Just thinking of setting up a new store

janullrich

I hope that you can help me. I am thinking of setting up a new bicycle store where there is a lot of growth in population and no competition in and around the area (outside Dublin) at present. I am working on research such as surveying members of the public etc. Has anybody any experience of setting up a bike store (involving repairs and selling bikes) or can anyone give me advise regarding it.

Cheers,

Gav.

Johnny Jukebox

Here's my advice for whats it worth :-).

I spend between 1500-2000 euro a year on MTB parts and accessories. So do most of my fellow club members, some spend more, some less.

I buy 90% on-line from http://www.chainreactioncycles.com because they are very competitive, free delivery and totally reliable. You will have to be better than them to entice me to drive to your store and buy things.

Similarly, for full bikes, I have bought almost exclusively on-line from http://www.evanscycles.com at end of season (September - January). Again, I've never got a price match on the bikes I've bought from local bike shops.

My view is that the Internet has killed the high end for the local guys, both in terms and convenience and price. There's still lots of room at the low end, but how much money can you make ?

janullrich

Thanks for the advice. However from my research it is quite different. People are scared of using the internet for buying big purchases (and who can blame them) Quality service is king something that the internet can't offer. However it will be up to myself to come up against this challenge when the time comes!

Trojan

Jan, go have a look on www.bikeforums.net - if you do a search there's some good advice for people thinking about exactly this.

janullrich

Thanks Trojan for that. Any advise whether good or bad is helpful.

Greenman

janullrich wrote:

I hope that you can help me. I am thinking of setting up a new bicycle store where there is a lot of growth in population and no competition in and around the area (outside Dublin) at present. I am working on research such as surveying members of the public etc. Has anybody any experience of setting up a bike store (involving repairs and selling bikes) or can anyone give me advise regarding it.

Cheers,

Gav.

I wonder did you think of working in a shop before you take the big leap???

uberwolf

greenman wrote:

I wonder did you think of working in a shop before you take the big leap???

the thought had occured.

Interceptor

janullrich wrote:

Has anybody any experience of setting up a bike store

Nope

janullrich wrote:

or can anyone give me advise regarding it.

Like Mr Jukebox, I spent €2k this year on bikey stuff and all of it was spent abroad with the exception of two inner tubes and a puncture repair kit. I use wiggle to price stuff, compare it to chainreaction or otherwise try to buy new/nearly new on eBay.

My local bike shop in Galway promises to bring stuff in but never does - after eight weeks waiting for a shockpump I gave up and bought from wiggle. The rate of change of technology prevents smaller shops in Ireland from holding high-end stock, most small shops in the UK are part of chains and can turn stock over more effectively.

My suggestion would be to start small with some web presence and part-time, evenings and saturdays - start or sponsor a local MTB club and get your name/URL known. (One of the best-known shops in Dublin has one of the worst sites I've seen)

Let us know how you get on - I'll give anyone a chance to take money off me...

'c

janullrich

Thanks for the advise. I will need to start small otherwise it would simply be too expensive. I hope to start working in a shop free of charge for Saturday's at the start of the year. While I have a good knowledge of bikes it is only when you get into the deep end do u really know what the business is like.

uberwolf

have you ever done bike repairs or will you be relying on someone else to do it for you?

seamus

The problem with competing with online retailers is markets. The MTB (and cycling in general) market in the UK is HUGE. There are no shops in this country that could hold a torch to the bigger retailers and chains. As such, they stock more stuff, more specialist stuff, and at a cheaper price.

Your best bet starting out in this country is a small shop, doing repairs and selling low to mid end bikes. That, in fact, is where the big money in this country still is. You wouldn't last long selling to the enthusiasts, because, as you can see, they get stuff cheaper online, and there's simply not as many of them here as in the UK.

If you're interested in biking though, you'll find that bikers can be fiercly loyal, so long as your prices are reasonable. That is, if you start a club from your shop, most club members will buy from your shop, even if you're no cheaper than anyone else.

I can't give you any specific advice. It's a tough market, and not one where you'll make a shedload of cash this side of 2010.

janullrich

Thanks Seamus. Yes cyclists are fiercely loyal! You just have to visit Cyclelogical for that. I won't be going in to make a lot of cash. There ain't that around. I am going in because I love cycling and want to be my own boss. At least I can give it a try! I intend to do repairs myself as well as employ someone who will help me out and who is more experienced. (I have to be realistic in that I ain't going to make a pro-team mechanic yet!) Thanks for the advice though.

seamus

janullrich wrote:

Thanks Seamus. Yes cyclists are fiercely loyal! You just have to visit Cyclelogical for that. I won't be going in to make a lot of cash. There ain't that around. I am going in because I love cycling and want to be my own boss. At least I can give it a try! I intend to do repairs myself as well as employ someone who will help me out and who is more experienced. (I have to be realistic in that I ain't going to make a pro-team mechanic yet!) Thanks for the advice though.

Maybe enter into a partnership with someone? A small shop shouldn't need more than two guys to run it starting out, so if you have a good mechanic who'll run the workshop, you run the store.

uberwolf

repairing and preparing new bikes is a piece of piss. It's the old ones that suck. Been there and done that. Managed a shop, worked in cyclelogical as well. High end and new. Don't even need to get your hands dirty!!

janullrich

Hey Ueberwolf, sounds like I need to be asking you to be my first assistant!!

Victor

Get a map, stick a pin in it for every bike shop in the golden pages. Find out where there are and aren't bike shops. Then consider why there are and aren't bike shops in particular location.

It doesn't make sense to set up a bike shop next door to an existing one, but it might not be worthwhile setting up one where every other bike shop has decided that it isn't worth going either.

janullrich

Thanks Seamus for the advice. I am exactly thinking of whether to set up a partnership or employ someone. Partnership is tricky especially if u don't know the person, and they leave u up the creek. I'll get more advise on that one. I am just doing research through questionnaire at the moment which is a pain in the ass but has to be done!

uberwolf

expanding suburb areas should be looked into. The back of lucan newcastle area might have potential, although there are established punters from all sides.

where else has fields of estates being built?

Dun Laoighre doesn't have a high profile place at de mo does it?

janullrich

Sorry being away. God u are right Interceptor! Cyclological has a really crap site. I think it goes hand in hand with the service that they give a lot of customers from what I have heard. Thanks Trojan for the other bike site. It is certainly interesting.