so i started a bike shop. update 31/07/24
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@jonnyboy666 Thanks for sharing this - a useful insight. I very much hope that you'll find, as have I, being free to offer the advice you would hope to receive if the tables were turned offers not only great satisfaction but ultimately, loyal customers who trust and value you / your business.
Beautiful builds too!
Beautiful builds too!
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Sounds like a fair enough evaluation of what's going on in a smaller lbs.
There was a dealer over Grimsby way went pop recently. Nice people. Shame.
I sometimes think that I'd like to set up by myself and service bikes. I could extend the shed and build a big enough stock room for parts...
Risky tho innit.
Not gonna live the dream otherwise tho eh.
Or maybe there's room in my part of the world for a small bike shop...
But like you say. No money in stocking bikes unless the RRP and margins are high.
It's probably the same in most industries, I'd imagine. But I hate it that for smaller dealers, either just starting out, or dealing with low volumes of product, the product is a lot more expensive to buy in, than for dealers who buy a lot more... "Yay capitalism". Greed.
There was a dealer over Grimsby way went pop recently. Nice people. Shame.
I sometimes think that I'd like to set up by myself and service bikes. I could extend the shed and build a big enough stock room for parts...
Risky tho innit.
Not gonna live the dream otherwise tho eh.
Or maybe there's room in my part of the world for a small bike shop...
But like you say. No money in stocking bikes unless the RRP and margins are high.
It's probably the same in most industries, I'd imagine. But I hate it that for smaller dealers, either just starting out, or dealing with low volumes of product, the product is a lot more expensive to buy in, than for dealers who buy a lot more... "Yay capitalism". Greed.
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@albash82 it's not so much that the margins need to be high as you put it, they just need to be maintained at a fair price, the issue is that a big online supplier is buying a huge amount of bikes, sometimes they cherry pick from a range, but they get that big bulk buy discount from the supplier, so straightaway they can do more discount than me if they want to while still maintaining a margin. so they get it cheaper, don't have to deal with customers face to face, quite often send the bike out in the box unbuilt which makes them just a logistics company, and logistics companies work on a margin of about 10%, and quite often the warranty isn't looked after as they get real shops to do it for them and tell the customer to claim the money, which quite often they don't claim. so effectively they don't need to make the margin i do as i build/sell/service and warranty that bike within the RRP.
the other side is too many bikes get made/ordered, so suppliers end up needing to discount because of that new yearly model bullshit! add to that customers consider RRP as place to start haggling from. all this adds up to bikes not being viable to sell under a certain price. and it's not that the mark up/profit is any better on an expensive bike, in fact quite often it's less, but because it's a bigger sale for the same 4 hours work (see earlier post) which means that the hourly rate for selling that bike is higher, which makes it more worthwhile, and even if you do discount it the numbers are bigger so it actually doesn't feel so bad!
the other side is too many bikes get made/ordered, so suppliers end up needing to discount because of that new yearly model bullshit! add to that customers consider RRP as place to start haggling from. all this adds up to bikes not being viable to sell under a certain price. and it's not that the mark up/profit is any better on an expensive bike, in fact quite often it's less, but because it's a bigger sale for the same 4 hours work (see earlier post) which means that the hourly rate for selling that bike is higher, which makes it more worthwhile, and even if you do discount it the numbers are bigger so it actually doesn't feel so bad!
eightyeight
Retro Guru
I'm surprised at how many people I know who get their bike serviced at a shop. I always thought that, after a few years, people generally did their own repairs once they knew what was what. But it seems I'm in the minority doing my own repairs. I don't know if it's just a thing that has changed over time or that I just grew up doing bike repairs so I think everyone does.
I basically do all my own work because for a long time I just couldn't afford to pay for someone else to do it, and it's become a habit.
The only thing I outsource is BB tapping and chasing, cos I don't have the kit.
But two of my neighbours are happy to go down the LBS for whatever they need. Sometimes I'll replace brake pads and fix punctures for them, but that's if they can't get it done quickly elsewhere. It's usually on a Sunday afternoon too.
I don't begrudge any shop being closed on Sundays, everyone needs a day off.
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thought i would do another little update as i have done some interesting stuff
first was another Demon Frameworks, this one was stainless tubing, with campagnolo super record, rims brake and mechanical gears, simple, classic.
first, here's some frame pics
first was another Demon Frameworks, this one was stainless tubing, with campagnolo super record, rims brake and mechanical gears, simple, classic.
first, here's some frame pics
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so here are some bike pics, some of these were taken outside in the rain, it was a miserable day!
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