Originally Posted by
SamSpade1941
Rivelo closing is no shock... Why on earth order or purchase anything Rivendell from brick and mortar store in Portland when I can order it directly from Rivendell and for the same price or a tad less ? I think it was interesting they tried to capitalize on shooting film and old vinyl records along with bikes. A very confused bike shop IMHO and that was just a bad business model . As for Universal I order from them all the time , they ship really economically and quickly. I get my parts a day or two at the latest after I order them here in Salem. However I would probably more more inclined to visit them more now that they are moving to HIllsboro.
As for some of other shops
I honestly can't see how the cafe every worked for Breadwinner .
My one dealing with Norther Cycles left a bad taste in my mouth , I did not come away with a good will feeling after talking to the guys who run that shop , they struck me as rude.
Brick and Mortar stores in general are doomed as time moves on, so people who intend to stay profitable in that venue are going to need to offer exceptional service and a unique value proposition that does not focus on elitist attitudes (Norther), having items on display but not in stock (Velo Cult) and selling vinyl records, and poster prints by Will (Rivelo) ....
Rivelo was a concept store. They didn't even do repairs or build up the bikes they sold. The owner cashed out his house in Potrero Hill SF to afford him a lifestyle in Portland. Bikes and Dylan records? Just a bad business model.
Velo Cult had a chance until the city of Portland started enforcing their own fire department laws. Half of the square footage (basement) couldn't be utilized as intended due to access issues, and the upstairs area couldn't be fully utilized due to occupancy limits. They never had much inventory to sell - I often wondered how they would stay in business. When your highest profit margin item is beer, why have a bike shop to drag the business down? Then there was the large amount of potential capital hanging from the ceiling (museum grade bicycles).
Norther's sales were mostly on the internet. Very few of the custom bikes they sold were local. You don't need a brick and mortar store to do that. The proprietor bought most of his inventory because it was stuff he liked, not necessarily that it sold. When all of your Gilles Berthoud bag sales go out with a custom frame/bike, you don't need to stock 7 of them - you have one on display and order off of it. Maybe StarMichael will work out of a garage part time.
I loved all three of these shops, but when you're running a bike business, you have to focus on the business end if you want to stay around. Owning a bike shop has always meant buying a job. You're working for minimum wage, at best, with no benefits.
All three went down due to naivity, IMO. Most bike shops are hobby businesses, unfortunately. If you can live with that, fine. Try and raise a family on it, good luck.