Calling Bike Shop Owners – Advice needed…

Hi All,

I’ve been thinking of starting a bike shop for some time now and I think I could be on the brink…

I would love to hear views and opinions from bike shop owners, both successful ones and failing ones.

I’m keen to find out how much people had to spend to get their shops up and running, and what kind of profit you’re achieving. Is it everything they dreamed it would be or are you now bikeless and living off of Tesco Value baked beans immersed in a world of financial sorrow and regret? I’m particularly keen to hear from people who have started their businesses since the world’s money melted away in 2008.

I know it may not make me a millionaire, but I care little for that. I’ve driven the fast cars and I’ve lived in the big houses. I know what makes me tick and successful bike shop ownership is the path I want my life to ride down. So please, bike shop owners, spare me some advice.

Cheers,
Pat.

I ain’t a bike shop owner but a few things to ponder. Have you got some capital? You will need a lot of stock – tens of thousands of pounds worth at least at a guess plus it will take time to build up custom.

Is there a gap in the market local to you? What is your unique selling point in a crowded market?

Are yo prepared to lose your hobby? often turning a hobby into a job is a bad idea as you lose your enthusiasm for your hobby.

Thanks for the reply.

Yes, I have capital. Not endless amounts that I can afford to lose, though. Startup costs is something I’m researching now.

Cycling is a hobby but it’s not my only one. In my experience, it certainly aids success if actually enjoy what you’re doing for a living. If I start hearing from lots of people that they now hate cycling because they made a life out of selling bikes then I may re evaluate my career direction, but currently, I’m keen to give it a go.

Getting suppliers to supply you in an area saturated with bike shops may be a problem, you don’t say where you are.

I live by 3 bike shops but never go there as i buy online. IMO its the future, 2 of which i’ll give them a year and they’ll be shut.

You’ll probably end up fixing low end bikes.

I don’t own a shop, but good luck.

Of course, most people on here are going to be buying online. You’re an enthusiast who likes the net enough to talk to people on forums so there’s no surprise that you know where all the online bargains are. There are lots of people who don’t, though. Cycling will always need bike shops. I just have to make sure that my one is a good one that people will want to continue to visit.

You’re not wrong about it online shopping being the future, but my shop will have an extensive shop window on the internet too.

You’ll probably end up fixing low end bikes.

That is where the money is made 💡
My main lbs is now 100yrs old and has survived all the up`s and downs by trading in lower/med end, childrens, touring, bmx and latterly hybrids.

Cycling is a hobby but it’s not my only one. In my experience, it certainly aids success if actually enjoy what you’re doing for a living. If I start hearing from lots of people that they now hate cycling because they made a life out of selling bikes then I may re evaluate my career direction, but currently, I’m keen to give it a go.

Someone I know was given very good advice by a certain Michael Bonny from Orange bikes when he was in the process of setting out on his journey into shop ownership which was basically to keep the biking as a hobby if you wish to succeed as a businessman. You cannot do both.
Walking before you run springs to mind 💡
You will soon find out that “most” people like looking at Hope/XTR etc but are not so keen to part with the ££s

because they made a life out of selling bikes

It is not the selling/repairing that may get to you but the owners/public ❗

Mark Wilcox @ http://www.nextlevelbikes.co.uk/ is the newest shop in my area.

Rob @ Ae bike shop is the other newby in town

another newish business[/url]

Unlikely these guys browse this site so try dropping them a mail.

Have you ever worked in one? If not, I’d do that for a little while first.

Is online really a big deal for a bricks and mortar shop? Yes to having a website telling people where you are, which brands you stock, what workshop services you offer. But if you’re selling stuff then you’d have to be price-competitive with the big guys (or what’s the point) and you end up with people coming in your shop wanting stuff at the web price.

Head for the Hills[/url] or 18bikes have the right idea IMO.

Also worth having a niche or two and sticking to them. The new one near me – Hadron Cycles[/url] specialises in road, TT/tri, and commuter stuff only. Fewer spare parts, tools, clothes etc needed to cover your market, far too many shops try to cover too much as they think it’ll widen their market. Better to do a few things well than lots of things poorly, IMO.

Don’t do it.

I’m currently doing some part time spannering in a commuter and roadie shop. I think it is important to realise a good workshop generates lots of sales, as of course do good salesmen. Point is work hard at getting the right staff, and invest in good tools and equipment when fitting out the workshop. Don’t spend all your time doing the work the staff should be doing, remember to manage the shop well, especially setting up systems for stock control, repair bookings, staff rotas.

The shop I’m in the owner spends 99.99% of his time doing sales on the floor or ringing suppliers, but little time resolving niggles. Deal with things that cause time inefficiencies.

P.S. If you are opening a shop in the Glasgow area don’t bother, far too many etc. 🙂

Similar experience but in a different field, namely Photography. I spent 15 years tinkering before investing in a studio 5 years ago, and haven’t looked back. Like any business it has its ups and downs, but you HAVE to have the capital and cash-flow to get through the downs. Most businesses don’t close through lack of performance, its lack of marketing and or cash flow that does it. Whats been key for me at least is standing out quality wise against the competition, retaining good staff and securing decent retail finance for clients.

The benefit of the Bike industry is you can also support your turnover with online sales even if simply through Ebay or similar.

While business has certainly decreased over the past couple of years, what has stood the test of time for myself is maintaining the highest level of service, which sorry to say seems to be the first thing that is cut back on here in the UK. A prime example is a shop here in Sheffield, with a window full of expensive machinery, that you are not allowed to look at! I recently went in to look over a potential purchase, and was told that you couldn’t go into that area of the shop. It came across as pure arrogance. I’ve come across this so many times, from purchasing everything from equipment for work, to new cars. Never judge a book by its cover, and never be to busy to assist … or you will lose business as a result.

By comparison the Bike Tree, which is 2 minutes up the road are the opposite end of the spectrum, you are always warmly greeted, there is always time for a chat or a piece of advice. I have ALWAYS been an internet shopper but increasingly find myself heading there and am quite happy to pay a bit extra for the atmosphere. Hopefully soon I will be brave (read fit) enough to join them on their wednesday hit out.

As others have suggested, you have to find your hook in the market, why are people going to come to you, and how are you going to convince them to do so, and to keep doing so. As an example of savvy thinking several Australian clothing stores now have Man creches, a nice comfy sofa, a games console / sports TV and a rack of magazines. While the bloke is entertained the SO can relax, browse, and up her spending.

Going back a couple of years here, but my local bike shop in New Zealand ALWAYS had the best coffee, and it was free, and warmly offered. There was always something decent on the TV’s and tools and guidance were keenly offered to those that frequented the shop. They had a fantastic stock of sold on behalf items and it became the norm just to pop down simply to hang out. The range of shiney bits on display ensured their turnover reflected their popularity.

I’d strongly suggest talking to your Business Banking Manager, they know what is happening in most retail sectors, and can give real world advice. You will need enough capital to cover ALL the overheads of the business for the first six months (including your own wages). On top of this factor in premises, shoplift, lease bonds (averaging 12 months at the minute). Personal guarantees on everything (scary as hell) and recruitment.

Good luck !

I started a shop in November 2009. Madness! It’s difficult at times but then the sun cones out and it’s all good. One thing I’ve learnt is to stick to your guns – if folk want Internet prices then they know where to buy. I often match, beat etc where possible but we offer a great service and customers can try road and mountain bikes so they actually know if they suit them before buying.

Tips: I went all out on the MTB scene, surrounded mnyself with Transitions, Yetis, Whytes etc but really I would go easier if I were to do it again.

Just like any business – don’t hesitate to follow a certain market – we have tons of BMXs now and all the kit to go with them. We even have top road brands in what I had considered to be an oversaturated market for road bikes. Just shows – I didn’t realise exactly what people wanted for a good year.

Suppliers are the worst part of the cycle trade. Be very wary of some of them.

I have tons more. Drop me your contact details if you wish (our website is screwed right now I think but my email is pete at flying fox bikes dot com (no spaces!))

Raleigh do franchises, but the area youre in is the most important, both location in a town and near a population that ride bikes.

Then theres premesis and parking, along with security, pointless being stuck on a crime ridden industrial estate, if you get cheap rent.

Go and work in a shop , experience customer rage, and customers who dont know what they want, customers who say how much for everything, and finally customers who slag yourbuisness off for minor faults on bike forums.

I could tell you all day long what I have done wrong (or nearly done wrong!) but most of it is just business sense! We are in a wee village outside of Stirling so don’t get the footfall we would like but then rates are supercheap and we have a 28m long shop with lots of options to make it MUCH bigger.

Our signage is terrible (although a £500 investment in a huge movable sign has helped no end) so get that sorted from the start. Don’t use the local rags, in general they are of little use.

Suppliers in the cycle trade are generally painful, invest in tools, mechanics and workshop above anything – that’s where you get to pay your employees’ wages.

I haven’t paid myself yet (and it’s been some time) but I never even intended to make a gross profit in the first two years and it’s slightly better than that. Investment – we have around £160K – £200K of stock at trade before VAT (which is very close to retail prices!). To be fair, I’ve gone all out to retain customers and to gain brands that really get people travelling from all over to actually come and see us so that is OTT. We spent at least £4K on tools, workstands etc. (and lots more since) and we pay incentives to the mechanics too (and will do more – they are not paid well enough) – not to rip people off but to get a lot of work done quickly so there’s fast turnaround and people will keep coming back for more.

When it’s winter, invest in snowboard gear or something similar (or maybe outdoor clothing?), It’s tragic.

There is ALWAYS something to do, so you’ll enjoy it. It’s mighty stressful and I have not enjoyed the first 18 months or so but now it’s sunny and I’m going out riding with customers and have the footfall, it’s all good.

Don’t let it ruin your love for bikes and biking!
A year working with the cycling public leaves me with a very very bitter taste in my mouth.

Do you even need to sell bikes? A lot of places are workshops and just sell components. Could be a good first step.