fender1

I recently met a bike shop owner who maybe looking to sell his business. He has been in business just shy of 30 years and is looking to retire. Has no family interetsed in the business. All of the money/financial issues not withstanding, anyone have any pratical insights to running a shop? Pros/Cons?

East Hill

You might want to PM moderator Rev. Chuck. I know he works in a bike shop, and he could possibly give you some advice. miamijim, as well. Can't think of any others off hand, although there must be some--there are quite a few C & V members who've worked in shops.

East Hill

USAZorro

evwxxx knows his way around shops, as does sykerocker, and I believe luker.

Cyclist0383

CRUM owns a shop.

One thing that is a major help in any business is owning the building. Rent has killed many a small business.

carpediemracing 

I had to pipe up after the rent comment.

Someone told me a while ago that if you want to be in the real estate business, do real estate. If you want to be in the bike business, do bikes. You can be in both but keep in mind that you're doing both, not just one.

Not making money kills bike shops, not one particular thing (rent or whatever). Depending on where you're located, rent and labor are probably your highest recurring costs. Product is by far your highest cost item.

I worked in, managed, owned, and closed a shop, the process taking 15 years and ending 10 years ago.

I'd be glad to discuss things offline but I have a standard line I give everyone who wants to buy a shop and if they get past it, more power to them. None of them have gotten past it (of the perhaps 5 or 6 serious buyers).

no longer a shop owner,
cdr

tolfan

Never but if it's your dream than take the chance and make it come true.

repechage

I think buying/starting a bike shop is risky unless the buyer has bike shop experience, knowing the pitfalls will go a long way to making it a success.

The dirty little secret, for the vast majority of shops, the casual rider is the moneymaker, not the enthusiast, those in the know consume too much time for the dollar earned. "Teaching" cycling can lead to profits, but that takes time as well, no 40 hour work weeks, more like 60.

Know the market, have extra cash, a well run shop will be doing very well to turn over the inventory value 5 times a year, do the math backwards to figure out the basic profits, there is a vary variable mix of profit margins, bikes are highest in cost and most time to sell, and require labor before, during, and post sale, (that free tune-up... the lure to get the customer back in to spend more on clothing, or accessories) The mark-up on bicycles is notoriously low by typical retail standards.

It has to be in your blood. And you will ride less.

I will not even venture into the problem of not having the buying power of a chain shop.

So, support your local bike shop, they need you.

Dr.Deltron

I've owned 2 shops. One a regular retail establishment, the other a recumbent rental shop.
And a 3rd would be my "paint shop", but that's usually a clandestined affair with no "storefront".
I've managed 2 others and work in a half dozen more.
Consumed 1/2 my life (60 hr weeks are standard) and a couple hundred thou!

So take the money you have, that you could spend on a bike shop,
and buy yourself the coolest bike you can think of!
Then, regularly take it to your favorite LBS and drop half a Note, just to have them dust it off for you!

You will save yourself SOOO much money & headache, it's not funny!
And that LBS might be around just a little bit longer.

Or heck, ...

pack up the fam-i-ly
and move to Monterey.
Penisula, that is.
Bike trails,
Movie stars!

Aquarian Bicycles in downtown Monterey is for sale.
Just a cool half Mil, for one of the oldest & best shops in town.

I bought my first shop from him, BTW.

Bill Kapaun

I haven't owned a shop, but it appears you are in the Philly Area.
What do you do during the winter?

Straightblock

Two-step plan to making a small fortune in the bike business:

1. Start with a large fortune
2. Open a bike shop

But seriously, it helps to have a business background, not just a love of cycling.

Dr.Deltron

or more like..

which leads me to ....



because you said it in so few words!

(we're all lookin' out for ya Brian!)

John E

I have never owned a shop, but I worked for a college friend in a 2-man used bike shop in Santa Monica, as the "house bike freak and mechanic." A nearby competitor made overtures to merge, then blew my friend off at the last minute, after he had already cancelled his lease and liquidated much of his inventory. Having seen other shops come and go, I believe it is a VERY tough business.

repechage

Sounds like an encounter with Alan Goldsmith. The Gordon Gecko of bikes.

mswantak

My LBS owner owns the building he's in. I'm pretty sure it's the rent from the four upstairs apartments that keeps the shop afloat. I'm always down there having crank cotters pressed out, and he usually only charges me $2.00 -- when he remembers to charge me at all. One day he joked that when he finally retires he should sell me the tool. I said, "Sell it, hell -- just give it to me; you won't be needing it anymore!"

Bless his heart -- and his tenants.