Recently came across these photos of Superb Bicycle and I was very impressed by their merchandising, interior design, and branding. The shop is located on Beacon St. in Boston and also sells their goods online.
Designed by OZIIO, Superb Bicycle focuses on fixed gear and urban riding.
Images via Glam Shops
It's easy to get caught up in the Got-To-Win-The-Google-Search game and forget about the second largest search engine in the world, YouTube. YouTube is arguably more engaging than any other social platform and it allows people to make a personal connection far faster than Facebook, Twitter, etc. YouTube should be taken very seriously by all retailers and I strongly encourage building a strategy going forward on the channel. If you're skeptical, here are some absolutely crazy stats to prove how much of an impact YouTube is making:
All these stats came from here.
I've gone ahead and compiled some of my favorite bike shop videos to give you some ideas of what people are already doing. Check them out:
PEDAL by Gears Bike Shop
Gears Bike Shop did an amazing job in this video. It's calm, it's understated, it's clean. It never tries to sell you, rather it tries to convey an experience.
SPRING 2013 by Bicycle Gallery
Bicycle Gallery's video is here to sell you, but it's not Crazy Eddie on a car lot sales. It's showing you how the local shop is preparing for the coming season and dropping all sorts of ideas on how you can be a part of it. I especially love the final bit where they say what camera they used and how that camera was on sale at the store. Also, the music is perfect.
LESSONS IN LAYEROLOGY by Big Poppi Bicycle Company
Humor, humor, humor. Nothing wrong with having a bit of fun.
OUR COMPANY CULTURE by Big Poppi Bicycle Company
Going to give Big Poppi double props here. With this video they are teaching people about their culture. To quote Simon Sinek, "People don't buy from you because they need what you have, they buy because they believe what you believe." This video does that wonderfully. If you believe in fun, teamwork, and inclusive environments then you'll love Big Poppi... who just happens to sell and repair bicycles.
THE ART'S CYCLERY TRAILER by Art's Cyclery
Along the same lines the Art's Cyclery Trailer is showing us why they exist- to ride, race, teach, rip, soar, etc. It's short, it's clean, and it make me want to ride.
HOW WE ROLL by Mike's Bikes
The video from Mike's Bikes doesn't stop at telling us why they exist, they go on to say how they do it (locations, training, community-based) and what they do (bike sales, fit, repair). It might not be a video I watch twice, but it's definitely a video I will watch. Especially if I landed on this video when I hit their website.
Some honorable mentions:
Bicycle Gallery, Ride A Specialized
718 Cyclery, Inverted Bike Shop
North Shore Bike Shop, Commercial
Do you know of any great videos from bike retailers? If so, share them in the comments.
Hope you found this post helpful. If so, please consider sharing it. Thanks- Donny.
Want more? Take a look at Leading Out Retail. This book is a creative look at bicycle retail and teaches retailers simple strategies on how to increase profit through service, what the most important question to ask every customer is, and how to manage the dreaded Timmy Factor.
I'm always pleased when I see bike retailers rethinking the ordinary. For example, Broke Bike Alley in Fernie, BC, Canada has a couple of great new takes on the business card. Both of these cards achieve my two rules of great marketing:
1. Make a personal connection
2. Be very, very helpful.
The first business card doubles as a multi-tool, the second is a tire patch.
Want more? Take a look at Leading Out Retail. This book is a creative look at bicycle retail and teaches retailers simple strategies on how to increase profit through service, what the most important question to ask every customer is, and how to manage the dreaded Timmy Factor.
A question I challenge many bike retailers to answer is how to get their star services to produce as much revenue as possible while at the same time giving customers more options to buy and a customized service.
The most successful answer I’ve seen executed is to offer four tune-up services instead of one. A menu of one means the customer has no choices. The customer has no way to buy more and the technician has no clear way to upsell the package. Having four tune-up services will appeal to the price conscious shopper, the lost shopper, and the price-is-no-object shopper. Here is an example of a four tier tune-up menu.
Tune-up Menu:
First I will explain the psychology of the pricing structure and then I will present ideas for what can be included in each service.
Retailers who are using this pricing structure have shown the most popular selling items on the menu will be Level 2 and Level 3. With the scale tipping just slightly toward the Level 3 Service. Level 1 takes roughly 10% of the orders and Level 4 takes only 5%. When compared to an $80 tune-up, we can break down the potential growth:
$80 x 100 sales = $8000
or
$230 x 10 sales = $2300
$100 x 40 sales = $4000
$70 x 45 sales = $3150
$30 x 5 sales = $150
The second scenario brings in $9600; a 20% growth. So why does this work?
First, Level 4 ($30) service will always be the worst seller. No one wants to purchase the worst option of anything. Level 4 Service is focused on serving the truly price conscious.
Level 1 ($230) will cater to those customers who have purchased high ticket items. If someone buys a $9000 bike they deserve the option to buy a more comparable service than someone who buys a $900 bike. Another way to think of it- when someone buys a Ferrari they understand that servicing the vehicle will cost more than the service on a Toyota. It is acceptable for many people that high ticket items equal high ticket service.
Level 2 and 3 ($100 and $70 respectively) are for customers who are not sure what they want. Notice the gap between these levels is the smallest price gap on the menu. The jump from Level 3 to Level 2 was $10 cheaper than the jump from Level 1 to Level 2. Since the majority of people buy in the middle, we want the middle to have options.
Below is a formula for creating a service menu using these pricing tactics. Start by taking the price of the most popular tune-up, usually between $50-$90 for US retailers, and replace that number with X in the formula below. From there multiply out each level and round out to the nearest 5 or 0.
Level 1: 3.25X
Level 2: 1.5X
Level 3: X
Level 4: 0.45X
Below is three example price structures using this formula.
In this example, if your most popular tune-up price is currently $70, your new menu would have a Level 1 service of $230.
Once the pricing structure is set, the next step is to define what is offered in each service. Here is a recommendation to start with.
Level 4 ($30)
In many ways Level 4 Service acts as a quote or estimate. The bike inspection is where the value of this purchase is. Many people who purchase this package will often walk away with an idea of what services need to be done the next time they return.
Level 3 ($70)
The Level 3 Service is, as many bike retailers would define it, the standard tune-up. Notice that I stayed away from using technical terminology. Telling someone to purchase a “wheel true” can be confusing so I opted for “wheel inspection and adjustment”.
Level 2 ($100)
Since most people will be choosing between Level 2 and 3, the best carrot is kept in Level 2. Cleaning parts with solvent and offering a wash, lust, and detailing is a huge hook for people to make the jump. Many technicians have spent hours trying to get something to shift properly and when the customer saw the bike they were only excited by how clean it looked. A clean bike is something the customer can see, it makes sense to them. A perfect shifting bike is expected and can’t be enjoyed until after they leave the bike shop.
Level 1 ($230)
In order to justify higher prices in the service area begin tying parts to the costs of service. New brake pads, cables, and bar tape or grips are key elements to making the bike work as if it were new off the floor. Someone buying in at this level expects a perfect machine in every way, and these are just the services that will achieve it. It is worth noting that the Level 1 buyer is also the buyer who is most susceptible to additional sales like a new saddle, new tires, or even a new wheelset. If a technician sees the opportunity, they should never be afraid to ask.
Want more? Take a look at Leading Out Retail. This book is a creative look at bicycle retail and teaches retailers simple strategies on how to increase profit through service, what the most important question to ask every customer is, and how to manage the dreaded Timmy Factor.
As the bike industry is just beginning to move their catalog of goods online, practically the entire floor of a running store is filled with items that can be purchased from the manufacturer websites- and in many cases it can be found cheaper. In many ways, how a running store is operated today could be a blueprint for how bike retailers may have to operate in the future. So how do running stores stay afloat when everything they sell can be purchased from a phone?
A Nike retail store in France.
When I ask IBR owners and managers this question, a popular response is that running stores can survive because there are more people running than cycling. They believe the customer base of runners is so much larger that they can work on massive volume. This thinking may be incorrect. Running participation in the US is nearly identical to cycling. In a 2013 study done by the National Sporting Goods Association the number of people participating in cycling or running activities was very similar, with 39.3 million people cycling and 40 million people running. The NSGA classifies participants as those who ride or run at least six times during a calendar year. The NSGA then takes the total number of participants and breaks it up into three categories: frequent, occasional, and infrequent.
Total participants (in millions):
39.3 cycling, 40.03 running
Frequent, more than 110 days per year:
5.35 cycling, 9.22 running
Occasional, 25-109 days per year:
18.55 cycling, 18.56 running
Infrequent, 6-24 days per year:
15.41 cycling, 12.23 running
While the number of runners and number of cyclists may be similar, there is one reason many bike retailers will call out when they are compared to a thriving running stores. There just are not as many running retailers as bike retailers and therefore the running stores command a larger portion of the market. In this instance, they are correct.
According to Leisure Trends Group there are more than 1038 specialty running stores in the US, compared to just over 4000 independent bike retailers. Though it should be noted that Leisure Trend’s numbers only reflect specialty stores, they do not include everyone who is selling running shoes. Those 1038 stores represent approximately 22% percent of all running shoes sold, the remaining 78% is split amongst online retailers, general sporting goods stores, and discount stores. In a similar fashion 74% of bicycles sold in the US are sold by department stores and discount stores.
Do you think bike retail and running retail are similar? Are they the same customer base? Do they have the same challenges ad opportunities?
Please remember to comment and share. Thanks- Donny
Check out my book. Leading Out Retail is a creative look at bicycle retail and teaches retailers simple strategies on how to increase profit through service, what the most important question to ask every customer is, and how to manage the dreaded Timmy Factor.
Should a retailer open their doors earlier or later? Open or closed on Sunday? Retailers are always testing their hours of operations but this may help end the trial and error.
Choosing hours of operations is based on a number of factors including the shopping preferences of customers, potential sales, and fixed costs of staying open. Managers also have to consider the willingness of their staff to work certain hours. Since cost of labor can range up to 20% of an IBR’s total revenue it is crucial that every hour a store is open, it is open for a reason. Either to manage customer purchases or provide a customer service which creates profit later.
To help bike retailers make a more informed decision, in May of 2012 I conducted a study that took a closer look at hours of operations for IBRs in the United States. I sampled hours from a hundred bike retailers from 17 cities in the continental United States and compared them to a hundred other sporting goods retailers in the same cities.
Cities sampled in hours of operation study: Los Angeles, San Francisco, Seattle, Salt Lake City, Tucson, Denver, Minneapolis, Des Moines, Kansas City, Oklahoma City, Austin, Chicago, Philadelphia, New York, Asheville, Atlanta, and Miami
Median in grey.
Sporting goods retailers open earlier and close later than bike retailers in nearly all cases studied. The most common hours for a bike shop are 10-7 on weekdays, 10-6 on Saturday, and closed on Sunday. For sporting goods retailers the hours were longer in every instance: 10-9 on weekdays, 9-9 on Saturday, and 10-7 on Sunday. This begs the question, are sporting goods retailers providing a better service or taking potential customers from bike retailers?
With these results we learn that bike retailers are open 53 hours per week on average while sporting goods retailers are open 76 hours each week.
Opening earlier or closing later can prove fruitful though. Being the only bike retailer open in a city at 9pm might mean, over time, they will acquire new customers who would usually go to other stores but can’t. If an IBR has a ride that leaves from their store every Saturday at 7am, earlier hours on Saturday would allow them to provide pre-ride services and sell products needed for the ride. These small gestures of good will go a long way. Mellow Johnny’s in Austin, Texas opens their doors at 7am every day except Sunday when it opens at 8am. In a discussion with their manager I learned that business is generally slow in the morning. The customers that do stop by are generally dropping off their bike for repair before their workday begins and they are always grateful.
The study showed that Sunday was the most popular day for bike retailers to be closed with 32% locking the doors, compared to 11% of sporting goods retailers. If an IBR is choosing to close for moral or religious reasons, then by all means, I encourage them to do so. For other, smaller retailers closing down for one day a week may be helpful when attempting to save money. However, closing one day a week means being closed for 52 days a year, almost two months. Any retailer choosing to close one day each week will want to be absolutely sure they are making a smart financial decision.
According to the study the most effective, and possibly lucrative, hours of operation for bike retailers would be 11-8 on weekdays and 8-6 on the weekends. Of course this can vary from one location to another and whatever the hours of operation are retailers would be wise to prove the effectiveness by measuring traffic flow and sales.
Thank you for reading this far. If you found this content valuable, please share. Thanks - Donny
You can find more studies like this in my book! Leading Out Retail is a creative look at bicycle retail and teaches retailers simple strategies on how to increase profit through service, what the most important question to ask every customer is, and how to manage the dreaded Timmy Factor.
The greatest trick the internet ever pulled was convincing the world it would be easy to do.
If you want to know the ROI on your Facebook, Instagram, or Twitter feed, if you want to know the value of an impression, or if you want to constantly recreate your social campaigns, I hate to tell you that you're in for a lot of work There is a fallacy that says the internet is easy. That once you start tweeting fans, admiration, and money start rolling in.
It' all a lie. There is no easy button. No one-size-fits-all aggregation tool. There is only hard work combined with a clear vision.
There is an ROI on social, but first you have to understand your marketing strategy for the entire business. You show me the marketing strategy for the company, I will show you the ROI.
Social is not fast. It takes time, dedication, and a continued effort to connect to people you don't know. If you can't add value to someone's life then you're time on social is going to e painful (Hint: adding value is not selling you product. Not yet anyway.)
If you liked this, please consider sharing. Thanks- Donny
In retail if you can increase engagement between staff and customers the owners will have two ideal results. First, improved customer service and second, an improved connection between the business and the employee. In bike retail, when this is done well, the person working in the store will be come known as the bike shop guy/gal, people will know where they can find them, they will seek them out to ask questions, and any thought they have that relates to bikes will default to them and, by association, to your business. If your staff known for where they works, if their role becomes part of their identity, they are motivated to stay and to do right by customers.
Here are some steps to take with staff to increase their relationship with customers and the cycling community.
As a manager you want to support anything outside of the bike shop that will support the growth of the cycling community. This is how you will develop social wealth in your staff and earn their dedication and hard work.
From the outside looking in, being a bike mechanic seems like a pretty plush job. Loose uniform standards, get to work on cool bikes, no one is judging that neck tattoo, and you've got a discount on all the best stuff.
This all assumes thought that you have enough money to live comfortably outside of the bike shop. If not, then it can seem to be a thankless job. I have written about bike technician salaries before- but recently converted some of the research into a quick slide deck. Check it out.
If you share this slide deck with your favorite bike mechanic they will love you and think you're cool. No, really, they will. Better share it now! Thanks - Donny
Whether posting to your Facebook page or sending out an email, an effective title can be the difference between clicking the link of ignoring it. Here are some of the most effective strategies when writing your title copy.
1. Who Else Wants [blank]?
Starting with “Who Else Wants” does two things: first it touches on the desire of want, second it confirms that the thing you’re offering has been proven to work by previous buyers.
2. The Secret of/to [blank]
You’ve probably seen this one used before. That’s because it works. It is implying some insider knowledge, something that can only be learned by consuming your content.
3. Here is a Method That is Helping [blank] to [blank]
This will identify a target audience. Either one your speaking to directly or by illustrating a person or people that your target audience has aspirations to be.
4. [Do something] like [world-class example]
If you were watching commercials in the early 90s you may remember when Gatorade did this with the “Be Like Mike” campaign featuring Michael Jordan.
5. [Number] Ways to [solution/problem]. You will be [emotion]
This formula of words is like graduating to Copy Writing University. By showing a number we are setting the reader that this is a process that has been broken down to specific steps. Next it conveys an emotion and titles that convey emotion have a far greater open rate. Just check out Upworthy or Viralnova and just try not clicking one of those links.
Check out the book. Leading Out Retail is a creative look at bicycle retail and teaches retailers simple strategies on how to increase profit through service, what the most important question to ask every customer is, and how to manage the dreaded Timmy Factor.
