On 2017-08-14 07:29, sms wrote:
On 8/14/2017 5:48 AM, wrote:

snip

Frank - most major cities in the US have the population and the
density. A really good local bike shop is giving it up after five
years of trying because they just can't sell enough bikes or outsell
the Internet on components.

I receive the publication "Bicycle Reseller." Any shop that tries to
compete with "the Internet" solely on price is doomed. The number of
good bicycles sold online is still very low. The real competition is
getting people that are shopping at Toys R Us, Target, and Walmart to
come to the bicycle shop. Tried to convince my neighbor that he should
buy good kids bikes, even used, rather than bikes from Toys R Us, to no
avail, he came back with two pieces of crap yesterday. I think that some
shops could really do well if they'd accept some lower margins in kids
bikes or offer a guaranteed trade-in value on the next size up, and sell
the used kids bikes.


Bike shop owners told me that department store bikes are what keeps them
afloat at times. People buy them, thinking they scored the super deal.
Until something breaks or needs adjustment. At the big box store all
they get is a blank stare "Ahm, Sir, we aren't really equipped to handle
requests like that".

The other main stream of LBS revenue are mountain bikers. Regardless of
where they bought their bikes or what they cost they break stuff all the
time. I can attest to that. My MTB costs about $0.20/mile to operate
versus $0.10/mile for the road bike and this is with the DIY repair method.


Wish we had a shop like Yellow Jersey, but just as the lease rates in
Madison were too high, the lease rates in the Bay Area would never allow
such a shop.


Up here in Sacramento they would but you'd first have to get in a more
biz-friendly legislature and that ain't gonna happen.

--
Regards, Joerg

http://www.analogconsultants.com/