Local bike shop
Discussion
khushy said:
1 - where would you get used race bikes - bearing in mind there are at least 20 people in front of you looking for the same - Well this is all down to getting the right contacts and this shop had these.
1a - racebikes are rubbish - been trashed, cracked, repaired, crashed and who knows what else - how would you warrant a race bike under the sale of goods act, morally etc etc - Well they certainly didn't look rubbish! They sold for a few thousand pounds IIRC. You'd warrant it the same way you'd warrant any bike.
2 - who told you they made BIG money - the shop that I worked with on their marketing. I can't divulge their details obviously but we saw their margins etc. Of course it depends on your definition of BIG but they weren't selling bikes for a few hundred pounds.
3 - used bike trade in prices are pants - it was different with race bikes due to to their higher value/selling price
4 - its not like the car market - well actually, yes it is
5 - you could buy a new bike that is better, cheaper - can't answer that but people did seem to like/want ex-race bikes, ones from major teams etc.
etc etc as a life long cyclist I would NEVER buy a used race bike from anyone - most are carbon and can be quite fragile after being binned. - Well you're probably not their target market then.
1a - racebikes are rubbish - been trashed, cracked, repaired, crashed and who knows what else - how would you warrant a race bike under the sale of goods act, morally etc etc - Well they certainly didn't look rubbish! They sold for a few thousand pounds IIRC. You'd warrant it the same way you'd warrant any bike.
2 - who told you they made BIG money - the shop that I worked with on their marketing. I can't divulge their details obviously but we saw their margins etc. Of course it depends on your definition of BIG but they weren't selling bikes for a few hundred pounds.
3 - used bike trade in prices are pants - it was different with race bikes due to to their higher value/selling price
4 - its not like the car market - well actually, yes it is
5 - you could buy a new bike that is better, cheaper - can't answer that but people did seem to like/want ex-race bikes, ones from major teams etc.
etc etc as a life long cyclist I would NEVER buy a used race bike from anyone - most are carbon and can be quite fragile after being binned. - Well you're probably not their target market then.
My local and fairly high-end cycle shop closed within 12 months of opening. I did pop in when it first opened and thought to myself then that I couldn’t see it lasting. Just not enough people wanting great bikes to sustain a physical retail space. They were even offering training sessions on-site, workshops and social events. The sticker on the window said that they’d not paid their rates to the landlord so were closed down.
I had a call and a subsequent meeting with the MD/owner of our local bike shop and he picked my brains why business was so difficult at the moment......
Suffice to say I’m not in the mood to invest in a local bike shop and I consider myself a medium to high risk taker.
Read into that what you wish.
Suffice to say I’m not in the mood to invest in a local bike shop and I consider myself a medium to high risk taker.
Read into that what you wish.
Shop owner for over a decade - 4 staff. Can't say I'd recommend it if you like having a life outside of work - we do 'ok' but through sheer hard work. If you like working 52 weeks a year, 6-7 days a week and 60-100+ hour weeks you might do ok.
People say there is money in servicing, but there isn't any 'real' money in servicing imo (or the entire industry for that matter). Just look at the labour prices, the vat, look at the time taken to talk to customers, do paperwork etc, drop off and collect the bike and the return on yours or your employee's time is awful. The cycle industry can't charge anywhere near the motor industry's hourly labour rate as it's 'only a bicycle' and there will always be a man in a shed or in a van willing to have a go for peanuts (or a friend who will work for biscuits).
Wiggle and the rest of the online sellers are pricing themselves into the ground and destroying the industry with it (check out their net-worth disappearing over the past few years as they burn investors cash https://companycheck.co.uk/company/02667809/WIGGLE... ). It can't last forever but I am sure someone will be happy to step in and lose someone else's money once they have to put their prices up to try and make an actual profit.
You may want to listen to this - https://www.bbc.co.uk/sounds/play/m0002mkx (starts at 22.20). Cycle shop closure's are also being tracked on a forum and there hardly seems to be a week where 3-5 don't shut down.
I get no time to cycle any more (I don't know any shop owners that do - owning the shop puts a stop to that). If I did it all again I wouldn't start from scratch, I would of bought a going concern - it'll solve a lot of issues start-ups have that are a bit too long winded to go into here. I would also make sure I owned our bricks and mortar - keeping overheads low is everything.
If it's your dream to run a cycle shop then do it - at least you can say you did it. If you want to run a bike shop to make a decent wage or because you think it's a lifestyle business and you'll have plenty of time then DON'T DO IT! Often the problems the industry has can only be seen once you're involved.
Drop me a PM if you want more info on anything. I see you're in the South West, where are you based?
People say there is money in servicing, but there isn't any 'real' money in servicing imo (or the entire industry for that matter). Just look at the labour prices, the vat, look at the time taken to talk to customers, do paperwork etc, drop off and collect the bike and the return on yours or your employee's time is awful. The cycle industry can't charge anywhere near the motor industry's hourly labour rate as it's 'only a bicycle' and there will always be a man in a shed or in a van willing to have a go for peanuts (or a friend who will work for biscuits).
Wiggle and the rest of the online sellers are pricing themselves into the ground and destroying the industry with it (check out their net-worth disappearing over the past few years as they burn investors cash https://companycheck.co.uk/company/02667809/WIGGLE... ). It can't last forever but I am sure someone will be happy to step in and lose someone else's money once they have to put their prices up to try and make an actual profit.
You may want to listen to this - https://www.bbc.co.uk/sounds/play/m0002mkx (starts at 22.20). Cycle shop closure's are also being tracked on a forum and there hardly seems to be a week where 3-5 don't shut down.
I get no time to cycle any more (I don't know any shop owners that do - owning the shop puts a stop to that). If I did it all again I wouldn't start from scratch, I would of bought a going concern - it'll solve a lot of issues start-ups have that are a bit too long winded to go into here. I would also make sure I owned our bricks and mortar - keeping overheads low is everything.
If it's your dream to run a cycle shop then do it - at least you can say you did it. If you want to run a bike shop to make a decent wage or because you think it's a lifestyle business and you'll have plenty of time then DON'T DO IT! Often the problems the industry has can only be seen once you're involved.
Drop me a PM if you want more info on anything. I see you're in the South West, where are you based?
So effectively you are buying the goodwill and customer list and the staff? You need to negotiate a new lease or move the business?
I note everyone is saying bike sales is moving online, and also that your first post said that bike sales was only a small part of the business.
The market for cycle servicing is relatively small, but if the business is doing ok, then I should imagine it will carry on doing ok. The lease renewal may offer an opportunity to reduce overheads. If the existing stall member wants to buy it with his dad why not partnership up with him? Not necessarily relying on his investment etc but offering him a bonus based on the success of the business going forward. So he has an incentive to stay, work hard and develop the business.
I note everyone is saying bike sales is moving online, and also that your first post said that bike sales was only a small part of the business.
The market for cycle servicing is relatively small, but if the business is doing ok, then I should imagine it will carry on doing ok. The lease renewal may offer an opportunity to reduce overheads. If the existing stall member wants to buy it with his dad why not partnership up with him? Not necessarily relying on his investment etc but offering him a bonus based on the success of the business going forward. So he has an incentive to stay, work hard and develop the business.
Some great responses, many thanks.
We have thought about cycle hire, not something they currently offer.
Would need to negotiate a new lease, wouldn't want to move as current location is a large part of the appeal.
Wouldn't want to work 6-7 days a week, they no longer open on sundays but working 80-100hrs a week again isn't hugely appealing.
I see no upside in opening a repair workshop somewhere, yes there have been cycle shop closures in the local area in the last 6mths, there are several others still trading.
Didn't specifically want a cycle shop, surfing businesses for sale looking for inspiration & this one popped up locally, figured it was worth a look.
We have thought about cycle hire, not something they currently offer.
Would need to negotiate a new lease, wouldn't want to move as current location is a large part of the appeal.
Wouldn't want to work 6-7 days a week, they no longer open on sundays but working 80-100hrs a week again isn't hugely appealing.
I see no upside in opening a repair workshop somewhere, yes there have been cycle shop closures in the local area in the last 6mths, there are several others still trading.
Didn't specifically want a cycle shop, surfing businesses for sale looking for inspiration & this one popped up locally, figured it was worth a look.
A mate of mine worked for a big name retailer before moving to manage/run a local cycle shop, he echoed much of what was said on here.
He then moved to repping for a brand, which was 'ok', but he preferred to work 'in-store', he moved to a very affluent area & worked for another local shop, last time i saw him he again said there just isn't any money in it.
People who're willing to pay the bike servicing rates are few & far between & the majority, just see it as 'a bike'.
He then moved to repping for a brand, which was 'ok', but he preferred to work 'in-store', he moved to a very affluent area & worked for another local shop, last time i saw him he again said there just isn't any money in it.
People who're willing to pay the bike servicing rates are few & far between & the majority, just see it as 'a bike'.
LordHaveMurci said:
Some great responses, many thanks.
We have thought about cycle hire, not something they currently offer.
Would need to negotiate a new lease, wouldn't want to move as current location is a large part of the appeal.
Wouldn't want to work 6-7 days a week, they no longer open on sundays but working 80-100hrs a week again isn't hugely appealing.
I see no upside in opening a repair workshop somewhere, yes there have been cycle shop closures in the local area in the last 6mths, there are several others still trading.
Didn't specifically want a cycle shop, surfing businesses for sale looking for inspiration & this one popped up locally, figured it was worth a look.
looking at the general consensus of opinion, some of it based on real experiences + some sound business experience . . . only a moron would make the investment - please don't be him/her/it We have thought about cycle hire, not something they currently offer.
Would need to negotiate a new lease, wouldn't want to move as current location is a large part of the appeal.
Wouldn't want to work 6-7 days a week, they no longer open on sundays but working 80-100hrs a week again isn't hugely appealing.
I see no upside in opening a repair workshop somewhere, yes there have been cycle shop closures in the local area in the last 6mths, there are several others still trading.
Didn't specifically want a cycle shop, surfing businesses for sale looking for inspiration & this one popped up locally, figured it was worth a look.
khushy said:
looking at the general consensus of opinion, some of it based on real experiences + some sound business experience . . . only a moron would make the investment - please don't be him/her/it
The only counter to that comment is this, if the business in question has maintained pretty stable t/o & GP for the last 9yrs, would it still be a stupid idea?LordHaveMurci said:
khushy said:
looking at the general consensus of opinion, some of it based on real experiences + some sound business experience . . . only a moron would make the investment - please don't be him/her/it
The only counter to that comment is this, if the business in question has maintained pretty stable t/o & GP for the last 9yrs, would it still be a stupid idea?LordHaveMurci said:
The only counter to that comment is this, if the business in question has maintained pretty stable t/o & GP for the last 9yrs, would it still be a stupid idea?
imho opinion YES still valid - because customers don't value ££ a bike service, everyone is a bike mechanic (free in store bike courses + YouTube have seen to that) and the industry is around half way down the slippery slope it's currently on!LordHaveMurci said:
khushy said:
looking at the general consensus of opinion, some of it based on real experiences + some sound business experience . . . only a moron would make the investment - please don't be him/her/it
The only counter to that comment is this, if the business in question has maintained pretty stable t/o & GP for the last 9yrs, would it still be a stupid idea?LordHaveMurci said:
The only counter to that comment is this, if the business in question has maintained pretty stable t/o & GP for the last 9yrs, would it still be a stupid idea?
All you hear in the cycling trade is doom and gloom.Dont write it off and look at it like any business, the black and white figures and business plan.
When I started I heard all the above, luckily we grow year on year.
Being online only has worked very well for me with flexible hours, typically I get the orders booked, packed and posted on the AM. Emails and general enquiries in between and on the afternoon so have time between.
Like the guy selling the shop I also have other businesses and could make my company a much bigger but have found my sweet spot where it works for me and gives me a healthy income without being too demanding. In the future I will sell it and let somebody else go to town with marketing, potential shops etc but for now it works well and it could for you.
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