grand kids get stuff from them. Taught one of the mechs how to swim when he was at primary school 😯
Therefore I have a good relationship with them and get appropriate discounts 😆 Occasionally they are out of stock on parts but can get it usually before I really need it. They do not keep big stocks, given the range of stock and ages of bikes going around town for a small shop it is totally unreasonable to think they can/should.
Sort of leading on from xiphon
If Canyon bikes are starting to sell bikes for roughly half the price of competitors then surely this has got to be a big worry to traditional bike shops? They are obviously still making the profit even with a return the bike if its wrong policy...
Is the margin in bike sales or parts etc though?
Personally what would work for me:
You order stuff online, at prices cheaper than LBS. You can either post it out or save postage and pick up yourself from regional distribution centre. A number of changing rooms where you can try stuff on for size etc and thats it. No sales staff. Kind of like Screwfix etc.
Attached to this a kwik fit type scenario where you book online your slot for the bike to be repaired. Parts can be delivered for your arrival and fitted by the mechanic (works for cars why not bikes)
Demo fleets - At said regional centre demo versions of their bike for hire.
OK its not for everyone but I'm sure its how more and more people would like to go.
The only part of the repairs I can't do is the rear shock servicing (and anything other than oil/seal changes on forks). But then I would use a specialist for that job - Loco/Mojo/TF/J-Tech - not my LBS.
Even with the 'loyal customer discounts' which shops can give, it still doesn't come close to the prices set by a large well known [s]for credit card fraud[/s] online retailer.
Attached to this a kwik fit type scenario where you book online your slot for the bike to be repaired. Parts can be delivered for your arrival and fitted by the mechanic (works for cars why not bikes)
Like this idea, any lbs could do this now tho, same as booking your car in for service or other repair
Would still not please the likes of xiphon who sounds like the classic impatient customer who thinks he can just walk in, leave bike, you drop everything because his bike is priority and all others should wait 🙄
Having worked in the motor trade car drivers are/were much the same.
Demo fleets - At said regional centre demo versions of their bike for hire.OK its not for everyone but I'm sure its how more and more people would like to go.
Not a bad idea for high end bikes where the target market may be more affluent and can afford the fuel to travel to a centre with a decent test trail/track/road system. lbs will still be required for kid/hybrid/touring etc imo
May be unlikely that the big brands would buy into that. Would Trek, Cannondale, Specialised be prepared to share a building? Spec and Trek are already creating "centres" much like bmw have set up Mini franchises
My friend runs a multi franchise car dealership and has to jump through hoops to keep all the brand managers happy 🙄
[quote=Trekster]Would still not please the likes of xiphon who sounds like the classic impatient customer who thinks he can just walk in, leave bike, you drop everything because his bike is priority and all others should wait
Er... don't you mean Stevo210 ??
I have no reason to even walk into one...
xiphon - MemberI wonder how many people on STW don't actually need a LBS anymore - only a shop who can provide spare parts? (i.e. CRC/Wiggle/etc)
I use an LBS - service parts are a similar price to online, you can see stuff before you buy, it good for bits you have to have than day to keep on riding.
xiphon - Member
The only part of the repairs I can't do is the rear shock servicing (and anything other than oil/seal changes on forks). But then I would use a specialist for that job - Loco/Mojo/TF/J-Tech - not my LBS.
Thankfully for the lbs there are 100s if not 1000s of people who cannot, not able or are time poor to be able to diy their own repairs. I ride with and know plenty of people like this.
For some people it is cheaper to have the lbs fix something than go out and buy the tools and then learn by their mistakes(expensive) before getting it right. for some people it can be a false economy.
I never profess to be that great at my job but I do cringe when I watch some of my colleagues who are supposedly better(on paper)qualified than I am 😉
Trekster: I was merely stating that is just the way things are in the world of 'need it now'. Bikes always break down just as you need them and knowing that a bike shop can jump on yours and sort it is really good to know.
I also stated Im not unreasonable, I know bike shops are busy and to be fare any service industry in the UK has the same issues, everything is needed yesterday, and I would never want to jump the queue as Im sure every other customer would like a fast turn around too.
Maybe I am impatient, but the bike shop that stops the press, gets used again and again.
Its not an easy balance I know, I couldn't do it Im sure.
The service centre idea doesn't work as the backup for parts is nowhere near as good as the motortrade.
Take car to garage, they strip it, decide it nneeds new alternator, call relevant 'fast parts' service, new alternator appears a few HOURS later.
Drop bike in for service, we strip it, decide it needs new brake lever adjuster, call relevant UK distributor, new brake adjuster appears in a day at best, 2-3 days normally,(or 1-2 weeks, even when promised to be next day) can ofter be out of stock for 3-4 months, and will also incur a minimum order fee of between £5 and £10, which makes the repair uneconomical.
CRC's warehouse is mahooosive, and even they do not stock every part and every spare, the average LBS has no chance and has to rely on the wholesales for good service. From some suppliers it's excellent, and from others it's embarrasingly bad.
You also have the problem with certain OEM 'own brand' parts only being available to 'own brand' dealers. A good reason to not buy a Scott bike, as Scott specific spares are only available to Scott dealers.
I ran a bike shop in London in the 1980s and now have a bicycle restoration workshop in Hailsham.
My top tips would be:
Don't try to run before you can walk. Don't try to carry too much stock initially and don't look for too big a premises as the rent will be far too high for you to manage.
Concentrate on repair work as the profit margins on repairs is much higher than on sales.
Keep your overheads as low as possible if you want to stay in business. Buy what you need, not what you want.
Some practical aspects of setting up a workshop are covered here:
http://positivechristian.hubpages.com/hub/bicycle-workshop
My dad started his business with some shelves full of empty boxes all neatly labelled. When a customer asked for something he would look in the appropriate box and apologise to the customer that he had run out of stock of that item. He would then take their details and order two of the item (one for the customer and one for stock.
When my dad died he left behind two houses and several cars so he must have done it about right.
"When a customer asked for something he would look in the appropriate box and apologise to the customer that he had run out of stock of that item. He would then take their details and order two of the item (one for the customer and one for stock."
That will be one good way to ensure that customer never returns again. It is so easy now to get stuff delivered next day that people wont want to waite a few days for a LBS do get some thing in.
Has the original OP opened a bike shop?
It doesn't seem easy to get your foot in the door, all people in the trade seem to hold their cards close to their chest.
this always makes me smile, if you wanted to open a greengrocers do you think the owner of a shop would tell you how to do it? Would he ****, the bike trade is being squeezed from within (by brands, distributors and the big boys online) and from external factors such as fixed overheads and rising costs in every area from shipping to the price of an inner cable. There is still maney to be made but the traditional way of doing things is a long hard slog for very little reward
Having worked in LBS' I'd say specialising is the way ahead.
Profit in bikes and high end stuff is small, it's high in inner tubes and labour. If I was gonna do it (and I have fleeting thoughts from time to time) I'd specialise in servicing and not sell bikes. I might need to work on my people skilz though.
Start small and work hard. You won't be able to stock everything in fact you need to have as little overheads as possible so very low skeleton stock is better. be efficiant order before the customer leaves the store as most suppliers let you add to orders as the day goes on to save postage costs. They usualy offer next day if before 3pmish.
If you build the ideal bike shop for bikers it will go out of business because its not financially viable.
Stock a few parts for granny bikes, bmxs and falcons etc. These will pay your bills.
Enjoy it and good luck
Oh and make sure your other half/family is on board as you'll hardly see them for the first few months.
"When a customer asked for something he would look in the appropriate box and apologise to the customer that he had run out of stock of that item. He would then take their details and order two of the item (one for the customer and one for stock."That will be one good way to ensure that customer never returns again. It is so easy now to get stuff delivered next day that people wont want to waite a few days for a LBS do get some thing in.
Has the original OP opened a bike shop?
Yes, you are probably right these days. This happened in 1959. Although I still think it's a good story that gives some indication of how innovative you can be in the early days of building a business.