My latest box of goodies.
As cyclists and consumers, the internet is giving us options.
Unlike previously, we can now order tyres, tubes, clothing–whatever at the click of a few buttons.
Trust is gaining momentum on an unprecedented scale with the online retailers and more people are doing it than ever.
What does this mean for the Local Bike Shop?
For my part, hopefully it makes them think about customer service. While many don’t have control over price–they certainly do have control over how they treat their customers. I see this conundrum as an opportunity–an opportunity to innovate.
Although I’ve gone on the offensive in previous posts on this topic, my heart is actually with the local bike shops. I’d much prefer to shop locally and have a really good experience than shop online. There’s something nice about touching, seeing the products, talking bikes with the owner etc.
I posted this on Facebook last week and it had some interesting responses from friends who own local bike shops themselves.
It got me thinking about what challenges they face so I asked a question on Twitter.
And these were just some of the response I received.
I posed some questions to LBS owner Stuart Passmore from Perth. He runs a local bike shop there called Glen Parker South.
This was his response. Thanks for taking the time Stuart.
Glen Parker South Interview
[CM] Is the online cycling trade having a noticeable effect on your business?
[SP] At times a definite yes. There are some items that we just cant be competitive on at a price only level. Some items are worse than others though.
[CM] Why?
[SP] There are some items that we just cant be competitive on at a price only level – sometimes its groupsets, sometimes tyres, sometimes its other things. Everyone one wants to get a bargain, particularly with Australian culture!
[CM] Do you think you have control over this? What do you have control of?
[SP] The pricing aspect is hard to have any control over. There are some very good tax perks in Ireland for instance, which gives people in business over there big incentives. We cant control the volume of product they get from pro teams either. The Aus market is very small compared to world wide and this hurts in terms of volume as well. What we do have control over is the quality of service and mechanics that we provide. We can control the margin we make to some degree and we do sacrifice margin to make sales. We can control fixed costs.
We can definitely control our service levels. We can control our product knowledge. We always try our hardest to the best we can, although we realize this is not good enough for everyone!
[CM] Who are your most valuable customers? Mums and dads? Roadies? MTBers or commuters?
[SP] All of my customers are valuable, whether they ride road, family, MTB or all bikes! Most of my customers are return customers. We don’t advertise, so I rely soley on service and word of mouth.
[CM] What are the benefits of buying from an LBS as opposed to the Internet?
[SP] Firstly, all comments relate only to our shop, Glen Parker Cycles South. In no way are these the opinions of any other store.
In our shop, the benefits are that your get friendly and professional service. Advice is free – product knowledge is free. Need to know the difference between BB30 and BB86 – we can help. We generally fit items for free. Need to swap a bar or stem on a new bike, no problems and no charge. We use the products we sell and we will tell you like it is, whether its good or bad! Loyalty attracts further discounting. Warranty is also provided and taken care of for you.
Need something done in a hurry, we will try and oblige you. Need a bike fit, we can help here too. Need some wheels to borrow for that special race – Id love to help if I can. These are the tangible benefits. We do house calls – whatever it takes most of the time to help. Custom wheel builds – we can do it. Sometimes its the little things that make a big difference, particularly with high end bikes now days. Knowing where to grease cables, how to get the smoothest shift and so on.
The intangible benefits are knowing that your money keeps local people in a job, friendships and shop culture that are built up over time. Supporting the Australian economy. For some people, these are not important, but for others it is. For instance, we support a breakfast club at a local school, which provides breakfast for kids that may sometimes go without. Without customers we could not do this. Sometimes there is more to life than just getting the cheapest price – but that’s only my perspective.
[CM] Why shouldn’t Australian cyclists shop online?
[SP] I don’t believe they SHOULDN’T shop online. Its everyone’s right to spend their money that they earn as they see fit. There are some great deals to be had and some things are just too cheap to pass up. But I would always recommend customers check with their LBS first to see if the can at least be competitive price wise. They may be surprised.
I always encourage people to spend money locally, because I believe keeping your money locally does help locally. I do mean locally as in your local suburbs or at least your state.
[CM] Is there anything else that you would like to add?
[SP] I don’t think we’ve seen the end of the LBS. People are correct though, that service is the key. However, we cant make everyone happy all the time, even though we try. Case in point – you may want your service done that day. We may have 10 other jobs booked in. We may just not be able to do it, or we may have to charge you extra to get it done outside of normal hours and for some people, this is unsatisfactory. We are surviving in a very cutthroat environment at the moment. I have 3 other LBS within a 5km radius from me. We don’t advertise, but our customer base continues to grow slowly. We don’t suit people who are looking the cheapest price all of the time.
Also, I think that we only ever see the “deals” that come from the internet. Ive had quite a number of customers with “deals” that were not such a good deal after it arrived. Ive got one customer who has been waiting 9 months for a bike to be delivered, which he has paid for in full. Ive got a customer that got dudded on a set of wheels. I could go on, but these never seem to get reported as it is human nature to only report the bargains and not the times we’ve been duped! We hate eating humble pie!
Also, we here at GPC South are NOT perfect. We make mistakes and sometimes even though we try our hardest, we fall short of the standards we like to provide to our customers. I’m sure that this happens at other LBS too, so if you sometimes don’t get the service you require, talk to your LBS. Talk to the owner or manager. Most times, I think you’ll find them apologetic and will do anything to make up for it. I know we do.
###
Thanks again to Stuart for taking the time to answer these questions and present a perspective from a local bike shop owner. For the detail involved in these answers, clearly he’s a guy who’s passionate about the industry and how his actions affect his customers.
If you’re in Perth, drop down to Glen Parkers South and mention this article. (no he’s not paying me or vica versa)
How can your local bike shop win/keep your business?
Safe riding.
###
