Leftovers

My Checklist for Checking In A Bike

Recently, I had someone ask me what I look for when checking in a bicycle for repair. A list so nothing would be missed and the opportunity to up-sell would arise. So, here it is, the master list of information I like to look through when taking a bike in.

THINGS TO ASK THE CUSTOMER:

Name?
Phone?
Email?
Best way to contact? Phone? Email? Text? Tweet?
Address?
When do you need the bike back?
Which of our menu items would you feel suits you best?
Any odd sounds? Clinks? Clanks? Rubbing?
Anything feel weird or uncomfortable?
Any pain in your body when riding?
Where have you ridden it since your last service?
How many miles since your last service (estimate)?
Do you have an event coming up?
What is most important to you: speed or comfort?

ITEMS TO CHECK ON THE BIKE:

F. Tire: tread wear, cracking
F. Rim: trueness, pad burn, cracking, swelling
F. Spokes: loose or snapped
F. Hub: lateral play, stickiness, QR loose
F. Rotor: wear, warped
F. Caliper: pad wear, cable fray
Fork: compression/rebound not responsive
HT: cracks at TT and DT junction
Headset: fore/aft play with fork
Stem: not straight, bolts loose/uneven
Handlebar: not center, odd rotation
Computer: Not working
F. Light: Not working
Bar tape/grips: wear
Shifters/brake levers: squishy, loose, difficult to move
DT: bottle cage loose, broken
BB: cracks at DT, CS, and ST junction
Crankset: lateral play, loose bolts
Chainring: loose/missing bolts, worn teeth
Chain: stretch, how many miles?
Pedals: sticky, rusted, bolts stripped
F. Derailleur: Not shifting properly, cable fray
ST: bottle cage loose, linkage sticky, cracks at TT/SS junction
Seatpost: over max height, scratched, not dropping
Saddle: sagging, rails loose, material wear
SS: Shock compression/rebound not responsive
R. Light: Not working
R. Caliper: pad wear, cable fray
R. Rotor: wear, warped
R. Hub: lateral play, stickiness, QR loose
R. Spokes: loose or snapped
R. Cassette: play, worn teeth
R. Derailleur: Not shifting properly, worn pulleys, cable fray
R. Rim: trueness, pad burn, cracking, swelling
R. Tire: tread wear, cracking

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.

The Science of Service Menus

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:

Level 1 Service: $230
Level 2 Service: $100
Level 3 Service: $70
Level 4 Service: $30

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

$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)

Bike inspection
Bolt/torque check
Lube drivetrain
Inflate tires

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)

Everything in Level 4
Perfect braking
Perfect shifting
Wheel inspection and adjustment

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)

Everything in Level 3
Remove chain and cassette, clean with solvent
Complete wash, lust, and detailing

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)

Everything in Level 2
New brake pads
New cables
New bar tape or grips
Remove brakes, crankset, and derailleurs- clean with solvent

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.

Hiring People in Bike Retail is a Nightmare. Unless You're Cheating the System.

Finding the right person to work in bike retail is about landing on someone with the right personality and skill set to do the job and move the business forward, In order to do that many retailers may have to search deeper pools of talent and begin courting people respectfully and professionally. Hanging a sign in the window isn't good enough any more. Here are some of my tips for finding great people.

Get it posted. Put the job description up on your site. List out all the duties, who they will be reporting to, what will be expected, and all the benefits of working at the store (list benefits all the way down to “free socks” if you do it). Pics of the store and their work space would be nice if you have them. As would general information about the city and the cycling culture.

Widen the search. The more qualifications you want, the wider the search has to be. Finding someone who is awesome in your city can really narrow the talent pool. You’re usually left with the 2-3 people that no one else wanted. Be prepared to hire from out-of-city or out-of-state and have people relocate. This is expensive on the front end, but done right the return can be made back within a year. Relocation packages usually require a moving and living stipend.

Hit Linkedin. Doing a search for “bike fitter” on Linkedin has more than 100 results (you have to upgrade on Linkedin to see more). You could also search "bike mechanic" or "bike technician". I would message all of them with the link to the job and ask if it seemed like a role for them. This is a hook to have people start researching you, and ideally beginning the interview process. If they tell you no, ask them if they know someone qualified, and increase your search by 100x.

Hit Twitter. A people search for “bike fitter” or "bike mechanic" on Twitter brings in a couple hundred more results. Send them a direct message similar to your LinkedIn message. It’s ideal if you didn’t message the same person twice.

Look for the person in second place. If you start looking to hire from other shops, I would look at look at the number 2 person doing fitting or service there. That person is usually being blocked from growth by the number 1 fitter, they are generally more open to opportunities elsewhere, and likely to be cheaper.

Once hired, pay accordingly. First, establish the level of service you want given. With that done, I would build a pay structure around the profit from the that area of the store (not sales, not margin- but profit). If this person doesn't have a fit or repair to do, they will want to be in the store selling it.

Train heavy. For bike fitters or technicians, I would want them trained everywhere and build them up to be one of the most knowledgeable people in the world when it comes to their skill set. I would want this person to have every certification possible. However, the better they get the more money they deserve.

Don’t forget bedside manner. Technical knowledge only goes so far. People in bike retail need to have an amazing bedside manner and an eye towards creating an amazing experience.

I hope this helps you out on your next search.

Thank you for reading this far. If you found this information valuable I would appreciate it if you shared it on your social feeds. Thanks again- Donny

Want To Be A Bike Mechanic? You Might Want To Avoid This State.

People don't usually work in bike shops for the money, but this is ridiculous. Here are the highest and lowest paying states for bike mechanics.

According to Salary.com the median annual salary for a bike technician in the United States is $22,337 (The website refers to bike technicians as "bicycle repairers". I know, it’s horrible.) Compare the bike technicians’ salary to $24,274, the median salary for someone who repairs shoes, $25,188 for janitors, or $29,962 for a groundskeeper or gardener. While I do not intend to demean those other professions I do want to point out that a bike technician’s skill set is just as varied, if not more so.

When breaking down the median salary by state, California was the leader, followed by New York and New Jersey. Alabama, West Virginia, and Mississippi take the last three spots respectively.

1. California: $26,983 (San Francisco)
2. New York: $26,045 (New York)
3. New Jersey: $25,509 (Trenton)
4. Alaska: $25,285 (Anchorage)
5. Hawaii: $24,548 (Honolulu)
6. Delaware: $24,436 (Wilmington)
7. Massachusetts: $24,392 (Boston)
8. Washington: $24,101 (Seattle)
9. Connecticut: $23,856 (Hartford)
10. New Hampshire: $23,565 (Nashua)
11. Illinois: $23,431 (Chicago)
12. Michigan: $23,409 (Ann Arbor)
13. Rhode Island: $23,186 (Providence)
14. Maryland: $23,074 (Baltimore)
15. Pennsylvania: $23,007 (Philadelphia)
16. Oregon: $22,828 (Portland)
17. Maine: $22,806 (Portland)
18. Ohio: $22,694 (Cleveland)
19. Louisiana: $22,627 (New Orleans)
20. Colorado: $22,381 (Boulder)
21. Minnesota: $22,337 (Minneapolis-St. Paul)
22. Virginia: $22,314 (Richmond)
23. Georgia: $22,158 (Atlanta)
24. Arizona: $22,158 (Phoenix)
25. Florida: $21,912 (Miami)
26. Nevada: $21,912 (Las Vegas)
27. Indiana: $21,823 (Indianapolis)
28. Missouri: $21,756 (Kansas City)
29. Texas: $21,644 (Austin)
30. Idaho: $21,622 (Boise)
31. Kansas: $21,510 (Wichita)
32. Vermont: $21,399 (Burlington)
33. Utah: $21,332 (Salt Lake City)
34. Kentucky: $21,265 (Lexington)
35. Iowa: $21,198 (Des Moines)
36. Oklahoma: $21,153 (Tulsa)
37. Nebraska: $20,907 (Omaha)
38. North Carolina: $20,863 (Fayetteville)
39. New Mexico: $20,684 (Albuquerque)
40. Wisconsin: $20,550 (Madison)
41. South Carolina: $20,527 (Columbia)
42. North Dakota: $20,103 (Bismarck)
43. South Dakota: $20,014 (Rapid City)
44. Tennessee: $19,924 (Chattanooga)
45. Arkansas: $19,880 (Little Rock)
46. Montana: $19,768 (Billings)
47. Wyoming: $19,701 (Casper)
48. Alabama: $19,634 (Montgomery)
49. West Virginia: $19,433 (Charleston)
50. Mississippi: $18,450 (Jackson)

The sample city I researched is in parenthesis.

Where do you stand on the list? Do these numbers seem right or is Salary.com way off the mark?

Thanks for taking the time to read this far. If you found value in this piece would you please consider sharing it on social? Thanks again. Donny

Source: http://salary.com/