Owning a Small Business and the Bike Industry
I'd like to take a moment and talk to you as honestly as I can about owning a small business and being in the retail sales.
There are a lot of myths out there, and I'd like to set the record straight.
First and foremost, my bicycle shop (and dental office) are incredibly important to me. I'll leave it at that.
The bike shop was created out of nothing. The dental office was created out of loans from Bank of America ($229,000.00 of
which need to be paid back). For the first 5 years of business, every penny of profit was re-invested into the shop to allow it to
grow and prosper. I find this amazing. The neat thing about the shop is that it is debt free. We own 100% of the inventory, and
are proud of our reputation. I really do love selling bicycles and doing service. Trust me, I'd make more money just cranking out
dentistry....but I choose to work at our shop because I love selling and servicing the brands we carry. Its that simple.
Second of all, we are in the business to make money. You may be surprised to find out that the dental office and the bike shop
make about the same amount of gross income. The Net of the dental office is higher. Bikes only make about 30% profit if sold
at top margin, so accuracy and speed is important when we do business.
There are shops out there, both in town, and far away that don't have to run on a profit. Perhaps they have wealthy backers who
"want to own a shop". Thats cool...and I don't care. We are not that kind of shop. We are in the trenches, making our small
profit every time we send a smiling person out the door on their new bike.
There are a lot of really bad employees out there. And I don't just mean at bike shops - but it seems ESPECIALLY at bike
shops. Are you familiar with the industry saying "I really can't work in any other industry" that I've heard many people
say....people who usually suck...and its an excuse to be a bad employee. Let me say this...I do also work in another
industry....and I choose to rock the house in the bike industry - to be better informed, better trained and better able to sell and fix
your bike than the person down the street who feels underappreciated and spends half the day trying to figure out why QBP
won't return his 30th phone call regarding his employee purchase SRAM fork. Those people are allowed to exist, and its not
any of my business how another shop runs...I just don't bring any of those people into my world.
The same can be said for some of the reps in our industry. Reps at my shop have to schedule an appointment to see the
owners. None of this "I was in town and I wanted to see your shop"....Professionalism! If you want me to spend $30,000 with
your company, make an appointment. And punctuality is the courtesy of kings. I've always have a lot of stuff on my plate....I'll
pretend you do too. For my reps and insiders that I've worked with for years....I appreciate your effort tremendously. Thank you
for helping me...and my customers out.
Lets talk about one other thing regarding shop employees and our shop. If you work at a shop, I will be happy to build your bike
or wheels, service your personal fork, or purchase you an Ibis, Turner, or any other boutique brand that my shop carries....but
you will pay a fair price. My labor rate for fixed procedures and by the minute applies to EVERYBODY. I don't care if you teach
skiing at Deer Valley, know John Tomac's middle name or had HB buy you a beer at Interbike. My shop is in the business to
make money, and the labor is the same for every person on this earth.
If you'd like a bike, you will pay SHOP COST + 10% + TAX. Boutique companies generally do not have "employee purchase
programs" so if you would rather ride a Mojo HD than a Santa Cruz Carbon Nomad with no resale value....harden up. The shop
has to pay for the lights to be on, the HVAC, the insurance and everything else that it takes to be in business, so there will be
some kind of markup for our existence. And by the way, let me say right now that most of the people in the industry who buy
bikes/wheels/forks service from me happily accept this cost. Thank you for your support...it is truly a pleasure to work with all of
you.
Dharma Wheels does not do any trades or barters. We sell bikes, parts and service for money....and that is all...unless you
have gold, which I"ll pay you spot.
And as far as retail pricing goes, we go strictly by the book. Our brands speak for themselves, and boutique brands are the
same price across the board.....if you want a discounted bike, buy a Cannondale. And then have fun riding a Cannondale when
you want to be riding a Turner.
An issue that comes up sometimes is what defines a Warranty Claim. Manufactures sell and support their products through
their dealers and the dealers are the first line of support for a product. If you buy an item from a retailer, and it fails in any way
due to its manufacture or normal use, the manufacturer will always determine if they will warranty that product. And, 9 times out
of 10, you will have to pay the shipping on it. Its actually a good deal, and if you buy from us, I get warranties done rather quickly
compared to other shops. If you did not buy your product from us and you need a warranty, we can still facilitate the process,
but you will pay for our time. Warranties are for the original owner of the item, time dependent usually, are invalid for some "bro
form" deals, invalid for some close out items....and of course are invalid if rider error is to blame. If you slash your brand new
tire on your first ride....its not a warranty....Its your error...ask me, I've done that.
Lastly, I"d like to talk about brick and mortar shops VS. online shops. There is a great wealth of knowledge out there on the
internet, and an increasing complexity in the bicycle industry. This results in an INCREDIBLE amount of wrong information out
there. That is where I believe a traditional shop, staffed by expert people is quite valuable. I say this every week "For every
complex problem there is an answer that is clear, simple....and wrong." Online shops offer cheaper prices, free shipping and
return policies that would put me out of business. Online stores cannot bleed your brakes though. They can't install your fork.
At our shop we simply WILL NOT install anything that we do not sell you. I just don't trust you or the shop you bought a part from
so please don't bring me parts to "help out" the build...especially if you need your bike built the day before your big Moab trip.
Local shops bail you out, save your bike vacation and help you get the most out of your cycling experience. Support them....and
if your shop sucks...buy your small ticket items there and find a shop that you can trust for the larger items.
Thank you all for listening to me, I really do want you to Ride N' Smile - Dr. Jon