My LBS closed today

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DCLane

Found in the Yorkshire hills ...
My LBS appears to be getting busier. Having a cycling cafe helps along with a close link up to a growing club.

Not sure about bikes sales but their servicing aspect is incredibly busy.
 

biggs682

Touch it up and ride it
Location
Northamptonshire

You dont pay for much in Kings Heath apparently
 

Smokin Joe

Legendary Member
It's tough running a bike shop. Those who are in the know about bikes are fully aware of all the online retailers and how much cheaper they are than the high street. The mark up on bikes for a small retailer who cannot buy in bulk is very small, so that means accessories and repairs are the major part of his (Or her) turnover. And regarding the latter, how many threads have there been on this forum by people outraged at being charged a tenner (Pocket money price) to have a spoke replaced or a puncture repaired, complete with countless people agreeing that the OP had been ripped off. Take your car to a garage and it's fifty quid for the mechanic to open his toolbox.

It's hardly surprising that bike shops are closing.
 

classic33

Leg End Member
I have seen several of those open and then close again in only a couple of years so I am not sure that they are doing much better.

The big sales competition is coming from Chain Reaction Cycles/Wiggle/Evans/Decathlon ... It is hard for shops to compete with them, and can they survive on servicing alone?

I can see the future being online for sales, and Bicycle Repair (Wo)Man turning up at your house in a van to fix your bike.
That's been tried a bit further up the valley a few years ago. Didn't last long though.
 

Smokin Joe

Legendary Member
This LBS closed as Liz & Roger are retiring.
They had loyal customers and earned a living from us.
But not an attractive enough of a living to tempt someone into buying the business, by the look of it.

Certain types of retailer have been hit very hard by the boom in online sales, to the point where they have almost become extinct. The cycle shops have not actually done too badly if you compare it to toy shops and model shops. Both the latter have all but disappeared from the high street, I doubt if many of us even know where the nearest one of either is.
 

classic33

Leg End Member
But not an attractive enough of a living to tempt someone into buying the business, by the look of it.

Certain types of retailer have been hit very hard by the boom in online sales, to the point where they have almost become extinct. The cycle shops have not actually done too badly if you compare it to toy shops and model shops. Both the latter have all but disappeared from the high street, I doubt if many of us even know where the nearest one of either is.
Opposite side of the road, a bit further up than the bike shop and where it's been for the last 60 years, albeit under different names & owners.
 

nickyboy

Norven Mankey
[QUOTE 5227989, member: 259"]We've had two LBS close since Decathlon moved in about 5 km away. The last one in town says he's lost a lot of trade and might go and work for them[/QUOTE]
Decathlon do very well not just because of the pricing. Their stores are like supermarkets with helpful staff. Relatively novice bike owners (that's the vast majority) massively prefer this environment to an "Arkwright's" bike shop

LBS should concentrate on selling things you can't buy online or from the likes of Decathlon. Service and Repair, coffee shop annexed, run a bike club
 

Pale Rider

Legendary Member
The OP mentions the owners had only 'derisory offers', but I wonder if they had realistic expectations.

I looked into buying my local bike shop which as far as I could gather makes a small return - most years - after all the bills/wages are paid.

The owner wanted a few hundred thousand, which struck me as ambitious.

The shop is in rented premises, so no value there, but it's well established.

Seemed to me the price he was talking about would give a similar return if cautiously invested, which my backer's funds were.

No need to get out of bed in the morning to get the investment income, so not much sense in using the money to buy a shop which would require a lot of work one way or another.

If you were inclined to spend big money on a bike shop, you might be more inclined to open you own, thereby getting everything as you want it.
 

Pale Rider

Legendary Member
The offer was ITRO £10k for leasehold, stock as valued and goodwill.

Strangely enough, I couldn't see my local bike shop as worth a lot more than the stock, plus a small consideration for goodwill.

We didn't get very far along the process, but the owner said to me I might be surprised at the value of the stock.

He might be right about that, he's stocked a bike shop for 30 years, I never have.

The problem there is you would be paying for some stock that you wouldn't buy if starting from scratch, which again points you to opening your own shop rather than buying an existing one.
 

Crankarm

Guru
Location
Nr Cambridge
I can' say the same applies in their case but i do wonder if traditional LBS are coming under pressure from what I call boutique bike shops, modern, clean, antiseptic, everything perfectly laid out, no character shops that are invariably expensive with staff all immaculately kitted out...homogenous..and yet seem very busy when you look in the carparks at weekends. They're the exact opposite of what I'm looking for.

Well I was in the Specialised "concept" store in Chelmsford several weeks ago as my car was being MOTd a few doors down at Halfords (it passed no advisories). To pass the time I went and had a look. Certainly lots of space and high prices to match. It felt like a car showroom. Anyway I saw a saddle I liked and not really needing a new saddle I thought I would give it a go. £30 wasn't too bad a price and a bit off with BC membership would make the price easier to swallow. The guy at the till said they didn't do cycling discounts not for BC anyway.

Me: "Do you do discount for BC members?" Showed him my membership card.
Him: "Err.. no mate".
Me: "Surely BC the foremost cycling organisation in the UK promoting cycling, 10% off?"
Him: "Nope. Look mate we get lots of people coming in 'ere claiming discounts for all sorts - because they are teachers, doctors, all sorts".
Me: "But not BC members then?"
Him: "Dunno mate, but if we gave discounts for everything we wouldn't be in business".
Me: "Look, I've changed my mind I think I'll leave the saddle".

Now I thought the whole point of running a shop or any business was to make money. BC discount is generally 10%. It would hardly mean he made a loss on the sale as trade price is generally 50% of the retail price and then it was a Specialised own brand saddle, so the wholesale price they paid for it was probably 25-30% of the full retail price, so mark up would be 70% ish. Surely 90% of something is better than 100% of nothing? And giving British Cycling discount is hardly supporting any unrelated Micky Mouse organisation, it is the foremost body representing cycling in the UK. Period. Anyway they lost a sale. I hope they go bust and he loses his job which might be sooner than later if he continues with that attitude. Is it any wonder that people choose to shop with CRC who incidentally do give BC members a 10% discount off the value of total transaction once a month. Halfords also do discount for BC membership even if you are not buying cycling stuff! Decathlon does some good stuff, although the service can be a bit hit and miss in the UK as most retail jobs are filled by yoofs who know next to nothing and can only grunt to customers, but spend their time chatting between themselves. But the Decathlons I went to in Taiwan a couple of months ago were completely different, friendly, helpful and knowledgable staff. Great stuff and great prices, as like IKEA, they make most of their products under their own brand(s) names so products are cheaper.

Whilst the Specialised "Concept Store" in Chelmsford, the concept of not making money, is not an LBS in the traditional sense you have to question why some of these places are actually in business? Perhaps they make so much money they can afford to p155 a few people off, who cares, good riddance, we can manage without them, the Basil Fawlty school of business, or the training is so bad that they let sales slip through their hands. After a short time, the writing is on the wall, and they close. Despite having ridden a Specialised bike for quite a few years I wouldn't be sad. I'll just buy my stuff from elsewhere. It's their loss. Adapt or die.
 
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swansonj

Guru
Well I was in the Specialised "concept" store in Chelmsford several weeks ago as my car was being MOTd a few doors down at Halfords (it passed no advisories). To pass the time I went and had a look. Certainly lots of space and high prices to match. It felt like a car showroom. Anyway I saw a saddle I liked and not really needing a new saddle I thought I would give it a go. £30 wasn't too bad a price and a bit off with BC membership would make the price easier to swallow. The guy at the till said they didn't do cycling discounts not for BC anyway.

Me: "Do you do discount for BC members?" Showed him my membership card.
Him: "Err.. no mate".
Me: "Surely BC the foremost cycling organisation in the UK promoting cycling, 10% off?"
Him: "Nope. Look mate we get lots of people coming in 'ere claiming discounts for all sorts - because they are teachers, doctors, all sorts".
Me: "But not BC members then?"
Him: "Dunno mate, but if we gave discounts for everything we wouldn't be in business".
Me: "Look, I've changed my mind I think I'll leave the saddle".

Now I thought the whole point of running a shop or any business was to make money. BC discount is generally 10%. It would hardly mean he made a loss on the sale as trade price is generally 50% of the retail price and then it was a Specialised own brand saddle, so the wholesale price they paid for it was probably 25-30% of the full retail price, so mark up would be 70% ish. Surely 90% of something is better than 100% of nothing? And giving British Cycling discount is hardly supporting any unrelated Micky Mouse organisation, it is the foremost body representing cycling in the UK. Period. Anyway they lost a sale. I hope they go bust and he loses his job which might be sooner than later if he continues with that attitude. Is it any wonder that people choose to shop with CRC who incidentally do give BC members a 10% discount off the value of total transaction once a month. Halfords also do discount for BC membership even if you are not buying cycling stuff! Decathlon does some good stuff, although the service can be a bit hit and miss in the UK as most retail jobs are filled by yoofs who know next to nothing and can only grunt to customers, but spend their time chatting between themselves. But the Decathlons I went to in Taiwan a couple of months ago were completely different, friendly, helpful and knowledgable staff. Great stuff and great prices, as like IKEA, they make most of their products under their own brand(s) names so products are cheaper.

Whilst the Specialised "Concept Store" in Chelmsford, the concept of not making money, is not an LBS in the traditional sense you have to question why some of these places are actually in business? Perhaps they make so much money they can afford to p155 a few people off, who cares, good riddance, we can manage without them, the Basil Fawlty school of business, or the training is so bad that they let sales slip through their hands. After a short time, the writing is on the wall, and they close. Despite having ridden a Specialised bike for quite a few years I wouldn't be sad. I'll just buy my stuff from elsewhere. It's their loss. Adapt or die.
Do you expect all retailers to give you a discount on their stated prices on demand, or is it just cycling shops?
 
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