Shop closed

[terrabike01]

I'm wondering if we're seeing the beginnings of another small retail failure like we did 10 years ago. I've seen a lot of shops closing

Maybe and with big online retailers like Amazon and Walmart it's going to be much worse. And with this horrible government forget it. There are so many little storefronts empty. Many of them are being torn down and housing built in their place.

 

[jklett]

This board is filled with so much bike talk, but nobody talks about serious topics like the declining pirate population.

Aye arrghree. Thar's a lack of good keel haulings these days.

 

[serviceguy]

This board is filled with so much bike talk, but nobody talks about serious topics like the declining pirate population.

But is it declining?

 

[Santapez]

A mix of what Santapez said with what Terrabike01 said

You misquoted me! How rude.

But is it declining?

 

[jdog]

I'm wondering if we're seeing the beginnings of another small retail failure like we did 10 years ago. I've seen a lot of shops closing


This board is filled with so much bike talk, but nobody talks about serious topics like the declining pirate population.

The ebike market is growing swiftly in NJ, but it is way off the back as compared to most major cities. The industry is screaming that ebikes will save Bike retail. That said, ebikes are still fairly slow for our shop. Most of our customers see a strong stigma against ebikes. We have had a few demos including the popular Pivot Shuttle, but still our sales are dominated with ANALOG bike sales.

As for retail failure, it's widely based on the age of the customer we are talking about. I think that the age of our typical, regular loyal customer is now over 40.

IBDs now face selling against bike companies directly these days. Every YT, Canyon, Commencal bikes, Many Treks and specialized you see are actually sold in a manner where the companies are dealing directly with the end users. Add this to the Amazon retail sham where our tax dollars are holding them afloat just for them to beat down the local businesses that pay into that tax pool.

The bike business runs on margins thinner than most would agree to. It's still super fun and it affords me the lifestyle and schedules whereas I can build trail or ride 3-4 days a week.

I'm also glad to speak directly to questions about the biz on any topic.

 

[The Kalmyk]

The bike business runs on margins thinner than most would agree to.

Margins are half way down the PnL. That’s what the consumer likes to chirp about. They aren’t thinking below that where the rent monster sleeps.

I’ve always believed that if at all possible, do business on your own property for fault tolerance.

 

[Patrick]

Margins are half way down the PnL. That’s what the consumer likes to chirp about. They aren’t thinking below that where the rent monster sleeps.

I’ve always believed that if at all possible, do business on your own property for fault tolerance.

using owned property doesn't always match incoming cash flow with expense. esp for a start-up
Default on rent, NBD. Default on mortgage, risk losing the property. different if the property is owned outright.
covering the variable costs and part of the fixed is still a win.
a diversified building would be a nice investment. Couple of residential rental units, some commercial space, some advertising space.
lots of that happening in somerville.

 

[Victor I]

using owned property doesn't always match incoming cash flow with expense. esp for a start-up
Default on rent, NBD. Default on mortgage, risk losing the property. different if the property is owned outright.
covering the variable costs and part of the fixed is still a win.
a diversified building would be a nice investment. Couple of residential rental units, some commercial space, some advertising space.
lots of that happening in somerville.

True and a business that brings in customers. I said it before, when the time comes, I’m getting an ebike. Unfortunately, there was not enough need in the area for a full on ebike shop, yet.

 

[The Kalmyk]

using owned property doesn't always match incoming cash flow with expense. esp for a start-up
Default on rent, NBD. Default on mortgage, risk losing the property. different if the property is owned outright.
covering the variable costs and part of the fixed is still a win.
a diversified building would be a nice investment. Couple of residential rental units, some commercial space, some advertising space.
lots of that happening in somerville.

For sure. When I used the words “own property” I thought it would be assumed as so. No strings attached other than state and local fees.


I’m not keen on commercial agreements between tenant and owner but I would guess they would be 5-10 years depending on the establishment? It’s all negotiable I guess. I would be ok with 2 year agreements.

 

[Patrick]

I’m not keen on commercial agreements between tenant and owner but I would guess they would be 5-10 years depending on the establishment? It’s all negotiable I guess. I would be ok with 2 year agreements.

can't get water from a rock. agreements only work if the business remains viable.
sublet clauses and all...this is why ya never personally sign the agreements!
always add that corporate title.

those long term agreements...always a trade-off. options to extend? controlled increases? yes all negotiable.