[B1105]

Hey there, I'm interested in starting a shop, and was curious if any other shop owners could share their experience in doing it. IE: what kind of capital is involved and financial materials are needed?

I currently have about 2 years in the industry and will be getting certified at Barnetts this summer.
Thanks

Byron

 

[Shanks]

I'm a suspension/Hydro brake specialist aswell as a regular Joe mechanic at McPhail's in Ontario. Let me tell you, In the 3 years ive been there I can tell you that shop owners are the most stressed people out there. I was thinking like you are but not any more. The industry doesnt need shops right now, It needs a market boom like the affordable mountain bike craze in the early 90's.


The only way to keep high end customers spending is to stock high end stuff. (by high end I mean, expensive frames etc. that actualy dont generate much money at all) This gives you high overhead(money tied up) and if it doesnt sell its old and you have to blow it out at a loss to move it. And if you stock low end "bread and Butter" bikes you have to be able to also move it. And handle the out of the box warranty issues. (Youd **** if I told you how many parts in a day I replace from stock and wait for a replacement)

Its sorta hard to explain since not everyone on this forum needs to know how much percentage mark up they're paying on certain things.

You also have to have a creditable service dept or "good will". Having good mechanics is useless if no bikes need fixing or you can only do basic things. Having a certifacation is good, but to be honest it doesnt teach you enough if your going to be the start up only mechanic. Bikes are like cars.......sooooooo much to know. The biggest lesson in a busy shop is "TIME IS MONEY"

If you wanna know more email me.

 

[BikeGeek]

http://nbda.com/site/index.cfm

Check out the reports available. Good stuff.

 

[ThePriceSeliger]

If you could be like www.go-ride.com and have income comming from mulipule things such as videos, wbesite, a shop, and phone orders, you will pretty well off and also stocking only the best high end parts and frame, clothing, videos, and junk... Make sure you have good mechanics and people that can build wheels!

 

[-B-]

Well just remember Barnetts is not the real world of running a shop. I have been around the industry long en ugh to say one of your biggest investments is going to be your service area. Tools and more tools and lots of parts, service will keep your customers coming back and keep the register ringing. If you want to be the full on high end shop and set your self apart it is going to cost a lot. (IE frame table, frame tools , wheel tools etc.) 50k would not be an unheard of sum for just the service end of your business. You will still need stock to sell for a small shop figure about 250k. Are you planning on employees figure there salaries in to the start up funds too. Plan on not making money in the first year so not to set your self up for disappointments. It is a big step and you will need the support of family and friends. Don't forget to use every resource at your disposal. (local chamber of commerce,SBA, etc)

 

[B1105]

Does anyone here run a "small scale shop" with like 3-4 employees? If so, could you share your experiences?

I have been working at a somewhat medium size shop, with about 8 employess including the owner himself.

 

[spookymilk]

As long as you have good service and kind employees people will keep comming back. Be sure to carry low-end bikes too though, because most normal people will be buying those, the shop here sells roughly 2 low-end bikes (200-500) bikes a day on average. Alot of people who don't bike seriously will also come to your shop for simple things such as tubes and cheap derailleur problems so prepare for that. And for every year, only bring in a few "high-end" bikes for the floor and if someones sure they want something in the catalogue then order it, don't let expensive bikes sit around and not sell, it loses you money and is a good target for bike theives too

 

[Echo]

The quickest way to get a million bucks in your pocket in the bike industry is to start with 2 million