Re: thinking of opening a LBS

Depends where you're at and what the competition is. Most commuters
round here are ilegals on xmart bikes.

Brian Kerr said:

Hello - long time reader, seldom post

I'm wondering if it makes sense these days to attempt a LBS startup?  On
one hand, I can certainly see a niche in the commuting/practical uses
market that is not currently being fulfilled in the city.  On the other
hand, *Mart bikes are so cheap (in more ways than one!) that I'm not
certain if there is a customer base.  I'd appreciate your comments.

TIA,
Brian

"Brian Kerr" <[email hidden]> wrote in message
news:[email hidden]...
| Hello - long time reader, seldom post
|
| I'm wondering if it makes sense these days to attempt a LBS startup? On
| one hand, I can certainly see a niche in the commuting/practical uses
| market that is not currently being fulfilled in the city. On the other
| hand, *Mart bikes are so cheap (in more ways than one!) that I'm not
| certain if there is a customer base. I'd appreciate your comments.
|
| TIA,
| Brian

Demographics is everything. If you're in an urban area with high rents &
other costs, you're not going to survive if you depend upon commuter bikes
for your revenue. They can be a significant and featured part of your
product line, but they're not going to pay their own way if you're competing
for rent with all manner of other non-service industries that can afford to
pay a whole lot more per square foot.

But for generic info on the retail bicycle biz, check out the National
Bicycle Dealer Association website at www.nbda.com.

And then study the various other bike shops in your area, and figure out
what each does well and not-so-well. And absolutely study the various shops
that might have failed in your area over the past 5 or so years, and figure
out why. And then figure out what it is that you can do better, and how you
can expand the marketplace instead of cannibalizing what little business
there is in the area, since the cannibalization thing cuts both ways, and
the long-established shop has much deeper pockets and will probably still be
there in the end.

--Mike-- Chain Reaction Bicycles
www.ChainReactionBicycles.com

In my area, a mechanic from one of the bike shops picked out a
lower-economic section of town and started to specialize in lower priced
bikes--even those tricycles that elderly people sometimes ride. He began
making money by doing repairs of -mart bikes. Most of the bikes he fixed
were those that had been put aside as soon as they broke. I really doubt
that he does any business in $2,000 bikes, but he was going great guns with
cheaper bmx bikes and odds and ends to trick those out. He started a
lay-away section, too.

What you said: demographics. The other bike shops were appealing to a whole
different section of the bike riding public.

Pat in TX

Step one is realizing you'll be barely getting by for the life of your
business. If yu want to open an LBS it has to be for the love of the
sport, not the money. :-3)

- -
Compliments of:
"Your Friendly Neighborhood Wheelman"

If you want to E-mail me use:
ChrisZCorner "at" webtv "dot" net

My website:
http://geocities.com/czcorner

It's Chris said:

Step one is realizing you'll be barely getting by for the life of your
business. If yu want to open an LBS it has to be for the love of the
sport, not the money. :-3)

- -
Compliments of:
"Your Friendly Neighborhood Wheelman"

If you want to E-mail me use:
ChrisZCorner "at" webtv "dot" net

My website:
http://geocities.com/czcorner

Yes Chris, I'm certainly realizing that. It was a strong suspicion from
the start. Thanks all for your comments and especially to Mike - that
link was excellent.

Brian