Cycling in Sydney Australia
Hi, should preface that this query may be journalism-related.
But in the wake of those Cranks stores closing, I was wondering if there had been any other LBS locations that have closed recently?
Michael O'Reilly (Sydney Morning Herald)
(2017 update of title to "closed/opened" reflecting expanded topic of thread)
Slightly off-topic I love this business model. Had a very good first experience at Ride In Workshop. I sometimes feel I get second rate service if I'm not a big buyer at typical bike retail shop.
Yes Have to agree with the service piece from Ride In Workshop. Got my broken shock on my MTB fixed and bike returned, cleaner and with a free chain guard added to the frame (ex-inner tube but still -> added without charge)
I'm a repeat customer now!
There have always been shops closing and shops opening. So in itself these few may not indicate much.
The acquisition of some shops by some brand owners says more about the ambitions and belief in their products (of those brand owners) than the viability of this business structure.
We are in a smaller digital world and margins are therefore compressed so there is some sense in vertical integration. But a lot of the trouble in retailland won't go away. Bike shops are 'high touch' businesses and expensive to run. Margins have been reduced to unviable levels in many sectors.
I read the Skroo Turner interview last night. Good read.
Can't feel right about the term "high touch businesses" - Perhaps open a chain of "Sagan Cycles" :-P
Though perhaps that should be "low touch" in more ways than one...
Bike shops are 'high touch' businesses and expensive to run.
Things I do not like about the linked article:
I don’t care if you want to go to Target or some other big box, corporate-owned store worth billions of dollars and showroom a set of cooking pans or a Dutch oven for your wife, but woe to the schmucktard who walks into a local, family-owned bike shop and showrooms
Companies like Shimano and Specialized... ...cracking down on retailers who sell below minimum suggested pricing (MSP)
You don't like dutch ovens? http://www.urbandictionary.com/define.php?term=dutch%20oven
No problem with that, can buy good stuff from competing manufacturers whether in shop or online.
Didn't we discuss paying for service business from shops and buying superior stuff wisely?
I'm not buying Shimano or Specialized because I chose Rohloff & steel. Of course I am buying very little these days because I worked out not to buy 2 year life junk.
Can't be alone in that regard.
Another point is warranty: for a high value item such as a bike a reasonable life is expected by law. No more hiding behind 12 month warranty for shoddy product or rejecting a breakage claim citing 'abuse'. Game's up!
It is inconsistent protectionist bollox.
Stanmore Cycles closed a few months ago. In Strathpine, Bums on Bikes closed. That was a huge shop.