Local bike shop
Discussion
I am staggered at the level of speculation in this thread
BIG PROFITS - THEY DO WELL - DON'T OPEN A STORE, SELL BIKE PARTS ONLINE - CYCYLE CAFES - EVENTS
Its all about sales and profits not opinion and popularity
The industry is on its knees, in a downward spiral and is going through some big big business model changes - even the wholesalers are short on stock because they refuse to order in enough volume because of the risk. There is no money in selling bikes as the margins are PANTS and you can buy cheaper, online from bigger retailers than you could ever hope to become, who do not use UK wholesalers because they have the £££ to do so. Servicing bikes is hard work, people do not value the service, as they might do with a car.
Unless you want to work 7 days a week, love giving your hard earned ££ away - don't do it - as "sexy" (cough) as having a bike shop might be to you - get real - effort vs profit is high and risky!
just imho
BIG PROFITS - THEY DO WELL - DON'T OPEN A STORE, SELL BIKE PARTS ONLINE - CYCYLE CAFES - EVENTS
Its all about sales and profits not opinion and popularity
The industry is on its knees, in a downward spiral and is going through some big big business model changes - even the wholesalers are short on stock because they refuse to order in enough volume because of the risk. There is no money in selling bikes as the margins are PANTS and you can buy cheaper, online from bigger retailers than you could ever hope to become, who do not use UK wholesalers because they have the £££ to do so. Servicing bikes is hard work, people do not value the service, as they might do with a car.
Unless you want to work 7 days a week, love giving your hard earned ££ away - don't do it - as "sexy" (cough) as having a bike shop might be to you - get real - effort vs profit is high and risky!
just imho
Edited by khushy on Thursday 2nd May 16:32
khushy said:
I am staggered at the level of speculation in this thread
BIG PROFITS - THEY DO WELL - DON'T OPEN A STORE, SELL BIKE PARTS ONLINE - CYCYLE CAFES - EVENTS
Its all about sales and profits not opinion and popularity
The industry is on its knees, in a downward spiral and is going through some big big business model changes - even the wholesalers are short on stock because they refuse to order in enough volume because of the risk. There is no money in selling bikes as the margins are PANTS and you can buy cheaper, online from bigger retailers than you could ever hope to become, who do not use UK wholesalers because they have the £££ to do so. Servicing bikes is hard work, people do not value the service, as they might do with a car.
Unless you want to work 7 days a week, love giving your hard earned ££ away - don't do it - as "sexy" (cough) as having a bike shop might be to you - get real - effort vs profit is high and risky!
just imho
"I am staggered at the speculation in this thread"BIG PROFITS - THEY DO WELL - DON'T OPEN A STORE, SELL BIKE PARTS ONLINE - CYCYLE CAFES - EVENTS
Its all about sales and profits not opinion and popularity
The industry is on its knees, in a downward spiral and is going through some big big business model changes - even the wholesalers are short on stock because they refuse to order in enough volume because of the risk. There is no money in selling bikes as the margins are PANTS and you can buy cheaper, online from bigger retailers than you could ever hope to become, who do not use UK wholesalers because they have the £££ to do so. Servicing bikes is hard work, people do not value the service, as they might do with a car.
Unless you want to work 7 days a week, love giving your hard earned ££ away - don't do it - as "sexy" (cough) as having a bike shop might be to you - get real - effort vs profit is high and risky!
just imho
Edited by khushy on Thursday 2nd May 16:32
He then goes on to use all previous opinions already covered and generalises Abit more
HoHoHo said:
I would have thought any small business should be able to provide approximate YTD turnover (if not to the penny), profit and loss figures etc. almost instantly unless he’s using an abacus, his fingers or something similar on a daily basis.
This was my thinking, especially as they are VAT registered. 
HoHoHo said:
I would have thought any small business should be able to provide approximate YTD turnover (if not to the penny), profit and loss figures etc. almost instantly unless he’s using an abacus, his fingers or something similar on a daily basis.
They've given approx T/O based on VAT returns but I'm sceptical, partly after reading many of the replies on here!It's never going to make me rich, I'm fine with that, I want a reasonable income to clear my mortgage & increase my meagre pension pot, if I don't have to work for somebody else so much the better!
I had no idea things were so tough for bike shops. They seem to have had quite a delayed reaction to online competition then.
It sounds like bike servicing and maybe essential accessories are possibly the only way forward - particularly if you can tap into the nerdy mamil market who have the means to spend thousands on complex bikes that can’t be fixed without the right tools (and skills)
It sounds like bike servicing and maybe essential accessories are possibly the only way forward - particularly if you can tap into the nerdy mamil market who have the means to spend thousands on complex bikes that can’t be fixed without the right tools (and skills)
Like many retail outlets, I suspect bike shops are mostly operating as they always did even though any new item can be bought online and delivered to customers' doors for less.
As in an earlier example it's about creating a community, getting meets at the shop, giving riders a reason to meet there, organising preview nights of new bikes, organising rides, selling them stuff because they are there right then, etc. All this builds relationships with customers. Online is handy but it's still nice to browse physical items and buy offline.
As in an earlier example it's about creating a community, getting meets at the shop, giving riders a reason to meet there, organising preview nights of new bikes, organising rides, selling them stuff because they are there right then, etc. All this builds relationships with customers. Online is handy but it's still nice to browse physical items and buy offline.
Just noticed my local bike shop has gone. Was a nice shop, plenty of stock, service, kit. Shame.
http://www.thorntonscyclecentre.co.uk
Reason for closing
https://rugbyobserver.co.uk/news/end-of-an-era-bel...
http://www.thorntonscyclecentre.co.uk
Reason for closing
https://rugbyobserver.co.uk/news/end-of-an-era-bel...
A shame but did they do anything to counteract the competition? I bet they didn't. Did they set up an online shop or try anything like the ideas I mentioned above? It's not so much an example of a bike shop failing but an example of why so many retail businesses are failing. Move with the times or move off.
"there's no margin in bikes"
There is
I stopped using bike shops when they asked for full RRP off of me and they'd order it in.
They get full whack for no commitment and I have to wait who knows how long.
I stopped then. It was either that or the staff being on shop targets meaning they pushed products or didn't necessarily recommend the best for the customer.
When I was getting into cycling one shop stung me a few times. Funnily it's facing closure now.
OP if you want that mortgage of yours to go the right way go online. Go bricks n mortor and youll end up remortgaged.
There is
I stopped using bike shops when they asked for full RRP off of me and they'd order it in.
They get full whack for no commitment and I have to wait who knows how long.
I stopped then. It was either that or the staff being on shop targets meaning they pushed products or didn't necessarily recommend the best for the customer.
When I was getting into cycling one shop stung me a few times. Funnily it's facing closure now.
OP if you want that mortgage of yours to go the right way go online. Go bricks n mortor and youll end up remortgaged.
Sa Calobra said:
"there's no margin in bikes"
There is
I stopped using bike shops when they asked for full RRP off of me and they'd order it in.
They get full whack for no commitment and I have to wait who knows how long.
I stopped then. It was either that or the staff being on shop targets meaning they pushed products or didn't necessarily recommend the best for the customer.
When I was getting into cycling one shop stung me a few times. Funnily it's facing closure now.
OP if you want that mortgage of yours to go the right way go online. Go bricks n mortor and youll end up remortgaged.
You're right, there can be margin in bikes, I guess that with stiff competition online, you just won't sell nearly as many these days.There is
I stopped using bike shops when they asked for full RRP off of me and they'd order it in.
They get full whack for no commitment and I have to wait who knows how long.
I stopped then. It was either that or the staff being on shop targets meaning they pushed products or didn't necessarily recommend the best for the customer.
When I was getting into cycling one shop stung me a few times. Funnily it's facing closure now.
OP if you want that mortgage of yours to go the right way go online. Go bricks n mortor and youll end up remortgaged.
This shop has chosen a brand that does not discount online & offers a 40% margin if sold at full RRP, there's scope there to discount slightly or offer up some freebies to close the deal.
I have no interest in being online, if I did I'd be doing it with my existing business which lends itself far better to that format.
Plus to be honest, how do small businesses fair online when they are up against Amazon, Halfords, Wiggle etc?
After dealing with lots of small indie retailers for nearly 30yrs my view is that many of them simply choose to get out when things get tough, especially when they've been doing it for decades & have no energy/desire to make radical changes to their business.
People that came in later & are used to the 'new' way of things are more open minded to trying new ideas.
Frimley111R said:
A shame but did they do anything to counteract the competition? I bet they didn't. Did they set up an online shop or try anything like the ideas I mentioned above? It's not so much an example of a bike shop failing but an example of why so many retail businesses are failing. Move with the times or move off.
A good few years ago I had a music shop, mostly electric guitars. It wouldn't have made any difference if I had gone online because I didn't have the capital to be able to buy in guitars from the major manufacturers at the discount levels the big guitar shops can. Manufacturers' reps know they can go to these places and sell in a couple of hundred guitars in a single visit. That meant those shops were selling retail at prices pennies above what I could buy them at wholesale.So unless you've got that kind of money to spend you might as well open a chip shop instead, I've not heard of F&C being sold discount online yet.
singlecoil said:
A good few years ago I had a music shop, mostly electric guitars. It wouldn't have made any difference if I had gone online because I didn't have the capital to be able to buy in guitars from the major manufacturers at the discount levels the big guitar shops can. Manufacturers' reps know they can go to these places and sell in a couple of hundred guitars in a single visit. That meant those shops were selling retail at prices pennies above what I could buy them at wholesale.
So unless you've got that kind of money to spend you might as well open a chip shop instead, I've not heard of F&C being sold discount online yet.
https://www.just-eat.co.uk/takeaway/nearme/fish-and-chipsSo unless you've got that kind of money to spend you might as well open a chip shop instead, I've not heard of F&C being sold discount online yet.
Is nothing sacred!
DSLiverpool said:
singlecoil said:
A good few years ago I had a music shop, mostly electric guitars. It wouldn't have made any difference if I had gone online because I didn't have the capital to be able to buy in guitars from the major manufacturers at the discount levels the big guitar shops can. Manufacturers' reps know they can go to these places and sell in a couple of hundred guitars in a single visit. That meant those shops were selling retail at prices pennies above what I could buy them at wholesale.
So unless you've got that kind of money to spend you might as well open a chip shop instead, I've not heard of F&C being sold discount online yet.
https://www.just-eat.co.uk/takeaway/nearme/fish-and-chipsSo unless you've got that kind of money to spend you might as well open a chip shop instead, I've not heard of F&C being sold discount online yet.
Is nothing sacred!
Well just crunch the numbers ,couple of lads I know bought a bike shop last year they seem to be very happy ,but you really have to know your products ,and regular service bookings , ,they usually have few weeks for service booking ,also do shop rides ,ebikes they do well , long hours 8.30 5.30 ,they are in a very good location ,the other thing online bike sale say canyon good product well specked very good prices then the other hand went to a retail unit industrial estate speaking with the owner they mainly sell bikes online ,they said best thing they ever done ,I couldn’t believe the amount of bikes they sold ,watched the guy load the large van ,not just cheap bikes either some 8k plus
I am not a doom and gloom sort. I reckon this type of business suits a hobbyist who enjoys bikes, tinkers with bikes and is into the lifestyle. Problem being the hours involved suddenly make it hard to get out and enjoy the hobby.
I personally think Sunday opening is a must for sales of bikes its a leisure activity.
Building a strong online presence is going to be key but utilising social media should be achievable.
On the industrial park I am based on there was a bike shop here a few years back. His sales just declined continually mainly due to online retailers for higher end bike stuff and then cheaper end kids bikes etc he couldn't compete with halfords and similar large outlets.
He tried lots of stuff music nights in the shop, organised rides with coffee and cake for all different levels and pretty much wound down to just doing servicing.
He ended up selling /transferring the business which now exists with very much flexi part time hours and is servicing/repairs only to a hobbyist who I think is retired from a fairly well paid job and does not need the money.
The original owner has gone back to his job in IT for a far easier life.
I think that it can work but I don't think it will make you rich, I wouldn't even bank on it paying your mortgage.
I personally think Sunday opening is a must for sales of bikes its a leisure activity.
Building a strong online presence is going to be key but utilising social media should be achievable.
On the industrial park I am based on there was a bike shop here a few years back. His sales just declined continually mainly due to online retailers for higher end bike stuff and then cheaper end kids bikes etc he couldn't compete with halfords and similar large outlets.
He tried lots of stuff music nights in the shop, organised rides with coffee and cake for all different levels and pretty much wound down to just doing servicing.
He ended up selling /transferring the business which now exists with very much flexi part time hours and is servicing/repairs only to a hobbyist who I think is retired from a fairly well paid job and does not need the money.
The original owner has gone back to his job in IT for a far easier life.
I think that it can work but I don't think it will make you rich, I wouldn't even bank on it paying your mortgage.
Time for closure, many thanks to all those that contributed.
Turns out the hive mind of PH was once again correct!
The shop in question has sadly announced it's closure & is clearing stock at huge discounts. A sad day for the current owner, another sad day for the independent sector. A bit low of the vendor to try & hoodwink potential buyers but I guess he was just trying to maximise his own return.
On a brighter note, I'm currently looking at another completely un-related business that is service based & the internet is actually a huge positive for.
Turns out the hive mind of PH was once again correct!
The shop in question has sadly announced it's closure & is clearing stock at huge discounts. A sad day for the current owner, another sad day for the independent sector. A bit low of the vendor to try & hoodwink potential buyers but I guess he was just trying to maximise his own return.
On a brighter note, I'm currently looking at another completely un-related business that is service based & the internet is actually a huge positive for.
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