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<~•~>Muddy Monday<~•~>

Sandwich

Sandwich

Pig my fish!
Staff member
May 23, 2002
22,211
7,515
borcester rhymes
Muddy said:
Best wishes - southern NE needs shops which can retain focus. Was a rough couple years here post-coffeboi19
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Yeah that's kind of my motivation or thought process. There are plenty of TREK SHOPS and SPEC SHOPS and shitty chains. I find myself wishing I had access to a JRA cycles that wasn't an hour away- someplace that carried solid independent brands. I'm also wondering if the coming recession will give an opportunity to buy such a business at a serious discount.
 
gonefirefightin

gonefirefightin

free wieners
Feb 5, 2007
12,670
6,950
Surrounded by Police in a hail of gunfire
Sandwich said:
Yeah that's kind of my motivation or thought process. There are plenty of TREK SHOPS and SPEC SHOPS and shitty chains. I find myself wishing I had access to a JRA cycles that wasn't an hour away- someplace that carried solid independent brands. I'm also wondering if the coming recession will give an opportunity to buy such a business at a serious discount.
Click to expand...
You dont need to lose a million to start a profitable shop, you just need to ease into it and find the market niche'

I would look really hard at their books and try and see if it is feasible with any other competition around. Secondly, I would start out as much of a QBP pimp and see where it goes before making huge capital investments into stocking dealer orders that will sit and may never give a return since your first year will be all social media growth and adverts money. I would also negotiate a locked price for the lease, at least 5 years, and what coincides with the shop's current income numbers that way you have proof to show them. Buy a spoke machine and build very basic wheels for cheap so you dont have to stock so many wheel sets. That was probably my biggest draw was hand built wheels, peeps seem to think its bougie or something no matter how cheap they were. If you do decide to move forward with the shop you have to have some common lounge space and beer taps for the clubs and groups to meet/hang/wait. An absolute must for any shop. If you can, build your counter with barstools around your bike stands/mechanical area so peeps can watch you while you work and chat, that way you can be productive and still chew the rag with the annoying folk. These are just a few of my thoughts from past experiences
 
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Sandwich

Sandwich

Pig my fish!
Staff member
May 23, 2002
22,211
7,515
borcester rhymes
gonefirefightin said:
You dont need to lose a million to start a profitable shop, you just need to ease into it and find the market niche'

I would look really hard at their books and try and see if it is feasible with any other competition around. Secondly, I would start out as much of a QBP pimp and see where it goes before making huge capital investments into stocking dealer orders that will sit and may never give a return since your first year will be all social media growth and adverts money. I would also negotiate a locked price for the lease, at least 5 years, and what coincides with the shop's current income numbers that way you have proof to show them. Buy a spoke machine and build very basic wheels for cheap so you dont have to stock so many wheel sets. That was probably my biggest draw was hand built wheels, peeps seem to think its bougie or something no matter how cheap they were. If you do decide to move forward with the shop you have to have some common lounge space and beer taps for the clubs and groups to meet/hang/wait. An absolute must for any shop. If you can, build your counter with barstools around your bike stands/mechanical area so peeps can watch you while you work and chat, that way you can be productive and still chew the rag with the annoying folk. These are just a few of my thoughts from past experiences
Click to expand...
Thanks, I appreciate the info. Certainly a lot more research to be done before ever making a move, and I honestly don't even know if dude is selling, but he's got failing health combined with post-COVID refractory period, and I imagine he would want to get out of the game. The two biggest issues facing the shop is a shitload of dead stock (the building is filled to the brim with like brand new panniers from 1998 and Fujis from 1987) and zero online presence nor "cyclist" presence at all. Like, I've never seen them at a race, I don't know anybody who's purchased an enthusiast bike from them, they don't host group rides, any time I go there, I can't wait to leave...it's an awful place to be and there's nothing to look at. Clearing dead stock at 50% off would clear floor space and free up some cash, then creating a place people want to be by serving coffee or beer or literally anything like that would be first steps.
 
jonKranked

jonKranked

Detective Dookie
Nov 10, 2005
89,780
27,934
media blackout
Sandwich said:
the building is filled to the brim with like brand new panniers from 1998 and Fujis from 1987
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might be some hidden gems in there, sounds like lots of it is old enough to be considered "vintage"

but let's be honest, you'll just refill any space cleared out with neon weirdness.
 
gonefirefightin

gonefirefightin

free wieners
Feb 5, 2007
12,670
6,950
Surrounded by Police in a hail of gunfire
Sandwich said:
Thanks, I appreciate the info. Certainly a lot more research to be done before ever making a move, and I honestly don't even know if dude is selling, but he's got failing health combined with post-COVID refractory period, and I imagine he would want to get out of the game. The two biggest issues facing the shop is a shitload of dead stock (the building is filled to the brim with like brand new panniers from 1998 and Fujis from 1987) and zero online presence nor "cyclist" presence at all. Like, I've never seen them at a race, I don't know anybody who's purchased an enthusiast bike from them, they don't host group rides, any time I go there, I can't wait to leave...it's an awful place to be and there's nothing to look at. Clearing dead stock at 50% off would clear floor space and free up some cash, then creating a place people want to be by serving coffee or beer or literally anything like that would be first steps.
Click to expand...
Those are the places I bought and flipped, and are usually good deals but only if the market can benefit from a good mechanical shop. Doing other things such as sponsoring groms for a race team, high school cycle teams and getting yourself established with any local races that occur within 40 miles. The beer and coffee are a must. It's just standard practice for a good shop these days. the beer license isn't that difficult either. finding employees who can serve is another story. A van/box truck is a must for event support and delivery/pickups of repair bikes/rentals.

But my main focus would be the books (if there are any) otherwise you can look at the taxes and average it out per month as a starting point knowing it's the bare bones income for the zip code.

I once looked into a 20 year old shop that was for sale by a severely burnt out owner, he didn't have hardly any books and his accountant was barely that, and the overall cost was 120k for the whole business, it was a very good deal considering the stock on the floor. But it never made a profitable penny from the start, there were 2 other shops in the same zip code and they were in fierce competition with each other so it did no good trying to be the third wheel in the market. On the other hand I bought a shop for 275k (including the building) did a remodel to whole place, added all the features, got the race culture started, got the high school involved, ran a race series and carried 4 premiere frame lines and sold the whole shebang for 1.2m 2 years later with roughly 100k invested out of pocket.

If you can't see it being flipped in 2-5 years, I would walk away.
 
Muddy

Muddy

ancient crusty bog dude
Jul 7, 2013
2,297
1,274
The Other Farmington CT
Sandwich said:
Yeah that's kind of my motivation or thought process. There are plenty of TREK SHOPS and SPEC SHOPS and shitty chains. I find myself wishing I had access to a JRA cycles that wasn't an hour away- someplace that carried solid independent brands. I'm also wondering if the coming recession will give an opportunity to buy such a business at a serious discount.
Click to expand...
If you're a rider and can maintain, the customers will come. Don't need an annual Cannonball Run, just don't have oaffery inside the building. It's a steep climb, looks as though SBC wants to be a reliable Distributor, like your BTI, JBI etc.
 
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