CIN issue 003 2017

S T E E P

F A S T

ULTEGRA # M Y U L T E G R A

from the editor MARCHING INTO A NEW AGE OF RETAIL...

OUR team has spent a lot of time on the road since the last Trade Journal hit doormats, largely in the hope of building a fresh perspective of where the bicycle business is at present, where it’s heading and how it may get there.

Our Q3 Journal once again brings to the table insights from businesses putting their own spin on what bike retail (and distribution) can offer for what is rarely ever a straight-forward customer. If you’ve been keeping an eye on our online offering also cyclingindustry.news – we’ve spun the B2B thinking on its head a little recently, focusing equally on bike retail trends and what appears to be a heavy shift in consumer buying habits.

Starting in the present day, time spent on London’s busiest shopping streets lately gave food for thought. If there’s been one constant when it comes to High Street retail that has bucked all trends it’s Apple’s presence. Store after store on any given shopping street you’ll find windows adorned with promotions, sales and discounts.

Why, then, doesn’t Apple do this and more importantly, why does footfall still remain high on any day of the week?

One of the great challenges facing bike retail at present, high footfall, very often links with in store experience. Should you deck your store out to mimic Apple? Probably not, however there are elements that are worth considering; notably lighting and cleanliness.

If a new report by the World Economic Forum is to be believed “the next great transformation of retail has started.” Within the study a lot of crystal balling occurs; from claims of handling virtual goods in our living rooms via headsets, to trends already seeping into prolific chains. One of those predictions with both positive and negative connotations for the front line of the bike business is the likelihood that stores of the future will carry only flagship stock on the showroom floor as an example, relegating the rest of the catalogue to the kind of giant tablet screens already appearing in many McDonalds branches.

The plus points, to name a few, include cleaner showrooms, less need to carry depth of stock and thus floor space for other things, less cash tied up and reduced chance of theft, among many perks. Inevitably such a system may also require losing some of what many will consider to be the soul of independent retail – knowledgeable staff.

Click & Collect is something the industry is investing in at present to draw consumer attention back away from mobile shopping and into stores once again.

With 51% of sales between November 2015 and January 2016 completed via hand held devices, it makes good sense to have such functionality in place. Like many of the mobile mechanic franchises have implemented, it’s also worth having such functionality in place for customers to book in bike services on their mobiles.

We’ll be keeping a close eye on the digital side of the bicycle business supply chain going forwards, so if you want to stay abreast of the latest trends pop us in your phone, tablet or desktop bookmarks, catch us on Apple News, or follow our social feeds – each found by typing ‘cycling industry’ into respective search bars.

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

S T E E P

F A S T

ULTEGRA # M Y U L T E G R A

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.

CyclingIndustry.News is a proud member of the Bicycle Association of Great Britain.

the professionals RUNNING A MODEL BUSINESS...

Depending on who you ask, model years can either be seen as an unnecessary burden on the bicycle trade, or a necessary part of keeping up with consumer demand. We ask our panel about their feelings on the topic and what marketing strategy the brands should employ…

Mick Murphy Mickey Cranks

Neil Holman George Halls Cycle Centre

1: In a recent interview with CI.N, Madison’s CEO alluded to cutting model years out of the picture. In your opinion, what are the pros and cons of such a move should the industry at large take note?

John Hoskins, Ealing cycles The annual model change is now so early that it’s often announced before the current year’s stock has arrived.

Frog Cycles – arguably the most successful junior range in the UK seems to manage without, just installing rolling changes as they’re developed. But I agree that there are some advantages to the principle. It can provide a spotlight on a particular range for a while. It can provide journalists with copy, therefore producing cheap advertising for the importer/ manufacturer and it can actually sell the range to that peculiar group of people who always want the latest equipment.

This has to be weighted against the inevitable difficulty of unloading the older stock. I believe many dealers are their own worst enemy as they bring this situation to the attention of the customers in their sales techniques, hence forcing discounts. This is highly prevalent in road bike sales,

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John Hoskins Ealing Cycles

which is why we keep low stocks.

I suspect that Shimano and SRAM are the true cause of the model changes as they bring out new ranges regularly and a small section of the buying public do want the latest Shimano (not always the best). It’s up to the retailer to change the selling methods so as not to instantly make product that may only be a few months old into last year’s model.

Kevin Moreland, Bainton Bikes I can see this being beneficial for large online sellers who already are able to offer older products to customers at the LBS trade price.

Jon Askham, Kinetic Cycles We couldn't agree more that the time has come to shift. I think the model year encourages short selling windows and aggressive discounting.

We would rather put money into highend inventory that has a longer shelf life than entry-mid range product that we may be forced into discounting.

Mick Murphy, Mickey Cranks New and different products drive sales, which is a good thing, however if IBDs are forced to hold large amounts of stock for the distributors and there is

Kevin Moreland Bainton Bikes

Jon Askham Kinetic Cycles

over supply like in the last 18 months then it is untenable. Perhaps the answer would be to offer more colour options from the start of a longer product cycle, and only changing the product when there is significant technical innovation made to it.

Neil Holman, George Halls Cycle Centre I personally think it should stop.

About 12 years ago Dawes adopted this with their MTB range, just doing minor tweaks, but essentially nothing really changed. We and Dawes had great success. I remember their Watoga model won MBUK or MBR dirty dozen three years on the trot and it never changed.

I know fashion changes and the experts, but we change for change’s sake, not because it’s necessary and every July you get a taste of what is changing so you start discounting your stock ready for the next buy in deal. It must be a pain for the importers too because they run out of models as early as April in the anticipation of the following year’s models coming in in July or August. If they ran a two or three year range, they wouldn't get these problems and there wouldn't be the heavy discounting at the end of every summer.

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2: When it comes to marketing and product cycles, is the industry guilty of leaking product to consumers long before they can buy it – and how does such a practice effect sales?

John Hoskins, Ealing Cycles I don’t think that allowing new (theoretically unavailable) equipment onto a limited market does any harm.

Those retailers who are brave enough to stock it deserve the opportunity to sell such equipment before other shops have it available. As with model changes on bikes there is always a part of the buying public who want the absolute latest gizmo.

They want everybody to know too.

are overstocked and sales of old stock dries up as a result. The challenge for the IBD is to anticipate the product cycles and purchase accordingly. Manufacturers could help the distributor and the distributor could help the IBDs in this with more transparency.

3: What consumer shopping behaviour trend shifts have you noticed in recent years?

Jon Askham, Kinetic Cycles The industry certainly does leak early, but that's not necessarily a bad thing if managed correctly. Hype can be good for business and it gives a good angle to engage consumers. I think the trick is getting a product out to consumers at 'peak hype'. The danger is delaying so long that interest cools.

John Hoskins, Ealing Cycles There has always been a small group of customers who would compare prices before purchasing anything, even pre-internet. But the situation is getting more blatant. I’m of a generation that wouldn’t even take a labelled carrier bag into a different shop. But it’s part of modern retailing. A large percentage of the buying public put service above price and we should treasure those that do. Let the smart phone price checkers do their worst, you’ll never make a living out of them anyway. I have no problem with fitting equipment purchased online – I’m probably making more than Wiggle on a gear mech by charging reasonable labour rates for fitting it. No expensive stock to underwrite, no ‘old’ stock to unload – what’s not to like.

Mick Murphy, Mickey Cranks Everyone loves a sneak peek and it helps to generate a buzz for new products, the problem comes if you

Kevin Moreland, Bainton Bikes Less people visit the shop and turnover is lower, but those who do visit the shops tend to spend more per visit.

Kevin Moreland, Bainton Bikes Yes and subsequently new bike sales dip while everyone holds fire to see what is coming. I don’t think this effects bread and butter hybrid sales, though.

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Jon Askham, Kinetic Cycles We’ve noted an increase in average spend and a downturn in entry-level road, however the latter has been replaced by a resurgence in entry-tomid range MTBs, which is really making a comeback. The days of relying on £500 to £1,500 road sales to keep a business afloat seem gone.

Mick Murphy, Mickey Cranks The rise in mobile technologies and social media is redefining interaction and consumer shopping patterns.

Digitisation is revolutionising the sales and service processes. The good news for IBDs is that most customers still rely on us during the decision phase of the bike purchasing process. They want to test ride and be sized on the bike before buying it, and servicing is still very much an “offline necessity.”

IBDS will therefore remain an essential part in the decision journey.

Customers come into our store in two categories; the first has thoroughly researched their purchase and just want confirmation before buying, the second requires guidance and advice from an expert and has sometimes been blinded by the fog of information online. Both appreciate the value of service and after sales, they are both potentially lifetime customers.

There is however a third category we call ‘The Reapers’ who only visit when they are stuck, and use your valuable time to gather information before leaving to purchase online.

Neil Holman, George Halls Cycle Centre Many want it as cheap as possible and want it yesterday. When I came into the trade in the 1980s customers would be willing to pay for the service you provided and very rarely would you get someone argue over the price, now everyone has their smartphone out checking sales online.Very few customers now accept your quotation. We used to sell a lot of traditional bikes like the Dawes Duchess and the Claud Butler Cambridge, but since Halfords and Victoria Pendleton launched that kind of bike, we don't sell any now. We upgraded to Pashley and these are selling.

We used to sell lots of clothing, so much so we expanded into the shop next door purely for clothing and we would often spend several thousand pounds a month with each supplier.

Then Aldi, Lidl and Mountain Warehouse came to town selling cheap.

Our sales fell through the floor. In 2016, some months we never made a clothing order, so I took the decision to drop all the clothing, barring shorts and mitts, this summer.

4: How do you counteract the internet shopper’s arrival and what techniques do you have in place to convert them?

John Hoskins, Ealing Cycles Marketing has changed beyond recognition during my many years retailing. Like internet selling and model changes we must change too.

My manager (and the senior mechanic) have just been on a social media marketing course. 10 years ago I would have ridiculed any retailer wasting the time of two senior members of staff with such nonsense, but now it’s a necessity. 10 years ago our website was probably our most effective marketing tool – but that only works now if you can persuade potential customers to look at it. So Facebook and a myriad of other social media sites have to be used and have become an integral part of one’s advertising. Most of it is free, it just takes time and a reasonable level of expertise. The days of a half page advert in Yellow Pages are long gone.

Welcome it all, learn from your younger staff members and listen to customers who tell you why they are in your shop, you may be surprised.

Kevin Moreland, Bainton Bikes Our marketing focuses on good old fashioned face-to-face advice based on understanding the customer’s needs.

Jon Askham, Kinetic Cycles The correct stock is crucial. Carry brands that have an ability to hold margin and a good selection in store.

Sell based on value; The value of your knowledge, range of product and aftersales care. Go after the customer that will buy on value, and remember that a product that costs a lot of money can still be considered good value, just use your excellent customer service skills to add value to that sale. Above all else,

make sure you come across that you care about that customer and the money in their pocket.

Mick Murphy, Mickey Cranks Fight the online businesses at their own game while offering everything they cannot. Most customers will always want to physically experience the bike before purchase as it is typically one of their largest leisure investments. They also frequently seek expert advice on optional equipment and further services, (such as financing options) as well as detailed information that is either not available, or not conclusively answered online.

Customers continue to value the personal aspect of the sales process, which forms the basis of brand representation and customer retention.

After sales service offerings and warranty support are also better served by the IBD. Neil Holman, George Halls Cycle Centre In my experience you can't, even if you price match. I often read on BikeTradeBuzz others moaning about internet shoppers and saying how they have converted one customer. I say embrace it, if they walk through your door with a box of goodies they want fitting say yes and be grateful they have thought of you and you are going to take some money off of them. A third of my business is now done online or over the phone because of the specialist nature of my online, so I see both sides.

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

Contact mark@cyclingindustry.news to register your thoughts.

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(( MARKET RESEARCH ))

BIKE RETAIL HEALTH CHECK In our Q2 Journal CyclingIndustry.News published the first sample of our own in-house research, pooling the feedback from 74 small to medium sized bike shops on their feelings on the future of the market. Taking things a step further, we gauge the current mood on volume of stores, staff salaries, marketing methods and bike retail longevity.

Q1

ARE THERE MORE, LESS OR THE SAME NUMBER OF BIKE SHOPS IN YOUR LOCAL AREA THAN THIS TIME THREE YEARS AGO?

CyclingIndustry.News has anecdotal evidence - largely based on contrasting our own from the ground up data research against other established trade lists suggesting that the UK bike shop market has shrunk and continues to do so at the present time. With very few businesses shouting from the rooftops about closures it can be incredibly hard to track the opening to closure rate. We therefore asked our panel of stores about their town’s numbers.

Q2

DO YOU FORESEE YOURSELF IN BIKE RETAIL IN THREE YEARS?

With shop closure rates having increased in recent times and an at times over-riding sense of an uphill struggle ahead from some quarters we thought it wise to gauge retailer opinion on their commitment to sailing the ship through stormy waters. Thankfully the mood is upbeat from the vast majority of our respondents. Not without their troubles, many did outline that they would need to change their businesses to remain afloat, but nonetheless intend to push on remains.

3% 1%

42% - Heading on for half of our pool indicate that there are less bike shops in the local vicinity than there were three years ago.

26%

32% - A larger than expected portion stated the opposite, indicating that the enthusiasm for opening bike shops isn’t necessarily dwindling.

70%

26% - A quarter reported seeing no noticeable change in their local competition.

26%

yes

42%

remain in some form

will attempt to sell

unlikely to survive

70% gave us a solid “yes” when asked whether they’d still remain within bike retail three years down the line.

32%

26% outlined that they would “remain in some form”.

3% believed they would attempt to sell their business.

less

more

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same

1% unfortunately reported being “unlikely to survive”.

Q3

HOW HAVE STAFF SALARIES CHANGED OVER THE PAST TWO YEARS?

mously used method to reach customers. Though you can pay social media as much or as little attention as you like, as a general rule of thumb you’ll often find you get what you put in. Keeping customers engaged and responding to their feedback in good time should help your progress. social media

A drive to bring about a National Living Wage had, last time we checked, not made much of a mark on the bicycle business. As far as industry brands go, Brompton and IslaBikes are two of just a small pool to declare themselves a Living Wage provider. Unfortunately, in many cases, bike retail doesn’t seem to be paying mechanics a skilled worker’s wage, as might be expected in the automotive business, for example. This opens the door to other questions, of course, most pertinently; are workshop’s charging enough for their work? That’s something we’ll explore down the line.

23% of our pool suggested that they were, in real terms, paying staff less than they were two years ago.

30% believed they had increased their rate of pay for staff.

47% suggested that, all things considered, pay had remained stagnant in the past 24 months.

23%

47%

30%

reduced

Q4

increased

stayed the same

HOW DO YOU MARKET YOUR BUSINESS TO YOUR DEMOGRAPHIC?

Before we kick off with this broad topic it’s worth reminding that retailers may soon find any email data without a paper trail unusable. To read up head over to dma.org.uk for more information on incoming Data Protection Regulations.

95% - Unsurprisingly the most common form of marketing, social media has quickly become an almost unani-

online email marketing local print word-of-mouth specialist websites ĈÂ ÞÂůś specialist print 0

20

40

60

80

100

percentage of users

58% - More than half our pool market to their audience online using methods other than social media.

55% - Just over half of our respondents are making use of their email data, a process that is gradually being made simpler by epos suppliers and is again relatively cheap. According to research by the Direct Marketing Association, email marketing typically has a return on investment ranging 1:38 to 1:58, depending on the quality of the mailout.

39% - Local print appearances remain popular with bicycle retailers with over one in three making an effort to appear in locally distributed mail, newspapers and directories.

35% - In this business reputation is crucial to repeat custom, but 35% are relying solely on positive word of mouth to generate new custom. In the digital age where reviews can easily spread further it’s worth ensuring your online ratings are high.

32% - Just shy of a third of our respondents made an effort to get their brand name out to specialist online websites within cycling. This method, when the message is strong, can be effective in generating further reach via social channels.

22% - Shy of a quarter of retailers are now turning to leaflet dropping in the local area. A study on this practice by the DMA has delivered mixed results. Around a 1% response rate is attributed to leaflet drop, however 45% do tend to keep such material around. It is further said that such distribution should not be a one hit event and should form part of a campaign.

9% - A specialist print presence, such as appearances in consumer cycling press, sits bottom of the feedback chart. Like leaflet drops, this approach often requires an ongoing presence to imprint your brand in the mind of customers.

WWW.CYCLINGINDUSTRY.NEWS // 09

(( MARKET STUDY BIKEFITTERS ))

BIKE FITTING

BY NUMBERS In a trade media exclusive, pro tour bike fitter and Custom4.Us CEO Jon Iriberri shares a sample of his research into the world of professional bike fitting. A special thanks is extended to the International Bike Fitting Institute and Pioneer’s representative Andy Brooke.

I’d like to thank the fitters for taking part in this project; the data collected will be analysed and used to teach, orient and develop our young professionals. We organised a questionnaire limited to worldwide Bikefitters and received around 200 answers from 38 nations.

We would like to underline the global vision of the data exposed and collected. It is necessary to recognise the importance of English speaking countries in our specialty.

Bikefitters from the USA, England and Australia represented nearly 60% of those answers, countries which largely represent the geographical expansion of our business.

The results are an accurate representation of worldwide bikefitting services and trends. We very much hope the data will help us deepen the knowledge of our business.

1. THE BIKEFITTERS AS PROFESSIONALS The profile of Bikefitters is most often a middle age man (around 45 years of age), with some general educational degrees (Bachelors/Degrees/College) and in some cases Post Graduate, High Degrees and even PhDs. Most of the bikefitters are full-time professionals and self-employed.

per year. Again, there’s a large difference between those who deliver less than 100, to some completing over 400.

This provides interesting information regarding the opportunities and limits of our business compared to other professionals and gives some approximated budget, which could be invested in technology and further training.

2. THE SERVICE OF BIKE FITTING The average price on the Bike fitter’s services is around $200, with a price range from $100 to $300. We must account for a large difference depending on the geographic area. We could conclude that the area and economical region determinates the price of the studio.

The average bike fitting session length is slightly longer than 2 hours. There are also sessions of more than 4 hours or less than one, but these are less common.

4. CUSTOMER PROFILE The average customer travels an hour or less to receive a fit and it’s uncommon to drive over two hours. The typical customer is often competitive, semi-competitive or a recreational road rider.

As I pointed out in the global research, back and knee pain are the most common injuries among customers. The primary cause is the saddle, followed by the shoes.

Customers go to bike fitters based on word of mouth over all other communication combined, including advertisement, referrals or shops. This must be underlined in order to invest wisely in those areas that will help us to get the attention of the wider public.

Regarding the follow up post fit, the most common method is to send an email to the customer. Other methods include phone calls, reappointments, or no action.

The most common additional material sold around the fittings are saddles, insoles and shoes, in this order. Most commonly, complementary services include workshop tasks and training services. Physiological testing, custom/regular bikes and custom insoles are less offered.

Video image capture in 2 and 3D is the most used bike fitting technology, far ahead of pedaling analysis and pressure mapping. Anecdotally, 10% of the respondents are not using technology.

3. KNOWLEDGE AND TECHNOLOGY The fitters spend around $1,000 per year on training.

There is a huge difference from those who do not expend anything and those ones who spend more than $2,000.

For those who invest well, they highly value the knowledge acquired and put it into practice. Bikefitters spend an average of four days training per year with, again, big differences between those who do not do anything and those who do more than 10 days.

A similar trend occurs with technology investment. $6,000 is the average spend, but there is a big difference (double) between fitters who do or do not invest. Bikefitters, in general, invest much more in tech than in knowledge, which opens the door for an interesting reflection.

The average fitter carries out around 250 fitting services

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(( PROFILE EXPOSURE ))

BACK TO THE

FUTURE With some iconic products in its portfolio and a reputation for longevity, many of us in the trade will have either a USE, EST. 1990 or Exposure product still adorning our bikes or helmets. Mark Sutton speaks to Exposure’s Mark Swift about product coming full circle, new technology and suspension…

M

arkets that rely on digital technology have very often seen innovators adversely affected over the past ten years. Think about the mobile phone’s lasting effect on the cycle computer arena – the technology formerly reserved for your handlebar became so accessible and so quickly that brands producing such tech had to be producing a standout product to gain market traction.

That’s something Exposure has battled with as competitors proliferated over time, saturating and often diluting the market’s average sales price with ever-cheaper LEDs. You’d think it’d frustrate the firm, which has been building the Exposure brand since 2004. Not a bit.

“You can’t be negative about cheap far-eastern imports,” says Exposure’s Mark Swift. “For one it introduces people to the concept of night riding, which we all know can be addictive once you discover what it’s like to speed through the woods on a dry evening. That expands the market for all and enthusiasts are becoming more comfortable spending money on the hobbies that they love. Nine times

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in ten a customer who buys Exposure recommends the product to friends in that group and so it spreads.”

Swift is a firm believer that founder Roger Sparrow’s insistence on quality and innovation has been the defining factor in Exposure’s success in a crowded marketplace.

“It’s how the battery talks to the LED that’s crucial to functionality and on trail performance,” advocates Swift.

“We’ve got a number of patents for each style which genuinely make a difference. The level of programming that goes into Exposure’s product is immense, from tuning accelerometers to thermal controls. Machining the bodies to effectively dissipate heat is essential too.

Quality packages have a lot more to them than meets the eye. Everything that leaves our South Downs manufacturing headquarters is tested to breaking point, which for a product that’s heavily over-engineered and built to last is not an easy task. We far exceed global standards across the board and indeed many of the magazines come here to test lighting products for accuracy vs claims in our Sphere – a very expensive and technical bit of kit.

Therefore lighting product leaving our factory guarantees its output instead of giving a theoretical estimate.”

Going from one to three round the clock operated 3D printers since the start of 2017 has seen the firm further accelerate its product development, something that is likely to open new doors in the future. One such product, while new, benefits hugely from the firm’s original sisterarm Ultimate Sports Engineering.

“We’re on the cusp of investing in yet more machinery to move our product development forward,” says Swift as he rolls forward a bike clad with Ultimate’s new dropper post prototype.

“Time is expensive, so having the right tools to reduce our development cycles is crucial, especially for small parts. With our Ultimate rebranding 18 months ago we’ve a portfolio of goods already gaining OEM and aftermarket fans, but also an opportunity to revisit old famous lines and put a modern spin on them.”

It’s therefore no surprise to learn that the question most commonly asked of the team is “When are you bringing out front suspension again?”

“We won’t give a yes or a no to this question,” says Swift. “Things have moved on a lot since USE had a front suspension product on the market and it’s not a quick process. Of course, if we were to enter this arena we’d need to develop tomorrow’s product.”

That’s the aim in bringing to market the new 170mm dropper post, which looks set for a Eurobike debut and Q4 availability. The mechanical system is tasked with leaving behind a trail of other products that haven’t all stood the test of time expected from Ultimate’s stable.

For now the firm is focusing on internal routing, though adds that at some point it’s likely that a cheaper under saddle lever iteration may appear. Benefitting from prior experience in producing some quite iconic suspension seatposts, the project is an obvious place to start for a business eyeing meeting next generation needs head on as they emerge. It’s longevity that’s crucial and sometimes counterproductive to business, explains Swift.

“We’re still getting sent ancient USE product for service, which is amazing for our reputation, but also means it’s harder to sell the new gear! Our standard warranties are two years, but we do pride ourselves on customer service. ‘Magic Matt and Rocket Ron’ in our service department are known for their speedy turnaround, which is generally only three days or less for all jobs. One of the benefits of longevity of Exposure is

WWW.CYCLINGINDUSTRY.NEWS // 013

(( PROFILE EXPOSURE ))

seeing our product passed down the generations, or among friends. Considering the progression since 2004 many of our customers have regularly upgraded to achieve more lumens from the same models as they’ve evolved. As an example, our Maxx D in 2017 offers a stunning 3,200 lumens. In MY18 that’ll go up to 3,500.”

Another perk of product longevity is how cycling trends eventually always tend to come full circle. The distance time trial riders and gravel grinders of today have developed a taste for the firm’s first product, suspension seatposts.

Fast forward to 2018 and we’re told a new LED is in the pipeline which, along with programming improvements, will see the lighting portfolio hit new highs on burn time and performance. Such programming has resulted in a number of smart functionalities, for example patented Reflex Plus technology, a system that intelligently adjusts output on the fly to give the rider the brightness only when it's required. This means an automatic adjustment to super bright on descents and less output ascending. Then there's TAP technology for helmet lights, simply tap it to run through high, medium, low modes – no hunting for buttons. For the near future we’re told that two of the larger mountain biking lights and one helmet will receive a Bluetooth remote, Sync, something that will steadily creep into other lines. Then there’s Graphene, the wonder material gradually capturing the industry’s imagination and opening new doors for strength and connectivity. We’re told the firm has created one light with injection moulding impregnated with Graphene in order to dramatically reduce weight to enable bikes, drones and cameras to have an action camera support light on but without noticing it’s there.

In fact, the Exposure Capture has enough lumens to be used as a light in its own right.

Performance aside, why might a dealer be interested in Exposure stock?

“In short, we’re here in the UK, always happy to help and are doing all we can to add value to the brand.

There’s very little messing about online with prices, at least until the end of the season, we’re generally ahead of the market when it comes to performance and bringing new ideas to market too. We’ve been cable free in our design since day one, so the brand has always been well regarded against the competition. There’s new point of sale coming shortly, including a slat wall compatible mount due shortly and dealers can lay their hands on a stylish lockable cabinet free with a £1,500 order. They can also just order what their customer needs as and when.”

When it comes to Ultimate goods independent bike shops are once again in the driving seat as the product unties itself from a former exclusivity agreement. Though the carbon fibre parts don’t enjoy the luxury of local production, development and design are carried out in the UK before being finished and assembled here. The firm says that its sourcing is among the far-east’s best for carbon production. As a result a drive to secure OEM finishing kit business remains on the agenda for the future.

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Exports too are still growing and with the recruitment of U.S. distributor Cyclone the firm has killed two birds with one stone – removing the product from Amazon and gaining a partner with both east and west coast facilities to widely circulate the product.

“Funnily enough USE’s aero product is probably better known in the USA and Australia than it is here,” jokes Swift. “60% of the suspension posts produced in the 90s went to America. Now exposure is doing well in places like Arizona for less obvious reasons; it’s too hot to ride during the day for many. At present we’re gaining some excellent ground in the Nordic region via a new Danish partner – night riding is obviously a big deal up there.

We’ve also made progress in Europe with a service distribution arrangement covering Holland, Germany and France – that should re-invigorate the brand in Europe.” www.ultimatesportsengineering.com www.exposurelights.com

(( SELLING NUTRITION ))

FEED YOUR SALES Training staff on the basic principles of nutrition is crucial not only for bike shops at the performance end, but even those leading relaxed pace leisure rides.

Here TORQ founder Matt Hart guides us through some of the fundamental principles, as well as sharing tips on best sales practice…

A

t TORQ, we believe that the key to being a successful store and ultimately selling more product is about being honest with the customer and tailoring your advice specifically to them. You’re always going to have customers that won’t listen, wander into your store and pick up a handful of gels because they think they’ll give them a boost or they just ‘taste nice’, but there are a lot of people who are skeptical about energy products and need to trust in you and in a brand. This will only happen if you make the effort to educate yourself so that you can help them on their journey of self-discovery.

This is all about understanding the fundamentals of nutrition and applying it to them – and if you do this properly, you’ll have a customer for life.

For instance, did you know that energy products will do little to enhance performance if the cyclist is well rested, has been consuming a carbohydrate-rich diet and is exercising for less than 75 minutes at high intensity? So for someone who exercises two or three times per week for 75 minutes or less could get away with consuming a carbohydrate-rich diet and not need to use energy products at all? That said, is their diet balanced and rich in carbohydrate? If it’s not, they may struggle to string together three high quality training sessions per week without the help of energy products, but for the sake of argument, let’s assume that they do have a carbohydrate-rich diet and therefore they can get away without using energy products during exercise.

What about their hydration? 75 minutes of high intensity exercise WILL dehydrate your customer, especially if the exercise is indoors on a turbo, involves a spinning class or is outside in the heat. Even being over-dressed in the winter will result in very high perspiration rates. Drinking water really doesn’t cut it, because it will typically cause bloating and won’t be absorbed very

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quickly. A little bit of knowledge about the role of electrolytes and the fact that a small amount of glucose with these electrolytes can facilitate the transport of fluid into your customer’s blood should convince them to purchase a specialist hydration product off you.

Let’s look at this same customer and consider whether they need a recovery product or not? Again, if they stick to a carbohydrate-rich diet, they won’t fundamentally need a recovery drink to perform in their next session, but it would offer them two potential benefits.

Firstly, it would reduce the pressure of having to scruitinise their general diet, because a recovery drink immediately after exercise is particularly well timed nutrition and very effective (it makes up for a multitude of sins). Secondly, it will help them get back to ‘normal’ much more quickly than if they opt for more traditional dietary means, so if they’ve got a job to do, or have got other stuff to get on with in their life, a recovery drink might be a wise choice.

So, I’ve just given you an example of a person who you could say on the surface of it doesn’t need energy products, but I’ve sold them to the customer by giving them an honest education and adapting to their needs. This customer may come back in the future and ask your advice about a bigger challenge he or she has planned and then there will be a lot more products of relevance that

they can put in their arsenal. For instance, your customer will benefit from using energy products like energy drinks, gels and bars for any single bout of high intensity endurance exercise over 75 minutes. They would also benefit from using energy products if the bouts of exercise were still less than 75 minutes, but on consecutive days, because the rest period between exercise sessions would not be sufficient for a ‘normal’ diet to facilitate full recovery.

Performance Nutrition isn’t a hugely complex area and some basic training will give you the educational tools necessary to give your customers straight answers and provide the products they need, which we believe will ultimately give you the loyal customers you also need – customers that when shopping for their nutrition, may also spend on other ancillary items. It’s for this reason that TORQ have an Accreditation Program so that a single member of your store staff can visit us for a full day and learn how to prescribe honestly and effectively to customers. The staff member will have to pass an exam and on doing so, the store will be given accredited status and will be listed on TORQ’s and our distributor’s website.

You’ll even get a ‘TORQ Accredited Nutrition Centre’ sticker for your store window! If you would like any further details, drop us a line at enquiries@torqfitness.co.uk or call 0344 332 0852.

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Five life hacks for technicians

Julian Thrasher, Cytech trainer and master technician

The cycle workshop can be a hectic place at times (or all the time if you’re lucky!). The spirit of this piece is to show some of the things technicians may do in order to increase the accuracy and speed of repairs and therefore the productivity of the workshop, so when we say ‘hack’ we mean it in the professional sense. Here are my five top ‘hacks’ to make your workshop life that little bit easier: 1 1. THE INTERNAL SPOKE NIPPLE TRICK Dropping a spoke nipple into the internal walls of the rim is one of the most frustrating things you can do – especially on a deep section carbon wheel. This can be avoided by creating your own spoke nipple holder. All you’ll need is an old spoke (with a decent thread) and a spoke nipple. Put the spoke nipple onto the spoke the wrong way round and tighten it to the end of the threads (clamping the spoke in a vice and tightening the nipple with a spoke key is a good idea). This will leave you with about 3mm of thread showing from the end of the spoke – which you can use to screw the nipple you intend to use onto. The nipple is then secured in place allowing you to thread it hassle free through the rim and onto the spoke. No more rattling wheels!

2. THE TUBELESS SEATING TRICK If you can, remove the valve core from the valve. Doing so will allow a greater volume of air to flow in from the track pump, really useful if you don’t have a compressor and are trying to frantically pump the air in using a standard track pump. Install the tubeless tyre onto the rim and lubricate between the bead of the tyre and the rim hook with soapy water. You can use sealant and I personally find this gives an additional seal but you will need to scrub the sealant from the tyre bead and rim hook the next time you remove the tyre. Lubricating the tyre and rim stops the rubber from sticking and allows it to slip into place at much lower pressures. The tyre should seat around the 20 PSI mark.

3. SET V-BRAKES TO FEEL THE SAME EVERY TIME This one is a simple one but if every mechanic does this in the workshop then all V-braked bikes will leave the workshop feeling the same and the customer won’t

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struggle to undo them. Unclip the centering springs and place the noodle so that the very end rests on the tip of the cradle. Pull the cable tight so that the pads stop the wheel from turning and secure the cable fixing bolt.

Push the noodle down so that it rests correctly in the cradle. This trick works because it presets exactly the same distance every time.

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4. SRAM BRAKES – JUST THE LEVER Now if you try this and the fluid that comes out of the lever is severely discoloured then you have no option but to flush the system and do a full bleed. Sorry. But – for those people who stay on top of the service intervals (i.e every six months, not years) then this is a good trick to halve the time it takes to do a SRAM brake bleed as you are only going to bleed the lever and not the full system. This works because air rises so the theory is that most of the air will accumulate in the lever making it easier to remove. Take out the wheel and pad, put a bleed block in and remember to de-gas the fluid in the syringe thoroughly first. The lever reach needs to be set out far enough to give a good volume inside the lever body. Press down on the syringe and hold the pressure on (gently!) then flick the tip of the lever (pressing it in and allowing it to slip off the end of your finger is the best way). This shocks any air out that may be hiding in the lever body.

Then pull up on the syringe to suck those bubbles out of the lever.

5. THE BOLT THROUGH TRUING STAND TRICK Now there is a dedicated adaptor for mounting bolt through axles into a truing stand but we’ve had good luck with the humble Hex key. A 10mm Hex key slid through the bolt through axle and then lowered into the truing stand is a quick, hassle free way to secure the wheel into a truing stand (if you don’t have the adaptors).

Stay tuned for more of my ‘hacks’ in an upcoming article.

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#VentureFurther

(( ELECTRIC BIKES OPINIONS ))

Power to the people There are very few within the bike industry now digging their heels in when it comes to accepting the electric bike’s place in the market. With market studies around the globe unanimously pointing to e-bikes as an industry money spinner, CI.N pins down some leading minds in the arena to discuss the opportunities…

Niko Lindner e-bike product manager at Cube

The industry is now seeing global movement, but which markets are leading and which are still to fully understand the potential?

Ray Verhelst (RV): We have two distinct camps developing in the U.S. market.

The large international brands who have been successful in Europe selling at double-digit annual growth figures are all abiding by the EU regulations.

With the exception of the increased speed, which can be adjusted through the controller, what is being imported into the U.S. is based on the EU platform. For the opposite side of the camp, we have second tier brands (based on overall sales volume), that are working with Asian motors who have been producing hub drives consistently in the 500 to 750 watt power range. Many of the crowdfunded and other alternative financed businesses are attempting to build unique brands around these drive systems.

Oddly, many U.S. labels are attempting to make their e-bikes look more like classic motorcycles. From our organisation’s perspective, we are troubled by so many of the U.S. importer and assembly companies who are knowingly flirting with the law by promoting bikes that exceed the legal speed limits set at the Federal level.

In Asia, electric bikes have long been the go-to method of transportation for the working class, simply because this was all they could afford.

But out of the 37 million e-bikes produced and sold each year only 10% are destined for export.

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Edward Benjamin Senior managing partner of eCycleElectric Consultants

Clive Gosling Marketing manager, CSG UK

Outside of Asia, the second most dominant user base of pedal-assisted bicycles is Europe. Having already been considered a high-use market for traditional cycling, especially within urban markets, it was a natural for the adoption of assisted cycling to grow into a significant share.

Edward Benjamin (EB): In places where electric bikes are well represented in the market, we can see that buyers will choose electric over manual bicycles at an ever-increasing pace. In China, 1 in 2 bikes sold is electric. In Holland, it’s over 1 in 4. This leads me to believe that a stable, eventual, market share of ebikes will be about 50%.

Given that premise, along with the knowledge that the world bicycle market is in the area of 130 million units per year plus we can predict a market of 65 million e-bikes per year.

This is not including the replacement of many mopeds and motorcycles with electric versions, which might add another 30-40 million units.

A rough estimate of the market today is 34 million units worldwide. Most of these, about 30 million are sold in China, which has been at a sales plateau for a few years now.

European sales continue to grow, however, there are markets where growth has just started, or where the ebike is barely present. Those markets are among the most promising for the future. This includes USA, where perhaps 240,000 were sold last year, India, where perhaps one million were sold and South East Asia where the

Ray Verhelst Director, US Electric Bike Association

numbers are not known yet. I have covered about half of the world’s population there. Most live in big cities, most are affluent enough to buy an e-bike.

Our industry has just begun.

Clive Gosling (CG): The UK is certainly one of the slowest markets to capitalise on the e-bike wave. I think this is because of our terrain, we just don’t have the same topography as mainland Europe. I also think our mentality as a country to the average value of a bike is a lot lower than our EU counterparts where they have often been raised with bicycles as a stable transport solution.

The USA seems the slowest to adopt e-bikes, but I think they have trail access considerations much higher up their list of concerns compared to some other markets.

Niko Lindner (NL): The leading E-bike markets in Europe are Germany, the Netherlands, France and Austria. The rest will follow that’s only a question of time and, unfortunately, money. We need to consider that e-bikes are really expensive. For a good quality e-bike you need to spend at least €2,000.

Consumer behaviour and demographics have seemingly changed over the years – what trends have you seen and who might the electric bike customer of the future be?

RV: As the only national organisation in the U.S. concentrating on the consumer to retailer segment, we know the true demographics of the current U.S. customer base for “legal” pedal-assist, electric bikes.

The U.S. consumer for e-bikes comes from the Baby-Boomer category. Our leading age groups are 45-54, 55-64, and 65+. In terms of interest, while the EU tends to be more male dominant at around 90%, in the U.S. our ratios show a 70% male, 30% female buyer ratio.

We have extensive studies from more than 15,000 consumers that have come through the Electric Bike Expos all across the country to back up these positions. We also know that a majority of our visiting enthusiasts live within five miles of their workplace, so the potential of commuting is real.

Interestingly, on average, 51% of our attendees at each event have come to experience e-bikes for the first time. In terms of the adoption of electric bikes into the U.S. market, much of the barrier (as with pedal cycles) has to do with safe and legal places to ride.

EB: The demographics vary by market.

My answer is quite simple: I expect nearly everyone who can ride a bicycle to be part of our market. That ranges from children to elders, from rich to poor, and includes many who are not strong enough, or perhaps have health issues that would limit them from using a manual bicycle.

CG: The positioning of e-bikes has been misleading. They have been posed as the solution for a customer that struggles to ride without assistance. Having ridden e-MTB’s extensively over the last six months, they should be much more clearly explained as benefiting a

much wider audience. They’re for anyone that wants to get more riding, more distance, and more speed in for an allotted time and who doesn’t want to pay for uplifts at trail centres.

I’ve found that my Cannondale Moterra LT actually descends quicker than a non e-MTB, so offering a better experience. Recently riders at World Cup DH races have been placing lead weights on the bikes to make them descend quicker.

NL: In the past e-bikes were considered to be ridden by elderly customers only, but this is changing rapidly. The market from Cube’s perspective is now everybody who wants to have fun and equalise age, fitness level or purpose while cycling. To fulfil all these needs it was necessary to create so many different emountain bike category’s which nobody thought a few years ago. For example, six years ago we only had two different models, now we offer more than 100 and we are still consider this the beginning.

Those specialising in the sector are reportedly doing very well. Have you noticed those committing to electrics turning good profits?

RV: While the e-bike sector of the bicycle community is enjoying double-digit growth, the traditional bicycle industry is either flat, or on a negative turn.

Initially many got burned by some poorly thought out early product. Now with the major brands behind the bikes and committed technology from

companies like Bosch, Yamaha, Brose, and Shimano, shop owners are once again willing to the risk.

The unfortunate part about profitability is that much of it is based on volume.

Higher volumes generate better margins and overall discounts. Building an electric bike business model around the potential of selling 5,000 to 10,000 units nationally a year in the current market does not begin to tap into nextlevel pricing structures for many of these companies and their suppliers.

Compare this to European companies that see strong opportunities when they distribute 2,000 to 3,000 units annually within a one or two country audience. The numbers don’t extrapolate, at least not yet.

NL: How is the situation for those who chose to forgo the e-bike trend in the past few years? That’s the question.

Meanwhile, every important manufacturer developed their own e-bike segment. We should not forget that ebike development is expensive. You need to do a lot of fundamental research and the development time is longer than a normal bike.

CG: I feel a bit sorry for some of the pioneering e-bike brands because with every brand incorporating e-bikes in their line, the ones who had E as a USP just lost their U. With e-bikes having a relatively high average selling price, I think any brand doing well with them is seeing some great revenue and average price increases.

WWW.CYCLINGINDUSTRY.NEWS // 021

(( ELECTRIC BIKES OPINIONS ))

How do you foresee the technology evolving in the coming years and what opportunities does this present the industry?

EB: The product is now reliable, that was a big challenge for manufacturers.

Now I see the bikes becoming lighter, smoother, and with more features. The features that I see expanding are mostly user-oriented. Think connectivity, safety and security issues, along with features that make riding more fun, and more efficient. Like many products we are in an age where the software determines the experience.

CG: This is where I am most excited. I think the future of e-bikes will be one of the most significant developments in recent cycling technology. With smaller and lighter batteries, motors and modular battery options, E-bikes won’t be visually different from regular bikes which I feel is what people want.

NL: Integration will be a big topic for the future. Components will get smaller, smarter and we will see more clever solutions regarding drive system and frame technology.

022 // WWW.CYCLINGINDUSTRY.NEWS

Which markets are spending the most on their electric bikes and has there been a general increase in spend globally from what you can see?

EB: Price is not as big a problem as many assume. When a consumer knows the benefits, and those benefits have a value to them, the price is a secondary issue. There are many examples of this from outside our industry.

For example, the iPhone is the bestselling phone, but not the cheapest.

In Europe, the e-bike business flailed for years trying to sell cheap bikes from China. When Sparta listened to the customer, then built the bike they were asking for they sold for a crazy (at the time) high price of €2,400.

Recently, I witnessed an interesting conversation in Germany. Upon admiring an electric driven cargo bike, and asking the price, I was told €8,000. I was a bit startled and said so. A young woman, said: “Much cheaper than the cheapest new car, and no need to pay for parking.”

CG: It seems Switzerland, Germany and Austria are really strong markets

for e-bikes for transportation, but also leisure. We did a launch in Austria a while ago and normal couples were riding around on high-end full suspension E-bikes, but the local terrain was suited to that kind of bike.

From a Cannondale UK perspective right now our sales are titling heavily toward electric MTB sales as the Moterra bikes are our focus, but we will soon be shipping our new Quick Neo urban bikes – so we will see shortly what sells.

NL: For Cube, those spending the most cash have been Germany, the Netherlands and France.

What challenges does the business face in different markets going forwards?

RV: An issue we have, that the EU doesn’t, is the jurisdiction over federal land and the access of recreational eMTBs on trails. The level of vitriol out on some trails has stopped just short of physical contact between traditional cyclists and this new breed of recreational rider. The irony of the whole thing is that when looking at the current demographics of prospective buyers these are far from speed demons.

CG: I think challenges could be trail access in some markets, but overall, I see a lot more opportunity than challenges.

NL: The biggest challenge for all manufacturers is still the education of the dealer network. In some underdeveloped markets, many with typically low salaries, the price is also a key stumbling block.

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(( EUROBIKE OVERVIEW ))

MOTORING ON 2016 proved to be an interesting year for the Eurobike show, which ultimately began to feel the side effects of an industry undergoing some foundation shifts.

Show director Stefan Reisinger explains to CyclingIndustry. News how the world’s leading show will overcome such market movements and how his team anticipates future editions will play out…

IF there’s one theme to pick out from our annual catch up with Eurobike’s show director it’s the inescapable fact that the bicycle industry at large is, in the present climate, having to adapt. That is adapt to consumer buying habit shifts, to busier schedules and a volatile economic environment where political shifts are having more of an effect than usual. For the world’s largest cycling trade show the waiting list remains for brand participation, but the ripples of a turbulent trading environment are nonetheless felt.

“As far as turnover of brands go there has of course been a lot of headlines about who is and who isn’t coming to Eurobike, but the reality is that it’s 10% of our exhibitor base fluctuating year-to-year. It’s funny, people see the headlines and immediately try to poach the space, but we’re still filling vacated spaces with a long list of interested parties. It remains incredibly important to us that the quality balance remains. There’s a significant FarEastern contingent of trading companies looking to become involved in the hope of making some quick money. It could get out of control, actually, so we still

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carefully choose how the floorplan fills out.”

Despite being more than able to fill the space, especially considering the unforeseen unavailability of the additional Zeppelin Hall in 2017 due to a project by the land owner, Reisinger outlines that challenges faced in recent years are all part of the cycle.

“The trend for brands to host their own shows is dangerous for us, but the big brands have historically had periods where they’ve taken breaks from exhibiting at ours or other global shows. Sometimes brands will appear to have pulled their presence, but will instead be found with their local distributor. It’s tough to keep track, but this year we see the return of Derby Cycle, for example, which shows that Eurobike remains a hugely important show to some of the industry’s leading labels.

Certainly from a retailer’s point of view, my opinion is that Eurobike remains the best place to gauge where the industry is at and where it’s heading.”

Just prior to Christmas the show’s organisers announced that as of 2018 some important changes would be made to ensure the show maintains its kudos with the

industry’s influencers. From 2018 the show will return to its three day format, turning its back on a consumer element that had drawn some 20,000 enthusiasts. Understandably, this change was made with some reluctance, but following a survey of exhibitors it became clear the industry sees Eurobike’s role as a B2B, explains Reisinger.

“It was a pity to lose this element, we didn’t want to give it up, but the industry remains the focus for Eurobike.

Perhaps in the mid-term future we can find a way to integrate this again. Our position as the leading B2B show is one we want to retain. There has been in recent years a saturating of the calendar to keep the trade busy, but budgets will only stretch so far. As we’re seeing elsewhere in the industry, I think there will be a consolidation of these. Certainly the wider industry is seeing an increase in acquisitions and that too I think will further accelerate.”

TRENDS

MEDIA DAYS

When it comes to trends within the show things get even more interesting. Though early to call the standout theme for 2017, Reisinger indicates that it’s a subsection of the electric bike movement bringing about the most obvious changes to the floorplan.

“Over in hall A6 we’ve our dedicated space for suppliers to the electric bike segment and notably this year we’ve seen an uptick in new suppliers of things like drive systems, batteries, displays and other OEM parts.

With lots of newcomers competing for this large and successful space that’ll be a busy part of the show, I think. Certainly very few of the industry’s leading labels aren’t operating in this space now, bar those solely focused on top-end bicycle performance. We had discussed having a dedicated e-bike hall in the past, but the brands preferred to operate in a single space.”

Operating for the past three years, Reisinger’s team has held a pre-Eurobike event of sorts, dedicated solely to a pool of 25 or so of the industry’s leading complete bike brands. At the time of writing, 210 global bike media are registered, guaranteeing those 25 a plethora of exposure for MY18 product launches.

“We’re really happy with this event,” starts Reisinger.

“Those involved really like the unrushed feel, whereby they can spend three quality days with press. Of course there’s a waiting list for this too, but largely it’s from parts and accessories brands wanting to be involved and that’s not part of the objective for the time being.

For 2018, with Eurobike’s dates shunting closer to this event there’s not a guarantee we’ll be able to continue to put on both exhibitions, but if the demand remains we’ll find a way.”

EUROBIKE AWARDS Last year more than 500 industry brands piled in for the coveted Eurobike Awards. With such a high volume of interest, organisers were prompted to begin the judging process online before moving on to a live panel.

“In the past we had one jury made up of six members who had two days to cast their votes. With the volume of submissions coming in we’ve had to make the change, but I think this further shows the strength of the brand. It’s one of the very best accolades you can receive in this business and a huge marketing win for brands.”

You can submit your product for consideration at www.eurobike-award.de.

WWW.CYCLINGINDUSTRY.NEWS // 025

(( FOCUS ON... MERCHANDISING ))

VISUALISE YOUR IN-STORE JOURNEY WORDS: John Styles, director at cycling industry consultancy Cyconomist.com Thirdly, because visual communication is so much more powerful than the spoken word. Which is one reason why tweets out-do speeches in today’s political climate (they’re still words, but they use a different sensory channel).

This is not a new thing in terms of human behaviour, consider the following phrases: Show, don’t tell; Seeing is believing; A feast for the eyes; A picture tells 1000 words; In one ear and out the other.

Today’s visual communication tools are new to us, mostly notably the smartphone. Ever noticed how much more frequently you check Facebook or Twitter if your smartphone is to hand instead of your tablet or laptop?

W

hat’s the single greatest reason driving consumer behaviour when they choose to shop on the internet instead of in your store?

Could it be price? Everyone loves a bargain, right? Or maybe it’s choice, I mean what’s better than everything all under one roof? Next day delivery, can’t get it much faster that? Convenience of shopping in their own home? Self-service?

Well, all those things are important and I’m sure there are lots of studies assessing which of these drivers is more powerful (I’ve read some of them). But I have a lurking suspicion none of them are the top reason. I suspect the biggest reason people shop on the Internet is the power of visual communication.

Why? Simply, people shop with their eyes.

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Internet shopping is most often a wholly visual experience (unless you watch a video). Why is this important?

Firstly, because your laptop, tablet or smartphone is something you read/observe with your eyes – often in an uninterrupted/focused and insular way. Visual images penetrate the emotional decision-making of the brain quicker and are remembered more than the spoken word 87% of what we remember is anchored to a visual memory vs 10% for auditory information.

Secondly, because when you shop online, you don’t have to talk to anyone or listen to anyone. Listening to people and interpreting the spoken word places higher cognitive load on the brain as we have to interpret the words and formulate a response.

Consumers seem to find that harder and harder work nowadays.

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But every now and again we’ll just use that free time to get out and go for a ride before the sun sets.”

The time we get back from SIM is used to look at more creative ways to serve my customers and keep them engaged.

Tom Bowden Managing Director Working Class Heroes www.workingclassheroes.co.uk

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(( FOCUS ON... MERCHANDISING ))

VISUALISE YOUR IN-STORE JOURNEY...

As a society and as individuals we are talking less and less – even as we communicate more and more. But the local bike shop still carries on largely in the tradition of the spoken word. In my previous article, ‘Back to Front’ I suggested that you position the till at the front of the store so you can offer people an immediate and friendly greeting. A paradox? No, by getting that ‘out of the way’ they are free to get on with self-serving or ask for your (verbal) assistance. If you wander out from the back of the store and meet them halfway up the shop floor you have taken away that choice.

Of course people want to talk at times and often value the advice, banter and chat that comes with a visit to the local bike shop. But not all of the people. And not all of the time. While some stores are quite rightly proud of the service and advice they give, I always feel a note of caution when I hear “we like to serve everybody”.

What I also observe is that too many bike shops set out their stall so that customers can’t really see what they are looking for - or at the very least find it difficult. Remember, you understand bike products, and you put them there, and you see them

every day. So what you find easy and obvious is not what the customers find easy and obvious. All too often I’ve stood in a store when a consumer enters and says to the staff “do you sell pumps?” - while standing right next to the pumps.

See the table below and compare what people experience on the Internet or in a ‘corporate’ environment (they too are masters of visual communication as they don’t want to serve anyone).

As I’ve said in previous articles, I used to work with corporates like W H Smith and I’m not suggesting for a minute you want to be like them. But we can learn from their success. So, if you want to compete with the internet’s top driver – visual communication - here are three things you might want to look into: 1) Help people see your product – clean/hard surface flooring, good lighting, wide aisles.

2) Help people navigate your product – department headers (bikes/ service/clothing) and sub category headers (locks/lights/pumps).

3) Help people find your products – merchandise vertically in logical groups with clear separation.

“HERE’S THE GOOD NEWS... THESE ARE ALL FACTORS UNDER YOUR CONTROL.”

I have visited three IBD stores (out of 600) who do this really well. I took pictures. I’m not including them here because they made the effort to create their own visual communication system and signage and sharing it would be unfair. However, we all have a local Supermarket, WH Smith or Boots. Take a step outside your store and go watch what people do. Observe yourself as a shopper too. How often do you need to check those signs?

Here’s the good news. These are all factors that are under your control and in a way that other factors which drive internet shopping are not. I’m not suggesting for a moment that you can ‘win’ the battle for customers spend against internet shopping. But you can win more often, with more customers. That might be enough to make a difference to your profits.

INTERNET

SUPERMARKET

‘TRADITIONAL’ SHOP

Clean white background

Bright reflective floors/ceiling

Light absorbing carpet

Broadband

Wide Aisles

Narrower Aisles

Category headers

Category Headers

No Navigation headers

Filters

Sub-Category headers

No Sub Category Headers

Search Button

Merchandising Planograms

Products often ‘overlap’

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EYES ON THE PRIZE LOOK ON THE HIGH STREET FOR SOME INSPIRATION...

BRIGHT, WHITE CEILING

CATEGORY NAVIGATION

SUB CATEGORY NAVIGATION

WIDE AISLES

ON-SHELF NAVIGATION

BRIGHT, HARD FLOOR

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(( CREDIT ASSESSMENT ))

Can you access the funds to help grow your business?

NEARLY half of UK SMEs say they have experienced barriers when looking for finance, with one in four SMEs being turned down when they applied.

Having an insight into your business’s Credit Health is key to accessing funds you may need to help grow your business.

One of the reasons so many small businesses are being turned down for finance is the level of risk that traditional lenders perceive. SMEs are less likely than bigger businesses to have the information required by lenders to make an informed investment decision, including a lack of credit history or trading record.

As a result, the lender’s funds are usually driven towards larger and more established firms that better fit the credit assessment methods, leaving small businesses without the financial support they need.

According to a report by the Department for Business, Innovation & Skills (BIS) 69% of SMEs have never checked their business and personal credit scores, with less than a fifth saying they take active steps to manage their score. Often this is because of the perception that credit scores are not relevant to the way SMEs manage their business and cash flow. As such, credit scores are largely ignored by the SME sector.

However SMEs need a credit assessment that really

considers what they are doing and how their cash flow works. Whether you’re a start-up looking for finance to get off the ground, or a growing company seeking funding for expansion, a lender using the right credit assessment method will look to build a picture of your circumstances to assess how much they can lend you.

With the right method of credit assessment, SMEs are much more likely to receive a score that opens their access to credit.

The right solution for your business Until now there have been few options for SMEs to turn to when seeking business credit. However, the Association of Cycle Traders (ACT) have teamed up with inFund to offer SMEs the chance to view their Credit Health for free.

It takes just a few minutes to create and it is more than just a score. It is a live representation of where your business is today in respect of creditworthiness and it comes with preapproved Credit Capacity – the maximum amount that could be made available to you as a business loan or line of credit with suppliers.

Don’t wait until it’s too late to find out if you could get the funds you need - start managing your Credit Health today. Visit www.actsmart.biz/infund to set up your free account.

SIMPLE, FAST AND TRANSPARENT.

LIVE-QUERY ON AVAILABILITY MORE THAN 3000 ARTICLES INDIVIDUAL CUSTOMER DISCOUNT LOW SHIPPING COSTS magura-b2b.com

New Dealers can register online.

NONSTOP Mobility!

The new CONTACT Plus: Reaching your destination safely and comfortably.

Permitted for e-bikes up to 50 km/h.

coming May 2017 www.conti-tyres.co.uk

CONTACT Plus

(( UK MAKER FOCUS FIBRAX ))

LETTING THE BRAKES OFF Fibrax may be one of the UK industry’s old dogs – indeed it to this day maintains the industry’s longest standing sponsorship deal – but that’s not to say the Wrexham manufacturer hasn’t got new tricks to bring to the table at a time when domestic producers are perhaps enjoying life more than the trade’s importers. Mark Sutton talks to Ellis Blackman about some anticipated expansion…

L

ike countless others in the cycling industry Fibrax suffered greatly during the mass exodus of UK cycle manufacturing to the far east. Having started life as a specialist in cycling back in 1902, during its heyday the company boasted an £8 million turnover on bicycle components, most notably braking goods.

The Fibrax cycling division of today is dwarfed by an automotive business turning out OEM parts for the likes of Volvo, Land Rover and Ford, all of whom choose the Wrexham manufacturer for its more than 100 year history in producing custom spec products, many of which are certified to medical and automotive standards.

Factoring in this automotive business the company as a whole is growing at an alarming rate. At the present time a premises is sought to allow the business to grow four fold, further allowing the cycling division to expand. Already running 365 days a year and for 24 hours of the day, the demand for the parts maker’s expertise is in part down to its own innovations and abilities, but also on the cycling front down to a number of long-held patents. The brand was, after all, the first to make rim brake pads.

Today the cycling arm is worth £500,000 a year, but is once again in the ascendancy having bolstered its cycling division back to eight dedicated cycling staff, backed up by the company’s 250 person strong manufacturing workforce.

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“We’re actually something of a rarity in the cycling industry in that our manufacturing is all done by women,” says Ellis Blackman, Fibrax’s cycle sales manager. “It’s an exciting time for Fibrax’s cycling arm in that we’re now at a point where the final link in the chain – a new website at Fibrax.com – has now launched. On the Manufacturing and shipping side we’ve been ready for greater numbers for some time and this means that along with launching a plethora of new product to the aftermarket, we’re also able to press ahead with an OEM drive.”

At present, Fibrax works with four European brands, among others and will now be filling gaps in its portfolio to satisfy those brands needing a complete disc brake package, for example. To list just some of the in-house testing prototypes go through, Fibrax goods can be expected to undergo strength, friction, torque, temperature, humidity and acoustics tests, depending on the usage. What’s more, the firm is inviting other industry labels to book in time in its labs for any testing or video needs they may have.

“500 kilos or 5,000 Newtons of force can be expected to be put through all braking gear,” says Blackman.

“We exceed those levels by far, you could easily pull a car along with our gear cables. We’re also, as far as I can see, the only ones testing down to -60 degrees, meaning you’ll never lose braking functionality with our pads. We’re competitive on performance through-

“THANKFULLY, BREXIT HASN’T REALLY TOUCHED US AS A UK MANUFACTURER.”

out. When it comes to die drawn cables, ours do start offering 5% lower performance than Shimano, but our tests show that theirs degrade quickly by around 15%, while ours improve by 20% thanks to our methods of drawing the cables through oil. As they bed in the become the best.”

On the aftermarket side, the firm is to reintroduce an old favourite – the Sealed Cable Kit - produced at the time for Gore and costing £65. When this re-enters the market Fibrax will price the kit at just £25.99, we were told. Surprising Blackman, it’s an idea he didn’t expect to gain rapid traction that has taken off in recent times.

Now available in OEM packs of 1,000 as well as aftermarket packets, Fibrax’s frame protection spirals are now selling at a rate of 100,000 a month, not including OEM business.

“We’ve been asked before now why our pads can look a little rough around the edges. The answer, quite simply is that an aesthetic finish would require up to five times the tooling replacement over an extended period of time. The performance is very much there, but we are not a brand to overcharge the consumer and that’s achieved by carefully analysing how cost effectively we can produce. Our road pads could retail for £40, but we want to be inclusive to all,” explains Blackman. “Our pads are not cookie cut like many brand’s are and are compression molded, allowing us to change the compounds on the fly to achieve the desired performance. Our method produces a much denser brake pad than our competition, which ultimately lasts longer. In the wet, on the road, nobody comes close to us. In the dry, I credit only SwissStop as having an offering comparable on performance.

When it comes to disc pads we average around 2.2 times the longevity of Shimano’s typical pads.”

Aside from extending its OEM partnerships, Fibrax also has an eye for exports. Currently shipped to 15 countries, the firm has plans in Europe and a curiosity for the U.S. market.

“Thankfully, Brexit hasn’t really touched us as a UK manufacturer, so I think our pricing and performance makes the brand very attractive. We do have Polish and Turkish factories also producing, so we’re in good shape,” adds Blackman. “There’s a big Union Jack on the packaging, something we’ve found to be a familiar and eye-catching image for customers. Including it on the packaging does seem to have increased sales. From Summer and into Winter we will have new branding and fresh packaging, as well as a bunch of promotional content all shot here in the lab to help drive in store sales.”

When it comes to dealer ordering the firm has a long list of wholesalers, including The Cycle Division, Ison, Reece Cycles, McAdams and BPS. Dealers are also able to order online with Fibrax with no minimum orders and in general, same day dispatch.

Joining the product portfolio later this year will be a number of new specialist workshop tools, including a new piston press, pad holder, a tyre lever with a piston press profiled in, a new cable oiler, disc brake cleaner developed alongside Fenwicks, workshop reels of various cabling, cable cutters and much more.

Advocating switching to Fibrax Cables, Blackman again points to attention to detail in the manufacturing process.

Fibrax’s cables outers are cut 100% flush, he says, meaning ferules won’t experience any play once installed and subsequently loss of braking power.

“The little things add up,” concludes Blackman. “A 50 pence component on a bike can be as important as a much more expensive component, in particular when it comes to braking, so it’s worth investing in something tried and tested.”

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(( FOCUS ON... CYCLE TO WORK ))

MAKING COMMUTERS COUNT In recent months new entrants to the cycle to work arena have brought forward fresh propositions for the bicycle dealer. Mark Sutton catches up with some new and old faces on the scene to compare and contrast the services now on offer…

ROB HOWES, DIRECTOR // GREEN COMMUTE INITIATIVE WHAT PERCENTAGE DOES GREEN COMMUTE TAKE ON A SALE? The Green Commute charges just 5% reseller commission.

WHAT’S THE SPEND CEILING FOR THE END-USER? There is no upper limit. As a result thus far 80% of our trade has been electric bike sales.

WHICH BUSINESSES OR AUTHORITIES ARE YOUR LARGER CONTRACTS? Heathrow Airport and the City of London would probably be the key contracts. However, we have new employers signing up daily.

HOW QUICKLY CAN THE BIKE DEALER GENERALLY RECEIVE THEIR MONEY? It’s a same day service, unless there is some sort of special arrangement of which the reseller will be aware.

WHAT PROMOTION WORK DO YOU UNDERTAKE FOR YOUR SCHEME? Social media, direct marketing and we’re working with local authorities to target employers.

In mid-June we’re launching a really powerful reseller direct sales product.

ADRIAN WARREN, DIRECTOR // CYCLESCHEME

HOW CAN A DEALER BEGIN WORKING WITH YOU? Just drop us an e-mail and we’ll send all the information needed to get started.

WHAT PERCENTAGE DOES CYCLESCHEME TAKE ON A SALE? We do not discuss contractual information publicly, but we are happy to confirm that we offer market leading rates.

OTHER THAN THE AFOREMENTIONED POINTS, WHY SHOULD A DEALER ULTIMATELY CHOOSE THE GREEN COMMUTE INITIATIVE? We’re the best value scheme for bike shops and give them much higher average order values.

We don’t have the end of scheme 7% sting, so employees are happier and want to handle repeat business via the scheme. Furthermore, employers love us because everything’s electronic so they have no administration. We’re also authorised and regulated by the Financial Conduct Authority.

WHAT’S THE SPEND CEILING FOR THE END-USER? ANY CHANGES IN SIGHT HERE? Cyclescheme clients tend to have £1,000 limits, this is unless they have FCA authorisation in which case the limit can be set at any level the employer wishes.

As part-founders of the Cycle to Work Alliance, Cyclescheme contributes significantly to lobbying exercises in Whitehall with policy makers and Government. With this our aim is to widen the scheme's reach and ensure all workers can access bikes for work at appropriate limits.

WWW.CYCLINGINDUSTRY.NEWS // 035

(( FOCUS ON... CYCLE TO WORK ))

WHICH BUSINESSES OR AUTHORITIES ARE YOUR LARGER CONTRACTS? As the largest cycle to work provider we reach over a third of the working population in the UK and our client list includes most of the UK's biggest businesses. Over 45,000 employers have signed up to Cyclescheme.

HOW QUICKLY CAN THE BIKE DEALER GENERALLY RECEIVE THEIR MONEY? We pay retailers the same day redemptions are made and handle all the administration on behalf of retailers.

WHAT PROMOTION WORK DO YOU UNDERTAKE FOR YOUR SCHEME? We’ve quite an extensive list of promotion, including weekly, monthly, seasonal and annual campaigns which include offers, competitions and opportunities to engage with cycling.

Our social media audiences reach in excess of 160,000 users which we engage with daily. Add to that digital newsletters, standalone offers and localised event mailers and we’re hitting some large figures.

When it comes to physical events we coordinate and execute approximately 600 employer events annually.

Bolstering those appearances with consumer show visits, we attend the Cycle Show, The London Bike Show and The Employee Benefits Show, to name a few.

Finally, we also coordinate and deliver the UK's leading cycle commuter campaign in Cycle to Work Day. 2016's achievements included 675,622 miles ridden, 1,029 employers signed up and 1,047 retailers signed up. BBC TV and Radio, ITV and Channel 5 gave the event coverage. We think the event totalled 168 items of coverage, as well as Twitter trending at the top spot for the UK. HOW CAN A DEALER BEGIN WORKING WITH YOU? Dealers can simply email us via retail@cyclescheme.co.uk and we'll be in touch.

OTHER THAN THE AFOREMENTIONED POINTS, WHY SHOULD A DEALER ULTIMATELY CHOOSE TO WORK WITH CYCLESCHEME? Cyclescheme has 11 years’ experience within UK benefits and we are the most credible and authoritative business in this space. Our speciality is in employee benefits, not selling bikes, this means we generate the highest footfall and levels of spend for retailers, not our own shopfloor.

Cyclescheme has the breadth of choice the modern consumers demands, offering any bike, any brand and via any channel.

Finally, it’s worth mentioning that Cyclescheme invests in the sector. We're founder members of the Cycle to Work Alliance, we launched Cycle to Work Day and we support British Cycling (including Breeze and #ChooseCycling), Sustrans, Cycling UK and the LCC and many other advocacy organisations.

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ERIC CRAIG, CEO // FREE2CYCLE WHAT PERCENTAGE DOES FREE2CYCLE TAKE ON A RETAIL SALE? A retailer will earn the majority of what they do with a regular sale. Furthermore, we will be encouraging additional sales with servicing and reward vouchers, all while improving customer loyalty. The combination of upfront margin and ongoing income funded by Free2Cycle should exceed most shop’s current earnings and profits.

WHAT’S THE SPEND CEILING FOR THE END-USER? The Free2Cycle offering has a funding ceiling of £1,750. This is funded by pedal power alone, but customers will be free to make an optional contribution lifting this to £2,750. These figures will be reviewed on an ongoing basis.

WHICH BUSINESSES/AUTHORITIES ARE YOUR LARGER CONTRACTS? Due to confidentiality agreements we are unable to share these details at present.

HOW QUICKLY CAN THE BIKE DEALER GENERALLY RECEIVE THEIR MONEY? An efficient supply chain is key, so both parties will be paid within a week of bike handover.

WHAT PROMOTION WORK DO YOU UNDERTAKE FOR YOUR SCHEME? The customer focussed campaign will be launched this summer and we’ll be sharing further details in due course.

HOW CAN A DEALER BEGIN WORKING WITH YOU? Dealer registration is a simple online, no cost process. We have already received a substantial number of requests.

OTHER THAN THE AFOREMENTIONED POINTS, WHY SHOULD A DEALER ULTIMATELY CHOOSE TO WORK WITH FREE2CYCLE? Up until now, the UK cycling market has been fiercely competing for a slice of the action of around 3% of the regular use or commute market.

We plan to open up a far larger market of latent demand which currently remains untapped.

Free2Cycle hopes to unlock this potential for the benefit of cycle industry suppliers, retailers and related service providers alike.

NEC Birmingham 21 Trade & Press only 22-24 September 2017

Join us at the BIGGEST EVER CYCLE SHOW Claim your free trade pass cycleshow.co.uk @CycleShow

/CycleShow

/CycleShow

(( PROFILE CAMBRIAN ))

KING OF THE MOUNTAINS Growing beyond its Aberystwyth garage-based home, Cambrian has since February perched its bicycle division’s office at the top of an incline you might struggle with not only in granny gear, but with motor assistance. That trajectory is apt for a business that has grown from being solely focused on Continental’s tyres to one that has hit the ground rolling with high-end wheel label EDCO and now Germany’s much-adored Storck Bicycles. aving tipped Continental’s bicycle tyre turnover over £1 million, Cambrian’s brand extension has seen the cycling staff rise to a team of four in the office, paired with the presence of Robert Scullion and Mark Turner on the road visiting dealers with the brand trio.

“The three brands complement one another perfectly,” says Cambrian’s Shelley Childs. “If you’re out introducing dealers to Continental it makes good sense to talk about EDCO too as many dealers are yet to fully experience the product – and it’s really worth their consideration for the road-going customer. We’re not pushy with our brands, we know the state of the market at present, but with the brand additions we’re finding dealers to be a lot more inquisitive having seen positive magazine reviews and much of the heavy promotion we’ve been doing.”

Despite recent additions, we’re told Cambrian has no intention of becoming a multi-brand distributor just yet and that taking on Storck largely came about as a result of good timing and an existing relationship with EDCO. At Eurobike in 2016 the two brands forged a partnership with a view to creating an aerodynamic wheel to frame interface. EDCO’s Arizona windtunnel is now in use frequently by Marcus Storck’s team.

“Bringing on these two brands has forced us to kick up a gear,” admits Childs. “We’re soon to introduce a much improved B2B and B2C portal online with stock control live fed to

H

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dealers. We’re borrowing some Conti know-how to get the project finished.

It’s expected in this day and age and it’ll have a slick consumer friendly front end showing our portfolio and the product’s capabilities.”

On product, Continental has some exciting developments in the pipeline.

The firm now boasts that every trekking tyre is certified to electric bike standards and the Contact Plus even to 50km/h. The Contact portfolio covers all commuter needs, offering four tread patterns and spanning 700 x 28c to 47c in width, as well as offering 26 and 27.5” tyres.

“Our challenge is explaining to Germany that it can be hard to sell commuter tyres, such is the affection in the UK market for the Gatorskins,” jokes Childs. “Dealers will be pleased to hear that we’re holding stable on price and staying true to only annual changes. Even Brexit hasn’t altered the picture, Continental is adept at hedging and riding the storm. The tyres remain very competitive and the new Contact+, for example, has a marketleading dealer margin. The next step is to make people a bit more aware that actually there’s more to Conti, it’s actually as much a tech company as it is rubber. They make electric bike motors too, among other things. I’d like to think that eventually these will integrate into our product portfolio too.”

When it comes to product education, Cambrian has begun ramping up both its dealer and consumer events. In particular the Welsh firm anticipates

inviting groups of stockists over to enjoy the local roads this summer.

“We’ll be inviting gangs of 10 to 12 over at a time, the one-to-one relationship is increasingly important with the nature of our portfolio. We’ll deliver seminars in our new showroom, but we wouldn’t invite people over without taking partners for a ride in the local hills,” explains Childs. “For the consumers we’ll be supporting sell with appearances in front of the engaged demographic at the Rouleur Classic, doing our own Welsh Wild West Sportive, the Ironman English and Welsh events, as well as sponsoring the women’s crit race with Storck at the Aber Cycle Fest.”

Prospective Storck dealers are invited to inquire about remaining territories in the UK. It is requested that dealers have a quality bike fitting operation and capacity to deal with what can very often be a custom build on the back of a frameset sale.

“We’ve initially brought in £350,000 worth of stock, something we’ll grow over time. We will be promoting Storck’s complete builds too,” concludes Childs. “Of course the public is largely interested in the quality that Storck brings at the top-end, but there’s also a portfolio starting from as low as £2,200 for a 105 Visioner build.

They’re excellent value and worth introducing customers to.”

Continental Tyres are imported directly

by Cambrian, but available to the cycle trade via Madison, I-ride, Bob Elliot and Dublin’s Lifecycle.

KEY LINES FOR 2017 EDCO MONOBLOCK CASSETTE You might assume that EDCO’s mainstay wheel portfolio is the only segment worth stocking, but orders to date of the Monoblock cassette suggest otherwise and for good reason.

Laying claim to being the only 11-speed cassette that’ll also comfortably fit on a 10-speed hub body, this is a wheel reviver for any customer looking to upgrade but without the expense of an entirely new wheelset. At £170 at retail it could be one of the wisest investments your customer can make.

Also useful to be aware of in the EDCO portfolio are some cassette options better suited to youth cyclists, including both 14-25 and 14-27 ranges.

When pairing to EDCO's wheels each wheelset is specced with MutliSys, a patented cassette body that offers compatibility to Campagnolo, Shimano and SRAM systems.

CONTINENTAL’S NEW TUBE DISPENSER Free to dealers ordering Continental tubes in quantities of 100 through the network of wholesalers the brand has a new dispenser that works as a modular unit.

Designed to easily slot onto slatwall, the top fed dispenser is branded and free flowing, playing host to 11 mountain bike tubes or 16 road tubes, or a combination of both.

Also worth keeping tabs on for the season ahead will be Continental's array of sidewall colours across the Ultra Sport range, as well as the Contact+ tyre lines. Both are promising strong dealer margins.

STORCK Joining the Cambrian portfolio in February, Marcus Storck’s mid to super-high-end bike portfolio is now in stock and ready to ship to new and existing dealers.

Complimenting the EDCO wheels portfolio thanks both to existing synergies between the companies, as well as direct product development, the Storck portfolio is available for up to 40 UK dealers to take advantage of. Highly desirable for the road going aficionados among us, Storck’s engineering is among the industry’s best when it comes to aerodynamics and efficiency.

Among the stand-out lines available, dealers should feast their eyes on the new Fascenario Pro, a bike built to deliver low weight, superb handling, power transfer in abundance and comfort all in one package. Extensive research and development have resulted in a bike that has to be tried to be believed and luckily Cambrian are putting on plenty of opportunity to do just that both for the dealer and end-user.

EDCO's relationship with Storck means enhanced access on wind tunnel testing and more product collaboration in the future

Cambrian hope that in the near future the wider Continental portfolio may feature, potentially opening the door for electric bike product supply.

Dealers with a road clientele and ability to bike fit are invited to enquire about becoming a Storck dealer

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(( THICKENING REVENUE STREAMS ))

VARIETY IS THE SPICE OF LIFE It is said that the bicycle industry has too many brands going for the same shrinking slice of pie.

One way to address that is to accumulate a number of thin slices to make up one decent chunk with some meat on it. Mark Sutton talks to industry veterans Peter Bird and Robert Wade about how their combined 68 years’ experience has gifted the pair several healthy businesses.

F

or the uninitiated, it’s worth starting at the beginning when introducing the portfolio now managed

by Peter Bird and Robert Wade. It was 1981 when the pair began producing handmade bicycles under the Swallow Bespoke banner. Long-time holders of 753 Master Framebuilder certificates, the pair are far from new kids on the block in a handmade market rapidly saturating with new builders. That’s not to say that fresh faces are not producing some fine work, but there’s little denying that experience counts for a lot when customers are parting with an average spend nearly 20 times the currently accepted national average.

Wade says that four consecutive years at the Bespoke handmade show is just a small acknowledge-

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ment of the brand’s longevity in a turbulent market.

“I did some research prior to my talk at Bespoked. Without giving away any confidential information, we asked some questions in the industry and cross referenced the answers. We estimate that there are maybe 450 to 500 one-off hand built frames made per year (this excludes people like Condor, Shand and semi-production models) and that there are maybe 2025 builders doing that business full time. Otherwise it's not sustainable as a business. To get those orders you need to prove to the buying customer (who is usually aged between 35 and 70ish) that the (on average) £5 to £7k that they are about to spend is a wise investment with someone who knows

what they are doing. There appears to be a lot of people 'playing' at being frame builders, but having a pretty Instagram account doesn't make you and experienced frame builder, or a sustainable business.”

Producing around 40 frames in steel, aluminium and carbon a year, with CoMotion and Cyfac employed to handle the latter two materials, the firm has a reasonable custom turnover, which is bolstered further by another arm of the business – training.

“We offer frame building and wheel building, but no certificates. We can make them if anyone asks, but we're really not sure of the relevance as the client has a ridable frame or pair of wheels to prove they did it. All our courses are 1:1 tuition so there is great attention to learning and detail.

99% of the clients are on the courses to enjoy making something, rather than to make a career change.”

For those with an interest in learning to frame build, courses last five days and wheel building tuition just one day.

A complete bike build option is also available for the customer wishing to experience building their own bike from the ground up.

Just one of many revenue streams for the pair, handmade and training are an aside to an albeit niche retail business, but one that has become a known specialist in the UK. “Tandems are a very, very tiny part of the market, but business involving

(L-R) Robert Wade & Peter Bird

tandems represents over 50% of our turnover. We have been building and designing them since 1979 (Pete designed one then and had Chas Roberts build it). In the UK we can be sure that we are the most experienced people building selling tandems clients and suppliers recognise and respect that. The average sale price is about £3,500 with many selling between £5,000 to £8,000. Clients are usually aged 40 to 75 with a reasonable disposable income, so do have high expectations of service and knowledge.”

Far from settling on sales only revenue, the pair have also developed the Tandem Experience, an arm of the business dedicated to helping people familiarise with two-person cycling, as well as hosting corporate events. Bird reminds us that these are surprisingly capable bikes, but ones that require guidance at first.

“Tandems can easily get up to 60mph going down the same hill a sole bike would top out at around 40mph. For

corporate clients we find Tandems to be great for developing teamwork and trust,” he says. “We once facilitated an event for over 350 people (research scientists, doctors, senior management, technicians and sales staff) for a major European pharmaceutical company, indoors in a hotel in Barcelona. This entailed actually assembling 35 tandems, followed by some fun and games. It seemed like organised chaos at the time, but the CEO said it was one of the best events they had ever done.

The tandems were then donated to a local blind charity in Barcelona.”

Of course holding such a heavy hand in a niche market does have its pros and cons. Bird says that when it comes to forecasting trends, the ebbs and flows of business are sometimes a cause for concern.

However, at the turn of the Easter break, the firm reports taking five month’s worth of orders for tandems based on previous averages.

At a time where the industry is

pondering what the bike retail business of tomorrow will look like and indeed what products and services will be on offer, Wade and Bird explain that, for them, picking a skilled niche or two and running with all the available possibilities within has paid dividends at a time where the digital world is becoming increasingly aggressive.

“We diversified to ensure that we have control and a revenue stream that is less affected by the whims of online and other discounters and to do the things that we enjoy doing while playing to our strengths. The challenge is to keep the plates spinning, but with experience and maturity, that comes a little easier,” concludes Bird.

You can find out more about the various businesses at: Bicycles-by-design.co.uk Tandeming.co.uk Thetandemshop.com

WWW.CYCLINGINDUSTRY.NEWS // 041

(( RETAILER PROFILE REVO BIKES ))

ON THE BEATEN TRACK We’ve long pondered whether alternatives to a traditional high street presence are all the more viable for the bike market given our customer’s tendency to travel.

Who better to give us the inside track than Revo’s Mark Almond…

HOW’S LIFE IN LLANGYNOG SINCE YOU SETTLED IN? BETTER RIDING, WORSE WEATHER? It's always sunny in the Nog! Anyone who says otherwise is dreaming.

TELL US A BIT ABOUT REVO AND HOW IT GOT STARTED? Revolution Bike Park has been open now for four years whereas my business, Revo Bikes opened in July of last year. The Park is owned and run by brothers James and Tim Foster and has grown steadily across its first few years. Both are keen riders themselves - James is certainly very quick on a bike too - and they decided to combine their love of the sport with their own business ideas and Revolution Bike Park was born.

Revo Bikes is the trailside shop and is on land rented from the Bike Park by my company. We are separate companies running in tandem with each other to provide riders a first class experience. As a rider I have often been to bike

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parks and trail centres where I felt the onsite shop was missing a trick or two and I was determined to learn from these experiences and provide riders with the products and services they need and/or can't get online. After that we identified that the local riding community was in need of a shop open all weekend to be on hand for their riding emergencies when out and about the hills on road or trail.

Having said that, I work extremely closely with the team in terms of rider services, the visitor experience and helping them with marketing and sponsorship initiatives for the park.

WHAT’S IT LIKE HAVING THAT CAPTIVE AUDIENCE AS FAR AS BUSINESS GOES? I genuinely don't see it as a captive audience, riders have choice and this is a good thing. We are conveniently on hand for emergency repairs and replacing broken parts but there is nothing stopping a rider taking his or her bike home to repair themselves or take to their local bike shop.

There is nothing stopping them buying parts online either.

We are competing with these suppliers just as much as any other

bike shop and we tailor what we offer riders accordingly.

We have to offer value, great service and honest advice.

We will never take anything for granted, nor should we.

So far we are seeing repeat purchases and a good element of customer loyalty with riders now ordering parts on our website before they come to the Park and having us fit them when they get here.

WOULD YOU HAVE EVER TAKEN UP BIKE RETAIL IN A HIGH STREET LOCATION, OR WAS THE LOCATION THE DEAL MAKER? I did look closely at various high street locations, both existing businesses and new opportunities before starting Revo Bikes, so I guess the answer is if the right opportunity had presented itself I would have done.

However, finding that right opportunity in a fast changing market is tough. I'm not sure you need a high street outlet anymore to be honest. If you're stacking high and selling cheap maybe it is needed, but not for most bike retailers. Out of town and destination stores are the way forward in my opinion.

I am also a little old fashioned in my approach to business. For me it is not all about money. You have to work with people who share your values and who you want to work with. Upon meeting the Fosters I found exactly that.

I knew immediately that their destination was ideal for my vision of what a bike shop should be. That made the deal for me even more so than the location in all honesty.

YOU DON’T SELL BIKES, (YET, AT LEAST) SO WE PRESUME REVO’S INCOME IS ALMOST 100% WORKSHOP AND SPARES RELATED? Yet. This will change very soon. At the moment I would say that our income is 70% workshop and spares, 30% clothing and accessories. We sell a wide range of clothing, protection, helmets and bike care products, as well as hire out pads for people who have forgotten theirs. On top of this we are also a Leatt Neck Brace demo centre and a Burgtec pedal demo centre with further demo programmes being introduced within the next few weeks.

We are all about providing a service for our customers, we listen to them and we act on their feedback.

It is our intention to move into selling some bikes.

However, I for one would never have bought a bike from someone I didn't know. What sets a good LBS apart from a bad one - or online - is that the customer trusts your advice and feels they are going to be looked after by you

when spending what is, let's be honest, a lot of money on a bike. As a start up last July and with our initial audience being a largely travelling one from all corners of the UK and Europe, we needed to gain that trust before asking them to part with their hard earned on a high ticket item. Coupled with our ideal location for demo rides - both on and off road - we are slowly becoming an attractive option for bike sales.

OUR GUESS IS THAT YOU DON’T NEED TO DO MUCH MARKETING GIVEN THE LOCATION. ARE THERE ANY OTHER PERKS OR OVERHEAD REDUCTIONS IN HAVING AN ENGAGED DEMOGRAPHIC TRAVEL TO YOUR DOORSTEP FROM AROUND THE GLOBE? I must disagree with this one as we have to do a lot of marketing, just as any forward thinking business does.

The location helps, for sure, but marketing is so much more than advertising. We have to get the service and product offering right to compete and we have to let riders travelling to the park know that we are there and that we provide these very services. We also have a dispersed local community of riders to speak to and raise awareness in. With no one centre of population nearby, this is a difficult job but we're getting there.

That said, of course given our location we know that 90% of our visitors are downhill and trail mountain bikers who are fully engaged with their sport. This helps undoubtedly and they are our key audience but we also have to look beyond that to survive and thrive as a shop.

WHAT CHALLENGES DOES BEING OFF THE BEATEN TRACK BRING AS FAR AS BUSINESS IS CONCERNED? The logistical aspect of it, mostly. Couriers can get very confused when delivering from suppliers and infrastructure concerns such as slow broadband and so on, it has a few complications, for sure. Our local audience is very dispersed and hard to communicate with at first and we have no passing trade during the week. This is where the marketing kicks in and I am very active with local ride groups and initiatives such as the Montytrax scheme and much more to overcome these concerns.

AS THE MARKET CHANGES, WHAT OPPORTUNITIES ARE THERE IN THE BIKE BUSINESS AT PRESENT FOR RETAILERS LIKE YOURSELF? Value added, simple.

We cannot compete on price in many cases nor,

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(( RETAILER PROFILE REVO BIKES ))

“THE BERWYNS ARE ONE OF WALES' BEST KEPT SECRETS FOR CYCLISTS...

THIS REGION IS ALMOST UNLIKE ANY OTHER I KNOW OF IN THE UK.”

perhaps, is it advisable to do so. However, what we can do as a local independent is to add value to a purchase decision. We can offer demo programmes for accessories as well as bikes. We also offer advice on suspension set up and we are now a Shockwizz demo centre to help set up riders' suspension. A professionally run workshop is also a must.

Personally I also see value in local community involvement such as organising group rides, supporting local school cycling activity, working with groups to improve local cycling infrastructure and much more. Yes, these may be seen as marketing initiatives and to a degree they are, but they also allow the LBS to become involved in non-core business opportunities.

AS AN ASIDE TO THE STORE, YOU’VE ALSO OTHER ROLES IN THE INDUSTRY – TELL US ABOUT RED CLOUD: Red Cloud is ten years old this year! Despite rumours to the contrary when Revo Bikes was opened, Red Cloud - a bike industry marketing and PR specialist - is going from strength to strength. We have recently opened a new office and have expanded our team to meet demand. We are currently in the process of launching Simplon Bikes into the UK market, a brand you may see at Revo Bikes soon.

We’re also involved in promoting a large array of cycling brands, retailers and events across the UK and, increasingly, in Europe. I am still heading that all up on a day to day basis with a team of experts to call in as needed to help companies promote themselves online, off line, locally to globally. We have a great record in launching brands in the UK from fresh start ups to foreign companies entering the market. We also act as consultants to large companies seeking investment in the cycling industry.

HOW CAN INDUSTRY LABELS TAKE ADVANTAGE OF YOUR ARE WHAT AND SERVICES YOUR SPECIALITIES/COSTS? Anyone within or looking to enter the cycling world can contact me directly via our website redcloudmc.com, or by phone. We do not work on retainers as we feel these are 'money for nothing' and you should only expect to pay

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for work done and results achieved. Costs are dependent on activity and objectives and we are very flexible in order to be affordable for budgets of all sizes. From copywriting, social media management and media liaison to full on marketing strategy development, new brand launches, event management and much more, we can and will deliver for you.

TO WHAT EXTENT HAS YOUR EXPERIENCE HERE HELPED IN DRIVING REVO? Hugely. Marketing is often misunderstood as being advertising and events. It is so much more than that. It is about identifying your customer’s needs or wants and fulfilling them effectively and efficiently. Add in a slice of humour, warm welcome and a smile - yes, I do smile occasionally - while always being honest and open and you have a recipe for success. I am a no BS type of person. People recognise this and, I am told, respect it by and large, whether they are a rider with a broken bike seeking repair or a brand looking to launch in the UK. If I can't do something I tell people, if I can do it I do so to the very best of my ability.

YOU MENTIONED THAT YOU’RE WORKING ON A MAPPING PROJECT FOR THE LOCAL TRAILS – TELL US ABOUT THESE PLANS: Yes, the Berwyns are one of Wales' best kept secrets for cyclists. From the Lake Vyrnwy Bala loop on the road to the unbelievable natural off road trails around the area, this region is almost unlike any other I know of in the UK. However, it needs promoting and support is needed to make riders happy to explore. Between myself, a few riding friends and colleagues, we are actively searching out local routes and trails to map out and form part of a Ride the Berwyns initiative that will see Red Cloud promote the local area as a destination of choice for any two wheeled adventurer. We have so much to see and do here and with no support forthcoming or likely from central government we need to take action. I am very passionate about Wales and cycling so it's certainly a labour of love.

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MARGINAL GAINS… We’ve all heard it before – ‘time is money’! Let’s explore how true this is in a retail environment.

Typically, your product is tangible, it comes in at one value and goes out at another, with the difference being your profit, right? Obviously tax takes a chunk of that gross profit but what about considering your business’ net profit, after running costs such as business rates, utility bills and staff?

Hopefully you’ve picked a premises you can afford based on projections and have a keen eye on aspects such as merchandising and promotions to optimise your turnover per square metre. Utility bills are a difficult one – obviously you can be frugal with electricity, gas and water; maybe you’ll even look at adjusting your opening times to yield a greater return but that’s about all you can do. So what about staff? What do you pay staff for? Aside from knowledge and skillset, it’s essentially their time that you’re paying for. If you consider this as a cost split across every product you sell, how do you maximise your return on this investment?

Don’t get me wrong, I’m not suggesting staff are a waste of money or that you should pay your staff less! Successful retailers require good people. We’re a long way from ‘Judgement Day’ or even the day when cycle retail is entirely automated. Consumers don’t just buy products, they buy a service level, convenience, expert advice, trust and charisma.

The key to increasing return on time spent is increased efficiency – getting more of the same done or doing something more worthwhile within a specific time period. Every now and then, it’s worth having a think about how you can make your retail operations more efficient. It’s fair to say that scheduled (or repetitive) and reactive tasks often don’t mix. If delegated to the same person, one will often cause the other to suffer. For example, placing purchase orders while trying to answer the phone promptly; or setting up your products online and pausing to serve customers when required. On a busy day in the shop, understandably, we all know what takes priority. But what of the sales you missed (online and in-store) when the customer couldn’t buy what they wanted because it hadn’t been ordered or wasn’t listed online yet? It quite literally pays to regularly take time out from the daily grind to look at the bigger picture.

When factoring labour costs into the profit margin of every product, if you can reduce the total time (and thus cost) it takes to sell a product, you increase your net profit margin. I’m not advocating spending less time with customers on the shop floor. In fact, it’s quite the opposite – if your staff can spend less time in the process of making a product available for sale on the shop floor or online, you’ve spent less of their hourly wage on selling that product. So your staff can spend more time (investing the cost of their hourly wage) on the shop floor with customers, or wherever else you deem more worthwhile.

What roles do your staff fulfil? Generally, the answer includes buying, goods-in, EPOS/website admin, merchan-

dising, marketing, shop floor sales, managing customer orders and expectations, picking/despatching online orders and everyone’s favourite retail quiet-time filler… cleaning.

So, when you’re taking that step back from the daily grind, ask yourself “Which of those tasks directly drive the most turnover?” Then think carefully about how you reduce the time spent on low turnover tasks and direct your staff’s efforts to the higher turnover tasks. Try to think about the most direct impact. For example, tasks like visual merchandising, marketing and sales, all have a direct impact on consumer buying decisions and therefore your turnover. Conversely, ‘EPOS admin’ has a less direct impact on your turnover and is often more timeconsuming. That said, ‘good data in = good data out’, so it is absolutely necessary to ensure accurate reporting.

A lot of retailers who are new to EPOS often feel that since they got it, they spend more time in front of a computer than on the shop floor, it’s important to remember the main benefit of EPOS is better-informed business decisions that lead to increased turnover and profit. You’ll find the return from those decisions vastly outweighs your investment in time (staff wages) and system costs. Utilised correctly, EPOS undoubtedly facilitates increased success.

However, you definitely don’t need to let EPOS admin consume your staff’s time and distract them from those more profitable endeavours! We often look to technology to save us time, so whether it’s EPOS, ecommerce, accounting software, a van or a power tool in your workshop, carefully consider its cost compared to equivalent alternatives. Does the increased cost of it offset what you would otherwise pay staff to complete the task without it? For example, if you’re moving stock or making local deliveries in a van, does it make sense to spend slightly more on a bigger van to transport more in one trip, or would it be more cost-effective to pay for your staff and the additional fuel required for multiple trips? Consider that cost as a chunk of the profit margin for each product involved. Similarly, if an EPOS system could import directly from your suppliers, your product records and continuous updates to their cost prices and MSRPs, with some simple clicks and no need for Excel wizardry, how much time would that save your staff per month? What’s the value of that time?

Consider that if the technology saves you enough time and therefore cost in wages, to pay for itself, not only do you lower your labour cost per product, you can direct your staff’s new-found free time to those tasks that yield a better return, thus making them more profitable. If it’s your own time that you’re getting back, maybe you can simply adjust that work-life balance by getting in a few more rides.

WORDS: David Gaule

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online retail

By Colin Rees – Retail Sales Trainer & Business Consultant

THE BIG, BAD INTERNET... PART 3

I

n this series we are accepting the principle that internet purchasing - growing at 5% per year on average and not going away - is not the end of the world but in essence, just another competitor who is trading on price and is trying to take over the traditional way people buy stuff.

In response, the plan is to build a new business, one that cannot be touched by any competitor because, at its core, is a sizeable band of customers willing to pay a higher price. In return, service is literally second to none, staff are trained, knowledgeable, nice people and thus customers just will not go anywhere else.

Such a business is looking constantly to provide and strengthen areas where the internet cannot compete.

Personal customer service is definitely one of them.

We talked last time about creating a retail environment where an owner builds a store by implementing a ‘customer care’ environment. This creates a growing,

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hard core of customers, willing to pay more. To achieve this, his or her level of personalised customer care cannot be obtained anywhere else in the immediate trading area or, more importantly, on the internet.

It has been proven, where top-level service has been implemented, that as customers are ‘captured’, it is possible to boost prices. People will pay more for genuine friendliness, quality and personal service.

Whether or not an owner wants to boost prices might be questionable to start with, as in these articles, we are competing with the internet, not another retailer.

But net profit is the key to fighting the threat as degrading net profit offers a quick route to the exit.

Margins and cost control are everything.

The point is, the customer will be willing to pay the price you set if he is willing to cement to your store.

Using, as an example, Amazon, the process is totally automated and one never comes into contact with a

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.

human being. That should be something very easy to compete with, but to do so a retail store needs to be innovative, courageous and very, very different.

So how do we go about it? It is true that to go through the detail of my suggestions will take a change in attitude, to establish your business as the only one on the High Street worth entering as the others are ‘ordinary’. The first area to consider is the staff. How often do you meet with them? How much do you take them into your finances? Do they know what your five year plan is? How is turnover running against budget? Management style really matters. So does the raw material you have given yourself to work with.

Is this a team of people dedicated to your business and willing to help you change the way they do things?

It starts with empathy. What do I want my customer to experience when they walk inside my customer care centric store? Some of the shops I have visited lack the basics. The shop is an uncomfortable environment. Too hot or too cold, with raucous music, poor lighting, perhaps meaning well but not creating the impression of somewhere that wants to play host to a customer.

I have also visited stores, second to none in all these areas. Some follow showroom principles with massive budgets, somewhere that really wreak expenditure to make me feel good as I come in, but when I do no one comes near me. I have even provoked staff to talk to me, yet even then often the conversation is led by me, the customer. Greeting is one thing every owner strives for, engagement is totally different.

Let’s examine how you want me to enjoy what you have created. Do I get pounced on or gently told someone is there if I need them? Is this done in a different way to anyone else on the High Street? One store told me they do not greet customers. They remodeled the store to be able to offer a coffee served not by a sales person, but by a barista. A hot drink gives time for someone smiling and genuine to ask why the customer is there and inform the most appropriate member of the team.

Does someone weigh up where I ‘fit’ in human behavior terms; someone able to make their own decisions, or a person who wants to be persuaded? There are four main groups and each needs different behavior. How does the sales conversation proceed from there to take me where I want to go, not where you want me to go? Most importantly, how will I feel when I leave because, at the end of the day, all of us believe

“IT HAS BEEN PROVEN, WHERE TOP-LEVEL SERVICE HAS BEEN IMPLEMENTED, THAT AS CUSTOMERS ARE ‘CAPTURED’, IT IS POSSIBLE TO BOOST PRICES.”

we need to make a sale with everyone who comes over the threshold. There is another objective staff often forget, you also want customers to return. If you achieve only one of those objectives, you have done well, but the second is as important to your overall plan as the first; a customer who comes back is on the path to joining your hard core.

The next step requires caution. A sales person will not be able to resist establishing the need and as fast as possible, fulfilling it. A customer care colleague will be looking to do the same, but in a far more professional way, by building a relationship with each human being that enters, to establish precisely the riding they are interested in and what makes it most interesting for them. By identifying the similarities between themselves and that person, existing to give people the best riding experience they can have gets through. At the end of the day, building rapport establishes a one-to-one, professional relationship, where the customer comes to rely on the sales person. So the personality and skill of your staff is critical to your success.

In the middle of the process is the sales conversation. This must be led by the customer, steered by the sales person and follow some structure. It contains certain elements that never change so if you are aware of the pattern, you are aware where you are within it and in turn, that means, you will know when it is right to close the sale.

In sales training courses, we make the point, that unless delegates are able to change the way they think, the business will stay at the present level. It is also well known that all of us do not appreciate ‘change’. So owners used to a relatively quiet, commercial life, will have the usual day job turned upside down. There will be many waves along the way, but to protect and grow the business you must sail them.

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retailtherapy

IDEAS FOR BETTER RETAIL

12 month service contracts for workshop repairs Plymouth’s Rockets and Rascals has introduced a scheme for its customers where they can roll their bikes in for repairs as part of a 12 month service contract.

Aimed at the enthusiast and commuter customer, the Pro Service Plan is just one of owner Steve Toze’s ideas to put a spin on how a traditional bike retailer operates and serves its customer.

Two plans are available at £15 and £20 per month, the latter of which includes a monthly degrease, wash and fresh lubrication. Additional bikes are charged at +50% per bike. Parts, tubes, tyres and cables are obviously not included.

Maison du Velo begins showroomer consultancy Back in the Q1 Trade Journal you may recall a suggestion on these very pages that showroomers could be charged a consultancy fee in order to ensure their online orders are compatible and safe to ride.

Reigate and Cranleigh retailer Maison du Velo has now begun operating such a service, charging customers a flat fee of £49 to ‘size and source’ online bought bicycles. As part of the consultancy fee the store will include a Radlabor body scan, matching customers to a pool of 28,000 geometries.

Once settled on their purchase, the would-be showroomer will then have their bike delivered to the store (unless it’s already in stock) before having their bike safety checked and fully set up.

Service Retail the independent’s saviour?

New figures from the Local Data Company place those retailers with a primary focus on servicing as those witnessing the biggest growth in store openings. Up by 587 openings, the ‘service’ sector saw the largest growth of any, posting a 1.92% year-on-year growth.

In 2016, the net change in independents was +159 units (+0.15%) versus +117 (+0.11%) in 2015. Independents account for 65% of all retail and leisure units in Great Britain, the same as in 2015.

YouGov poll of consumers outlines expectations of retail Published to CyclingIndustry.News in May we summarised the key points from an extensive poll of 2,070 UK consumers, flagging up some of the key behavioural changes when it comes to spending money.

Here’s some of the headline points in case you missed it:

while 7% are actually purchasing on their mobiles in store.

• 46% of adults use a mobile in store. This has prompted a big uptick in Beacon style push notifications from retailers to passing footfall with heads buried in mobile devices.

• When asked “which factors matter most to you when it comes to online-bought home delivered products,” cost was cited as the number one purchase influencer with some 40% saying this affected their choice.

• 30% of customers are using their mobiles in store to check and compare pricing, while 22% are seeking product reviews. 15% are said to be searching for mobile offers,

• Some 74% of CEOs believe that the cost associated with returns is eroding profits and that small changes to policy could help businesses slow the rate of return.

• When it comes to investing in your store’s infrastructure, 22% anticipate in five years time to be shopping on self-service kiosks wherever they go.

WWW.CYCLINGINDUSTRY.NEWS // 051

(( PROFILE THE RIDER FIRM ))

TALENT SCOUTS We don’t attend many meetings in the bike industry where breaks in conversation are required to allow for the noise next door to settle. A normal reaction to having a discussion interrupted by rampant chanting might be a stern talking to, but in this instance we all rise to see what the fuss is about. The conclusion of a dramatic Giro D’Italia stage was the quite necessary cause for the disturbance and refreshingly we all freely lapse concentration to take in the dying seconds of the race.

0

ne thing that’s immediately obvious at The Rider Firm is the passion for cycling that oozes through the business. Whether it’s heavily stickered desks, or the writing on the frosted glass windows dividing the offices, everywhere you look there’s unashamed evidence of a company in love with all things two wheel. Adding weight to The Rider Firm’s policy of recruiting talent, one of the windows is adorned with a local Strava segment dubbed ‘Beacon’ for which each willing staff member has laid down a time.

“Passion for cycling is absolutely central to what The Rider Firm and our brands are about,” says co-founder Tom Marchment, himself an industry long-termer who has previously held roles in bike shops and distributors Upgrade and I-ride. “It’s simply for this reason that we’ve been at the forefront of trendsetting, in particular with Hunt Wheels. We were early to the party in creating a disc-ready four season wheelset, something that we trailblazed a little with our suppliers. That only came about because it’s a product we wanted ourselves.”

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It’s for this reason that we are now able to introduce another housebrand development from The Rider Firm in Dissent 133. Why 133? That’s how many days a year it rains on average in the UK, we’re told. It goes without saying that this is a brand that will be dedicated to keeping the typically uninspiring weather at bay.

“We aren’t fans of those days lost to poor weather,” says Marchment. “With Dissent 133 we’re creating products that will become immensely good value for money as they’ll keep poor weather entirely at bay. Both myself and my father have poor circulation in our hands and thus gloves had to be our initial focus. As I say, we’re developing products that we as cyclists require.”

Dissent 133’s first product (or products) is an interesting and certainly unique take on what cycling gloves should offer. First of all, the £73 package contains three sets of gloves which work together as a modular package to deliver the perfect match to the conditions. Each is available separately, but for the price it makes more sense to opt for the year-round trio, which delivers a lightweight

baselayer, waterproofing delivered via an exclusive arrangement with Columbia Sports-owned patent Outdry and a stretchiness described as “like Gore, but with added flexibility.” We’re told that the three layers combined work together almost as one and design features like an easy on off loop at the cuff certainly add intrigue.

Having cycle market exclusivity with Columbia Sports on the use of Outdry is likely to prove a reason to watch Dissent’s progress as it moves beyond gloves. Uniquely, this patent revolves around placing a waterproof and breathable membrane on the outside of the garment. Asked whether the technology will appear in further garments, Marchment smiles and says, “we are able to if we choose. Luggage may be a sensible avenue to explore.”

In this instance, the pair’s father brought to the table 15 years of material science and engineering know how to drive forward the Dissent project.

Though lucky to benefit from in-thefamily knowledge here, The Rider Firm has been quite upfront with the cycling industry about its desire to recruit leading minds from around the indus-

try. At the time of writing the firm has just filled three vacancies, but tells us the foundations are being laid for further expansion.

“If the right experience comes along to take a project forward we’ll always look to make use of it, we want to continue to trailblaze,” says Marchment. “This is a great place to work where talent and ideas are rewarded. Each morning we have a team meeting to toss around ideas and keep each other up to date with projects and pressures. The pay is in line with the industry, but we have a scheme whereby if our margins and turnover are good we’ll hand a percentage of our profits back to staff as a percentage of salary bonus. In 2015 that was 20%, last year it was 29% and that’s for everyone here.”

Given the company’s growth, said to

be “doubling every year”, the firm further ups the appeal by nurturing staff ideas, almost going as far as introducing an in-house incubator for up and coming talent. “We see value in sharing space with people with bright ideas,” explains Marchment. “For the time being that idea’s on the back burner as we assess our premises expansion.”

Looking after partners extends to customer service too, we’re told. The Rider Firm has a strict policy of answering customer emails within 24 hours.

“If Amazon does it, the bike industry needs to be at that level too. Other industries have stepped up, but the bike trade’s customer service is lagging, in my opinion,” says Marchment.

Having signed a deal with Canyon Bike Channel to supply the team with Hunt

wheels, The Rider Firm has teed up some significant exposure for its dealer stockists. Furthermore, you’ll find Hunt’s Wheels specced OEM to Dom Mason’s in-demand bikes. The pro cycling deal, we’re told, wasn’t part of the strategic plan, but “proves that our product is considered reliable and sought after.”

Dealers interested in stocking the firm’s portfolio are offered low MOQs, “strong margins”, IBD only brands and a strong stock of spares.

“Lot’s of shops don’t realise you can buy Hunt wheels at trade,” says Marchment, “but we welcome anyone who’s up for representing quality goods in a strong retail environment to get in touch.” www.theriderfirm.cc www.huntbikewheels.com

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(( PROFILE COOKE COMPONENTS ))

RECIPE FOR SUCCESS Big on customer service and quickly growing an exciting portfolio of brands, Cooke Components is on a dealer and distributor drive that will likely soon see the Basingstoke business double its footprint. CyclingIndustry.News visits the business to see first hand what’s being cooked up…

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hen Matt Cooke set out with his business in 2012 he was just 23. Having worked with Halfords, within local specialist retailer PedalOn, as a forklift operator, as well as having packed in four years as the southern UK representative to Spain’s Casa Massferrer, Cooke has experience beyond his years. Having learned about the bicycle industry supply chain from top to bottom, his now five year old business finds itself in a position where the warehouse will soon need to double in size, not only to cope with increased demand, but to stand firm as a course is set to explore business outside of the UK. “Having a bicycle background is one thing, but I really like the business side,” he says. “My time handling Massi in the UK taught me a lot about all aspects of trading and in a sense our business shares some similarities with their model. Cooke carries lots of own-label accessories under the VEL banner and a plethora of other branded goods too.”

For the uninitiated, from its Bramleybase Cooke supplies Joes No Flats,

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Ride Air, Sunrace, Vredestein, Supacaz, Veltec Wheels and house-label Vel. It’s a brand stable built quite deliberately to be best served up in store and most importantly, to offer dealers a strong margin across the board.

“We’re perhaps one of only a few UK full service distributors that doesn’t stock a bike brand, meaning that our sales staff are entirely focused on being there for our customers at all times. My email signature even carries my personal mobile and that’s because we want to be seen to be visible and approachable to our customers. I think there’s a lot of frustration among dealers with larger distributors who can be available when it’s convenient for them, but not when the store has an issue. We pride ourselves on our responsive nature,” says Cooke.

Sympathising with start-up businesses who may traditionally have found it difficult to access competitive rates or, at worst, to be permitted an account at all, Cooke says that he’s a big believer in giving genuine small businesses a leg up in the trade. With

a new stock handling system due by October, Cooke’s investment in making life easier for partner stores is well underway, we’re told.

“If you can’t access product when you start up, then how will you ever get going,” he asks.

Choosing to work with brands that prefer to “keep the market healthy”, independent bike shops are opening accounts at a steady rate, we’re told.

Supacaz, the grip and bar tape label started by Specialized founder Mike Sinyard’s son Anthony, is one such example and one in good demand given its roots. Likewise, Joe’s No Flats is another with compelling reasons for dealers and consumers alike to part with their cash when sealant is required. Retailing at an incredibly competitive price point and offering dealers a portfolio of conversion kits, lubricants and cleaners, as well as spares, Cooke has at present some incredibly strong packages when it comes to dealer margin.

House accessories label VEL is another that offers a number of compelling reasons to adorn your

slatwall and countertop. Dealer focused, VEL is in some cases offering up to a 70% margin and in the majority of cases no less than 50%. Cooke has invested heavily in its own produce and is in the process of expanding distribution overseas, which aside from bolstering sales figures, should enhance buying power and thus further improve prices at trade and retail. Not one to spend big on traditional marketing, money saved is rechannelled back into display stock, we’re told.

Cooke says: “We buy VEL direct and in bulk. Most will use a trading company, but our relationship is direct with the factory and it’s a good partnership – one that ensures we’re able to co-produce some genuinely strong product. In my past experience when dealing with the factories in the Far East it’s sometimes been the case that their market’s needs don’t match those in the West and so some great ideas get overlooked. I’m pleased to say that that doesn’t happen with VEL and that the quality is up there with the best.”

With that international expansion in

the pipeline, the business has just bolstered its team with the appointment of Alvaro Bonnadeaux to take care of foreign trade. Having already appointed a South African distributor, we’re told to expect further additions in the near future. With Bonnadeaux’s skillset and fluency in German and Spanish, Cooke invites overseas partners from around the globe to make contact.

Cooke positions VEL as a brand that won’t look out of place on shelves alongside the industry’s leading accessory labels.

“It’s a very neutral accessory line that works tremendously well alongside other brands and fitted to a bike.

We’ve kept the branding to a very discreet V in some cases so that it doesn’t throw off the brand loyal. The product’s immensely well packaged too, so looks great when ranged in store. With carriage paid on £150 of stock I think VEL makes a compelling case for most stores given the achievable margin. While we’d like to see growth accelerate, we’ll do it in the right way, this isn’t just a numbers

game, it’s key that we build brand strength for the long run.”

Due in stock shortly, VEL is to see a concise range of new low-profile CNC machined multitools, additions to the already well-received pump line, including a departure into track pumps, as well as a number of CNC machined handlebar mounts for GoPros and Garmins, among other devices.

“We’ve had next to no warranty on our goods,” concludes Cooke. “In the cases where we have had issues, even in some of the more dubious cases, we’ve replaced the product like for like. The shop’s have a relationship to uphold with the consumer and I with them. I don’t want that to break down at any stage, so our level of support is something Cooke works incredibly hard on.

I’d very much welcome dealers on board to discover that for themselves.”

Contact Cooke www.cookecomponents.co.uk Phone: 01256 880739 Email: info@cookecomponents.co.uk

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(( RETAIL ANALYSIS MARK O’DOLAN ))

BEING SHOPPER SAVVY During the Spring, HighStreetMentor.co.uk director and bicycle business consultant Mark O’Dolan visited Bryan Avory’s Basing Cycles in Hampshire. Writing from the customer’s point of view, O‘Dolan reports back on what he found most engaging about the business and how it manages customer interaction…

THE experience started with a friendly welcome from a member of the sales team standing at the front of the shop, not behind the till.

The welcome was spot on; from the staff member’s acknowledgment of my entry down to the shop ambiance.

Potential customers make a decision within the first five seconds if a shop is logical and meets their desired shopping experience. That takes in a number of factors; is the shop easy to navigate, do staff appear knowledgeable, excited to help, and do they deserve your spend. This is achieved in Basing Cycles and it's a ‘recipe of good retail disciplines’ that make this work. First impressions are critical and there are a number of factors that help customers feel at home. Cleanliness is a must, imagery and signage

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on the walls to visually engage the customer is also crucial. Then there’s the more subtle design features; like front wheels of the bikes facing the same way with point of sale swing tickets that are professionally printed with price and information.

THE OWNER Bryan looked like an expert. Wearing his Pearl Izumi top and trainers, he was more than happy to tell me about himself and why he opened the shop four years ago. He explained he had a background in heading up IT companies and not retail. He also said he loved cycling, but this was not the reason he invested in a cycle shop. He did it because he could foresee an opportunity to make money. The fact that he wanted to turn a profit meant

that he recognised the need to learn about retail and crucially, he is still learning. He explained he has built his business up carefully growing at around 10% year on year and he has done this through strong cash flow management and a critical stock turn of five times a year.

He also has a keen focus on market trends. When it comes to product none of us get it right every time.

There will always be a colour, size or, at worst, a whole category that simply does not sell, but that is not a mistake. A mistake is not having the controls in place and commercial acumen to spot a ‘dog’ and then turn it into cash. ‘A dog is a dog’ and won’t suddenly turn into a seller unless you have merchandised badly and therefore the first action is do it right.

Bryan’s attitude is clear when it comes to slow sellers; his policy is to turn them into cash with promotions.

Retailer’s should consider clever all year round promotions like “two for” style offers as an ongoing strategy to stimulate sluggish sales. Don't just wait to clear stock in a sale and destroy the margin. Consider buying in high margin ‘deals’ in advance of the sale then put it in the sale. Bryan puts the product line into a promotion and turns the stock into cash so he can keep investing in new stock.

Worth mentioning is Bryan’s attitude to learning. He confesses to "stepping out of his box" to visits other high street retailers. Superdry is one such fashion outlet he flags as

having delivered merchandising inspiration. This is important because customers walk from these kind of businesses into yours. Bryan agrees to keep consumers happy the experience needs to be as special as you can make it, or they might as well go to the internet.

PRODUCT OFFERING Customers need to see clear categori-

sation of the product without having to ask a member of the team otherwise risk low conversion. In Basing Cycles accessories, clothing and bikes are all clear in terms of merchandising and themed with great use of the walls, but what stands out is the fantastic EBike range. We worked out it must represent 30% of the bike range with an entry price of a little over £1,000 up to £3,999.

I wanted to drill down further to understand which were best sellers and why.

Bryan was quick to respond, but due to lack of EPOS we could not get to the detail we wanted at the touch of a button. I wanted to know the sales participation of each product category, the margin, and the

sales percentage to space to understand the profit productivity to see if there was commercial action to be taken. He acknowledged EPOS is one of his next investments, but he wanted to make sure he got the right system to move the business on to the next level.

Without looking at numbers, Bryan is doing well with electric. He offers a fantastic display and without any

strong website or SEO presence he is becoming famous within his area for his depth of range.

IMAGERY Bryan strives to improve shop ambience with imagery, display techniques and of course good customer engagement. A mandatory daily shop standards inspection is how you lift and sustain shop standards. The inspection starts from the windows and continues throughout the store.

What’s more, it is undertaken from a newbie’s perspective if you can adopt that mindset.

An important point Bryan makes is that when he started out he got great support from Specialized, Bianchi and particularly Madison. He still gets great advice in terms of what product he should offer, imagery and merchandising techniques.

Pearl Izumi clothing stands out well with good branding and good retail principles. Bryan tells me he does good business with Pearl Izumi bibs and Madison jackets and that's not surprising when you look at the presentation. Gone are the days of hand written signage. This kind of poor product management only devalues a brand and kills full margin sales.

DEVELOPMENT I recommend store managers visit other retail organisations once a month to pick up ideas and invest in self development books and training courses. I recommend a book called Retail Success Today available from Amazon, or my website. It is designed to help independents in all retail sectors with focus on three critical areas to running a profitable business; visual merchandising, marketing and finance management.

Contacting Mark...

If you should require help to improve your profits, please call 07951022907, or email mark@highstreetmentor.co.uk www.highstreetmentor.co.uk

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KEY LINES FOR THE SEASON AHEAD By the time you’re flicking through these pages, it’ll unfortunately be, from a business perspective, time to think about stocking up for darker and colder days. Here’s some of the key lines for the period ahead that may be worth your consideration: KNOG PWR RANGE

MOON AEROLITE

Silverfish UK: 01752 843882 Having successfully passed the Kickstarter test it’s safe to say there’s market demand for Knog’s take on what kit a mountain biker might want to be taking out when venturing into the wilderness during winter.

Particularly well-suited to the bike packing enthusiast, the PWR system centres around a 3200 mAh battery bank that is capable of powering a portfolio of add-ons, including a portable Bluetooth speaker, a headtorch and a camping lantern. The bank will further deliver power to mobiles, laptops and anything else able to feed in a USB charge line.

Hugo Davidson, Knog’s CEO says of the product: “It’s such an obvious idea really – you don’t use all these products at the same time, so why not save on batteries. If you do use these all at the same time, then you can have as many batteries as you like, giving you longer run-time. It’s win-win.”

Raleigh UK: 01773 532690 Already finding ourselves faced with stocking up for darker nights, Moon from Raleigh are bringing forward a number of improvements to its lighting portfolio.

The pictured Aerolight, clad with Cree LEDs, is one of a number of examples making a strong case to be your commuting customer’s top choice for night visibility. The base model offers 60 Lumens projected via a 62% angle and this can be fine tuned to cast an 11 degree focused spotlight if required.

If your customer has a little more budget to spare, an upgrade to the 100 lumen Aerolite-H is worth consideration. Weighing only 41 grams and with a run time of up to 23 hours this is among the top commuter lights in the Raleigh portfolio. Both models are USB rechargeable and water resistant to IPX4.

FLAÉR REVO TERRA

ABUS GAMECHANGER AERO HELMET ZyroFisher: 01727 798340 Available from July and retailing for a competitive £179.99, Abus has a new flagship when it comes to aerodynamics.

Dubbed the GameChanger, the unique flow patterns are developed by designers , engineers and clock-chasing cyclists, including leading professional riders like Nairo Quintana and Alejandro Valverde. When you fight for every second it's all about that extra watt, and the aerodynamic design and performance of the GameChanger speaks for itself. The airflow has also been optimised for all typical head positions ensuring ventilation around the whole head, while the multi-shell in mold provides exceptional safety, protecting the rider in the unfortunate event of a crash.

To read up more on the science that has gone into developing this wind-cheating lid, head over to the microsite at gamechanger.abus.com.

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Contact: +44 (0) 0141 465 7765 Should you be reading this on the way or at Eurobike, you can catch Flaér in person over on booth A1-219.

Shown in Friedrichshafen will be the off-road adaptation of the firm’s flagship Revo Via, the Terra chain performance system.

Perhaps even more crucial to those tearing up the muck, the Terra applies a precise quantity of specifically developed Terra Fluid to the chain as your customer rides. The net result is 5% greater power transfer to the wheel, smoother shifting and a visibly cleaner transmission, all of which combine to deliver greater longevity for drivetrains. Chain suck is said to be eradicated entirely with the system.

Flaér offers significant profit potential for retailers with repeat business from refill sales. Stockists can also benefit from a high margin footprint point of sale display including all Flaér products.

BIKE BUSINESS

FESTIVAL DAY

SEPT. 2

AUG. 30 – SEPT. 2, 2017 FRIEDRICHSHAFEN, GERMANY

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