Amazon arrived in Australia earlier this year, and their cycling industry was keen to get the American perspective on how the Internet giant has affected the health of the Independent Bike Dealer (IBD) in the U.S. When @CyclingTips reached out to Sports Garage for comment, it definitely prompted some introspection: how is the IBD maintaining its well being? We thought long and hard about how the structure of our business counteracts the “Amazon Effect” (which, for the bike industry, might as well be called the “Competitive Cyclist” or “Jensen” Effect) and why it’s ultimately a more healthy alternative than an online bike-related transaction. With so many well-articulated “effect” theories in the financial marketplace, we’d like to go so far as to say that there is, in fact, an “IBD Effect”.
Partnerships and relationships.
As cyclists we know: the highlights of the ride are never just about the bike itself. It’s the conversation with our buddy as we’re climbing the logging road. It’s the first descent on the bermy new trail that the city approved and the volunteers built. It’s the story of the high school kid that couldn’t afford to join the MTB team until she got a scholarship. The ‘ride’ is almost always rooted in relationships, between people and places and between people and people. As far as we know, Amazon hasn’t shown up to build trails, give scholarships, or volunteer time to rebuild bikes at a local nonprofit. The IBD, on the other hand, has the ability to be an integral force in forging community partnerships and relationships between cyclists and non-cyclists alike. In Colorado, Sports Garage is a business partner of the Boulder Mountain Bike Alliance, a group that fundraises for, advocates for, and gets people out on singletrack. We are the title sponsor of Singletrack Mountain Bike Adventures, a premiere youth mountain biking program. We host weekly rides and sponsor community events such as Boulder’s huge Bike To Work Day program. And, we’re not the only ones: at Scottsdale’s Bicycle Ranch, group rides still attract 100 people on a Saturday. As owner Markus Zimmer said, “people still do want a bike shop.” Translation: bike shops create community.
Focus.
We believe in specializing. We’ve honed our product line and suite of services to focus on off-road cycling only. While dirt-centric cycling is a passion for our entire staff, our decision to eliminate skinny slicks from the showroom floor goes beyond personal preference. Narrowing our focus to off-road cycling has allowed Sports Garage to accumulate a wealth of resources for our audience. We have information and expert advice that it would take a great deal of ‘filtering’ to find on the internet. And, the most important strategic move we made was to commit – in a big way – to being a full suspension mountain bike and gravel grinder demo center.
Service.
Try as it might, there are certain things the Internet can’t replicate – I mean, do you really want to suture your own knee? – and greasy hands on your bike are one of them. Healthy IBD’s have found that by expanding their service departments, they become inherently more valuable than an internet retailer. In the Phoenix area, according to a longtime Arizona bike rep, as many as 20 shops have closed their doors in the past three years. For some of those that remain, adopting a service-focused operation has meant the difference in keeping the doors open. Bicycle Ranch in Scottsdale not only doubled their in-house mechanic staff, but partners Markus Zimmer and Andrew Peshek also invested in a Sprinter van to offer delivery and pick-up of bikes. Here at SG, we have just launched our own in-house suspension studio and are expanding our staff, which will make us the most integrated MTB service department in Boulder.
Expertise.
With a focus on a certain product line or aspect of the business, the IBD earns another credential the Internet can’t claim: expertise. Remember Malcolm Gladwell’s Tipping Point? According to the book, it takes 10,000 hours to become an expert at something. That’s a lot of time – hours that can’t be logged if the caseload is too spread out. At Sports Garage, we are committed to creating a team of experts, something made possible by our shop’s commitment to off-road cycling. Our technicians are working on the same kind of high-end technology over and over and over again. Keeping suspension work in-house means continuity of care and greater service value. For the technicians, it’s hours toward expertise. And, for the consumer, it’s one more reason to choose the expert clinician over an online diagnosis.
Prove your value.
Six or seven years ago IBD’s were talking about building out their own e-commerce platforms. They seemed to be missing a critical point, however: engaging in head-to-head competition with Amazon, Competitive Cyclist, Jensen, etc, has a fairly predictable outcome. Therefore the IBD should consider its own adage: ‘if you can’t join them, beat them.’ We are acutely aware of what we do, as an IBD, that cannot be replaced by the internet. Whether by choosing to focus its expertise and inventory on one particular aspect of cycling – e-bikes or gravel bikes, for example – or whether it host group rides twice a week, without muscling up to Amazon or Backcountry, the IBD can offer value where the Internet giants simply can’t. Take Sports Garage’s demo program, for example. It boasts a fleet of over 40 premium builds, and customers are encouraged to ride as many bikes as they can when they sign up to demo. If we aren’t able to take you to the trail ourselves, we’ll sit down and pore over maps with you. If the saddle doesn’t feel right, our technicians will switch it out for a more comfortable one. We invite consumers into a completely different kind of buying experience that is value driven, not discount driven.
While it may not be easy to do, the IBD can credit the “Amazon Effect” with one thing: it’s forced “brick and mortar” bike shops to do better business and evaluate how they can contribute real value to the industry. Consequently, the IBD is having its own effect, and the results are felt where they matter most – in the local economy, the community, and on the trail.