CIN issue 002 2017

ISSUE 002 O2 // 2017

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from the editor THERE’S BRANDING, AND THEN THERE’S VIRAL BRANDING RECENTLY I journeyed down memory lane, pondering what themes link bike businesses which I frequently return to. The conclusion centred on experience, in particular how the business engaged me beyond the traditional sales pitch. One business – the maze-like Euro-chain Tiger – isn’t even in cycling, yet was flagged for its ability to channel customers past every product in store. It’s horrible, but it’s effective for the type of quirky seasonal sale item you’ll find in store. Despite otherwise avoiding the store like the plague I’ve shopped there every Christmas for years. Again looking outside of the bike industry at effective businesses and how they engage customers, in this column I’ll mull over why my partner and I recently took a metro ride across Barcelona for an ice cream.

You may have encountered Eyescream and Friends online. Indeed I’ve spotted the store on LinkedIn, as the focus of viral Facebook features and heavily tagged against Barcelona on Instagram, all purely by chance. But is it by chance, or has the business created viral branding?

Long story short, there’s nothing special about Eyescream and Friends. It’s tasty, sure. It’s reasonable value for a seafront ice cream store, but it’s no different to any other. Except for the marketing and the delivery.

Two iced eyes are placed onto the ice cream, which is then set in a presentation box with two holes cut in for the customer to select their own toppings. The result is hugely photogenic and positively screams for social media sharing. The store’s hashtags actively drive sharing.

It occurred to me that a store selling just ice cream must have to do a ton of business to afford a beachfront overhead. But here’s the key – you can bet they don’t spend a single Euro on marketing. During my December visit there were queues out the door. In winter, for ice cream… (Margins in the ice cream trade may be higher than for bikes).

The average person has five social media accounts, for which they spend 1 hour 40 minutes every day browsing. That’s 28% of all time on the internet. Among the youth those numbers are higher.

I’m not much of a shopper. There are however themes linking my impulse purchases.

My last spend is a ticketed night out at a London bar. Given the price of train fare into London, that’s an unusual transaction for me. Spotted again on social media, Ballie Ballerson is a dual floor Dalston venue serving cocktails and music late into the night.

The USP? You’re in a giant ball pit. All sounds a bit ‘hipster’, doesn’t it? Indeed, the press has been all over it, touting it as one of London’s best bars. Why am I writing about it too? It’s another example of a cheap to implement, viral USP. There’s good reason why it’s been open only a few months yet commands £15 a ticket entry. I’m resigned to the fact it’s going to be an expensive night and you can bet I’ll spend time I’ve paid for doing the bar’s marketing for them. Actually, I already have…

Having spent this column painting myself as a simple creature, I have two questions for you to ponder; what differentiates your store’s branding and accounting for often limited marketing budgets, and how will I find you in the mobile age?

Mark Sutton @CyclingIndustry @MarkSuttonBike mark@cyclingindustry.news www.cyclingindustry.news

ISSUE 002 O2 // 2017

Publisher Jerry Ramsdale jerry@cyclingindustry.news Editor Mark Sutton mark@cyclingindustry.news Sales Executive Logan van der Poel-Treacy logan@cyclingindustry.news Head of Production Luke Wikner luke@cyclingindustry.news Published by Stag Publications Ltd 18 Alban Park, Hatfield Road St.Albans AL4 0JJ t +44 (0)1727 739160 e info@cyclingindustry.news w cyclingindustry.news ©2017 Stag Publications. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means without the prior permission of the publisher. The Publisher cannot be held responsible or in any way liable for errors or omissions during input or printing of any material supplied or contained herein. The Publisher also cannot be held liable for any claims made by advertisers or in contributions from individuals or companies submitted for inclusion within this publication. The opinions expressed are not necessarily those of the Editor or of Stag Publications Ltd.

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the professionals Is there money in direct to consumer sales and the cycle club demographic?

Previously we asked what the future of bike retail looked like, a question so broad that it’s difficult to know where to start. Breaking it down a little for Q2’s panel of four bike retailers, this month we discuss routes to market, fitting online purchased gear and the value of differing customer demographics...

Mick Murphy Mickey Cranks

1: Do you foresee a means by which the bike dealer can tap into the direct to consumer trade and what are the benefits?

Neil Holman, George Halls Cycle Centre I did assess this when Raleigh launched a consumer facing element, though concluded it was a positive. A lot of my customers are largely influenced by their colleagues or friends, most of whom will have dealt with us in the past. Growth opportunities are shrinking for the bike shop, so I think anything that markets a brand and furthermore its stockists is not to be feared. A brand’s biggest asset is its dealer network.

Bike shops, in many cases, can also be oversubscribed to their suppliers, so a click and collect model might be preferred. Unfortunately too many dealers have the gift of the gab with their accounts when it comes to taking stock. Try that with five or six accounts at once and you can very quickly end up in a bad way. Frustratingly, suppliers will often up buy in deal values and encourage you to

Neil Holman George Halls Cycle Centre

Alan Shaw Garage Bikes

commit to the same levels. That tempts you to commit beyond your means, but there’s no offer of sale or return, so why would you?

To this day a phrase from my business training rings in my head. Buy ‘little and often’ – you should not be the stockholder for the importer.

Mick Murphy, Mickey Cranks With the rapid rise of mobile, social and cloud technologies, customer expectations are higher than ever. Increasingly customers demand a more seamless experience and direct to customer will form a segment of future sales channel.

When manufacturers sell through retail distributors and IBDs, they cannot control how the product is sold.

They are at the mercy of the IBDs and distributors to ensure that the customer leaves the store happy and satisfied with their purchase. By selling directly to consumers, companies can control how the customer journey should take place. However, IBDs can play an important part in this modern retail channel by embracing the culture of the manufacturer, and adapting it to meet the needs of the

Frank Beechinoor Cadence Cycling

customers that we have a better knowledge and understanding of, thus delivering a greater customer experience overall. Without the IBDs the manufacturer may win a sale, but they lose the opportunity to build a relationship, which could win a lifelong customer. But, and there is always a but, the manufacturers need to ensure that an equal business relationship remains between all parties. If margin is reduced then IBDs will disappear or switch to companies who do not offer DTC. Mickey Cranks will embrace DTC providing that it remains a profitable channel for us also.

Alan Shaw, Garage Bikes In my opinion it’s not to be feared.

There will always be a customer for the bricks and mortar retailer. When bikes arrive in boxes it is very rarely just the case of twist the handlebar, tighten and ride away. These bikes are assembled to the clock in the factory in order for the factory to turn a profit, so you find all manner of errors in assembly that require a professional eye.

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the professionals Is there money in direct to consumer sales and the cycle club demographic?

In our first two years of trading £25 was considered too much for a safety check, but that culture’s changing with so much boxed bike business landing. We’ve actually done loads of this business in the workshop lately, so I’d never turn it away.

Of course those that baulk at the price can go away and try assembly themselves. That normally results in the customer coming back with their tail between their legs and more problems than they started with.

With all that said, I think that this industry generally under prices its workshop trade. Our mechanics are trained to a high standard and they should be paid to the same standard.

2: Do you service bike in a box or components bought elsewhere or turn customers away on principle?

Frank Beechinor, Cadence Cycling Sure, we regularly receive Chain Reaction bought stock and actually tell customers to send it straight here ready to be fitted. If it’s a groupset, for example, it’ll cost them £50.

I’ve no problem with bike in a box custom as there’s a good chunk of margin to be had in only handling the workshop side.

Mick Murphy, Mickey Cranks In an age where to survive IBDs need to embrace the aspects of the business that cannot be bought online you would be crazy not to accept and meet a customer’s needs. The bad

will it would create could lose you that customer for life. Be nice and love your customers no matter how challenging the circumstances are.

Alan Shaw, Garage Bikes We actually do a good chunk of business with the Canyon buying customer. Those tickets aren’t priced at a premium, but we will ensure that all service work is priced accordingly.

Often the brand will pick up the tab if there’s a significant issue, so we will charge well for our expertise.

3: The commission via online sale model is fast emerging. Is this an inevitable progression, or does it signal the phasing out of the bike shop in a sale?

Mick Murphy, Mickey Cranks Providing the margin is maintained for the IBDs then the business relationship will not break down.

However, if it is not maintained then IBDs would have to migrate to brands that do not offer consumer direct as we are already working with tight margins. That is only if the consumer embraces direct sales and the jury is out on that one as far as bikes are concerned. I’m sure direct will form a portion of future sales channels, but not a large one.

Alan Shaw, Garage Bikes If it works for the bike shop and takes nothing away in terms of value then I’m all for it.

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I think my concern is that the customer will place a bike order and get it totally wrong. It’ll then ship to the dealer for a tune up and we’ll discover incompatibilities that will make the sale difficult. I wouldn’t want to then be stuck with a bike that we can’t shift.

4: How valuable do you foresee click and collect business becoming?

Frank Beechinor, Cadence Cycling I can see click and collect growing all the time and that’s part of the beauty of being part of Giant’s network – if stocks somewhere in the network we can more often than not supply the customer without any cash tied up in the stock.

Neil Holman, George Halls Cycle Centre I would love a click and collect element to my own website. I will never mail order bikes to customers as I’ve dealt with the frustrations of damaged in transit and the increased likelihood of scam artists targeting you.

People’s time is precious and we’ve tailored our hours to suit such trade.

We’re open late on Mondays to enable those who have put in for a weekend service to pick up on the way home.

We’re also open from 8am to catch those commuting to work.

Mick Murphy, Mickey Cranks For the customer, click and collect

combines online choice with offline convenience.

They can find what they want and pick it up locally with no delivery charges and it appeals to the customer who has a preference for the physical shopping experience. We recognised 18 months ago that click and collect offers an opportunity for online sales to drive in-store traffic, potentially resulting in further purchases and implemented it on our website. However, the uptake for us has been tiny. Being critical of ourselves we probably haven’t taken enough time to list all of the 4,000 products we offer, as we just don’t have enough available time.

5: As far as profits go, how valuable is the club cyclist versus the less savvy customer, for example? Is a particular demographic profitable or easier to work with?

Neil Holman, George Halls Cycle Centre There’s certainly a trend here! The new joiner to the club cyclist begins as a loyal customer and perhaps you’ll be lucky enough to sell them their first bike. The relationship stays sweet for a short while as you teach, train and advise. Maybe you’ll give them a discount for loyalty and hope they’ll spread the good word, but it’s rarely happened in my experience.

As time passes by you tend to see less and less of the club cyclist as they embed and learn from their peers where the deals are to be found online.

Thankfully, the modern family has a kid that can debug a computer, but won’t be able to repair anything mechanical. Therefore I think we’ll always have customers that appreciate the skills of the local bike shop.

Frank Beechinor, Cadence Cycling The newbie is by far the most valuable customer for us. Though a minority, we have had savvy cyclists come through the store who have browsed the best deals on their iPads while we’ve been undertaking their bike fit.

It has knock on effects at times too when the appetite for cycling is so strong that they start advising others, and often poorly. I love enthusiasm, but I’ve seen people get drunk on it.

I’d say the club cyclist is generally a one-way ticket to all turnover and no revenue, so I’d take 50 newbies over 200 club riders any day.

Alan Shaw, Garage Bikes The core of our valuable customers are commuters, but not by lifestyle choice. It may be that public transport doesn’t work for them or they can’t afford other means. It’s these folk, often in lower paid jobs, who seem most happy to settle their bills and even better, actually take an interest in the wellbeing of your business.

The expectations of the club cyclists are often scarily high, so that’s not a demographic we are targeting. In our experience, there will have been group ride or pub chat that will have driven a mindset

that puts the bike shop in a difficult position. I’ve had customers that are leaning on me to be grateful for their business, whether it’s of any value or not.

We used to offer discounts, but that’s long stopped now. I had given out deals in the hope that the word of mouth would bring in more valuable custom, but rarely have I seen any value. You only have to quickly trawl a club Facebook to find threads on where to buy cheapest.

Mick Murphy, Mickey Cranks Mickey Cranks has a massive cycling club of over 1,000 members, the majority of which started out as the inexperienced consumers, who largely appreciate the value you add in navigating the complexities of their first bike purchase. In my opinion, a club cyclist can be an asset and a challenge at the same time. Club cyclists share news of online deals and offers with each other in lightning quick time. We are not naïve enough to think that there are any of our club cyclists that are solely Mickey Cranks customers, they are all savvy consumers, some of which value advice, knowledge and the physical shopping experience. These are the club cyclists that we appeal to. I am a firm believer that you have to give back to the local community and by running our cycling club I do that. The time and effort that I invest in the cycling club I do because I enjoy it and want to give back to the sport – I don’t believe it necessarily drives footfall or sales.

Want to take part in our next Professionals Panel...?

Contact

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retailtherapy

ideas for better retail

Experiential retail – bike retail’s saviour?

WE’RE all acutely aware that customers buy online and that practice is, sadly, unlikely to stop anytime soon. All is not lost, however. Monetising that mindset is possible, with you the bike shop taking on the role of personal shopper, consultant and fitter.

You’ve undoubtedly heard the term experiential retail progressively more in recent times. If you’re lucky your business may have avoided a general trend of flattening or declining sales of hard goods on the shop. Sadly, the majority of retailers CyclingIndustry.News has spoken to since the latter half of 2016 are struggling to shift stock with increasing regularity. There’s a multitude of reasons for what is perceived to be a general slowdown in sales, including changing buying habits and altering routes to market, something which we explore elsewhere in this

Membership A bike shop, pun intended, is a hub for its customers.

But what does that actually mean and how do you ensure that customers aren’t hanging around losing you both time and money? Importantly, is a relationship chargeable and by what margin?

Membership is something that is executed by both Rapha and Cadence on the following pages. Having created an environment in which customers actively want to spend time, the firms have both devised high value membership packages that keep the customer – whoever they may be – engaged long after they’ve bought their inner tube and broken your shop pump.

issue. One thing is certain. Bike shops are more than ever having to make wiser purchasing decisions on stock.

But might the bicycle retailer of the future have the same headaches? It was put to us in an interview carried on the following pages that “you can either remain fixated on the rear view mirror, or look at the road ahead and steer.” One will result in a crash, was the point made.

Delivered in tandem with our market research, we thought it worth spending some considerable time speaking to our audience, understanding the challenges faced, but more importantly hearing how businesses view the road ahead. There are themes that run throughout the next four features, none of which you’d necessarily associate with traditional retail.

Three stood out for us:

Interaction with the product This theme has again come onto our radar with increasing regularity.

London’s Spin cycling show will soon debut a test track in which visitors can ride through darkened areas, illuminated in part by faux car headlights.

How else is your customer going to see the benefit of high-vis before you’ve sold it to them?

We’re not suggesting that you ask customers to go and stand in your shop’s showers wearing the latest waterproof jacket, if you have them, that is. Of course, if you can plumb some in, you should. We’ll touch on that more within our piece on Cadence.

Rapha’s Vault again brings us back to product interaction. Mottram’s Spitalfields venue gives visitors the opportunity to get in the saddle to demo clothing, with the wind blowing in the customer’s face. You provide demo bikes, so why wouldn’t a customer want to demo their £200 jacket?

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What are we really selling?

This point addresses the end game.

Mottram again eloquently outlined that his firm want to be associated with the peak of that climb you’ve dreamed about since the bug bit. With travel now making up £1 million in turnover for Rapha and growing, the product sale has evolved to become an experience sale.

The same applies to both Pearson and Cadence. Both have off shoots from product sales that cement their shop’s brand in the mind of the consumer. Be it “stretching classes for cyclists” (Read yoga for men) or counting medical professionals among your staff in order to deliver professional training plans – the end game is the sale item here. When your customer is out on their bike, what will they be talking to their club about?

Perhaps it will be internet discounts. Or perhaps they’ll be talking to those downwind about how employing the services of their bike shop’s V02 Max specialist has pushed them to the head of the peleton.

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(( CADENCE USING THE SPACE WISELY ))

THE NUMBERS GAME

Bringing to the table its own take on what the modern bike retailer should offer its customers, CadenceCEO Frank Beechinor talks to Mark Sutton about turning Crystal Palace hill summit into a haven for cyclists and non-cyclists alike.

ONE thing very quickly jumps out as I begin to talk with Frank Beechinor, the CEO of Cadence, which operates stores in Crystal Palace and Radlett. There’s numbers flying all over the place.

Effortlessly Beechinor links demographics to turnover and the margins associated with each. Rarely have we seen a bike shop owner talk so enthusiastically about the different elements to their trade and have banked in their memory the profit attached to each.

During our few hours chatting, product is barely mentioned.

That’s not to say Cadence is in it solely to turn a quick buck, that much is evident not only from the layout of the flagship store on Anerley Hill, but also in Beechinor’s approach to pulling in custom.

“What other bike shop would you walk into and find mothers holding screaming babies,” he jokes. “That’s a result of an offshoot we tacked on in the past year or so in which we invite in mums with kids during the day for yoga and pilates classes. Childcare is provided simultaneously, giving the

mums the chance to get some exercise with peace of mind the child is cared for. In a sense, with the Wattbike classes, we’ve become a bit of a gym and with that comes options to offer personal training plans, V02, fitting and plenty more to develop the customer’s fitness experience.”

Having installed a mezzanine level with a very deliberate intention to add to the store’s service offering, Cadence spotted early on that customers were demanding more from bike shops. But far from kicking his heels when faced with a difficult to please customer Beechinor says listening to feedback allows businesses like his to spot an opportunity.

“Honestly, I wouldn’t get into the trade now if it were only about selling bikes. I think too many are waiting for the internet to go away and things to go back to whatever normal was. A few years back we used to host the Cycle Show TV in store and since then we’ve continuously looked at evolving how we use the space – it can’t all be stock. Bike fit, of which we undertake

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(( CADENCE USING THE SPACE WISELY ))

around 150 a month at £150 in summer, was an early development, but it needed to go further. We developed our own protocols for pedal stroke analysis. We’ve two sports scientists and five coaches on the staff, which allows us a lot of flexibility in our offering.”

This non-traditional experience, paired with the technology found in the firm’s two fitting rooms, allows delivery of objective evidence. Such is the commitment to becoming a leader in athlete training, Cadence is funding a PHD for a University of Kent student who will latterly take a job with the firm.

“As it happens I’m actually trying to address the association that Cadence is just for middle aged men in lycra,” says Beechinor. “My goal is for it to be far more inclusive, hence our efforts to draw in more female customers.

The return on our investment in the segment is coming too – in 2016 women’s road grew 17%, some 12% more than the rate of men’s trade. I find that women are more willing to take advice too!”

While Cadence is on the one hand trying to build its credentials in front of female road cyclists, it is also going after people who may not be cyclists at all.

“Over in our Radlett store we’re introducing kid’s cycle training lessons. If that works we’ll import it to Crystal Palace. There’s far more to it than the sports side though and nowhere near enough to draw in under-represented potential customers. That’s why we hold women’s specific Wattbike and bike maintenance classes. Honestly, we’re actively targeting the gym member with our own high-value membership propositions. These people may not be cyclists, but they will pay to feel good and blow off steam nonetheless.”

Membership has become a focal

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point of Beechinor’s business, representing some 18% of the store’s turnover. Five tiers - £10, £35, £69, £99 and £149 a month – are offered to customers, each tailored to draw a different customer.

“We’ve 250 members on the books and growing. Once you reach a certain point with membership schemes they can really become self-sustaining with very little drop off. This trade tides us through the winter and further keeps the customer engaged,” says Beechinor. “With our store opening for 96 hours of the week we’re able to put on five or six Wattbike classes a day, which from £69 a month comes free as part of your membership. Add to that benefits including free bike service, a bike fit, access to the pilates classes, VO2 and pedal stroke analysis and free entry to our events, rides and training camps and the value really stacks up, not only for the cyclist, but for the customer only indoor training.”

Based on club run favourite Anerley Hill and with the wealth of specialist knowledge and equipment on hand, Cadence has become a bit of a ‘club for the clubs’ in London too. The surrounding hills are bustling with Strava segments and as a result the café’s capacity is a big draw. Selling nice coffee and cake is no longer the plaster for the problems of bike shops, though. In fact, despite being the first and last thing customers will pass as they pass through the doors, Cadence put out the barista’s job as a concession within the store.

Beechinor says: “We’re very hot on keeping an eye on where net profit comes from and it turned out that doing cake and coffee ourselves wasn’t quite tallying up financially, even though on a typical Saturday we’ll draw anywhere between 150 and 400 customers, hardly surprising given the estimates 23,000 sportive riders and 1,800 racers in our 10-mile

A large corner corner of the store is decked out with an engaging display of the Liv portfolio.

radius. Despite that around 70% of our customers belong to no club. That’s our opportunity, to make them part of ours and those with fitness goals take great interest. We’ve around 100 clients being coached on tailored-byCadence training plans at present.”

Sticking with the assessment of when profit comes from, Beechinor admits that having such a diverse array of customers can also bring difficulty.

“One guy comes in every Saturday to just sort of hang around and tell us what we should be doing. In years gone

by I’d have hoofed him out the door, but I’ve learned to bite my tounge. He’s a little and often purchaser, but those really add up over time. I like to remind myself that it’s costing me £75 an hour to keep the business open, so customer diversity is essential!”

It’s this attitude and flexibility that has seen Cadence tally up between a 45 and 50% gross profit in recent times, which Beechinor attributes largely to “stuff you just can’t do online.”

Another layer of trade comes from corporate events, everything from cycling holidays to Spain to women’s specific takeovers of Kent’s Cyclopark.

At £25 a head and with 40 spaces per

event Beechinor’s relationship with such venues is strong. Furthermore, the store is laid out ready to accommodate movie nights, with a projector and 80 fold up chairs stashed ready for premiere hosting. With the audience faced the other way the store has in the past erected a small stage for speakers like Nicholas Roche to host talks to up to 120 visitors.

With such a content rich approach to business it’s hardly surprising that we were let in on the store’s library of house videos, again an off-shoot of Cadence’s that they foresee becoming important down the line.

“We’ve got around 50 videos available to members at present. These are largely GCN style flicks to reengage the customer and to teach them a variety of skills. This is an investment on our part in a digital future,” says Beechinor. “Experiential retail is where it’s at. We want to grow the business virtually and be ready to coach the customer remotely as well as in store. We’re also adding podcasts at the rate of around two a month. All of this is on trial now.”

So, what’s next for a business with such a trained eye and open mind to

new revenue streams? Training other bike businesses, of course.

“We do get our fair share of people casing the joint and the model would roll out well, but opening a bundle of stores is not in my plans,” he jokes.

“In my mind we’ll very shortly look to franchise our coaching platforms and maybe some other services too. Actually I’ve recently had a Californian in who is keen to work with our model in San Diego. We will of course need to stay ahead of the competition ourselves. The only form of defence against competition is strategic evolution and we’re not slowing down.” cadenceperformance.com

“It’s this attitude and flexibility that has seen Cadence tally up between a 45 and 50% gross profit in recent times.”

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(( THE RAPHA INTERVIEW ))

HOW CUSTOMER EXPERIENCE BOTH IN STORE AND BEYOND IS THE FOCUS FOR THE FUTURE In the past months we’ve talked extensively on CyclingIndustry.News about the future of retail in the cycling business and how experience is increasingly crucial to holding a customer’s interest. With that in mind we felt it time to pin down Simon Mottram, founder of Rapha, for a chat on the evolution of what is increasingly a business driven by membership to a very exclusive clubhouse.

“WHEN we started Rapha back in 2004 we ran a month long exhibition called the Kings of Pain. At the time we’d have lots of parties to introduce people to the concept, but even then our product sat quietly in the corner of the room.

We’ve never driven Rapha within a selling environment and I think that’s been crucial to how things have turned out and evolved over the years. As it turns out we’ve always enjoyed an excellent sales per square foot ratio, despite the low pressure sales approach.”

Ponder a moment on Mottram’s approach and consider how it tallies with the way bicycle retail and merchandising trends have evolved. Over the years bike shops, in particular, have tidied up, presented and become aesthetically more professional and inviting. The environment has

changed from the dreaded sea of wheels to what we often hear described as a community ‘hub’. Cafes in store, sofas, customer wifi and books to read – all of these would have been alien in the bike retail experience of ten years ago.

Mottram’s philosophy of creating an experience to sit alongside his retail offering came early in the brand’s history, but will be a key driver going forwards, we are told.

“Our Clubhouses are a place where you can immerse yourself in live racing, relax with a coffee and take in plenty more of the cycling culture. They’re evolving too in terms of customer experience. When we came up with the Vault at the Spitalfields location the thinking was to give the customer as close to a real-life riding experience in store as possible. Going into a cycle shop and just trying on the

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(( THE RAPHA INTERVIEW ))

clothing is a weird transaction. We’re selling incredibly technical products with big claims, but how are you going to feel what it’s genuinely like before you purchase?”

Part of Rapha’s proposition then is to replicate in the saddle posture, with headwinds and temperature fluctuation, all in what is essentially an interactive changing room.

The brand, of course, can’t replicate the Vault with its associated costs in every branch, but Mottram says that as a minimum requirement Rapha Clubhouses will have a bike fit rig in each branch by the end of the year. There’s more of these locations on the way too.

“We’re opening seven more locations in 2017 which will take us up to 20 worldwide, employing around 150 of our 400 staff globally. They’re all profitable too. In the U.S. there’s up to four planned with Boulder, Seattle and LA destinations confirmed. We’re also set to open in Berlin, Majorca and Melbourne,” says Mottram. “I have to say the key reasons these work is the hangout vibe, it’s not a clothes shop.”

Overseas represents an enormous 75% of Rapha’s present business, with over 100 countries in receipt of Mottram’s brand. The U.S. and Asia Pacific are presenting the business with countless new opportunities. But in a market that’s rapidly saturating, why the interest in an admittedly premium market leader?

“We’ve never positioned Rapha as a Brit label,” explains Mottram. “In fact I feel that the spirit of the sport is quite European, so it’s never appealed to me to go down the route of using the flag as branding. Each market has differing dynamics and while the UK remains our largest turnover we’re pleased at the global growth. In the Asia Pacific market, many are picking up cycling for the first time and doing so in numbers as wealth steadily grows. There’s certainly an emerging lust for premium gear. The U.S. is just about in the lead in terms of the value of business done and we’ve a better penetration than ever with openings in San Francisco, New York, Portland and other regions.”

You could be forgiven for overlooking Rapha’s other international aspirations – a travel arm which in 2016 turned over more than £1 million.

“That’s a small portion of the business in the grand scheme of things,” says Mottram, but is steadily becoming an integral part of the Rapha brand.

Having turned over £60 million plus in the financial year running to the end of January there’s an ever-increasing number of revenue streams contributing, each aligned to Mottram’s belief that customer experience is the future.

“If you were to distil what Rapha’s about, for me it’s moments; the pinnacle of the amazing climb, for example. We can’t scale our travel ambitions too rapidly, but

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the indulgent experience that we create is exactly the kind of product we want to deliver to our fanbase,” says Mottram. “It’s symbolic of what we’re trying to build, but requires a lot of coordination, especially as we now run these trips ourselves.”

Offering trips to Japan, Norway, France, Spain, Italy and the U.S., Rapha’s travel arm is web-based and quite intentionally targeted at the global audience. When the travel segment came to fruition in 2012, the second booking came from New York. With a healthy appetite for European cycling, a good chunk of customers stem from both ends of the globe. Primarily it’s the 9,000 club members booking up, another of Rapha’s increasingly relevant revenue streams.

“Our memberships have really accelerated and we’re pulling in about 100 more per week around the globe,” says Mottram. “At £135 a year it’s a commitment, but I think the subscription model is the ultimate customer relationship and probably the most strategic thing we do here at Rapha.

By the end of 2017 I’d really like us to have 15,000 on board.”

As part of that subscription fee members gain access to product exclusives, free bike hire on Rapha Travel Trips, as well as 10% off, lifetime crash replacement on the RCC Race Jersey, support at races and sportives and a multitude of other benefits.

Connecting customers to the brand further, members have at present exclusive access to the content-rich Rapha app, of which Mottram says about 8,000 of his brand’s members have downloaded.

“I travel a lot and would have killed to have had this app 15 years ago,” says Mottram. “Through the app we connect over 150 rides every week around the globe, meaning that wherever you are you can meet like-minded individuals, benefit from local knowledge and make connections. It might be that we decide to expand availability to nonmembers in the future.”

When asked whether he would also have liked access to crowdfunding 15 years ago, Mottram has mixed feelings over whether that would have been a blessing for Rapha as it has been for so many starting in the Kickstarter era.

“There’s certainly been an explosion of brands. Some are doing some nice product, but I think a lot more are producing just nice looking gear with no real functional appeal to the cyclist. You need to innovate in this space and ultimately turn all these investor’s cash into a proper business,” says Mottram. “I’m uncomfortable with the idea, personally. We built this market almost alone for such a long period of time and have grown with four rounds of investment from private individuals and fans in our 13 year history. Having said that, with 180,000 customers around the globe I think we’d

“Our memberships have really accelerated and we’re pulling in about 100 more per week around the globe.” quickly have hit our target had Rapha gone down that route.”

Looking at the breakdown of his demographic, Mottram touches on areas for improvement, freely admitting he’d like to do more trade with female enthusiasts.

“As sales go about 20% of our turnover is with females, though 5% of that we believe is gift purchase. My ambition is to shoot first for a solid 25% share of turnover and then hopefully on to 50% of trade. We’ve been producing in this space for five years now and have been over-investing in the segment to ensure we’re offering the same premium product. I’m surprised personally by the appetite for race gear among female customers. We’ll be introducing some new lines in 2017 on this front, from active product to city styles, including an incredible new coat.”

Appetite for race gear is largely driven by Rapha’s high profile industry links. Having signed with Team Sky in 2012, Mottram’s team set about the relentless task of transforming its professional tier product, with the Pro range today representing around a quarter of sales.

“The needs of the pro are very specific, so we very quickly

took to the tunnel with new fabric technologies to create some very uncompromising garments,” says Mottram.

“These can be uncomfortable if you’re not an elite athlete putting them to their intended use, but that end of the market loves the gear.”

On new product Rapha will debut a Made in Italy line, a commemorative piece to mark 50 years since Tommy Simpson’s death, a ‘reset’ of the bibshort catalogue, as well as a handful of products to celebrate iconic races. Complete garments aside, Mottram adds that his label’s compression lines have been upgraded, while a new proprietary chamois will feature in select garments.

In concluding how Rapha moves forward as a brand, Mottram agrees with the notion that the bike industry needs to be more involved on the cycling advocacy front.

“We’re starting out on this front, but unfortunately you can’t popularise too much with nice films, so we’ll look at other avenues.” says Mottram. “I’d like to begin to frame the sport in a less broken light too, it’s important that the industry addresses that for the future.”

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(( RETAIL FOCUS PICKING A NICHE ))

POWER TO THE PEOPLE Throughout this issue we’ve looked at a variety of approaches to bike retail, but none quite as specific as a powermeter only specialist. So what’s life like as both a retailer and reseller of data gathering training equipment and not much else? We ask Cycle PowerMeters founder Bob Tobin…

So tell us a bit about the history of CyclePowermeters and how the idea to specialise in this niche came about?

I started cycling as a teenager in the late 80’s having watched Greg LeMond win the Tour in ‘89. My degree was in Engineering, so my mindset has always been quite analytical. I read lots of books and info about training, aerodynamics and the like. In the late 1990s I became friends with Andy Coggan, who is now known as the ‘godfather’ of training by power. He literally wrote the book (with Hunter

Allen) on training with power, and came up with the metrics and levels that everyone now uses to train. He had been loaned an SRM for a while and said they were great tools for training. So he persuaded me to buy one (even though he didn’t actually own one himself!). It took me about a year to decide to do it as they cost so much money (£2,000 back then). That was in late 1999 and at the time I didn’t know anyone else who had a powermeter, or really know what to do with it. So, like a number of similar minded

people from all over the world we joined a ‘training with power’ group called Wattage (now a Google group), to figure out the limitations of the devices themselves and how to use them best for training and other uses like measuring your aerodynamics.

In mid-2006 we decided to shut down our then family company and I was thinking about what to do next. I knew how useful powermeters were and I was convinced that everyone would be training that way eventually.

So I started Cyclepowermeters to sell

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(( RETAIL FOCUS PICKING A NICHE )) learning, as new firmware and new products add further complexities or potential incompatibilities.

and crucially to rent out powermeters.

I thought rental would be a good option as it would let people try out the technology and see what the gains were without a massive initial outlay.

What’s the growth curve like in the powermeter world?

We have sold more units every year since we started. When Garmin Vector, Quarq Riken/Elsa and Stages launched in the same year in 2013 we took a major jump forwards in sales.

So yes, the market is really moving forward, both in terms of innovations, new products and manufacturers coming to market and lowering prices.

The competition and lower pricing, as well as the level of education of the average cyclist has got to the critical point now, with everyone on forums and at events talking about power.

The growth in cycling, especially the demographics of the people who are new to it, makes many new potential customers. The market is still growing, but I think the rate of growth has slowed.

Is your ambition for the business to become the industry’s go to source for specialist powermeter product?

In a word, Yes. While powermeters are becoming more mainstream, there are still idiosyncrasies with almost all of them. This is where specialist help can be invaluable and save customers

from wasting money on products that won’t fit their bike. Then, in terms of ongoing support, its critical to have someone at the end of the phone who knows the products inside out and can look at your data to diagnose if you have a problem. Your major online box shifting retailers don’t know their products well at all and can’t help diagnose if there is a problem. A powermeter isn’t like a tyre or a chain.

We are also a distributor for PowerTap and Quarq where we mainly sell to coaches who sell onto their clients.

How are you making CyclePowermeters stand out online?

We have recently launched a new website which will cater for both trade and retail customers. This gives us much more control of how the website looks and interacts with customers.

How are the staff trained to sell what is often a complex item?

We are still a fairly small company so it is very much on the job training. All the people I have hired have been cyclists who already trained with power, so a major part of their learning curve was already there. The complexities of every system take some time to get through and there is a constant state of

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You’ve a rental arm too – tell us what this offers the customer?

The rental arm was a key part when starting out. I figured that lots of people would like to find out what they are going to get from a powermeter before they bought one, as they still cost a fair amount of money. It was also very helpful to coaches who wanted to coach by power, saying that you could rent one for, at the time, £50 a month, rather than committing to an £800 purchase.

So for some people it is a try before you buy. For others, it is a long-term rental akin to a gym membership. They can keep the item for as long as they like, after the initial minimum period, or switch brands or models if they wanted to without any further cost. If it breaks we send them a replacement. We now hire PowerTap wheels and P1 pedals, and we have just launched a turbo trainer rental program for the new Cycleops Hammer and Magnus.

There’s a coaching element to your business too. Who leads this, how are they qualified and how can customers take their training up a notch with this advice?

While Matt Clinton and I both coach people, it isn’t through Cyclepowermeters and we don’t offer or bundle this with sales – we deal with a lot coaches and coaching companies.

If someone asks generically who we would recommend we will push them in the direction of one of the coaches we know and deal with. We list over 40 of these coaches or coaching groups on our website. They are all qualified with British Cycling, The Association of British Cycling coaches and/or British Triathlon (with a few qualified in other countries).

It works two-fold. We recommend people to them and they recommend their clients come to us to buy powermeters.

“All the people I have hired have been cyclists who already trained with power.”

We are adding more of these partners regularly and if there are any coaches out there who want to be listed just contact us. We feel that our clients will get more from their powermeter by working with a coach – even if that is just initially. The coach can be more effective because they can see if their client is doing exactly what they are supposed to be and if it is working.

How do you foresee the powermeter market evolving over time?

I think there are probably too many brands in the market now and as the level of growth slows down some of them will pull out. We now have (or have had), powermeters in pretty much every conceivable part of the bike possible – pedal, crank arm, spider, bottom bracket, chain, sprocket and rear hub. They are unlikely to get much lighter as doing so won’t make much difference.

Furthermore, they are probably as accurate as they are going to get, unless new measurement techniques

come along. I can only conclude the level of development is likely to slow down and it’s likely to focus on making them more reliable, introducing lower pricing and adding extra data (like the recently launched PowerTap P1 pedalling metrics).

Lower price seems to be the holy grail for this product – but given the potential for gain and the spend on other gear, is a powermeter a better investment than shaving weight, for example?

I guess I am liable to be somewhat biased in this, but I have the evidence to at least backup the claim that yes, a powermeter (used correctly) can make more of a difference to your performance than any other piece of equipment on your bike.

Training with it correctly can increase your threshold power significantly, and you can use it to choose the fastest equipment and hone your position. So, you are increasing the power that makes you go faster, and reducing some of the

main elements that slow you down.

Can customers drop by the physical location to try a number of powermeter options if they’re unsure where to start?

We do have callers by appointment (we don’t have a retail outlet). We can talk them through the different options and have examples of most products here for people to look at.

Any plans for expansion or offshoots to the business planned in the future?

We are expanding the rental side of the business, for sure. We are also looking at some new high tech cycling products which are coming to market in the next year or so which are not powermeters.

If you’ve one piece of advice for a potential customer when it comes to powermeters – what would it be?

There is no best powermeter, just the best for your situation. Anyone who tells you any different is probably trying to sell you the only product they have available.

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(( DEALER PROFILE PEARSON CYCLES ))

MAKING HAY IN THE MODERN DAY Bright, branded and coffee blended – Pearson is the template of what the bike retail world is fast embracing. The family-owned business goes further than just a barista and nice bikes, though. Mark Sutton pops along to the Sheen branch in South West London to talk to director William Pearson about his vision for what the modern bike shop should offer customers…

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A

t 157 years since its inception, Pearson Cycles lays claim to being the oldest bike shop anywhere in the world. With such deep heritage you’d expect they’d dwell on it a little.

Not one bit. Short of some nostalgic photography by the café seating and a 1930s-dated Raleigh receipt print in the physiotherapy area, you’d never guess.

The contrasts between the Pearson of today and the foundations laid by the metallurgist founders in the 1860s are stark, but there’s one theme that hasn’t changed. The family firm has always been able to spot an opportunity. In the early days the Sutton-based business thrived on its reputation as a blacksmith.

Based at the foot of a hill on the main High Street, Pearson’s founders initially specialised in repairs for the traders moving through with goods aboard horse and cart. With the bicycle requiring less food and thus less maintenance costs, Pearson was quick to tune into the emergence of a new market within which his business could quickly become a specialist. Pearson Cycles was born and through the early 1900s the next generation began to make hay with the first own-brand bike, the Pearson Endeavour.

Though the Endeavour no longer features as a model, the Pearson own-brand to this day remains the core of the business, featuring not only on bikes, but having in relatively recent years made its way onto own-label clothing and bike cleaning solution, among other lines.

“We’re a data-heavy business,” starts Pearson. “From years of specialising in bike fitting we have a wealth of knowledge behind what I guess you could call house geometries. Our own-label bikes ship globally, so it’s not a one size fits all approach, but often we find our off the peg builds do provide an excellent foundation.”

Having learned from pioneers in bike fitting methodology, Phil Cavell and Julian Wall, Pearson was early to the party with a Cyclefit licence. No more than six months after opening Pearson was drawing in bike fitting business.

“It was rare five years ago to offer a comprehensive fit, but in my mind it’s the pinnacle of the business and absolutely necessary for the customer we target. It’s still not a speciality that’s widely available and in the forefront of the minds of customers investing well in cycling. My hope is that we’re not too far away from this being a regulated part of the business,” says Pearson.

At the time of our visit, appointments for a fit were tied up for the following three weeks, which is “typical of a January”, we were told. At £195 for a one-to-one booking, that’s a welcome chunk of revenue for the business.

“I think for many a bike fit is a second bike purchase add on,” says Pearson. “Once the customer is embedded within cycling and understands their interaction with a bike better then we tend to get a higher rate of uptake. It’s a hard sell at times, but it’s one of the best value purchases you can make in selecting the perfect bike.”

But it’s not just high-end road cyclists buying into bike fitting. The shop has been seeing an increasing trend toward commuting cyclists seeing the benefits.

“I recently did a fit on a spin instructor who funnily enough didn’t otherwise cycle. He was experiencing issues while teaching, so we resolved the issues upstairs at the

shop. For other customers we will often find they roll in on very nice bikes already and just need to get the most out of their saddle time with a few tweaks. The performance cyclists aside, we’ve a diverse mix of customer – everyone from Gordon Ramsay to parents looking for a pram tyre.”

Adorning the store's upper level you'll find General Chiropractic Council certificates, among other medical institution recognition.

Very little about the store’s upper level is traditional, but if you fit the profile of somebody giving their all to cycling, Pearson has the means to take your training to the next level. The store even hosts up to four pilates classes a week in a room that also doubles up as a miniature showroom.

The scientific approach, paired with own-label goods are all part of a strategy to “internet proof” the business. That’s not to say that Pearson isn’t interested in online trade.

“One of our strategic investments for the year ahead is to develop the Pearson brand online. For many of our customers their first experience of the brand is online, so we want to convert more of those visitors. Click and collect has become a big driver of online trade.”

Seeing the own-label goods as a distinguishing feature of the business, Pearson warns that while having proved successful for his family, such a model is not for everyone.

“If you’re a hobbyist in this business selling on industry typical margins you’re unlikely to strike it rich, so I can see why there’s increasing interest,” explains Pearson. “Own brand is certainly better margin wise, but there are huge risks. It can go very wrong, so you need to ensure the product is built well and unique. You must have insurances and be prepared to spend a great amount of resource just on assembly of your bikes. Bike sales represent 50% of our overall takings, with an element of bespoke finishing on around a quarter of those builds.”

Around 400 house-designed bikes a year arrive from Taiwan. To date the emphasis has been on metal frames, but for 2017 we were told of two new high-spec carbon builds landing. Deeper into 2018 and a “Storck level” aero road bike is on the drawing board.

With the risk of committing so much resource to own brand thus far going well for Pearson the retailer has plans to export chunks of its portfolio. To date, the business has focused on markets generally receptive to British brands.

In Japan a distributor for the clothing and accessories portfolio has been recruited.

“Considered purchases are difficult to sell and there’s more risk of such stock sitting around longer,” says Pearson on choosing what to export. “The impulsive, knowledge-led and convenience shoppers are those for which we see the greatest potential. Bikes are very much like a car, you have to try them out.”

Less considered revenue streams have long interested Pearson, who has intentionally kept a flexible definition of what exactly a bike shop should offer. To mark the Tour of California in 2017 the store will host a wine and cheese tasting evening alongside a local specialist. Though a charity event held for the benefit of the Royal Marsden and Duchene UK, such events are key to pulling in locals, enthusiast or otherwise. www.pearsoncycles.co.uk

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CLICK & COLLECT FOR THE WIN?

(( E-COMMERCE CORNER ))

WORDS: David Gaule

T

here’s a familiar concern among independent cycle retailers that they can’t compete with big online retailers. This often results in a “What’s the point of even trying?” attitude.

One route to online success is through smart retail models, such as not trying to be a one-stopshop for all things cycling and stocking exclusive brands or niche lines, so you’re not directly competing on specific products.

“There’s not enough niche brands to support us all” and “I have to stock the popular brands that customers want” I hear you cry. Yes, to some extent, you’re right. You need the popular brands that drive footfall or traffic and your cycle equivalent to a supermarket’s bread and milk - inner tubes and energy products. However, if your trade price doesn’t allow you to sell at a competitive price without essentially making those products a loss-leader, the stock won’t turn and it’s just tying up capital that could achieve better profit elsewhere.

So, what’s the answer? It’s time to unleash your secret weapon, that ace up your sleeve – ‘convenience’.

You don’t need to be the cheapest online. You just need to be at the right price point for the customer to favour the perceived value in having that product immediately. You don’t need a big ecommerce operation and you don’t even need to be offering delivery; but you absolutely must have a website that shows your accurate stock availability online. Most people shop online with a mobile device first, so your site

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needs to be ‘fully responsive’ (auto resizing to look right on any screen) and that mobile device will tell them which retailers are closest to them with what they want in stock. This drives footfall to your store.

Then it’s up to your friendly expert staff to convert their visit into a purchase, upsell and cross-sell etc.

If you know what consumers you’re targeting and stocking the right products with an effective Google Shopping campaign, offering Click and Collect at a price point that beats waiting/paying for delivery will often seal the deal for you.

The power of Click and Collect increases even more when we involve distributors. The technology exists (and is pretty affordable from providers who already know how to do it and are doing it successfully elsewhere) to have a centralised distributor or brand Click and Collect site that shows the stock availability (or a due date) of every dealer nationwide. Consumers will find it easier to find the (likely higher ranked) brand site, yet it will drive footfall and sales through their existing dealers.

This kind of brand exposure to end consumers will achieve a more consistent stock turn for distributors, which could help remove the requirement to offload surplus stock at massively reduced trade prices. The brand site can also show a single selling price for all. Both of which help avoid price wars that ultimately devalue brands and destroy margin for all, to the point where no one stocks them and brands die.

In this new age of retail, don’t just compete on price, compete on convenience... for the win.

“You don’t need to be the cheapest online. You just need to be at the right price point for the customer to favour the perceived value in having that product immediately.”

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(( INTERVIEW FAUSTO PINARELLO ))

“I dream of bringing the Pinarello company on par with the industry’s biggest players.”

Cicli Pinarello is a world leader in the design and manufacture of racing bikes, frames and accessories.This past December, a few days before Christmas, the company announced that private equity from L Catterton had acquired the label. In an exclusive interview to Cyclingindustry.news Fausto Pinarello explains the behind-the-scene of such a huge operation.

“

Pinarello’s international expansion and the expansion of its network, with the opening of new concept stores in some of the most important capitals of the world.” These the primary targets of the L Catterton operation, announced by Pinarello back in December last year.

The investment was jointly conducted by L Catterton Europe and L Catterton North American Growth Fund.

Fausto Pinarello, current Managing Director of Cicli Pinarello S.p.A, will continue to lead the business from the Treviso headquarters and will still hold a “significant minority stake” in the company.

Founded in 1952 by Nani Pinarello and since then, based in Fontane di Villorba (North-West Italy), Pinarello declares an annual turnover of € 52 million (2015/2016), 90% deriving from its export sales. The company operates in more than 50 countries, employs over 50 in its

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WORDS: Claudia Vianino Treviso headquarters and produces 30,000 units per year (bikes and frames). Some 4% of the turnover is declared to be invested in research and development.

L Catterton is the largest consumer-focused private equity firm in the world. Founded in 2016 by the partnership among Catterton, LVMH and Arnault Group. It operates through multiple funds from 17 locations in the five continents. Major consumer segments include: food and beverage, retail and catering, health and beauty, fashion and accessories, and consumer services, health, media and marketing services, as well as real estate projects related to high-end retail. Among its investments are famous brands such as Sweaty Betty, Outback Steakhouse, CellularLine, Gant, Pepe Jeans & Hackett; LVMH and Arnault Group bring luxury names to the company portfolio, such as Guerlain, Louis Vuitton, Tag Heuer and Bulgari, to name a few.

What were the reasons that convinced you, after so many years, to give up a large part of your company to a private-equity fund?

FP: We decided it was time to open up to new partners to support the development of the Pinarello brand around the world. I would not want it to be read as a sale of the company, but rather as an investment of a prestigious fund in Pinarello.

What are the main targets of the operation?

FP: We want to continue, with even greater force, our expansion in top international markets and expand our network with the opening of new Pinarello concept stores in some of the world’s most important capitals.

What is your role in the company now and what weight will the fund have on Pinarello future choices and brand strategies?

FP: First of all, I’m still the CEO of the company and the owner of a large Pinarello share. When the transaction was announced to our employers, one of them asked what this would mean for their future. I told him that if he wanted to go on holidays he still had to ask for my permission. Irony apart, it is obvious that although I’m still in Pinarello, the strategic choices of the company will be shared with the new shareholders; but I will continue to lead this company with the same strength and power, as I always have. Pinarello is not ‘just’ a company, it is first and foremost my last name.

Will anything change at the leadership/ management level in Pinarello?

FP: At the corporate level, we just concluded a thorough reorganisation that led to a simplification of the group’s control chain. We are working with the fund to assess the entry of new positions. This transaction opens a new chapter in the history of Pinarello, but this history is the company history, which will continue to be led by the same team that has made it unique in the world.

Will anything change in the distribution of the product?

FP: One of the targets of this operation is to further strengthen our distribution network. Though, our aim does not change: we will continue to operate with a

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(( INTERVIEW FAUSTO PINARELLO ))

selected distribution, one that is able to guarantee a service of the highest level and capable of explaining our product and its features to the consumers. We are also working to find new Pinarello dealers.

The headquarters of the company will remain in Italy?

FP: Absolutely. And, let me add, not just in Italy, but in Treviso. Pinarello is born here and here is where we will continue to grow. We have a strong link with this territory, which is essential to our company.

Will anything change for the present Pinarello dealers?

FP: What I hope that will change is their awareness of collaborating with a strengthened structure.

What about your price policy? Will it remain as it is, or might we expect the label to fall even more in line with the luxury market?

FP: If we consider the entire catalogue of our products, Pinarello bikes range from €1,000 (Treviso city bike) to €15,000 with the Bolide TT, Chris Froome TT bike. Our product is positioned already on a very high market level, so I don’t expect significant variations in the price policy at the time. We will however strongly focus our production on our top of the range, while maintaining unchanged the total number of parts produced.

What about the announced concept stores. Will they be exclusive outlets or in partnership with other L Catterton brands?

FP: The opening of several concept stores in key metropolitan cities of the world is part of the development plan of Pinarello. This will obviously require significant investments, which we can address thanks to the partnership with L Catterton.

They have strong skills in the development of the sales

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network too. By being able to count on some flagship stores, in the world’s most prestigious streets, we will increase the dialogue with our consumer clients - current and potential. They will be able to live a true brand experience; I would say a “360° Pinarello experience”. The stores will be Pinarello branded shops that will show our products only, with a special focus on those items that best represent us. We will perhaps introduce some unique elements, to give further value to these kind of initiatives.

Do you mean something like a Bulgari bike by Pinarello or a Pinarello /Tag Heuer jewelry item?

FP: These are certainly interesting and ambitious hypotheses. At the moment there is nothing of the kind at issue. Cycling is our world and everything that gravitates around it is our business. Certainly, we will consider an expansion of our product line under the Pinarello label, but this will be always in relation with our traditional context, i.e. cycling. The market is asking for a Pinarello e-bike, for example, and this is a project we are evaluating. We would still enter into a new business area here, but always strictly relevant to what Pinarello does, since 1952.

At a personal level, what frightens you most about this new adventure and what are instead, your hopes, goals and dreams?

FP: One of the reasons that is at the base of the L Catterton operation is indeed a personal factor: my own ambition. I’m in this business and have been working for this company for 38 years now. I find myself confronting every day with the giants of this industry. Thus I realised that if I wanted to make ‘the’ jump and reach to the next level, I couldn’t do that alone; even though the Pinarello business is going very well.

My dream is to bring this company to be on par with the ‘big players’ of the cycling industry. This is something my father would be very proud of.

www.cookecomponents.co.uk

(( COVER STORY MDI ))

Rock and roll A specialist family-run importer and distributor, MDI brings to the table a compelling roster of reasons to be taken very seriously by the dedicated road shops out there. Director Dave Ives shares with Mark Sutton the many reasons to stock up with the Blackpool firm…

S

temming from a personal passion for the European road racing scene, Mike Dixon Imports has trailblazed in the UK road scene for not far shy of 35 years now.

Laying claim to being first to bring in labels like Colnago, ITM and Time, MDI to this day represents some of the EU’s most sought-after components and accessories.

Bringing to the table a combined experience easily surpassing 100 years in the cycle trade, the small but agile team recently re-emerged on the UK trade show calendar, meeting and greeting dealers at Silverstone-based The Bike Place Show. This, aside from being a great opportunity to grab a free stick of Blackpool rock, was part of a drive to familiarise dealers with the whopping 3,000 product lines now available via the distributor.

Director Dave Ives says of the portfolio: “We have a varied and extensive brand portfolio concentrating mainly on road cycling componentry and accessories such as: Apis, Barbieri, Campagnolo, Cane Creek, Continental, Deda Elementi, GT85, KMC, Look, Michelin, RaceOne, Selle Italia, Shimano, Sportsbalm, Stronglight, Tacx, Tektro, Veloflex, Velox, Vittoria and Vredestein. We have tried to pack as many of the main road cycling brands as we can under one roof to make it easier for time-constrained

customers who would normally have to place orders with several distributors.

We have also recently been appointed the UK distributor for the Sportique range of athletic body care products.

By the time you read this these should be live on our B2B.” You’ll note in that portfolio some of the leading bread and butter brands on which many bike shops turn over goods day-to-day. So why choose MDI over other market suppliers?

“We constantly price check against other distributors to ensure we keep our competitive edge,” explains Ives.

“We also monitor the market to see if there are any brands that we can add to our portfolio to make life easier for our customers. We don’t force minimum order quantities either, if you want to add a single inner tube or a roll of bar tape to make a carriage paid order, that’s fine.”

Pair these incentives with next day delivery on orders placed before 4pm and the ability to add to your order during the day if the need arises and MDI quickly starts to present a compelling case for those Shimano service items or that Cane Creek finishing kit for your customer’s custom build.

“Our minimum order is £50 and we only deal with the cycle trade, there is no retail element or connection to MDI,” emphasises Ives. “We are 100%

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an importer and distributor. As mentioned before we don’t usually insist on a buy-in deal to stock our products, you can take as many or as few as you want.”

Expecting 2017 to be a year of growth, Ives has outlined how his business will ramp up its promotion heading into 2018, going as far as to hint at involvement in a semi-professional road racing team heading into the 2018 season.

So for those who missed the opportunity to chat at The Bike Place, how can those on the frontline start the ball rolling with MDI? “To keep our costs down we don’t have ‘reps on the road’, but we are available to host customers at our premises, or to come out and see you at your premises. So please don’t hesitate to contact me to make an appointment.”

Workshop essentials: Don’t forget, MDI stocks a variety of inner tubes, cables, brake blocks and pads, jockey wheels and plenty more to keep your workshop ticking over.

Tel: 01253 343090 www.mdib2b.co.uk

KEY LINES FOR 2017 DEDA ELEMENTI Available on the B2B now for same-day dispatch are Deda’s Superzero alloy Handlebar. At a more attractive price-point than its very popular carbon brother, MDI expects this bar to be a best-seller going into the 2017 season. Deda has designed this alloy bar to match the aero shape of the carbon bar exactly, all while minimising drag and providing an ergonomic grip for any riding style. “I even have these on my brand new bike,” says Ives.

Delving deeper into the Deda range, MDI stocks the full assortment of Deda handlebar tape; available in more colours than the rainbow, including brilliant names such as: Milwaukee Orange, Intense Ochre, and Bishop Violet. Perfect for when a customer wants to match to their new frameset or club kit.

‘Lighter, Stronger, more victorious’ is one of Deda’s taglines and a quick glance at the cockpits of the Pro Peloton shows that even the professionals trust them for their bars and stems. From the Zero1 Bar and Stem to the Superzero and Superleggera lines, Deda has all price points covered when it comes to handlebars, stems and seatposts.

CONTINENTAL MDI stocks several brands of tyres, but none more popular than Continental, for both road and off-road bikes. The UltraSport II tyres are perfect for training or entry-level racing. The threadsper-inch count has been more than doubled from the previous incarnation and is now one of MDI’s best-selling tyres. What’s more, it’s available in both a rigid and folding version.

For off-road bikes the distributor has 26, 27.5 and 29er tyres, including popular models for CX and MTB. Unsure what to say about the GP4000S II that hasn’t already been said, Ives outlines that “since the first GP4000 hit the market there hasn’t been a tyre to come close in terms of popularity and I can’t see that changing in the next year or so.”

The distributor also stocks most of the Continental road range to suit all budgets, with all up-to-date stock and pricing info live on the B2B.

Available to hit a variety of pricepoints, Deda offers a tight finishing kit portfolio well worth your consideration.

Check in with the MDI B2B for live stock and pricing updates across all labels.

CAMPAGNOLO Campagnolo’s Potenza 2017 groupsets are in stock now. The newest groupset release to bear the surname of Tullio Campagnolo is the iconic brand’s highest-tier aluminium groupset. It is also the most cost-effective (cheapest) 11Speed groupset that they produce. Potenza boasts the same race-winning shifting performance as the top Campag groups. For the most part, the differences are merely in slight changes in the materials used for construction.

Campagnolo has a heritage and a following that most brands can only dream of and if your customer wants a part of that then MDI feels that Potenza offers the best value for money in the range.

Offering Xenon and Veloce components for those not yet using an 11-speed system, and those that are dealers can also stock up on Chorus, Record and Super Record componentry. MDI has worked with the sought-after componentry giants personally for almost 20 years, so dealers can be confident the firm knows what it’s talking about.

Remaining one of the market's most sought-after groupset brands, MDI carries a deep Campagnolo stock.

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retailtherapy

ideas for better retail

Is your email data legal?

Click & collect - know your audience

In just over 400 days from the time we expect you’ll be reading this, changes to the governance of data will come into play, potentially leaving any business that has gathered data open to legal challenge. In short, the Data Protection Regulations demand that you have a hard trace of where your data has been obtained. Without a paper trail businesses are vulnerable to legal complaints.

The advice is to prepare now, well in advance of the May 2018 deadline. Those marketing to consumers are thought to be most at risk of falling foul of the new directives, though B2B firms are still advised to check where they stand. With that in mind we very much recommend reading where you stand with the following two links: DMA’s interpretation of the ePrivacy Directive: dma.org.uk/article/worst-eprivacy-b2b-fears-averted Brexit’s likely impact on the legislation: dma.org.uk/article/welcome-to-2017-and-the-futureof-data-protection

YouGov surveyed some 2,070 UK adults post Christmas on their festive period spending habits. The data revealed some very interesting details for those either selling online or offering click and collect.

Among the headline data, came these insights: • 35% of females and 18% of males used click and collect for festive shopping.

• 21% will use click and collect more next Christmas and 61% the same amount.

• 19% gave their business to a competitor due to stock unavailability.

• 78% of online Christmas shoppers said they will consider switching their business in future due to a poor online experience this year.

• 39% of people used a click and collect service, with the avoidance of delivery charges the main reason for the uptake in the service.

Protect your image You’ll know all too well how bikes can be awkward, cumbersome and occasionally heavy to handle. Now put yourselves in the customer’s shoes. They’re dragging in a bike with a buckled back wheel through a door not-quite a metre wide. They’ve probably rammed the door with the bike’s front wheel, or tried to fit through side-by-side. Calamitous.

So how can you protect your shop from the inevitable damage? Fit scuff guards and bumpers. You’ll have plenty of rubber off cuts kicking around the workshop, so upcycle. Line door frames and ensure that glass door isn’t cracked by fitting buffers.

Sure, you’d like to meet every customer at the door and assist, but damage is inevitable and your shop’s presentation crucial.

Try hauling a bike around your shop yourself to identify tight spots. There’s every chance your customer is walking the aisles with a hefty backpack on too. Do they have room to turn a full 360 without knocking bikes or wheels hung?

Go for a ride, help a busy customer We spotted during February a great new service launched by The Trailhead Bicycle Company in Shrewsbury and one which allows shop staff to stretch their legs. Now available to customers is a Surly Krampus and Bill trailer bike pick up, allowing customers within a five mile radius to call on the business to collect and deliver their service work. The service is free (generous!) and caters for a growing demographic of time pressed customers who simply need to book in a slot with the workshop. Furthermore, the shop’s recycling is now all carried for repurposing in this cargo bike.

Naturally, biscuit and beer tips are welcomed from customers.

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THE DIRT GOES AWAY. YOUR SMILE REMAINS.

ORTLIEB WATERPROOF:

Waterproof bag series for handlebar, frame and seatpost.

Ideal for two wheeled adventures on unpaved roads and trails.

Proudly distributed by Lyon Equipment: www.lyon.co.uk

(( MARKET RESEARCH ))

IT’S ALL ABOUT CUSTOMER EXPERIENCE Towards the tail end of 2016 CyclingIndustry.News undertook some market research within the independent bike retail market. What we hadn’t bargained for was the generous level of data returned to us by a pool of 74 shops ranging from small to medium in size.

Here in the Q2 Trade Journal we crunch a sample of the data…

Q1

AT THE PRESENT TIME, WHAT IS CAUSING YOUR BUSINESS THE GREATEST DIFFICULTY?

ONLINE COMPETITION AND GREY IMPORTS No surprises here. The single biggest complaint of the independent bike dealer relates to online competition and grey imports damaging the bike dealer’s ability to retain a decent profit margin.

Some 67% of our pool rated the threat to their business as “high” and a further 24% “moderate”. Just 8% of dealers remained unconcerned by the threat of online.

UNFAIR PRICING Coming in second place among the threats rated “high” among bike shops, the challenge of

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unfair pricing and margin squeezes saw 57% of shops complain. Compounded by currency fluctuations further applying pressure at all levels of the chain, a solution to this problem is unlikely in the short term. 25% described the issue as a moderate concern.

EMERGENCE OF DIRECT TO CONSUMER Dealers often speak of a new age of bike in a box custom, with not just supermarket bought bike boxes nudged through the door, but now high-end brands cutting out the distributor pushing boxes to the end-user’s doorstep. The result concerned 50% of our respondents highly and 33% moderately. Many will of course take the high-margin service work, but remain aggrieved at the loss of a complete bike sale, particularly at the high-end.

DECREASED FOOTFALL Declining footfall in store is forcing retailers to get creative. 46% expressed significant concern on footfall. We recommend flicking to Cadence’s profile on pg.11 of this issue for some creative ideas to draw new customers.

AT THE PRESENT TIME, WHAT IS CAUSING YOUR BUSINESS THE GREATEST DIFFICULTY? import Online ccompetition ompetition and grey grey imports Unfair Unfair pricing Emer gence of direct direct to to consumer Emergence consume Decr Decreased eased footfall footfal St aff o verheads, including Staff overheads, uding pensions pension Pr Premises overheads emises o verhead Omni-channel sal e sales P oor supplier sstock toc Poor Loc al ccompetition ompetition titi Local Courier Couriers Waste disposal disposa Waste 0

OMNI-CHANNEL SALES Perhaps one of the biggest, but often under the radar changes in recent years has been a gradual emergence of omni-channel sales from brands. 31% of retailers have described this as a concern to their business, worrying about being bypassed. 40% had the issue on their radar and described this as a moderate threat.

POOR SUPPLIER STOCK Lower than anticipated, but perhaps one of the bigger variables store to store, just 26% described their supplier’s lack of key stock as a significant downside to their trading. The bulk, some 47%, described this as a moderate problem, suggesting most shops have had experience, though perhaps things are slowly improving?

LOCAL COMPETITION A startling difference between the perceived threat of online retail and local competition. Just 23% reported being concerned by others in the local vicinity. Our research unfortunately neglected to dig deeper here to break the category into perceived threat from other independents and chains.

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STAFF OVERHEADS, INCLUDING PENSIONS It wasn’t uncommon to hear towards the tail end of 2016 that bike shops in financial difficulty are increasingly being forced to consolidate on staff numbers. 33% of our retail panel outlined that staff overheads, including Living Wage and pension commitments were of a high level of concern at the present time. A further 40% described this as a moderate concern.

PREMISES OVERHEADS Almost identical in the breakdown, 33% said that premises overheads were a significant worry to their business and 40% a moderate concern.

Interestingly, Local Data Company research showed that, standing at 12.1% in January, the retail vacancy rate recently fell for the second month in a row to its lowest level since peaking in 2010.

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COURIERS Just 13% described couriers as giving their business a frequent headache, whether related to price, damage in transit or lost goods.

WASTE DISPOSAL Just 8% described this as a problem for their shops, suggesting that most have their waste disposal under control.

Q2

WHAT OFF-SHOOTS OF TRADITIONAL RETAIL PRESENT THE GREATEST OPPORTUNITY TO THE BIKE RETAILER?

IN STORE EVENTS Bike shops have in the past ten years evolved quite significantly to become much more than stock holders. The old term ‘sea of wheels’ rarely applies to stores nowadays, which frees up room for smarter use of space. Within our Rapha interview (pg.15) Simon Mottram spoke on “sales per square foot”. Clearly bike retailers are thinking along the same lines, with some 56% of our pool putting in store events as a high priority development area and a further 38% as a mid-level ambition for the future. You’ll read it elsewhere in this issue – experiential retail is the future.

BIKE FITTING At the 2016 Cyclefit International Fit Symposium, organiser Phil Cavell spoke on the need to draw in a greater pool of retailers and our survey shows the appetite for a deeper understanding is there. 51% described enhancing their bike fit skills as a focal point for development.

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(( MARKET RESEARCH ))

SALES ON FINANCE As is to be evidenced in a forthcoming segment of our research, the high-end of the market remains alive and well. It is no surprise, then, to discover that retail finance sales are perceived as having potential for growth. 44% outlined that developing this trade was to form part of their plans in the immediate future, while a further 40% had some interest in driving sales growth here.

DEMO EVENTS The findings on out of store events solidify that the picture for UK bike retail is increasingly about engaging the customer far beyond sales. 43% outlined that demo events are to form an important part of their strategy going forwards with the same percentage again placing such days out as something of medium importance.

SKILL COACHING It’s not for everyone, but for those handy on a bike themselves skills coaching clearly represents an appealing trade off-shoot. 36% of bike shops surveyed outlined that they perceived skill tuition as an opportunity. Should shops pursue this avenue of business, it is essential to have insurances. Recent cases in the UK have seen on the trail accidents turn into lawsuits.

HIRE FLEET CyclingIndustry.News stumbled upon one Oxford-based retailer who has made a storming success of bike hire, overtaking even the city’s own house scheme. Perhaps influenced by the availability of public schemes nearby, just 27% of respondents believed cycle hire to present an opportunity for their business.

Pop https://tinyurl.com/gmoj59o in your search bar for more on the aforementioned retailer.

TRAINING PLANS This one depends on your audience and their appetite for athleticism, but a quarter of our respondents saw the potential in customising training plans for their customers. This does of course require a knowledge of everything from nutrition to anatomy of the body, but for those with a good grasp on their biology and a demographic interested in competition, such efforts can be highly rewarding in margin terms.

EBAY SALES 45% of our respondents would prefer to steer well clear of eBay sales, while just shy of a quarter see this as an opportunity to add to the business’s bottom line. You may require the patience of a saint, but if you’ve stock to get shifted persevering here may ease cash flow and stock bottleneck issues.

OWN BRAND Made a success of by Pearson Cycles, profiled in this very issue, own brand is an appealing prospect and terrifying in equal measure. The lure of enhanced margin on own brand goods is weighted against a heavy consequence if the product is sub-standard when it arrives. Nonetheless, 31% of our pool fell into our bracket of greatest enthusiasm for house goods, while a further 37% considered such trade to present a moderate level of opportunity for the bike retailer.

WHAT OFF-SHOOTS OF TRADITIONAL RETAIL PRESENT THE GREATEST OPPORTUNITY TO THE BIKE RETAILER?

INDOOR CYCLING Space permitting you might have considered padding out a quieter winter by luring in gym goers onto in store turbo trainers. 20% of our retail pool had such a thing in mind to thicken their revenue streams.

In store store events event Bike Bike fitting

MOBILE MECHANICS Perhaps the biggest upset, just 18% of respondents perceive mobile mechanics as offering a revenue stream worth pursuing. Dividing opinion, some retailers are questioning the numbers in particular when it comes to franchised options. For a deep analysis, flick back to our debut Trade Journal where we ran the costs.

Sales finance Sal on financ events Demo e vent Skill ccoaching oaching Own brand brand Hire fleet Hire fl ee Training Training plans plan Ebay sales sale

CORPORATE BUSINESS Bottom of the list, returning just 13% in full favour of developing their corporate links, retailers seemingly aren’t too keen to tie down large scale contracts. 45% rated the opportunity as one they would prefer not to chase.

Indoor cycling cycling li Mobile Mechanics Mobile Mechanic Corporate Corporate business busines 0

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Q3

GOING FORWARDS, WHAT WILL YOU DEDICATE LESS OF YOUR SHOP FLOOR SPACE TO?

CLOTHING Most at risk of having its shop floor square footage shrunk is the clothing sector – some 65% of our pool are losing interest in clothing. Many retailers are leaning toward sale or return, or other forms of supplier flexibility, or simply assessing whether the segment presents the opportunity it once did.

FOOTWEAR It is unsurprising then that footwear is next most at risk, with 61% of retailers assessing a reduction in the number of SKUs they hold in stock.

DEPTH OF BIKE RANGE The trend away from ‘sea of wheels’ showroom floors continues to surge, but this time it’s not cleaner merchandising driving the reduction in bikes carried. Independent bike shops report facing difficulty maintaining margin as the model year ticks on and are increasingly reluctant to tie up cash in bike stocks.

TRAINING EQUIPMENT Exactly half of our pool are concerned by the viability of training equipment in store. With a wide availability of discounted product online, retailers we have spoken with increasingly see the turbo trainer segment as a tough earner.

GOING FORWARDS, WHAT WILL YOU DEDICATE LESS OF YOUR SHOP FLOOR SPACE TO?

COMPLETE BIKE BRANDS It’s not just SKU reduction of complete bikes in the firing line, 43% of those surveyed suggested they would be streamlining their tally of brands carried in store.

Further data gathered by CyclingIndustry.News suggests that while Trek and Giant remain at the forefront, others are beginning to challenge Specialized’s place in the ‘big three’.

INSURANCE PARTNERSHIPS In the last five years you’ll have noted a plethora of bike insurance products come to market, many of which offer commission partnerships with bike shops. However, 38% of our respondents were not fans of carrying through with these commitments.

COMPONENTS Within these pages you’ll read about bike retailers increasingly faced with customers bringing online bought components for fitting. It is no surprise, then, to learn that 36% of our independent stores were looking toward a reduced stock of bike components in the future.

NUTRITION A technical sell for the bike dealer, but one that can work well as an add-on sale item, nutrition goods can be hit and miss. 35% of our pool stated that they would stock less of these goods in the future.

TOOLING 30% of retailers suggested that stocks of consumerfacing tooling would be reduced in the future.

Clothin Clothing

ACCESSORIES Accessories for cyclists remain a bread and butter sale for the independent and are at risk of stock slimming with just 19% of our pool.

Footwea Footwear Depth of bik e range rang bike Training ning equipment equipmen Training Complete bike bike brands brand Complete

SPARE PARTS With the workshop surging in importance to the average independent, spare part stocks are not at risk. Just 16% suggested they would assess the level of back up service parts carried.

Insurance partnerships partnership Insurance Component Components Nutrition Toolin Tooling

CLEANING AND LUBRICATION The UK market is perhaps among the most sensitive to bikes ruined by poor maintenance and cleanliness. Therefore it’s no surprise that just 14% said they’d carry less of these goods.

Accessorie i Accessories Spare parts part Spare Cleaning and lubrication lubrication Cleaning 0

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(( PROFILE LYON EQUIPMENT ))

Great business with the outdoors Best known until now as the source for Ortleib, Lyon’s increased activity in the cycle market has turned what has traditionally been an outdoor retailer account essential into an attractive proposition for the cycling market. Mark Sutton speaks to Nils Amelinckx about taking on Bombtrack and creating its own bikepacking festival…

W

ith a 40 year heritage in the outdoor arena, Lyon brings something new to the table with its increased interest in the cycle market – crossover.

Bikepacking has long been building a head of steam in the cycling world, often turning heads at trade and consumer shows for bringing to the fore just what’s possible by bike if you put your mind (and some decent gear) to it.

“By drawing on both our bike and outdoor portfolios, we are able to provide everything a consumer may need to set off on a fully selfsupported round the world adventure.

It allows retailers to have a point of difference, which will help to drive people into the store,” offered Lyon’s Nils Amelinckx.

Lyon turns over in excess of £20m annually, and employs over 80 people at its state-of-the-art facility at Tebay in Cumbria. The success thus far has been built on top brands, “better than best” service and the strong relationships, say Lyon. But it’s only in recent years that the firm will have become known to the bike retail business at large.

The latest addition, WeMakeThings’ Bombtrack brand, is a label with a strong European following and a quickly building reputation in bikepacking circles.

But why should bike shops looking for a shop floor space filler look at Lyon?

“We are known for our stock holding; retailers can effectively draw from our stock of products which helps to minimise their stock risk,” offers Amelinckx. “We like to keep business simple and make ordering from us as straightforward as possible, so our terms and minimums reflect this.”

Amelinckx also considers the crossover in Lyon’s portfolio to be an opportunity to bring in new customers.

“Strong adventure cycling displays really seem to strike a chord with the consumer. Just visualising the capabilities of a bike and the options it opens up when loaded with a few bags and kit becomes incredibly aspirational. It might be seen as a risky move to devote precious space to adventure cycling, but those retailers who have trialled this approach have already seen a very positive return.”

It is for these reasons that Lyon is trailblazing with the launch of its own Adventure Cycling Festival, set for Ambleside in the Lake District from 24 June 2017. Partnering others in the cycling industry with an interest in the bikepacking and outdoor arenas, Lyon taking the bull by the horns has the potential to be a bike profile raiser not only to cyclists, but to outdoor enthusiasts with one eye on how to cover more ground.

With an appearance from Mark Beaumont planned, as well as work-

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shops, demos and live music, exhibitors at the inaugural not-forprofit event are to be encouraged to interact with the audience. There will be overnight bike packing excursions into the wilderness, pack rafting tuition and semi-guided rides in from local stations all held by those backing the year one event. With ample space at the venue, test tracks, local paths and unbeaten paths into the wilderness are in abundance.

“Going to other shows we felt as though our varied portfolio wasn’t best served and our demographic not targeted,” explains Amelinckx of the reasons why Lyon is moving into events. “The audience we’re inviting along and will be marketing the festival to is a lot more targeted. There’s a ton of brands genuinely innovating in this arena and I think it’s inspiring the wider outdoors market. Those on board for this year will all serve as committee leaders for the future and I think everyone on board agrees that the more we put in now to grow the pie, the more we’ll get out in future.”

Tickets for the festival are now available, coming in free for the under 16s and costing adults £20 for access to the festival’s full array of features. Got a customer with wider interests in the great outdoors? Point them to Lyon’s dedicated site, now live at: www.adventurecyclefestival.co.uk

KEY LINES FOR 2017 BOMBTRACK BEYONDPLUS Available as a frameset of complete bike, the sought-after Beyond Plus is an ideal candidate for the customer who likes to disappear into the wilderness for the weekend.

Rolling on 27.5+ oversized 2.8-inch wide tyres, the Plus cushions the trail and offers grip on all terrain. There’s plenty of detail you may overlook at first, but the build actually packs in to the rear of the frame and on the fork provision for racking, while on the underside of the down tube holds an extra cage mount, allowing for a total of five water bottles to be mounted on the bike.

For those opting for a complete bike, Lyon offers a SRAM NX driven 11-42 tooth range, enabling your customer to both enjoy full speed ahead and make it up the climbs.

SOLO STOVE

The sought-after Beyond Plus is a favourite for wilderness wanderers thanks to its superb carriage capability

One of the perks of having a Lyon account is the ability to generate add-on sales outside of cycling

Customers looking to be self-sufficient for days on end in the wild would do well to pack a Solo Stove. Lightweight, compact and eco-friendly, the wood burning stove incorporates a secondary combustion for a more complete, efficient and cleaner burn. Vents in the base draw air into the primary combustion at the base of the stove while hot air rises up the double walls and out of vents at the top resulting in the secondary combustion. What this means is that less fuel is required and you’ll also achieve a higher temperature on which to cook. Nichrome wire, which has a high melting point of 2552 degrees Fahrenheit, is used for the grate.

Three sized are sold via Lyon, along with a range of cooking accessories.

ORTLEIB Renowned for its safe and secure outdoor gear, you’ll find Ortleib’s stocks with Lyon. Offering everything from panniers to a full range of bikepacking solutions, Ortleib build packs to withstand the elements – so perfect for the UK! Made in Germany, the firm’s Eurobike Award-winning handlebar pack is PVC free and offers 15 litres of space, enough to hold a sleeping bag and plenty more. A two-sided roll closure offers access in the saddle, while compression belts and drawstrings reduce size when needed, as well as allowed further attachments. The mounting system, consisting of spacers and two straps with ultra-strong Velcro closures, ensures a stable attachment to any handlebar type.

Also pictured here is the easily attached accessory pack which utilises metal hooks to pair seamlessly with the handlebar pack.

To this day, Ortleib remains one of the market's most trusted outdoor luggage labels.

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(( BIKE FITTER’S CORNER ))

ANDY BROOKE FOUNDER OF THE IBFI

STANDARD PROCEDURE? It wasn’t too long ago that we caught wind of a rumour relating to a bike retailer potentially facing legal action following a customer complaint. But where would a shop stand with such a claim and how is the industry adapting as calls for certified professional standards increase?

Mark Sutton speaks to International Bike Fitting Institute director Andy Brooke…

FOR the uninitiated – fill us in on the IBFI, where it came from and why?

AB: The International Bike Fitting Institute (IBFI) is a professional body for bike fitters and cycling analysts.

Our aim is to improve standards across the industry and help consumers to easily identify welltrained fitters, ensuring that they receive a high-level service. We’re trying to shift things away from focusing on brands of bike fit technology and towards training and skill levels. It shouldn’t matter what system a fitter uses, it’s the end result that matters.

If the fitter isn’t well trained, then even with the best equipment in the world the end result may not be ideal.

The IBFI actually came about through conversations at the International CycleFit Symposium (ICS).

In 2014, several conference attendees started to ask how the market for fitters could regulate itself in light of a huge influx of untrained, under-qualified fitters. I’d worked for British Cycling in the past, certifying clubs to Sport England’s Clubmark standard, and there were definite parallels that quickly became the basis for our own certification scheme. I went back to ICS in 2015 with a rough outline and pitched it to some bike fit education companies and technology manufacturers, who saw the benefit of what the IBFI was

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trying to do. They’ve now joined our steering committee.

A key objective seems to be to bring about a global professional standard of sorts, what progress have you made here?

AB: We’ve been lucky to create a steering committee that includes some of the leading bike fitters, bike fit educators and technology manufacturers like gebioMized and Motionlogic. It’s a varied bunch with a broad range of opinions, which means when we all agree on something, you can be pretty sure it’s a good idea and the right thing to do.

Our certification process is based

on accruing credits from five different areas, including courses, conferences, technology, CPD and academia. The first big step for us was agreeing on the weighting of credits for each area. We don’t favour a certain fit school or methodology and are keen to be as transparent as possible. We’ve got around 60 certified fitters worldwide currently and that number is growing rapidly.

We’ve recently advertised for regional representatives to cover areas where language and time zones make it difficult for fitters to contact us directly. We have six in place currently, and this will continue to grow over the coming years as we expand awareness into new areas.

What barriers stand in the way of creating an industry standard?

AB: Remaining independent is really important to us. We operate as a notfor-profit organisation with all the funds we have going back into promoting bike fitting and our members. One of the difficulties we could face as we grow is how to sustain that independence while fully funding our marketing and operational goals. That’s why it’s really important for us to squeeze everything we can out of the annual certification fees we receive, but ultimately, the more members we have, the more money we’ll be able to spend on marketing and advertising and the bigger impact we’ll have in the industry.

Do you foresee that the industry operating without such a standard could present legal problems on the off chance a bad fit causes issues for a customer?

AB: Of course. To my knowledge there have only been two law suits brought against bike fitters, both in the US, and both were successfully defended – but only because the fitters in question were well trained and kept excellent records. The more people that carry out bike fits without training, the more risk there’ll be of causing an injury or issue as a result of poor positioning and that’s when the law suits could really start flying in.

It’s important for us as an industry to get ahead of that potential problem and train our fitters to ensure that the risk of them causing any harm is incredibly low. If we wait until someone gets sued then all bike fitters could be tarnished with the same brush, resulting in the entire industry getting a bad reputation. Obviously we’re keen to avoid that, and a certification system based on proper training is the best way to reduce the risk of poor service and increase consumer confidence.

That aside, the IBFI will act as a source for finding a qualified fitter – how can someone with credentials make their case to get your seal of approval?

AB: Once we have a good geographic spread of fitters on our find-a-fitter page, we’ll start advertising that to the general public and drive business for our members. We’re very close to achieving that in the UK and will start advertising here in the next few months.

To become a certified fitter and get a listing on our search tool, all you need to do is complete the application form on our website. We’ll check your qualifications, establish which level of certification best applies to you, and

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(( BIKE FITTER’S CORNER ))

STANDARD PROCEDURE? then fire over an invoice for your certification fees (which are currently half price) before listing you on our website as a certified fitter.

Being certified also opens up a series of member benefits including reduced fees on some bike fit training courses, reductions on conferences tickets, discounts on FitKit products and a 33% reduction in BookingBug fees – an online calendar and booking system to help you managed your fits more easily.

For new fitters entering the industry, how would you advise they develop their skills and where should they train?

AB: As a new fitter the best thing to do is decide what kind of fitter you’d like to be. I think the market will slowly split into fitters focused on performance and those looking more at injuries. Performance oriented fitters will probably use a bit more technology and some are already using the term Cycling Analyst. This will almost definitely require purchasing some expensive kit to measure outputs such as knee angles, pressure on the saddle or directional forces at the pedal.

Most fitters focusing on injuries have a background in physiotherapy

or sports therapy, although there are a lot of good courses to help fitters without this background. It can take a lot longer to build up the knowledge and experience required to fully identify and understand overuse injuries, and the training required will probably off-set a lot of the money saved by not buying the expensive tech of the Cycling Analyst.

Once you’ve decided on the kind of fitter you want to be, it’ll be easier to identify the right course provider to help you get there. Our members have the option of working with a mentor to help guide them through this process and identify any areas of weakness that could be improved to help them become a well-rounded fitter.

Tell us about the differing levels of certification?

AB: We offer four different levels of certification based on the number of credits a fitter has. For level 1 a fitter only needs 120 credits, and that number doubles at each level above.

The idea is that it helps separate the very best fitters and also encourages continued development and improvement. If you’re listed as a level 2 fitter, but your main competitor is a level 3

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fitter, then it’s in your best interests to attend a few more courses and bump up your certification level. This gentle competition should help drive standards across the industry and make us all better fitters.

What other work are you undertaking?

AB: We’re currently working on a series of bike fitting text books to help standardise what is taught on courses and provide existing bike fit educators with a teaching resource. Hopefully the first of three books will be launched later this year, and provided free of charge to IBFI members upon renewal of their certification.

I’ve just had a really promising meeting with 700c who are helping us find an insurance package for our members. A lot of fitters are worryingly under-insured and hopefully we’ll be able to announce something in the next month or two that will help fill those gaps.

There are lots of things going on behind the scenes that we’re not necessarily able to shout about just yet, but it’s definitely an exciting time for us and things are moving really quickly.

CONTACT: ibfi-certification.com

Tutorials to help you keep your customers happy...

Electric bikes: best practice in the workshop AS we all know by now the electric bike is more than a mere passing fad. More and more electric bikes are being sold and with each passing month a new development is made. The impact of this on the cycle workshop is that it is now not uncommon for an electric bike to be wheeled through the workshop doors with some kind of problem.

In this article I’d like to share with you some basic workshop ‘best practices’ and some hints and tips on battery care. It’s worth mentioning that this isn’t exhaustive and we have a dedicated four day Cytech Technical e-bike course which covers the subject in depth.

From new, an e-bike will often be shipped with a battery in a ‘hibernation’ mode. Shimano for instance ships its STEPS batteries with a 30% charge inside them.

In this state the battery can take up to five years to fully run out of charge and become unusable. This means that the distributors have plenty of time to receive the batteries, store them and ship them to shops without the batteries losing all charge.

As soon as the unit is charged however, the battery awakens from this hibernation mode and the time to it becoming unusable is much shorter – perhaps only a year and a half in some cases, so regular monitoring of the battery is then required. It makes sense therefore, that when the shop builds an electric bike from new and charges the battery to 100% before putting the bike on display, that some sort of reference is taken as to the date of which it was charged so that regular top up charges can be performed to stop the battery from becoming unusable. A swing ticket hung from the bike or a log placed in the workshop planner as to when the battery was last charged is a good idea. Charging up the display e-bike is something that’s easily forgotten in a busy shop environment.

It may also be worthwhile sticking a sticker on the battery with the date of last charge written on, with spaces for the customer to document further charges.

This could be particularly useful if the e-bike is used infrequently as a reminder to top the battery up every three-four months or so. This gets the customer into the habit of keeping the battery in good health and as an ideal the battery should be stored with at least 70-80% charge.

In a workshop environment have a clear flat surface in a well ventilated area for charging the e-bike batteries.

Cycle workshops can become quite cluttered and a battery and charger can become quite warm when on charge so don’t cover them with oily rags.

Also bear in mind that the charger itself will draw a small amount of electricity even when not charging the battery, so if you are leaving the charger plugged in and switched on at the plug you are adding to your energy bill, not by much granted, but every little helps right? Ensure also that you do not overload your sockets and distribute

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By Julian Thrasher, ATG Training

extension leads evenly between your wall point making sure that you only use one socket space per charger and don’t use additional extensions from the extension leads.

Consider also having a timer switch plug that you can set to cut the power out of shop hours. This could be particularly useful if you get home and remember you haven’t turned the power to the chargers off – most chargers these days are ‘intelligent’ in the fact that they won’t over charge the battery, but not all. At best you’d come back to an increased energy bill, at worst to no shop at all.

Battery chargers are also not cross compatible. It’s good workshop practice to make sure that all the chargers are labelled as to what battery/bike they are for. For instance, a manufacturer may choose a stock charger body, but to make it specific for their brand of battery they will switch the poles of the charger, which could lead to devastating results if used with the wrong type of battery.

From a safety point of view, make sure that you have your smoke alarms thoroughly inspected and a fire extinguisher capable of tackling electrical fires close by. It’s worth having a box of sand that you could smother the battery with in the worst case scenario, as well as a set of tongs to drag the battery off of the bench as it will get very hot very quickly. Also, have a clear exit route to the outside, the smoke given off from an e-bike battery fire is very harmful. Having a metal container in which to store the batteries is a good idea, as is considering having someone trained in the shipment of hazardous materials – or at least contact your e-bike distributor before shipping e-bike batteries as there are some very strict rules when it comes to battery shipment.

Remember also that it is the shop’s responsibility to recycle batteries responsibly. It could be a good idea to befriend a garage who recycles a lot of automotive batteries, for example.

Having a robust set of basic procedures in place should be considered as the back bone of an effective and efficient workshop. Adding these simple steps to your everday working practices will help to decrease unnecessary costs and increase safety.

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CUSTOMER CONUNDRUM: WHO DOES THE INDUSTRY NEED TO TARGET? WORDS: Edward Willis

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A

T Sports Marketing Surveys INC., we like questions and answers, and arguably the question “who is cycling?” has never been more important. Our participation research from 2016 reveals that cycling participation has risen by less than half a percent between 2014 and 2016. Whilst these figures are far from negative - in fact, SMS INC.’s latest figures show that cycling, the third most popular sport in the UK, has gained some ground on running since the research was last conducted in 2014 – they do support the impression that involvement is flat. This is hardly a good metaphor for an industry that needs air in its tyres.

It also represents a strategic challenge to businesses used to more dramatic growth over previous years.

2016 was a turbulent year for many retailers in the industry, and in part this is explained by this slowing growth rate at a grass roots level.

Without throngs of new cyclists, brands and retailers are finding themselves in more direct competition for the attentions of a limited pool of participants. For individual businesses this generates a need to understand how to tell better stories about their own brands, but also to consider what is working for others.

Indeed, for the industry as a whole there are areas where collaboration, and not just competition, is the order of the day, in particular when it comes to understanding how to engage the next generation of cyclists.

There is certainly more that can be done to increase female participation in cycling. Our research calculates that 64% of UK cyclists are male, with avid and regular riders much more likely than occasional cyclists to be men. In the same vein, our cycling frequency analysis also exposes another potential area for growth. Young adults are much less represented among avid and regular cyclists than they are among occasional riders, and yet in many cases these are people who should be turning to bikes multiple times a week for transport at univer-

sity or to commute to their first jobs. In fact, although comparatively strong in terms of its number of regular cyclists, the proportion of UK cyclists who describe themselves as “avid” (cycling at least once a week or more), stacks up unfavourably against many other countries.

It is therefore vital to understand how existing cyclists could be encouraged to spend more time on their saddles. Our UK figures highlight the fact that only 23% of UK riders spend as much time as they would like on exercise. For the remaining three quarters of cyclists, there are myriad limiting factors, including family and work commitments, but also areas like weather, motivation and other hobbies and interests.

The challenge for cycling brands, retailers and federations is to encourage this remaining 77% to spend more time cycling, at the same time as appealing to new demographics and beginners. 7.2m adults in the UK are now estimated to cycle at least four times a year. For all the heroics of Jason and Laura Kenny, Sarah Storey et al, no new Olympics is likely to lead to a boom in cycling participation to rival what was seen after 2008 and 2012. However, stories in the news about air pollution and traffic congestion reinforce the idea that cycling can enhance its appeal as a means of affordable, green, active transport that benefits mental and physical wellbeing.

For many involved in the industry, this can mean walking a treacherous tightrope. There is a need to invest in new technology to encourage existing riders to spend more money.

However, it is important that this doesn’t translate into an exclusive focus on stocking and marketing high end, high performance bikes as this may risk alienating potential new

cyclists who find high price points and technical jargon intimidating.

There are all sorts of ways to engage new audiences. For example, promotions around local cycling events, both amateur and professional, can offer excellent opportunities for retailers to engage with customers at all ends of the experience spectrum. Family cycling could also be much more widely promoted as an active and sociable activity, something that parents can look forward to doing with their children, and children can also enjoy with friends.

E-bikes are a prime example of new technology that can appeal to both new and existing cyclists. In fact, our detailed consumer findings show genuine interest in trialling and even purchasing e-bikes in the near future.

However, if poorly marketed, they also risk adding additional layers of technical detail to an already complicated purchase. It is one thing to extol an ebike’s gadgetry to customers who enjoy talking about torque sensors and battery specifications, but it is more important to identify what level of detail customers are looking for as they walk into a shop or access a website. For someone trading a car journey for a bike commute, range and portability might well be more appealing. Likewise, for one of the many occasional cyclists identified in our participation research, a bike’s reliability, comfort and price could prove more influential.

The key to all of these issues, both for the industry at a macro level and for bike shops at a micro level, is to understand the cyclist. Ultimately a proactive retailer forging great relationships with customers can be every bit as influential as infrastructure and product design in encouraging that 77% to cycle more often, or in encouraging new types ofs cyclists to take their first ride.

Sports Marketing Surveys INC. (SMS INC.), offers detailed reports on cycling participation in 21 countries as well as in-depth consumer studies in the UK, France, USA and Germany. SMS INC. is a full-service market research company serving the sport and leisure industry. Please contact Edward Willis at ed.willis@sportsmarketingsurveysinc.com for more information.

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(( ELECTRIC BIKES AMPS ))

Wispers of an opportunity Bike retailers are suddenly spoiled for choice when it comes to electric bikes, but David Miall’s AMPS has been in the market for the long haul, selling its first e-bike in 2005. Mark Sutton chats to new recruit Jeremy Crook about the market, selling electrics and key lines for 2017…

“

I understand electric bikes, but Jeremy really understands the cycling industry and has 25 years with the likes of Magura and many more under his belt,” says AMPS director David Miall. “With the market moving at the speed it is, we needed to bring him on board.”

Miall, with so much experience in the e-bike world to fall back on, is acutely aware that the UK market has just spiked. With his time largely focused on the development of house-label Wisper, Crook’s appointment ensures that AMPS keeps track with the market’s movements and prepares a portfolio for future expansion.

“We will add a Bosch-driven portfolio later in 2017,” says Crook. “For the time being my focus is to raise Wisper’s profile at the end of the market that the UK customer is really buying into. The 705se is one such bike that really doesn't look like it costs £1,100, but David’s expertise has refined the product and it now sells itself. The customer is really calling for quality at this price point and we’re delivering.”

By the time you read this article the firm’s B2B overhaul should have gone live, bringing the dealer portal up to date with fresh branding, live stock levels and downloads of training material among other aspects. Physical dealer training is on the cards too, with four sessions per quarter spanning the

south west, Scotland, the north/midlands and delivered at the firm’s own headquarters in Kent.

“It’s crucial that our customers are kept on the road and we are equipped with £120,000 worth of spares and service items to ensure the customer always has backup,” says Crook. “Our objective for 2017 is to recruit up to 150 dealers across the UK and following an early link up in Switzerland, potentially explore exporting the Wisper brand, so strong back up is crucial.”

With further staff due throughout the Spring to support Wisper’s drive, AMPS has outlined a profile raising plan with up to 4,000 catalogues adorned with sharp brand photography and appearances on the road due.

“We’re doing a lot more demos this year,” says Crook. “We’ll be at the ebike-tips event, among others, so our bikes will be placed infront of new audiences throughout the year to support our dealerbase. A photoshoot will shortly really up the impact our marketing makes and the catalogue will lose some of the jargon, to help consumers easily choose the best fit for their needs. Having part founded the British Electric Bike Association (now part of the BAGB) David too brings a deep following to the brand.”

Despite the brand’s heritage it is evident with the 2017 portfolio that the electric bike demographic is changing.

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“Our colour palette is quite deliberate,” says Crook. “It’s brighter and sleeker throughout. You’ll notice subtle tweaks like the removal of a spacer at the headtube on some models so the frame flows more effortlessly into the fork now. There will be a push to target the cycle to work scheme customer too, which tends to have a younger demographic.”

Although with Magura at the time, Crook pinpoints a moment when he started to notice changes happening in the UK market, but has the iceberg tipped and should the hesitant dealer now commit? He thinks so.

“All of the big brands at the Cycle Show had an electric bike on their booth and I think that the likes of Specialized, Trek and Cube’s investment in the market is indicative that the iceberg is tipping. Sell through on our bikes is happening quite nicely, so there’s no worry of stale stock. In the last six months it began to accelerate, but particularly in the past three months trade has exploded. Retailers are now scrambling to get a brand on the shop floor from what I’ve seen both at Magura and here.”

Dealers interested in the Wisper portfolio can contact Crook at: e Jeremy@amps.bike w www.amps.bike

KEY LINES FOR 2017 WISPER 705 First and foremost, Wisper’s portfolio is delivered in an entry level SE spec and a high-tier Torque spec, meaning the 705 comes in between £1,099 to £1,399 at the SE pricepoint and £1,599 to £1,799 for Torque builds.

The difference isn’t solely about spec, with the SE line based around a Cadence-driven system which picks up off the motor, while the Torque line is reactive to the rider’s input. The 705 Torque comes highly recommended by AMPS, who have developed the build to offer a great all round riding experience. The motor is a highly efficient 250W ultra hi-torque 50Nm brushless rear wheel drive system. Both quiet and efficient, the 705 can be specced with either a standard 375Wh battery, or for greater mileage a Samsung 575Wh unit. The latter comes with a Deep Sleep mode that protects the battery during non use.

As Wisper’s best-seller, the entry 705 sells to both men and women making it an easy sell to couples seeking a pair of bikes for jaunts in the countryside.

WISPER 806 Again available in the SE and Torque brackets, the 806 retails for between £1,099 and £1,299 or £1,599 or £1,799.

This time built around a low step-over folding chassis, the 806 discreetly stores the battery in the rear rack, with the motor found in the rear hub. Again, the customer has the choice between a standard or a high-spec Samsung battery, the latter of which will deliver a 50 mile range. Built in lighting operates as you pedal, while mudguards shelter the rider from road spray making this an ideal commuter or boat and caravan bike.

Hinges operate at the mid point of the frame and above the headset, meaning that the 806 will quickly fold to half its size.

Stopping power is delivered via a mechanical disc up front and rear V-brake.

WISPER 905 Built to cater for the male customer who wants a traditional high step over, the 905 will deliver 50 miles on a standard battery and 75 with a Samsung upgrade.

Fully charged in two to four hours, the 250W 50Nm brushless rear wheel drive motor runs quietly and will propel the rider comfortably at 15.5mph.

Built around a hydroformed 6061 Alloy T4 and T6 tempered tube set, riders will further benefit from Suntour NEX/SR fork with the ability to lock out on the climbs. On the subject of inclines, many of Wipser’s bikes now feature a ‘walk assist’ mode, designed to help riders get their bike moving to 4.5mph from a standing start on tough gradients.

Wisper's colour palate has brightened up in a bid to draw a younger demographic.

Ideal for the caravan and boat-going customer, Wisper's folding option presents strong value for money.

A choice of a standard or Samsung battery upgrade is worth presenting to your customer if they're covering distance.

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(( SOCIAL MEDIA ))

WORDS: Steve Baskerville, Caffeine Injection

UNDERSTANDING SOCIAL MEDIA

A

lgorithm. It's a great word. It sounds authoritative, clever even. It's got just enough syllables to remain memorable but not so many it's hard to pronounce. Until a few years ago the only people who ever used it were geeks, now anyone who fancies themselves as a social media guru will throw it out there.

What is an algorithm? No idea. I know it's some mathematical thing. In the movies characters who are meant to be brainy write them on glass windows.

Beyond that I'm clueless.

Why am I talking about it in a social media article then? Because, social platforms use them to make decisions about what does, and doesn't feature. In fact, it goes far beyond social media now. As ‘The Internet Of Things’ becomes a reality the innocent algorithm is becoming the modern day Health And Safety excuse of choice: Why did your company make that silly decision?

The algorithm told us to.

When it comes to social networks, algorithms are pointless to you and I. Even if you know how they work now they are constantly changing, so a decision reached today might be different tomorrow.

What's my point? Ignore them, and anyone professing to understand social media who refers to them in their opening gambit.

So, social media? It's great, and terrible, in equal measures, but invaluable to those who have something to sell. It's a minefield too, littered with big money pits that are easy to fall in to.

Years ago I once referred to internet forums as really big rooms full of people with similar interests. With regards to cycling forums, I likened them to large rooms full of cyclists that you had free access to. As people who make their living selling stuff to cyclists why on earth would you not spend your working day engaging?

Social media is the same. Except the room is infinitely bigger, so the cyclists are harder to find. But, human nature means people tend to group with like-minded individuals, so it's not too hard to find the huddles of riders. The bonus with social media is everyone has a big floating sign above their head listing their gender, age, interest, locations, and so on. Admittedly sometimes you have to pay to see this sign, but it's there.

How you find your target user group varies depending on the network, but for the biggie, Facebook, there are essentially two ways, one easy, one not so easy: Paid and organic.

Paying to get your message out there via Facebook isn't as expensive as you might think. For instance, if you have a message to get across to males aged 25-45 with an interest in mountain biking living within a ten-mile radius of your shop, depending on the population density in your area a daily budget of only £5

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could have a significant impact. If you've carefully crafted your advert to catch people's attention, you could typically expect a price per click of 10-20p, meaning as many as fifty potential buyers per day are visiting a listing on your website. If your website and product listings are up to scratch, that could convert to an awful lot of sales.

The key with Facebook adverts is one simple message with a tightly defined demographic, with great graphics and copy. Don't try to create an advert that appeals to everyone: Work out your target customer and focus on them. Give them one or two good reasons to visit your site or your store.

You don't have to pay to harness the potential of Facebook, though, organically grown clicks and likes should always be your long-term goal. Engaging posts with links to your site should be a daily occurrence for any business that wants to grow its reach.

The crucial thing there is links to your site, not others.

The biggest mistake many make is sharing posts from other Facebook pages which ultimately link to their sites, not yours. While this practice is a quick and easy way to fill your timeline with relevant on topic posts, you're actively driving YOUR audience to someone else's website.

If there is an interesting news item that you think your audience will enjoy, create your own article, then share this link via social media. This way your driving traffic to your site, and ultimately to your shop.

That after all, is the purpose of the social networks: To drive business to your door, not others.

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(( FOCUS ON... MERCHANDISING ))

IS YOUR STORE BACK TO FRONT? If you found my last article about The Toxification of the Bicycle Industry Supply Chain a little bleak, brutal even, you may want to sit down and make a cup of tea. Ready?

Well here’s the headline. A significant proportion of UK bike shops have got their shop-floor layout, pricing policy and servicing communication – well, Back to Front – and they need to turn things around fast or risk going under.

WORDS: John Styles

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OH GOD REALLY? My last article likely offended many of the biggest companies in the world, and this article is going to upset many of the stores?

Sorry, but yes. There’s a bunch of IBDs who’ve already closed in my area (the South East) and I don’t want to stand by and say I did nothing for the rest.

The lack of Trust that has been created by the Toxic Supply Chain is being exacerbated by three major pitfalls which IBDs need to examine (and hopefully avoid) if they are to survive. I want to be positive about what retailers can do to rebuild Trust with the consumer, what is under the IBD’s direct control.

1. Back to Front Shop-floor Layout: the till needs to be at the front If you’re sitting at the back of your store, looking down an empty shop, and wondering where your customers are, then you’re most likely sat in the wrong place. Placing you and your till at the back of your store harks back to an era of serveover counters which modern retailing has long since left behind. It creates five major problems in the way consumers interact with you. i) Confrontation If you walk towards each other it can be (subliminally) like going to war – it prompts the consumer to think of you as ‘the enemy’, whereas friends and allies stand side-by-side. I’ve witnessed dozens of conversations where the consumer starts off ‘on the attack’. There are many reasons for this, the layout of the store is just one factor in positioning you as ‘the consumer’s friend’. ii) Distance So you’re 40 feet away from each other, do we talk, whisper or shout, do we wave, do we get up, do we stay put? Douglas Adams has a lovely phrase for this awkward moment in his book ‘The Meaning of Liff – the

original dictionary of things there should be words for’: “The moment at which two people approaching from opposite ends of a long passageway, recognise each other and immediately pretend they haven’t. This is to avoid the ghastly embarrassment of having to continue recognising each other the whole length of the corridor.”

Don’t make your store one long corridor with you at one end and the consumer at the other...

iii) The ‘Walk of Shame’ People feel uncomfortable when you can see their legs and read their body language but they can’t see yours – think of every ‘job interview panel’ scene you’ve watched in a movie. The unfortunate candidate is always set back in the middle of the room, feeling vulnerable and exposed. If you want your store to be more welcoming, don’t hide behind a barrier. Set up your store to make it feel natural to come out and assist. iv) Awkwardness Ok, so you ‘greet’ the customer from afar, then there’s that long long moment while they walk down the store to your till. Douglas Adam has an observation on this too: “Corridor etiquette demands both protagonists must now embellish their approach with an embarrassing combination of waving, grinning, making idiot faces, doing pirate impressions, and waggling the head from side to side while holding the other person’s eyes as the smile

drips off their face.” Ok, he’s talking about offices but… sound familiar? v) Routing and Immediate Initial Contact Routing affects the feeling of Trust, with you at the back of the store, the consumer feels you are watching them (indeed you might be). Whereas if they pass the till at the front and you greet them “naturally and immediately” it’s more welcoming, plus they don’t tend to observe you… observing them. NB - Tills at the rear of the store also encourage single purchase transactions over multiple purchase.

By placing the till at the front it encourages shoppers to view all the merchandise before paying. Isn’t this layout so much better on every front?

Of course shops used to be designed this way so you may have inherited this architectural albatross from the previous owner or your landlord. But in most cases, you have a choice and you can change it. Why? Because it affects the way you and your customers interact, every day.

Winston Churchill is credited with many sayings that are in common use today. My favourite is this one: “A man makes his environment and thereafter it makes him.”

The other reason why you may have a store that is set up this way is for your own convenience. It makes sense to have your workshop at the back of the store with all of its associated utilities. And then if you are a one or two man band, it kind of makes sense for you to be nearby to the workshop. However, in creating this convenience for yourself, you may need to recognise the inconvenience it causes many of your consumers. New stores I visit tend to place the till at the front. I also see some stores putting in second tills or PDI/clean works stations at the front of the store (while keeping a second workshop out back for the muckier jobs). Two tills or workstations may be better than one.

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(( FOCUS ON... MERCHANDISING ))

2. Back to Front Communication: No Servicing Menu – “we just talk to people”.

One of the key ‘Trust-building’ interactions that consumers have with you is servicing. A great number of stores don’t openly display a service menu and I’m often told it’s because “each job needs talking about and assessing”. True, but…. what a modern consumer feels comfortable with is something more akin to McDonald’s, Subway or a Deli counter menu. Big bold writing, simple options, clarity.

Even though many stores print a servicing menu it’s often small or obscure or lacking detail. People need to see (not hear) your pricing before they engage in a conversation. It isn’t good enough just to explain prices verbally or point at a tiny A4 printout on your counter once they engage. At that point they’re already committed and it makes them feel uncomfortable having to think and look through things in the moment.

Again, it’s all about Trust and you can build Trust by being open and transparent. While we’re at it, are your servicing prices on your website?

3. Back to Front Pricing: Everything at full price.

If I had £1 for every retailer who told me in the last 20 years that "we can’t possibly afford to discount, we’re not making enough margin anyway" then.... well you know the rest.

However, pricing is not a rational thing to the consumer it is an emotional decision. And if everything in your store is always full price the consumer will emotionally judge you to be the enemy. As most of my mountain biker friends tell me with new-found pride “I NEVER PAY FULL PRICE FOR ANYTHING ANYMORE!” ie. They have re-written their Belief Stones (see ‘The Chimp Paradox’ by Dr Steve Peters (Team Sky) if you want to know why that’s so important). That battle of beliefs has been lost, so stop battling the consumer. Or at least, stop battling them on the reality of price and start battling their perceptions of price.

No-one is suggesting you go on a mad discounting spree. But what you may need to consider is either discounting many day-to-day products just a little bit (think Tesco: every little helps) or discount a few things a lot (think WH Smith: half-price chocolate bar at the till).

Consumers are not rational, what

makes sense to you doesn’t make sense to them. You have to engage and influence them emotionally. A classic example of this was outlined on Ch4’s The Food Programme, which detailed why IKEA sells its restaurant food at such low prices and profit margins. By convincing consumers that their food is such good value, consumers mentally carry that ‘promise’ to their furniture and believe that also must be exceptionally good value. I am not suggesting for a moment that you open a subsidised café in your store. But a selected bargain bin or hot offer prominently displayed near your till would generate incremental sales, consumer excitement and most importantly a feeling that you are on the consumers’ side.

Trust, it all comes back to Trust.

Unless you are a boutique store, expecting (and demanding) full SSP, on everything, 24/7, 365 is not realistic any more. You don’t need to change your beliefs and stop worshipping at ‘the altar of Full SSP’. You just need to persuade your customers that you have. Even just a little bit. Shades of Grey. Not Black and White.

Times have changed, it’s time to move with them.

PS...

These are just three aspects of shop floor layout and planning which could help make or break your store. Trust me when I say they are the tip of the iceberg. Having visited over 600 stores in the UK, Canada, USA, France, Spain, Holland and Belgium it may come as no surprise that I have learned a thing or two about retail (a few years working with WH Smith and Blacks/O’Neill didn’t hurt either).

So you’ll probably find it even less surprising that this article finishes with a plug for my retail consultancy business. If this article has moved you to consider redesigning your store layout, or if you’re considering opening a new or second store, I can help you. Just visit my site at www.cyconomist.com to see details of my "Marginal Gains" shop-floor planning service. Unlike the politicians, I’ll tell you what you need to hear, not what you want to hear. The Truth. I might even try to sell you some of the brands I represent while we’re at it, but only if they’re right for your newly redesigned store. After all, I’m nothing if not (brutally) honest.

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ENGAGE & EVALUATE Visitors to the Madison Sportline IceBike show may already be familiar with the name Mark O’Dolan, the mind behind HighStreetMentor.co.uk.

In the first of a series of articles for CyclingIndustry.News O’Dolan analyses profit per square metre and how to maximise your returns.

A

quick look at the cycle market reveals too many under-achieving retail stores with opportunity for growth. As a retail consultant I don’t need to look at the books to know if a retail business is achieving its potential profit per square meter, it’s usually evident in the first few minutes.

It starts with the window display; are they exciting and engaging?

Does the shop meet the customer needs in terms of product range? Is the stock density right versus sales forecast? Is there clarity in the layout? Is the visual impact and point of sale clear and exciting? Is there evidence of first class customer engagement? If you tick all those boxes then there is only online marketing to think about, but if you don’t then possibly the threat to sales growth is within the business and that’s an opportunity to drive sales and profit.

Millions is spent in independent cycling shops, but the question is; could the footfall and customer conversion rate be higher. My view is yes, it could be if more attention to detail were given to ensuring the customer experience is exceptional and memorable. A bike shop should be a place consumers want to return to frequently, not just when their bike breaks down. At the IceBike exhibition I was asked to present to retailers about the importance of visual

merchandising and promotional opportunities situated within the ‘model shop’. The result saw retailers planning to return to their stores to review the shop format. Surrounded by evidence of good merchandising in the model shop, retailers agreed more time is needed to be spent on merchandising and imagery to create a special ambiance.

We discussed a value and flexible point of sale system to help identify new lines, promotions and best sellers. This is an important, because done badly it can devalue the product (such as a scrappy hand written signs!) and not done at all means you won’t be able to communicate offers to increase sales. One of the ideas I proposed to consider is chalkboards.

I talked a lot about visual impact to improve sales density because it’s absolutely critical to customer experience. The internet will never give the engaging feeling a shop can offer, if done right. I want “Wow” factor in a cycle store and this needs constant review. When I look at wall space I want to see imagery that excites my imagination and entices me to buy.

When I speak to cycle retailers I propose ways to get increased revenue from shop floor space by considering new ranges such as clothing, shoes, accessories and food. All of these need to be managed properly in terms of a trading merchandise strategy. Offer-

ing food that is out of sight, or clothing poorly merchandised with no point of sale to communicate the material’s technology, nor the price, will not achieve the potential sales density. If you are looking for inspiration step outside bike retail and look at other high street businesses.

Another key area to consider is robust stock management controls.

These allow you to continually keep your ranges fresh and exciting.

Growing successful retailers, both inside and outside of the cycle industry, are managing the stocks to ensure a healthy cash flow. It’s impossible to get the buying right across all categories, but what must be in place is a plan to clear through slow lines within a given period.

What’s your policy? If you get 30 days credit from your supplier then you want it gone within that period to achieve a good cash flow. What’s your policy by 4, 8, 12 weeks?

Conversations I have had with retailers highlight enormous lack of focus and therefore opportunity to use EPOS to help manage the business.

An EPOS system should help you set an ideal week’s stock cover by line and warn you if there are signs it won’t sell within a set agreed period.

Then take the hit on mark down, putting the cash back in the till.

Consider a promotion to increase footfall and conversion. www.highstreetmentor.co.uk

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online retail

By Colin Rees – Retail Sales Trainer & Business Consultant

The big, bad internet... part 2

I

n the last article we discussed the massive difference Internet purchasing has made to everything we do, our sales, our approach, our policies – everything. As discussed, internet purchasing is growing here in the UK at a rate of 5% a year. Though as demonstrated on the High Street, it is possible to adapt and thrive.

The object of this series of articles is to try to put a different spin on the phenomenon. My contention is, yes, of course, we would all rather we did not have a cyber competitor, but we do. Irritation is not positive, we need a strategy.

In all the sales training I conduct all over the UK and Ireland, I centre three main principles. Planning, teamwork and innovation. Anything planned before hand has to work better than something you do off the top off your head. How does a young person deal with an angry, complaining customer? How can all the various objections voiced by a customer as to not buying the bike be dealt with effectively? Sitting down together, looking at just one problem and using all the brains and experience

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present to solve it, can have an amazing effect. Not only can it solve problems you may have wrestled with for months but doing it together binds people. Teamwork is the one missing element in many stores I have been to.

In fact, some never even meet together, ever.

So, does your store operate with teamwork at its centre, or is it a dictatorship where people work against each other, to shine and impress, because if they don’t, they may not be there next week? Well, if the editor allows me, maybe one day we might discuss management best practice, but for now, we need to give this internet buying a kicking and that will take innovation, the last critical element in the training mix.

Obviously, a store that has created a hard core of supporting customers who wouldn’t go anywhere else is one that will not just survive, but prosper. In turn, that means the internet becomes less of a problem, as the greater that section of the public becomes content to pay RRP, the stronger the business grows. So, would you say there was a way you could innovate in the service you

About Colin...

Owner of Quest Consultants, Rees worked in the industry for decades before being asked to draw up a sales training plan for his employer. Spotting a gap in the market, Rees went full time, going on to teach with Raleigh, Giant and many more independent and bike chain stores. If you have a problem, if no one else can help and if you can find him, maybe you can hire Colin to train your staff...

www.colinrees7.wordpress.com

Colinrees7@gmail.com.

provide over your competitors’ to combat internet purchasing and grow this hard core?

I contend there are two types of customer experience.

One is classed as good service and everyone thinks they give it. If I asked you the elements of good service you provide, you might say we have a large stock, we always greet people, you could add we are always friendly. Okay, that may be the case, but so does every other bike shop in your high street, so it’s a ‘general’ factor.

The second class of good service is ‘personal’. If I am in a customer conversation and I am feeling good today, I might well spend longer with a customer, I might smile, create a relationship, be courteous, remember to pass his messages, be extra careful in my dealings with people today, act happy. But the contra is also true. If I don’t feel wonderful today for whatever reason my level of ‘good service’ may not be as good. It’s a personal thing; it’s the way I feel today.

This brings us to the third class of good service I call ‘customer care’. We have all been into stores, where just by entering, you know it is going to be different. The level of training is obviously very high. Here are team members who really care. They’re happy people, polite, genuinely nice, who go the extra mile, who think for the customer, who clearly care. So how do they achieve a really, well defined attitude to customers which can be claimed to be ‘very different’?

Some years ago, I got a call from a company looking for a marketing consultant who had a creative approach and was up for a revolution. This was a company who made office furniture and they were doing well, turning over £2m, but the directors knew their industry was full of order fillers and there was no one known for the sort of levels of service even the Americans would die for.

So we discussed and planned how we could turn the staff on their head, change attitudes and come out some six months later with a completely new customer care approach.

The detail of how it was done is too much to list here, but in essence it involved looking at every area the customer came into contact with the company and developing the right way to handle it, even down to type

size on invoices. There was a series of training, re-training, discussion/reminding meetings, team commission schemes, a new livery, changes in showrooms, nothing was missed. The changes were implemented. One year later, the company had added £1m to its turnover. They had created a hard core of customers who would just never go anywhere else and prices had increased, adding to net profits.

Those are the essential elements where even the smallest family bike shop could make innovative changes in their attitude to their customers; where the entire cycle trade in an area, loses market share to a store that has embraced the principles of customer care, a totally new way of running the business, centered on teamwork and the customer.

The process starts with the owner. No one likes change, but without it we stay where we are. Unless the boss is able to accept an attitude change in his own mind and be willing to devote more time towards making revolutionary changes to his business, alongside everything else he already does, it cannot work. That said, the next step is to work out an implementation plan and ideally, this needs doing with outside input, not necessarily at a cost, just another valued opinion to make sure nothing is missed and the timetable stays in place.

Then, it is introducing the program to the staff, followed by a series of training courses to bring the team on board, listen to their input, but hammer home the massive advantages to making the effort to change. They must become different people, and that’s a big ‘ask’ so maybe the team you have today is not the team that will complete the transition.

Next time, we will look at the elements to move a business into the ‘customer care’ category, but in the interim, it might be worth thinking how much a total change of culture could cement your customers to you, away from internet purchasing because frankly, it becomes worth paying the ‘extra’, as the bike shop I go to is simply not available anywhere else. The Internet may be cheap, but it’s impersonal. Impossible to challenge? Definitely not. It’s all about how much you want to do it.

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(( WORKPLACE PENSIONS ))

Enrol your staff in a workplace pension - it’s the law OVER 800,000 small businesses are set to reach their auto enrolment pension staging date over the course of this year. Whenever your staging date is, you should have already begun your preparations by; assessing staff to find out which ones are eligible for auto-enrolment, checking your existing pension scheme is suitable (or finding a suitable scheme) and ensuring your payroll software is compatible with auto-enrolment.

To determine what preparations you need to make before your staging date, you will need to assess your staff to see which are eligible for auto-enrolment. Eligible employees are those who; are not already in a qualifying pension at work, are aged between 22 and State Pension age, earn more than £10,000 a year and work in the UK. Even if workers don’t meet this criteria, they may still be able to opt-in.

Employees who meet the auto-enrolment criteria must be auto-enrolled, but they can opt-out if they wish.

Whether they opt out or not, all eligible staff must be automatically enrolled back into the scheme every three years.

Once staff have been assessed every business will need to ensure they have a suitable pension’s provider in place.

If you haven’t found one yet, the ACT can help.

Within six weeks of your staging date you must write to every member of staff to inform them that they have / have not been auto-enrolled into your company’s pension scheme. They should be told that contributions will be deducted from their wages and paid into a pension scheme and that they have a right to opt out of the scheme (or into the scheme if they have not been autoenrolled), if they wish to do so.

Your duties do not end once you have enrolled your staff. You must provide information to show that you are meeting your automatic enrolment duties. This means completing a declaration of compliance using the Pension Regulator’s online service within five months from your staging date. This is a legal duty. If it is not completed within five months of your staging date you could be fined. A declaration of compliance must be completed for every employer who has staff, even if these staff have not had to be auto-enrolled. For more information on your legal duties as an employer visit: www.actsmart.biz/pensions

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