Setting up a small bike shop

[pij1979]

Hello, I was hoping for some advice from anyone with some industry knowhow. I am in the process of purchasing a small commercial premises and was considering setting up a bike shop in it. I will be using space in the building as an office for my company, however the bike shop idea is slightly altruistic in that I just want to provide a couple of employment opportunities and for it to basically pay for itself and occupy a vacant building. If I can make it a sucess so much the better.

Essentially I was interested in any advice or information anyone could offer. Particularly regarding margins costs suppliers etc.

Any helpful advice appreciated!

 

[Will1985]

Have a look at this thread, especially post 33.

 

[Hilldodger]

Decide what services/goods you want to provide and then see if the trade will supply you.

If you want to sell high end bikes and there's not a local shop already doing so, ask yourself why.

Oh and location is very important, too.

 

[pij1979]

Thanks for the info, particularly the link to the other thread.

The unit is in the middle of a small rural village on the Welsh Borders, I cannot say where exactly because of a couple of commercial sensetivities. It is a popular spot for MTBers and Road riders and would be a great stopoff point for Audaxes club rides from Cheshire/ Northwest/ Sropshire etc. In a nutshell it is great cycling country.

I will have part of the building sub let which will cover the costs of the building. In addition I will keep office space for my other companies which are doing well and make me a living, however I do not need to focus on them on a full time basis.

It is not a large retail space, so I was hoping to make it quite focussed on specific ranges, with a few kiddies bikes to meet the local needs and then a good selestion of the most popular mid range bikes, both road and mtb as well as seting up an online business.

In addition I was going to have coffee/ tea/ beans on toast etc available.

Overall the aim is to encourage a bit more general trade into the village (people are likely to head there for a weeend break) and provide an employment opportunity for local kids. I would be able to give the business a fair amount of time without taking much if anything out by way of earnings.

Ideas suggestions welcome...
Maybe a focus on UK made parts/bikes?
Only holding seasonal stock? e.g. crossers/winter biks autumn, tt/sportive/road in spring?

 

[Dayvo]

Sounds like a very positive and exciting venture you've got there, pij!

I wish you the best of luck!

 

[dellzeqq]

spend a week helping in a small bike shop - and compare the footfall with your chosen location. Talk to wholesalers - some are interested in new dealers and some are very definitely not interested.

I decided it was a first class way of losing all my savings - but the real killer was the unwillingness of distributors to sell in to a shop in proximity to other dealers - a problem you probably won't face.

 

[pij1979]

The wholesale/ dealer network seems to be a bit of a problem. How 'tied up' is it? i.e. how obliged is a shop to sell a product and not stock a rivals? I would rather remain independant if possible.

 

[pij1979]

It also seems to me one of the crippling factors for small busineses is the overheads, so if the building was not costing the business anything, i.e. no rent so the aim is to only cover wages paye, rates and stock (the biggie). Are there any LBS owners out there who have any tips?

The shoprefit costs would be covered by my other companies as I would probably extend the building slightly to include a mezzanine floor with room for a small cafe and a small outside seating area/ bike park.

 

[PaulB]

Give me a 25% discount.

 

[jay clock]

Not sure if it helps, but try and stock something different. Every shop I go into has the standard Endura/Altura/Topeak stuff, so I can tell in 6 secs that it is not worth even looking round. A nice range of quality clothing of a non mass market brand (Ground Effect?)

J

 

[orienteer]

How to make a small fortune from a bike shop: start with a large one!

Hope you can disprove this old adage!

 

[pij1979]

How to make a small fortune from a bike shop: start with a large one!

Hope you can disprove this old adage!

I hope so too! It seems to me some small LBS struggle to come out of the dark ages a little, and Ive found several lacking inthe customer service dept. Theres nothing worse than standing there like a lemon whilst the 'in crowd' gossip about the latest trinkets.

As a cyclist and consmer I find that I will often return to somewhere where I have had exceptional customer service over somewhere that is maybe a little cheaper. Do others think this?

 

[Norm]

... I will often return to somewhere where I have had exceptional customer service over somewhere that is maybe a little cheaper. Do others think this?

Damn, yes, every time.

And it works the other way. If I think someone has done me over, I'll never visit again.

 

[xpc316e]

Some years ago I lived in Felixstowe, a small town with about 30,000 population. It had a Halfords and a bike shop that also sold mopeds. A guy set up a small shop selling run of the mill bikes out of a garage. There cannot be more than 600 yards between all three businesses. I notice that he's still there and with a bigger profile, so it must be possible

 

[Hugo15]

As a cyclist and consumer I find that I will often return to somewhere where I have had exceptional customer service over somewhere that is maybe a little cheaper. Do others think this?

Definately agree with you. Most LBS seem to lack simple planning and customer service skills. The guys in my LBS are good but sometimes the could just be a bit more proactive in suggesting alternatives or calling me back when they say they will.