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Interesting article on bikeshops in the internet world

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Interesting article on bikeshops in the internet world

Old 03-06-18, 06:02 PM
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Interesting article on bikeshops in the internet world

some interesting takes on what it takes for a shop to survive and thrive....

https://finance.yahoo.com/news/inter...155651665.html
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Old 03-06-18, 06:47 PM
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Originally Posted by squirtdad View Post
some interesting takes on what it takes for a shop to survive and thrive....

https://finance.yahoo.com/news/inter...155651665.html
Just a heads up, my anti virus program closed the link almost immediately and reported a virus attack.
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Old 03-06-18, 06:52 PM
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Originally Posted by Dan Burkhart View Post
Just a heads up, my anti virus program closed the link almost immediately and reported a virus attack.
interesting, it got through all the hard filters at work......if any one else sees this I will ask the mods to remove the post

thanks Dan for the heads up
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Old 03-06-18, 08:57 PM
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No issues here. Malwarebytes is OK with it and so is MSE.
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Old 03-06-18, 09:07 PM
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I can read it fine with no warnings from defenders on my computer.
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Old 03-06-18, 09:53 PM
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Originally Posted by from article
If a consumer wants to buy a bike part or accessory, itís both more expensive and less convenient to get it at a shop, Joe Nocella, a lapsed architect and owner-operator of 718 Cyclery in New York, told Yahoo Finance. Prices are so low online because the bike industry has a vibrant gray market, with many accessories trading at prices far under the MSRP essentially allowing consumers to buy products at close to wholesale prices.

Shops, understanding this, often choose to carry less inventory, which means that customers will oftentimes not find items that they need in the store so they have to place an order. That order may take four days to arrive at the shop ó not the consumerís home ó so the customer just ends up shopping online. Itís a vicious cycle thatís ripped a leg off the bike shopís tripod business model, which is struggling to stay upright.
It is a complex issue. There is the "Grey Market" (stuff coming from overseas). But, for several reasons little of that grey market is coming direct from Japan.

So... I can pay for parts to be manufactured in Japan (and/or China), shipped to the UK, then repackaged and shipped to the USA.

However a bike shop can't afford to buy the same products, have them shipped direct from the factory to the shop, and then redistribute.

And, part of that is a breakdown of the pricing structure of manufacture to retail. And, of course, a retail model of multiple layers of 50% to 100% markups.

I have to think that one of the things that has happened in the last 30 years or so is a pretty huge expansion of products and inventory. Not only does each major manufacture offer 5 to 10 different models of parts, but there is so much incompatibility from one model to another (plus demands from customers to get matching parts), that a well stocked shop should have 10,000 different parts in stock, some very expensive parts, and some essentially "dead inventory" that hopefully someone will eventually buy... but also necessary to keep in stock to have a complete inventory.

Auto parts stores have more or less captured this, offering the common parts for almost any car made in the last 30 years or so.

But, bike shops just haven't done the same. And manufactures even discontinue the products much quicker in the bike world, so finding something like an Ultegra 9-speed shifter faceplate is almost impossible.

And, of course, some small companies have learned how to "game the system" by selling their wares direct. Heck, I don't know if spending $5 each for cables is any better than spending $1 each

Oh, and how much should boxes cost?
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Old 03-06-18, 09:55 PM
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It could have been a transient ad or even a temporary infection on the page.
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Old 03-07-18, 05:48 AM
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Originally Posted by cny-bikeman View Post
It could have been a transient ad or even a temporary infection on the page.
Possibly. All I know is I got the threat warning almost immediately and my program closed the page.
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Old 03-07-18, 06:32 AM
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Sad part of the story is how service isn't going to save the LBS either. In my town a destination LBS doesn't seem viable. I was thinking about seeing if I could wrench this summer but I got a job at the local community college instead. $10.50/hr and standing all day means I'm too tired to ride.

As for having troubles viewing the web page...It's Yahoo, I doubt the problem is on their end. Might want to see what's happening with your anti-virus solution.
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Old 03-08-18, 06:29 PM
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Originally Posted by CliffordK View Post
It is a complex issue....
I have to think that one of the things that has happened in the last 30 years or so is a pretty huge expansion of products and inventory. Not only does each major manufacture offer 5 to 10 different models of parts, but there is so much incompatibility from one model to another...
I'm still pretty new to biking, but this is something that seemed strange to me from the start. So many different levels of product, when surely they can make do with fewer, no? I can maybe understand Shimano, because they are the most well known and have their stuff on a huge variety of bikes, but why would Campagnolo and the like have anything more than 3 levels/price points?

Legit question, because I don't know too much about the economics of the bike industry. Just seems strange.
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Old 03-08-18, 06:51 PM
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Originally Posted by robertorolfo View Post
I'm still pretty new to biking, but this is something that seemed strange to me from the start. So many different levels of product, when surely they can make do with fewer, no? I can maybe understand Shimano, because they are the most well known and have their stuff on a huge variety of bikes, but why would Campagnolo and the like have anything more than 3 levels/price points?

Legit question, because I don't know too much about the economics of the bike industry. Just seems strange.
Campagnolo used to make nearly all the components for the Italian market, as well as a chunk of the European market, including components such as the valentino groupset that were less frequently sold here in the USA.

Even today, they have a couple of levels of mechanical groupsets. A couple levels of EPS groupsets. A couple of levels of hydraulic/disc groupsets. MTB specific components? It all adds up.

One thing the bike industry has done is to use a type of trickle-down technology, as well as re-using names for components that only vaguely resemble the originals.

So, the Campagnolo "Record" group has been around since the 1950's or 1960's. In fact, the "New Record" groups are considered quite vintage today.

In a sense, it is both good and bad to move on and re-name the old products. So, one can no longer buy newly manufactured Campagnolo Record 7s, 8s, 9s, or 10s products. But, many of those products are still being manufactured (with some improvments?) using other product names, and at relatively less cost than the original Campagnolo Record products. Also, likely being manufactured without as much titanium or stainless, and thus cheaper. But, perhaps cheaper is actually better for providing continuing support for old bikes.

Anyway, it all ads up to very few local shops being able to satisfy all customers.
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