Thoughts On An Industry In The Midst Of Changes: A Parallel Universe

 Last week I posted my first article on this subject with thoughts I had concerning why the bicycle industry finds itself where it does now and what I thought about what the industry could do going forward.

A couple of days later I posted this follow-up, and I figured this would be the end of the discussion from my end concerning this pickle the industry is in these days. However; I've come across something which made me think and I feel this source I am sharing today has several interesting and applicable thoughts for how the retail bicycle trade might look going into the future. 

This all came about as I was on You Tube and saw a thumbnail for a guitar shop whose videos I have watched a few times. The title "You're Fired!- Guitar Stores Are Firing Customers", made me think this would be a video about customer relations and how sometimes retailers have to tell customers to walk. While it was a tiny bit about this subject, there were a lot more ideas shared about how customers are "fired" by what retail is becoming in the guitar world.  

The retail bicycle trade is not alone in today's difficult marketplace, with regard to post-COVID inventory issues, and lessons learned from COVID times. A run on guitars during the pandemic and the resultant over production of instruments during and after COVID have caused many similar issues in the guitar industry as we see with the bicycle industry. So, I feel what Mark, the man in the video, has to say are relevant and applicable here. A somewhat parallel universe to bicycles, you could say. But I also think the guitar world is a bit ahead in their thinking as a group versus the bicycle folks. 

First of all, independent guitar shops are disappearing across the country. Just as with the retail bicycle trade, shops are finding the economics of selling products with ever lowering profit margins in competition with online retailers and even their own vendors is suffocating.

So, with less and less retail outlets, customers are beginning to forgo the "I have to touch it and see it first" traditional way of the past for a more "instant gratification" model which also reduces human interactions.  You may think this is anathema for your shopping experience desires, but many younger customers see this as a "normal" way of transacting today.

Due to what COVID forced on retailers, many shop owners are also finding the less human interaction mode of selling is more palatable. Retailers do not have to deal with various personalities and find ways to placate them. As Mark in the video says, "Buy it or don't!".  This parallels the D2C retail model of Canyon, and now some other major cycling brands who are following suit. Of course, we can point out several accessory brands which have been onboard with this sort of retail strategy for years already.

Another interesting "the customer is fired" strategy the guitar world is employing is the "by appointment only" model. This eliminates the, as Mark in the video says, "randos" and puts customers in your shop who probably have a very high percentage of parting with their money. You, as the shop owner, have a focused interaction with a motivated customer. A much easier sales approach, and generally a much more successful one.

I have noted one local shop here in my area employ this model for the past several Winters now. I feel as though this shop may just keep on doing the "by appointment only" model all year. I find it interesting, and I can see how it keeps day-to-day nonsense out of the retail experience. Whether or not it will be profitable for this shop, I cannot say

Then there are the local, "garage shops" which have always been there, but now may find themselves becoming the focus locally for the everyday repairs like flat tires, adjustments, or cheap sources for parts and accessories. In the bicycle world, this is mostly the realm of the "mobile shop". However; I think if manufacturers, and especially distributors were to loosen their reins a bit, we might see the neighborhood "garage shop" become a viable source for bicyclists needs at a ground floor level.

Anyway, it is an interesting video and I feel it has  information which parallels the retail bicycle issues we are experiencing today. Give it a listen and see if you agree.