Downfall of the Local Bike Shop?
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- Опубліковано 30 чер 2024
- Fund us at gograva.com
Unlocking the Future of Go Grava: Navigating the Changing Landscape of the Bicycle Industry
Hello everybody, and Merry Christmas! 🎄 Join me, Aaron from GoGrava.com , as we dive into a thought-provoking topic that affects us all - the evolving dynamics of the local bike shop industry. Despite the festive season, I find it crucial to shed light on the challenges and transformations in the bicycle space.
In this video, we explore the impact of corporate giants like Trek, Specialized, and the Pon Holding Group on the traditional local bike shops. The bicycle industry is rapidly changing, with large corporations acquiring smaller stores, reshaping the market as we know it.
I share the journey of Go Grava and the hurdles faced in establishing a bicycle company from scratch. From sourcing materials to building relationships with suppliers, the path is arduous but worthwhile. However, the challenge lies in obtaining crucial bicycle parts to build bicycles, as the industry's dynamics are shifting towards favoring large corporations.
But here's the twist - the essence of local bike shops is at stake. As big corporations control more aspects of the market, we risk losing the diverse range of bikes and the sense of community that local bike shops offer. The question arises: can Go Grava find a way to support these local businesses and offer consumers a unique experience?
As we move forward, Go Grava faces a pivotal decision - acquiring a commercial space. Commercial real estate is facing challenges, especially in the wake of recent global economic events, but it's a necessary step in our journey.
Join me as we explore potential directions for Go Grava - supporting local bike shops, integrating them into online sales, or establishing our own retail spaces. The future is uncertain, but one thing is clear - Go Grava is committed to adapting and evolving, ensuring a vibrant cycling community for years to come.
Stay tuned for updates on our journey into commercial real estate - a crucial step for Go Grava's next phase. Your insights matter! Share your thoughts in the comments below, and let's build a future where innovation meets tradition. Together, we ride towards a brighter cycling experience.
#GoGrava #CyclingCommunity #BikeIndustry #InnovationInCycling #LocalBikeShops #CommercialRealEstate #AdaptAndEvolve #FutureOfCycling #RideTogether #MerryChristmas2023 #BikePassion #InspireChange #SupportLocalShop
Small business ownership has been under attack since the 70s. There used to be mom and pop hardware stores, sports equipment stores, pharmacies, doctor's offices, and then the corporations ran them out. Now they're after the bike stores. This has led to the crushing of the middle class and the continued concentration of wealth in the few.
So true this is happening worldwide 😂
I lived in Germany from 2020 to 2022. I have to say, that the Germans did a much better job supporting smaller stores like Grocery, Butcher, Baker, etc. I think it is much more pronounced in the USA.
it's happening everywhere! every single country!
@niel022 That is the goal of capitalism. Destroy competitors by becoming a monopoly. Only the few make money the rest work long hours. Back to feudalism we go
@@richardkatz8713 I would say we hit a certain point where this turns around. Humans are very tribal, and if you tapped in to that Tribalism, no corporate company could withstand that.
My local bike shop started as a Schwinn store. They eventually bought out all the competition. Then when it became unprofitable to only cater to the Schwinn community, they expanded to cover other brands of bikes and home gym equipment. Now they are predominantly catering to the home gym community and bikes are an afterthought. They still sell and service bikes but fitness equipment is like 95% of their inventory and sales now.
Here in the UK big online companies are disappearing, or radically remodelling their offer. Local bike shops have been under pressure for years from the big box shifters, and business rates and overheads are killing them. The boom is experienced mechanics working out of their garage, to serve the needs of local riders. As someone old enough to remember bike shop owners building custom frames out back, in addition to assembling geared hubs and selling cables and pads, it's been a heck of a change.
Finding a bike shop that will actually work on a bike they didn't sell you or for a brand they don't carry is pretty hard to do. Especially for ebikes, it's like the local bike shop thinks if they cover their eyes, ebikes will go away and the good old days will return. It became easier and less hassle to buy the tools and a couple of books on bike repair. You tube videos help. The local bike shop is dying not because I won't use them, but because they don't want my business.
@@lucasvanderveen9138 I posted a rather long reply and deleted it because, well, you make my case better than I could have in a reply. As an older rider an ebike got me off the couch, and as my confidence and fitness improved I did in fact, buy a new conventional bike, from a bike shop, but rest assured, they will get my repair and maintenance business only in direst necessity. The elitism and rank snobbishness appeals to a certain demographic, I suppose. I hope those folks are enough to sustain your business.
Because most of the ebike brands have a certification setup with their shops for working on them.
I now go to a one man owner who also services bikes. He doesn’t sell bikes other than some used ones. He builds up some online sales bikes from BikesOnline, Canyon and others. I think he does pretty well not having to carry inventory. I like the guy and want to support him.
There used to be a lot of small (really small, like one room) bike shops in Germany- almost all of them died about 15 years ago. When bikes got more popular again, only very very big stores emerged or survived.. so that is what's left now and they are pretty bad when it comes to the workshop side of things- so I have to do stuff myself ordering stuff online- which makes the problem worse..
I worked part time at a family owned shop until full retirement. They're strongly affiliated with Trek and they're rocking it.
My wife and I own and operate a Trek, Giant and Yeti bike shop. Happy to hear you are getting a location, that’s a big step. Appreciate the video!
Thanks for watching! I understand online commerce very well, so this is my first foray into the brick and mortar location.
It's not that people get lazy. You hit the nail on the head early on. The little guys can't compete with the big guys due to margins. No one wants to pay more just to keep a local shop alive unless it's not a lot more and the shop brings something unique to the table.
the local bike shops here are kinda snobby though and they seem to forget that cycling doesn't have to be expensive. The cheapest adult bike they had was $500, and the cheapest road bike was $1000. I am glad I know how to build bikes and do my own work, because I really don't like dealing with my local bike shop.
You’re right. Bike shops have surrendered the lower end to the big box store.
@@LebronPhoto1 definitely- I was chatting with a mechanic at the trek store the other day and he said “old bikes are like old computers, they go obsolete”. And I thought that was ridiculous. My fat ass isn’t going any faster on a trek madone than my old steel frame Peugeot.
But I should be able to buy a quality bike new for under $500 and expect that it isn’t trash and bike shops just aren’t providing that anymore.
@@SkrufTheSkruf Until the mid-1980s almost every bike accepted the same componentry. High end stuff, mid-range and cheap gear to suit your pocket, it all fit. Now there's a likelihood last year's equipment from the same manufacturer might not work on your bike. Even professionals struggle to keep up with changing specs, what will work and won't. However you look at it it, it's planned obsolescence dressed up as technical innovation.
@@borderlands6606 Just wait until you see electronic componentry standardized to allow a full subscription model to become reality. $10/month charge for each extra gear to be used would make a venture capitalist salivate.
Listen to your customers requests, be different, pick up your customers bikes when they need repair or rescue within a certain mile perimeter, offer the things your competitor does not. People love personalized service with an eye for detail and reasonably priced, most people will be loyal customers if you build that relationship that exudes trust.
Whatever dude
Bean counters ruined the brick and mortar music business and it appears that it's also the fate for bike shops.
Trek gave owners 3 options
1. Do a full remodel, everything including the tech center and tool boxes etc. Send employees to Waterloo to have formal training.
2. Sell to Trek
3. Remove the Trek name from your business, loose your gold tier pricing and the terms you're use to.
Damn!
This phenomenon is not limited to bike shops. Restaurants have gone to chains and franchises serving "OK" food. Small restaurants must provide superior service and food if they even hope to compete. This has led to a lot niche, "foodie" restaurants in many areas. They have fad food offerings, which may appeal to the wealthy millennials who can afford to spend a lot on "artisan" food-as-art, but many these fail. They come, they go. Businesses big and small must meet the needs of local customers. If the customers are satisfied with fast food chain offerings, that's what will sell. If they want a more personal level of service from a good local bike shop, they will patronize that shop. But, it's tough to compete with big box stores who can floor a lot more inventory in one location.
Yep, Rock and Road in SoCal is now Specialized stores and Jax are now Trek stores.
I think you can have fitting center where you have a Shimano fitting machines to help people know what kind of bike they need. I don't know if your a custom bike shop. But, you could sell handle bar stems etc, to help people fit their bike better in person rather than wait for the amazon package and find out it's not what they need. I think if you create a friendly environment people will come back. Since this is a hobby, I don't spend my money at unfriendly stores. I wish you the best. Happy New Year!
Yes! I know how to do fittings.
Prices too high.
High End Bike shops want to charge $20-$30 to change a flat with a $1 innertube, $30 for a phone holder that cost $12 on Amazon, and to fix a gears or chain they charge $70+ for a bike worth $100...and they charge for parts and Labor like they working on a 4000+ pound vehicle and need special machinery to remove heavy parts...
And they wonder why bike shops fail?
Excellent video! I will only mess with the local bike shops. I will talk to ppl who recently are getting in to cycling, and when they say they took their bike to Trek store for service or they bought their bike at Trek store, I cringe a little. Ppl don't know what they don't know.
As a small bike shop owner if I found out you had a QBP account out of your garage I'd report you in a heartbeat.
True, it makes it unfair for those businesses that need to carry overhead.
Yes it's hard I own my own shop. I was able to withstand the pressure from Trek across town and put them out of business in 8 months. And I'm also a Trek dealer 😂
What would you say were the top three things that helped you overcome that Trek store in your local area?
Congratulations outlasting the trek store. One of our local mid-high end bike store chains (Bike Gallery) are now just trek, so sad the downgrade on all counts (including their service area). We lost 4 other good bike shops since I started riding MTB, mostly due to owners retiring, fortunately we did get one of the two Universal Cycles stores in our town now.
@@gogravaI can tell you that in my town/area, the TREK store is a personality dumpster fire…it’s too corporate. I can go to another shop, and just talk bikes or other things. They know me personally and I feel like they want me there.
Good service has a value. The challenge is how do you compete for price when the manufacturer sells "factory direct" with free shipping and through affiliates like Amazon? There really isn't an answer because you probably won't win on price and price alone. You have to offer additional service or upgrades to the bike that's attractive to the consumer.
You offer no hassle warranty service, that's it
My LBS added a bar and appetizers. They organize group rides and meet up before and after at the bike shop. It’s a great way for them to supplement their income with beer and food + create a social network.
I have been seeing this trend for the last 10 years. IBDs squeezed out by brand stores. In markets that this has impacted I see the survivors doing 1 of 2 things. 1. Sell only boutique brands that still rely on IBDs. 2. Shift focus to repair and supplement the sales floor with outdoor lifestyle products that merge with cycling.like Fitness and gym products for the winter months. Or camping and outdoor gear to go with the mountain bike lifestyle. Can't get a treadmill, skis, or tent from a trek shop. Plus, it brings in a completely different customer than a bike only shop would get. You expand your customer base outside the cycling world. Which might be a good idea as traditional cycling is hitting new lows in sales.
I can see a lot of opportunity here for entrepreneurs with bike repair skills to open their own repair shops out of their garage. I know this has happened to the stereo industry already. My friend tried to get his vintage receiver repaired only to find that none of the local stereo shops do repairs anymore. He had to drive 60 miles to a guy that did it out of his garage. He was 6 month's backlogged. My friend said this is a golden opportunity for anyone knowing how to repair stereos to open his own business at home. Bikes are always going to need repairs and someone to fix them is always going to be needed. But there are so many choices out there with bikes that no building could possibly carry them all. The competition is fierce and the choices are many. People do their research online and know what they want and if the local bike store doesn't have it they will just buy online. But you can't get your bike fixed online, so repair shops will always exist.
Repairing a bike by yourself is cheap and easy. There's no point in taking it in. All the information is here on UA-cam.
@@ericjohn5461True. But not everybody has the time, place, or interest in doing it themselves.
Your best bet is to service wealthy customers who won't care what you charge, just that you are friendly, make it easy for them (you pick up their bikes) and get the job done. This includes getting the parts needed quickly. Only certain niche parts of each major city have this type of demographic and it's based on relationship building by being connected to wealthy people, not simply setting up a storefront in some industrial complex and expecting customers to pour in. Doesn't happen.
If the bike industry would go the way of the auto dealership, it would actually help the smaller shops.
The bike company would floor plan the shop with a small amount of inventory, but allow each shop around an area to work with each other thru transfer of products.
If store one has a red bike and store two has a blue bike, store one can get the blue bike transferred, without it coming out of store twos pocket.
The industry would still own the bike.
Every situation is different. Here in Sac, CA area Trek just took over 3 LBS -- two owned by the same people and one other. BUT these were shops where the owners wanted out (retire). So while "going corporate" is not ideal, I would rather have 3 Trek stores (esp as a Trek bike owner) than completely lose 3 brick and mortar bike shops.
Yes, zero bike shops would not be good.
I feel like there is a big void in the industry since "Perfomance Bicycles" went belly up for the second time and then ended up split into multiple pieces at auction. The store we had here in Columbus had a staff more like a local bike shop. Having a variety of price points for brands/makes and huge variety of accessories and clothing, online shopping PLUS in person stores was great. I still shopped the local private stores, but they are alway more niche stores rather than full service. It's hard for the small guys in any business to compete with online, other than they do have a showroom for those of us who are hands on shoppers.
The long game is to purchase the commercial space. With the decline in the economy commercial space will be easier to optain
Definitely part of the long game. I’ll post another video tomorrow of “house hunters, bike shop edition.”
In Belgium, bike shops are totally not dying. They have so many demands the waiting list is over a week. And they charge hard...
Trek is cringey. They absorbed a more or less local private bike shop and it's now more than a little prohibitive as a customer. I test-rode a few of their bikes and their 'new' approach was all I needed to conclude that that was NOT the direction I wanted to go.
Fast forward to finding the bike I wanted online, ordering it, having it built, serviced and getting maintenanced by my true 'local' shop instead. Because of the proven and demonstrated customer service I enjoyed, this is also where I bought my new vehicle-mounted bike rack. I see no need to go anywhere else, because sincere personal service will always win out for me.
My family business is marine store/shop. Customers are buying online to a point of concern for our store. Luckily, we own our building, and we can ride the wave.
If you are looking for a store space, look for commercial/residential. Purchase it if possible. Rent the residential to a shop employee.
I’m stuck renting for now. Interest rates are too high and property values are really high. The fallback is we are also selling online through the website, instagram store and TikTok store. I am not making enough sales to get approved for a loan at the moment.
That is totally understandable. Without ownership of your business property, you will never have complete control of your business.
I don't have to tell you this, you are a business person.
Keep pushing. You'll make it.
Interesting take, conveniently 3 of our local bike shops have recently become trek shops..
I’m seeing it more and more. Lots of discussions about it on Reddit.
Here too, and I have had good experiences with them. 24 hr turn around time on repairs and a pretty friendly vibe in comparison to the struggling local bike shops
Those trek shops are no real help to the bicycling community when they only service trek. We lost 3 mid-high end Bike Gallery stores to trek. Sad. Haven't been back to any, (edit due to my fat thumbs)
@davebrown9725 we have a pretty large cycling community in my city, the Trek bought out a small local cycle shop but it remains with the same staff who are involved in growing the sport, sponsorint events and running weekly shop rides. We do still have a fair few small shops (one of which I service my bike at)
As the former owner of a family bicycle shop, our demise was brought about by the undercutting of both quality and price by the rise of big box stores. When local retailer loyalty was abandoned in favor of a few dollars, it was no longer profitable to remain in business.
That's what happened to a lot of shops. The thing is... AliExpress has now stepped on to the scene further complicating matters. Both from a bike shop perspective and a wholesaler perspective.
It’s partly because it is too dangerous to ride on the roads especially in the south where bike paths are an afterthought.
Yes, I lived in southern Mississippi for 3 years. There are some very dangerous roads with absolutely zero shoulder. My only option back then was to get up at 5am on a Saturday when there was less traffic.
We are not going anywhere with out a fight. There still is a place and need for a local mom and pop bike shop.
I think local bike shops will pivot to doing mostly service, and maybe a few pre-order bike sales. We have several shops in the Chicago area that have done that. The mechanics are super personable and high-quality with repairs, but they can't compete with the big companies for new bike prices. They seem to be doing fine in the new model; everyone needs tune-ups and we have enough potholes here to keep the flat tires rolling in!
Thanks for the comment. What do they charge for service in your area?
Sorry, bad question. I just pulled up the price list on their website.
I live in the SF east bay and 4 of my local bike shops were are bought by Trek.
I bought a new trek fx2 disk nine months ago, is advertised with Shimano Altus shifters and Tektro HD-R280 hydraulic disc. Problem is it does not have that, unknown shifters and rush hydraulic disc brakes. By the way trek would not replace the parts unless they were deflective and they said my local bike shop can charge me for servicing the bike.
Yes, I’m seeing more companies put “no name” or rebranded components on their frames. If you do that, then you should properly support the equipment.
The bicycle industry made it way too expensive and extremely stuck up. Anyone who wants a down to earth entry level bicycle will have a hard time to go there. All of my local bike shops are gone, when they were around they got way too expensive, they focused on the road bike crowds and ignored the regular people. And the ones that are still in business are stuck with all of the high end stuff and not able to sell them.
Trek ran 3 local mom and pop shops out of business. Only to close 2 down 1 year later. Its the Gamestop/Sketchers issue. I personally don't have an issue with Trek i just am partial to local shops. They carry things like U-Lock holsters and general bike accessories that big ones don't.
The Giant Shop by me closed for good 2 years ago , They said they were not able to get bikes anymore ... Sucks
Cyclists are an odd customer, we die-hard riders (presumably your core customers) much prefer a shop with creaky wood floors and a surly mechanic who knows what a knarp is. I need a shop with a dusty backroom of old take-off parts to fit my oddball builds. The LBS won't die. DTC bikes can't build or repair themselves.
At some point you'll have to lease a warehouse. Not only will QBP and other vendors take you much more seriously, but you'll take yourself more seriously. Leasing a space can really improve your focus...when you have to make a 4 figure payment every month it's amazing how much clearer your decision-making becomes. I don't think having your own retail store will cast a wide enough net for the niche product you have.
DTC?
Direct to consumer @@jed-henrywitkowski6470
Direct to consumer: The big boys (and even smaller brands) are selling bikes online that ship directly to the customer.
We are also stingy;, working on bikes ourselves, treasuring durability
Most bike brands only build the frames and little components, the rest is outsourced from other part brands.
Been thinking about this. In Perth, Western Australia (home of Jai Hindley, Matt Richardson, Ben O'Conner, Luke Durbridge, Sam Welsford, Cameron Myer etc) we had a small chain called TBE with a long history of supporting local events & cyclists. Though not a competitive cyclist, I was on first name terms, got a loyalty discount etc etc and was probably in there once a month for a wide range of stuff for my "modern rides" and (mainly) consumables for my historics. They were bought out by Trek. I love my Trek MTB but I no longer have reason to go there. Why? Because TBE had a wide variety of suppliers, I might go in to buy a track tubular (3-4 different brands to choose from), then walk out with a chain wax I thought I'd try or a few tubes or brake blocks or some new gels or some pair of socks that would make me look like a colour coordinated power-ranger or whatever. The staff would also chase stuff down for me like premium quality 27" tyres. But now, that "buzz" is gone because I know all I'm going to see is Bontrager this and Trek that. Not what I've read reviews about or can talk to sales (cyclists themselves) staff about recommendations. So I think, the Treks & Giants will compete for the mums&dads&kids, and the odd serious cyclist (and deservedly so), but I think there's room for those specialist shops catering to the more engaged and curious and repeat sales cycling enthusiasts.
There is a trek store in my town and they never have any customers at all.
Best thing i ever did was buy my own tools to work on my bikes (the tools are cheap) always buy a frane separate and build your own. So much cheaper and you get to do what you want.
problem with bike shops , is go to buy lets say a botle cage ,, the have a 20euro branded and the next one is a carbon at 100 ,,, when you want only a 2-5euro alu simple botle cage !!! same go with every other bike part from sadles to pedals , or dude go in bike shop with his 200euro bike , and the bike shop ask for 100 for a tuneup
Bike shop selling £3 bottle cages will go bust. No money in it. Shop charging less than £100 for full service will also go bust. In fact, workshop in most shops makes a loss, which is why there are no stand-alsone workshops that aren't non-profits or volunteer staffed. Workshop in shops supports bike sales and aids component sales. Without bike sales at volume, plus some component sales, with decent margin, you don't have a bike shop.
bike will become just like phones and laptop , get old or broke , just get new one , when some one buy a 200-300euro bike , and after 5-10 year bike will need tires ,brakes, drive train saddle ,grips , cables, pedals , all throws parts may cost 100-150 and bike shop will ask for 100for on labour , i just go and buy a new bike ,, @@davidpalk5010
My LBS is now a Trek store. BORING.
What was once a vibrant, unique shop full of myriad brands is now Trek. And Bontrager. And that's about it. Lame. (To their credit, they train their staff to greet the customer immediately, be engaging and very cheerful, something many an LBS has struggled with for decades.)
The consumer has spoken with the Almighty Dollar. When a full carbon SLX Ibis Ripley is $6k at MSRP, and a full carbon XT Canyon is $5k MSRP, the consumer-direct Canyon eats Ibis' lunch. I get this.
But there are consequences to this consolidation.
Careful what you ask for!
You are right about the market changing even more than it has. I've been in the industry for over 30 years and have seen these changes up close. Now I have made a shop out of my garage and that may be another direction the industry is going. I now refurbish used bikes and do service, and that in itself has filled a huge gap in the local and nationwide gap. Looking into maybe carrying a line of bikes but still staying in the garage space. If vendors are going to poop on their dealers, they shouldn't restrict where bike shops do business. They no longer are...
I started this way in 2021 and now have a mobile bike shop I put together earlier this year. Very convenient for customers.
I have used a mobile mechanic for ten years. He also operates out of his garage. I ordered my bike from Europe and he assembled it for me and will service it going forward. The price overseas was right, and the bike is not one of the dime a dozen Specialized, Cervelo, or Treks you see in N America
@@robbyd3892 Nice! Thank you for supporting us, garage guys!
Im a 20 year plus mountain biker and my dream of opening a bike shop died a few years back. The industry isn't open to small shops and they've gotten greedy. The industry is dying and these corporations know it. It won't disappear but it won't grow whatsoever with its current business models.
I am remaining optimistic. I have this feeling that the revitalization of bicycle shops may be coming in the next few years. I will find out through this test I am doing with Go Grava.
This steady Trek buy-out has been going on for years. They're smart about it. They go for shops near high traffic urban areas. Squeezed for choice in the name of market domination? It's lame as hell. Long live the LBS and non-profit repair shops. Seen too many good ones go.
They have an unfair advantage also. They can see where the bikes are selling since they control all the data.
Amazon does the same thing. If they see something is selling well, they introduce a "Amazon Basics" version.@@gograva
I have a background in industrial supply chain/sales and marketing. The bike industry is messed up to say it nicely. Let the big bike companies do their own thing it's now big deal. All of the parts distributors are protective of these store front shops. It's pathetic, most of the shops are full of old guys who hate people and dumb young kids who just need a job. The whole industry need to crash before there's a reset. I can sell more part from garage to my personal riding connections/friends than most of my local shops. Good luck figuring it all out. I've been trying to do something similar to what
you are doing. It's a pain in the butt.
It’s a huge challenge! I think there are some solutions out there, but I’m being extremely non-traditional. I’m working with frame builders in South America so I can control the margins better. Same thing with clothing and bicycle bags. Working within the current operating environment of the cycling industry is a recipe for misery.
The Pons Holdings is reminiscent to Bikes Direct.
McClain bike shop is my shop and sold out to specialized and went downhill
If you think about it, all of us could do just fine without a local bike shop.
Why but from brick & mortar when you can do consumer direct delivery? Bike shops make their $ on service and repeat customers. Twas and always will be.
Mobile bike service is the future with pick up and return for bigger jobs and builds and on-the spot service for smaller jobs. My friend sold his high end shop and went mobile and has a shop at his house. He saw the consumer direct effect starting back in 2018. He already had a small diesel bus he converted for his race team when he sponsored riders, so it was an easy switch for him to create a mobile service. Fuel costs and bus service are some challenges he faces, but it beats rent.
It's a great question. I am doing a hybrid model. Direct to consumer on our website gograva.com and then having the store experience at one location to test new ideas around community support, marketing, and bike shop revitalization.
@@gograva I get it and I relied heavily on my local shops for years, but I learned how to service my bikes myself over time. I have no real need for traditional bike shop now, unless I want go have coffee and talk shit w the mechs or an emergency fix. Just saying. Maybe, if you are located in a mtb travel destination, a bike shop will be a social hub, service, and do rentals, but the bike shops in most areas are dwindling bc of the all mentioned above.
Went into one of those corporate Trek bike stores. Nothing interesting I'd buy.
Build locally and custom fit and set up.
Maybe LBSs were complicit in the industry charging £15k for a bike and making it as hard as possible to maintain it yourself. What was once a small job to change something for little money, now becomes a job for a shop with specialist tools and a high hourly rate. No wonder sales are plummeting and businesses are going to the wall.
I think increases in commercial rent on real estate probably drives the $60 an hour mechanic fee.
The question for any business is…. What value do you bring to the customer? If you are reselling other company’s product, you are the weakest link in the supply chain and will be easily pushed out.
So,.....there's all these big box stores that sell bicycles. In fact I bet the quantity of bicycles they sell is more than the local bike shops. These big box stores aren't so good at assembly and repair. That's not what they are about. These big box stores depend on other local businesses for various services. They like the "flexibility" of contracting stuff out. It seems very likely that they would like a local shop to help them handle the "headaches" with the bikes. This could include assembly and/or repair. You could even do this and just break even. Why? Who are all those people for whom you did assembly / repair going to go back to for parts and further service? The BIg Box isn't in business for that. They are done with these people. In addition to helping the Big Box with their less expensive bikes, you could also sell better bikes at your store. When these folks who bought the Big Box bike want to trade up, you can help them.
To be honest with you when I see the high prices in the local Specialized shop, I think there is room for someone in between the premium brands and the Big Box store bikes. I think it is a niche where there is volume sales. These have to be normal bikes that parts are readily available for and are reliable.
I think I gave more than two cents. I think I gave you about 50 cents worth of BS as I am not in the Bike business.
Focus on the other areas of the bike, not just selling the bike itself.
Fitting, customizing, service, nutrition, tires….
Yes, I’ll add some custom options. I have wide range of experiences and skills. I even spent a week at the UCI headquarters learning track cycling and BMX.
Unfortunately local bike shops dont have bikes to test like the big box stores. When your dropping thousands of dollars on a bike i need a few test rides
My LBS does. And I find it unlikely that Wally World would let me test ride.
@jed-henrywitkowski6470 trek does. They give you 30 days no questions asked. Lbs 's in wally world would do much better if they took notes
I'm pretty sure if you read the fine print it specifies 30 days IN UNUSED CONDITION, as Trek's no hassle return policy. How strict they are about this I don't know.
You'd be insane to spend thousands without knowing exactly what frame geometry and and travel you need. If you don't have friends that let you test ride you are completely screwed
Possibly, no kids are riding bikes , so the whole industry dies from no sales. The Trek store near here is just sterile. Nothing I'd buy. I buy used anyways. Only bike I'd consider new is a Lynskey, but I'd like a test ride...
It is a shame. My kids are in the Boy Scouts and they have a cycling badge for the scouts. Huge opportunity to get kids into cycling. But, I see no local shops integrating with that program.
My local bike shop tried to sock it to me during Covid now there out of business
Bike World in San Antonio is now Trek.
I am hearing a lot about Trek. Trek may be leading the way.
small bike shops matter ..
I wonder if the future its uses bike sales and service?
I personally can't stand the hostile takeover. I have some grear vintage bikes and like servicing and selling some .
I think vintage and used bicycles are going to boom a bit in the coming years. Also, budget bicycles may have a comeback.
All trek is doing is trying to sell more of there Chinese bikes
"local mechanic giving more/better service" than the OEM dealer? Many small shops don't have the equipment/information/training/support needed to repair always evolving technology. You're either 1) going to the wrong dealer. 2) have an exceptional tech who hasn't been out of the dealership environment long or 3) driving at least 10 year old vehicles.
I’ll admit, the truck I drive is 32 years old.
In New Zealand the Specialized concept stores are the worst. Terrible customer experience for super over-priced products. The whole Specialized brand is such a con, way way way over priced....
Bike Shops are like Dive Bars for Athletes. A Great Bike Shop creates relationships with their Customers. Bike Shop Owners are Terrrrible at Marketing so they have to have these Relationships. Shops have to be Great! Espresso Machine, Bike Lounge for Bike Race and Instructional Videos. Mobile Repair out of the Shop. People will Pay for Service.
Dive bars for athletes! Great analogy.
Giant only sells through IBD, they don’t have corporate stores
Hello from Lima again, Corporations are the cancer of capitalism. Idea 💡 💡 . . . You might make a deal / negotiation with a peruvian company as Monark or Vimi , make a product and cover an specific niche market in USA. I mean you do not need a costly warehouse, just several videos showing the quality and prices. Then the products are ship directly from Peru to USA or some other parts of the World. The good thing is you know what is needed and peruvians are always open to new business possibilities. BTW Peru is building a build a huge Hub port in Lima as Chancay and Callao Port is under modernization. Also the Airport of Lima is going to be the biggest in Latin America too. It is called Ciudad Aeropuerto, so who knows that shipping by airplane. . .
You would need company that makes bike components like shifters and brakes that doesn’t violate patents.
i learned alot from the comments but nothing from this guy.
Open warehouse with showroom...
Could be. I'm tempted to open a shop, but we will see. More places to look at. I'll have a video about my experience put together.
Consumers are fickle and Covid 19 didn’t help. I think the bigger problem is that young people are more sedentary and less interested in a sport or past time like cycling. That’s bad for the health of our population and a market that struggles to keep producing something no one wants. In the Tiger Woods hey day, golf became something more than what’s overworked dads did on Saturday morning. It appears now, that industry has taken a hit and interest from a youth standpoint is tanking
trek and other big bike brands are going the Mcdonalds business route. they are no longer in the bike business, its the real state business.
The bike shop owner is not forced to sell the business. He has a choice and most likely he makes a good profit selling it to a big corporation AND he can then lease a commercial lot (plenty cheap ones out there according to you) and carry on selling bikes.
True, unless he has to sign a non compete to not open another store. If he owns the property, he can then lease it back to the corporation for even more money.
The concept of the traditional local bicycle shop hasn't been economically viable for at least two decades. The LBS is dead, it's just that LBS owners are locked into debt, forcing them to pretend that they are alive. This is actually a good thing, because local bike shops were uniformly unpleasant places to visit. Bicycle components and accessories are now purchased online (obviously). Most bicycles are bought at big box stores like Walmart and Halfords. Surrounding a small bicycle service workshop with a mountain of Chinese tat (the LBS "strategy") was never going to work. The future of in-person bicycle commerce is the high end, where there is sufficient margin to cover overheads, usually combined with a high-margin non-bicycle-related function to drive footfall and subsidise the bike element of the business.
You could blame the LBS, but who controls the margins. It’s a complicated topic for sure. Who controls the customer experience? That’s why I see a big change coming.
@@gograva I am not assigning blame, I'm just describing it as I see it. As for who controls margins: the consumer probably has the strongest hand here. If consumers don't bite at a given margin, you either give them what they want or go out of business. The customer experience is controlled by both the retailer and the product brand. Most (all, in my experience) local bike shops offer absolutely horrendous customer experience, letting down brands and pushing them to use different routes to market. Google Maps lets you see inside most bike shops now. Search for "bike shop" in any part of of the US or the UK and pick one at random: you'll be confronted with an incoherent mess of a place. Good riddance to them.
Volume is way too small at high end, and margin is still insufficient. Expert service provision isn't the answer either, as nobody will pay for it. Bike shops have to sell bikes, in volume and at sensible margins, in order to stay afloat. It's almost impossible to remain solvent as a bicycle retailer. There are so many negative forces now. It's not just bike shops. Corporations are killing independents in all sectors. New tech allows big business to serve niches that were once dominated by specialists. Health food stores are a perfect example. Nearly all close to here - mostly well established businesses - have recently closed because supermarkets now address their once exclusive offering. Sports shops the same - due to online, SportsDirect and Decathlon. Independent petrol stations were everywhere but supermarkets killed those too. Retailing will change and nothing can stop that. In the end, there will be online, supermarkets and big chains on out-of-town retail parks.
@@davidpalk5010 I completely agree, hence, "combined with a high-margin non-bicycle-related function". Retail has _already_ changed, it's just that LBS owners are financially locked-in to the pretence of being alive. Running a physical "bike shop" post-Internet Revolution is little more than a vanity project. And there's nothing wrong with that. But if the owner wants to make it economically sustainable they will need a mechanism to subsidise it. And that way must involve people being compelled to physically move themselves into the retail location: so that's probably a service industry. I can think of one way: coffee. It sounds so trite because coffee shops are so commonplace, but _good_ coffee shops are actually vanishingly rare. In some locales they are non-existent. If the owner has taste (or can hire it) and some capital to create a pleasant space, then becoming a coffee shop first could work (but only if the coffee shop is a good one). And if the space is _really_ nice, then brands will PAY to be displayed there.
That sounds depressing
Ghetto music intro and outtro... not what I'd associate with if trying to be successful.
I’m not sure what that means. Could you explain that more. I’m testing out different styles of music and creative video styles.
leave the music out of the videos @@gograva
@@gograva intro's and outtro's are annoying as hell. To many people trying to act like they are some big time movie maker. By Ghetto music he means music you would hear in a ghetto. Not everyone is a fan of it. It is just like talking politics, you instantly lose 50% of your audience. Would you play this same music in your bike shop? If you would, your not too smart of a businessman.
@@Boobtube.Still rocking the MAGA hat in 2023 I see...
@@samt.1369 you have mental issues. How do you get my political stance from my statement? By your statement, it is easy to tell your a Biden lover. Kinda tells everyone where your head is at.
Cyclists need to learn how to work on their own bikes. Closing bike shops would force them to learn and I'm fine with that.
I don't know, some people are just not good fixing things or working with their hands. Plus, the tool investment is not cheap especially if you get in to special parts.
I am glad that you do all your work on your automotive stuff.
Does that also mean that drivers need to learn how to work on their cars and that we should close all automotive repair places to force EVERYONE to learn how to repair cars?
Ridiculous.
@gograva, Worker owned cooperative concept nice you are doing it. Do worker owned cooperative with the the bike shop.
Yes, it’s a consideration.