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Guest Editorial: Information needed

 


Editor's note: John Neugent owns neuvationcycling.com and a bike shop in San Luis Obispo, California. He wrote this guest editorial in response to recent articles about the Amazon Price Check app.


I must admit that it doesn't surprise me that this is a hot button for bike shops. I have both an Internet site and a brick-and-mortar retail store. The brick and mortar store requires vastly more time to make a retail sale than the online store and for someone with only a brick-and-mortar store it's easy to be disappointed by the fact that they lose sales to online retailers. But there is something missing in the equation and that is the cost of getting an online customer to the online site. It's not free. In fact, it's expensive.

A much better discussion for the industry would be to deal with the specifics of marketing for both types of stores. At the end of the day, whether or not your store is online or a brick-and-mortar retail store it's your marketing that will determine if you are successful or not because we all really have the same things to sell — bikes, parts and service. I will briefly use my experience to make my point. For my online store I spend a disproportionate amount of money in advertising (about $150,000 a year for a very small store) to generate sales. The result is that it takes less time to generate a sale but I would argue that it doesn't cost any less.


For my brick-and-mortar store I now spend nothing in advertising but rely on my top-notch customer service and attention to customer needs to generate sales. I look at time spent with the customer as my advertising. Some of it will work and some of it won't. End of story. No different than the advertising that doesn't work for my online store. If brick-and-mortar stores would embrace this concept of looking at time spent with customers as their advertising most would be happier about doing it but more importantly it would give them a tool to use in considering their overall marketing strategy rather than an axe to grind against their competition.


The industry is going through a period of change and the brick-and-mortar dealers and their suppliers are slinging as much mud at Internet retailers as possible, but they are doing so without accurate information or in most cases without any information. At the end of the day the focus needs to be on what consumers want. Not what the supply side wants. Our job, whether or not we sell online or from a brick-and-mortar store, is to deliver that and what we need to be focused on is how to provide that to customers and how to measure our performance and costs. The Internet is here to stay and so are brick and mortar stores. It's only when we get beyond the mudslinging that we can have an honest discussion of how this new retail model will really work.


 

  1. Travis Evans says
    January 4, 2012 at 9:07 am
    Very well stated John. I agree with everything you say!

  2. Chris Holmes says
    January 4, 2012 at 9:18 am
    It makes sense that a manufacturer like the owner of Neuvation that sells direct to consumers does not think it is as big of a deal to sell online. His main driver of sales as I have witnessed has been price so the idea that "marketing" is the problem I do not buy it. Online is all about price and removes all the value add of personal service. But the real problem is that the bike industry can not survive if you do not have the LBS for service and a LBS can not survive on labor dollars alone and only survives on customer support on the rest of the products. Manufacturers that sell or allow sells online are only working against the system and cutting their own throat all for short term gain. Companies failure like Titus have shown that the online thing is bad for business. More and more companies are realizing that they need to focus on the IBD look what is happening to Raleigh/Diamond back since their decision to allow online sells.

  3. Pope says
    January 4, 2012 at 3:34 pm
    The real issue is that online sites are given a benefit that brick and mortar retailers do not have. We HAVE TO charge sales tax or we go to prison. Online retailers do not. That tax revenue is critical to maintain essential services that any town or city provides. Perhaps the good people at Neuvation and other online retailers should let their local police and fire departments know that emergency calls to their locations should be low priority--or no priority--since they are not contributing fairly to the taxes needed to operate those services. The bottom line is that online buyers make their high dollar purchases partly because unscrupulous companies dump their products to online sites but also because they can also save sometimes hundreds of dollars in sales tax. The system is rigged against brick and mortar retailers and it needs to change. There is currently legislation being considered by Congress (Mainstreet Fairness Act--Senate Bill 1452). Contact your Senators. If they are not supporting this you as IBDs should strongly consider whether or not they deserve your vote in the next election.

  4. Jim says
    January 4, 2012 at 3:37 pm
    This is a related subject to this discussion. I used to buy strictly from the LBShowever since I wasn't a high powered racer I was treated in a very condecending manner. Also some of their service work was sub-par. Anyway I decided to learn how to wrench on bikes and buy the parts online.Some brick and mortar shops treat customers great while others are horrible. I have many riding friends that shop exclusively at the LBSand have their bikes worked on there as well don't chase them away with poor customer service and bad attitudes.

  5. Rob says
    January 4, 2012 at 4:25 pm
    Other than being extra easy I fail to see how the Amazon app is anything new. You could just as easily get sized at the shop then go home and order the item online before the smart phone put the internet in everyone's pocket. What I dislike is the "chicken or the egg" factor as the LBS has less and less inventory because they can't "compete". Then even when I want to buy local I can't because no one has what I'm looking for.

  6. Dean Buckeridge says
    January 4, 2012 at 4:32 pm
    I am a cycling consumer and also have my own business in a different industry. It always tells me something about a business when I hear them complain about industry change and the existence of competition in the marketplace and how their customers are no longer coming to them to do business on their terms. As a consumer it comes across as an incredibly arrogant statement that I must deal with my LBS just because they are there. I will buy whatever I want from whomever I choose to buy it from. I choose to buy from both the internet and LBS's I am fortunate to have around a dozen stores near to me however the idea that the LBS provides better service is incorrect. There are only 3 local stores that I will enter the others are staffed by people I do not want to deal with and don't stock what I want. On-line I get access to a better range of product at better prices and with the likes of John Neugent's Neuvation I get regular contact and information from people at the forefront of the industry which I enjoy because it's all part of my cycling fix. The reality of business in any industry is that if you do not have a strong on-line presence then your days are numbered. I have never been able to understand why my local LBS's don't have regular email newsletters telling me what new products have come into store what races and events are coming up bunch rides test rides deals etc. etc. all of the things that enable the personal contact they claim to provide. As things are at the moment I get more personal contact over the internet and the majority of LBS's that I go to are staffed by 2nd grade wanna-be racers or has-beens with less technical knowledge than I have as an enthusiast and trying to sell me rubbish that I don't want attempting to pass it off as just as good as the real thing. Any successful business model revolves around identifying your customers wants and needs and then meeting those requirements not trying to modify your customers behaviour to suit the model you would prefer.

  7. Al says
    January 4, 2012 at 4:36 pm
    What if arrangements could be made between shops and online. The customer could go to a shop to view/test/get fit for a bike and the online entity would make the sale returning a percentage to the shop for qualifying the sale. The shop in turn would provide the space for demo bikes no purchasing involved and they would build a local relationship with the customer. Car dealers make most of their money on repair/maintenance. Why not?

  8. Jason says
    January 4, 2012 at 5:20 pm
    I believe Dean summed it up perfectly. As far as the LBS goes you gotta wake up and develop a better business! Boo-hoo people are taking my business...it isn't fair...I can't compete... Whoever said business was supposed to be fair? I've never heard that. Sounds like many in the industry are misinformed. Someone will always be trying to take away your customers. That is the reality of business. It is hard. Most businesses fail. Some places sell on price some on service. Want to do better in your brick and motor store? Deliver better service. Most shops around here (and I live in a place with a ton of shops) are staffed with the absolute cheapest labor money can buy. Granted I am knowledgeable about bikes but the vast majority of my experiences are interactions with people who know far less than me don't wait to figure out what I really need then want me to buy what they have or make me wait for them to order it. Why waste me time and effort doing that? Having said that I do have ONE good LBS where I spend all my local dollars. The have good service knowledgeable staff and a nice selection of parts. I spend a good amount of my $$ there. However this shop is certainly the exception rather than the rule.

  9. Tom says
    January 4, 2012 at 5:39 pm
    Great article innovate or get crushed. Poor CS at most LBS' pushed me towards online shopping my bottom line is more important than the LBS. There are a few exceptions and they provide much more than just a sale it's an experience.

  10. John Neugent says
    January 4, 2012 at 5:48 pm
    A couple of quick comments to posts that have been made so far. Chris – pricing is one of the most important aspects of any marketing program. It is absolutely a marketing tool and if you believe that I or any other Internet retailer is selling items for less than we think we can get you are mistaken. This is one of the truly sad aspects of the Bicycle Industry. Virtually all other industries have suggested retail pricing that gives their retailers an ability to discount profitably. The Bike Industry pretty much doesn’t and will go after retailers who do discount their products. To make a sale most retailers try to give their customers a reason to buy NOW. That’s how most retail works. In the Bike Industry unless you do your own products as I do you can’t. As a result bike shops have their hands tied because they have been told they cannot use the most effective retail sales tool available to them. A sale. I don’t want to go into this in any depth because any discussion of it would be illegal. Pope – you are absolutely right that Internet retailers don’t have to charge sales tax on out of state sales (we do for in state sales and it doesn’t seem to be as big a factor as people think it is) but it is an advantage. But retail shops also have advantages. That is my point. I sell over half the people walking in my store looking for a bike (an extremely high percentage but we have an unusual business model) but I sell only about 60 bikes a month to the 20000 monthly online bike shoppers who visit my site. It’s the same product. If that isn’t an advantage brick and mortar stores have I don’t know what is. Brick and mortar stores sell the vast majority of all high end cycling components sold because they have advantages over other types of retailing. I don’t know the people at Performance but do know they are opening up more and more brick and mortar stores. My guess is that they see it’s a good way to do business.

  11. Mark says
    January 4, 2012 at 6:37 pm
    Many valid points are being made some not so much. I too more times than not make purchases from an online store. Many times because they are less expensive than my LBS by a very large margin. Selection is one of my main reasons for buying online also as stated here the LBS does not stock what it is I'm interested in and offers to order for me which I in turn would have to wait at least a week to get when I can order it and have it within 3 days most times. I ride a very nice older steel frame and fork that most LBS do not stock what I'm shopping for. Going to an LBS an talking to some chump does nothing but irritate me so that drives me to do more business online. I agree with what was said about LBS not sending news letters or other information about what is happening locally even though I have supplied them with my email address. I appreciate the knowledge that John Neugent shares with his daily mailings as I love to know the inside of what a business is doing.

  12. Pope says
    January 4, 2012 at 7:42 pm
    And do those of you who are consumers wonder why your LBS has sub-par employees? It's not that hard to figure out; the lack of a level playing field compared to online retailers means that any brick and mortar shop is working at a severe disadvantage and cannot afford to hire the quality of employees they need. Oh yeah innovate or die. Right. An online dealer offers an end consumer a bike for what the LBS pays wholesale AND they don't even charge sales tax. That's really easy for your LBS to compete with. A customer recently showed me his new Santa Cruz that he bought online--saved a bundle and screwed the city out of $400 in sales tax! Boy oh boy. That's really fair. Maybe when his house is being broken into he can call the Online Police to respond. Or maybe when he whines that the streets have too many potholes and he dented his new Zipp rims (online purchase at a great deal!)--maybe then he might get a clue as to where his tax dollars go. Until then he can keep voting for any demagogue who promises "no new taxes" and enjoy the consequences.

  13. Brad says
    January 4, 2012 at 8:48 pm
    There are 2 good points being made: 1. As an LBS offer value to compete with online. The trend of online shopping will not lessen. As the LBS you need to determine who your customers are and what they value such that you can monetize that value. 2. It's crazy that online sales don't collect sales tax. I'm a huge amazon shopper and it's a great perk as a consumer but it's obscene the advantage amazon has with no sales tax to Target. Target is HQ'd in my home state and I find it ridiculous their forced to compete w/ a 7% delta from the start. How'd Target compete 5% back w/ Target credit card use. 2% delta becomes noise. This should be remedied to take away an unfair advantage for online stores.

  14. John P says
    January 4, 2012 at 10:09 pm
    What country are we living in here? Last I heard America was a FREE country where consumers choose from a cornucopia of vendors & products based on their individual criteria. Has something changed while I was asleep last night? If your bike shop is not profitable the way you're running it change your business model or get out! I shop at Village CycleSport in Illinois and the owner Vince Boyer is a smart blend of old-school service and modern online retailing. If I'm spending $5000 plus on a bike I want someone to spend a couple of hours with me going over EVERY detail of size geometry parts options purpose style color price ongoing service support etc. I want a certified professional to fit me to the bike and advise me if it's not a proper fit and be able to explore alternatives. I want a place to take it when it needs more than my skills can handle. I want a 10% discount for my membership in Active Transportation Alliance (on parts not bikes). All these things Vince and his staff are willing and able to do for me and if I have to pay a small price premium for that level of support then I'm happy to. That folks is Value-Added-Reselling. If your bike shop cannot add value then there's NO REASON to pay the LBS premium is there?

  15. Bill says
    January 4, 2012 at 10:37 pm
    As a consumerI buy from a variety of sources.Face it once you own a bike you really don't need much. Want however is another story. Craigslist hasn't been mentioned but is the tax free entity which all dealers of any type must deal with. Cyclists always need the consumables: tubes tires co2 etc. I don't want to wait for a online seller to ship me a freaking tube I'll stop at my LBS and go riding. Hey while I'm here what's the newest coolest thing? I probaly won't buy it today but I'll most likely BS with my riding buddies about it.

  16. Rich says
    January 5, 2012 at 6:54 am
    I agree with the other cyclists about issues with the lbs. I have two near me in northern NJ one treats me with contempt and the other has one or two employees with the same passion for cycling that I have. Why not inform people about events get them involved with he whole world of cycling help them find each other? It spawns a cycling community that supports the lbs. Right now neither do. My best experience with a cycling shop was on London England a shop called Condor cycles. We would hang out there as part of a lifestyle that was proud to cycle. They had a coffee machine where we could recharge and get the perspective of anyone from the hard core cat 1 racer to the bike-couriers. It was a wonderful experience and I happily paid hundreds more to buy my bikes there because of the knowledge and insight imparted with those purchases.

  17. Travis Evans says
    January 5, 2012 at 10:41 am
    One of my best customers has a complete Neuvation bike. I am glad when he walks in with it and I treat him with a smile. Sure he purchased the bike online - no problem. I have since built him custom wheels and have replace the drive-train (do to wear - he never stops riding). If I had sold him a bike off of my floor he would expect discounted service and I would have hardly made any sort of mark-up. When he leaves the store he tells his friends (who all shop online) what a great experience he had. No - I'm not trying to advertise my shop here I'm just saying that you won't change people's buying habits - they are going to do what is convenient and economical for them. You have to make the best of it.

  18. Fitz says
    January 5, 2012 at 10:47 am
    Unfortunately John is operating his business in a window in time where he is realizing sales benefits BECAUSE most brick and mortors are not running ecommerce. If all IBDs open ecommerce then they would collectively drive the retail pricing down to zero profit and run themselves all out of business. Reading his post it almost implies that everyone should "market more" and things would be better. While he is right and in general that is true his revenue success isn't marketing more and bringing in more customers from within his own market. He is marketing in your city and taking customers from your shop with cheaper prices. Hardly needing a skill set that business school students will write thesis papers on. John's biggest threat to his business is if 20 other shops decide to copy his ecommerce business model and he has to spend twice as much on google to make 1/5th the revenue. If he and other mail order is that big of an issue join the coop and only buy from suppliers that don't sell to mail order houses.

  19. Fitz says
    January 5, 2012 at 2:23 pm
    John P in the last 15 years the amount of IBDs in America has gone from well over 9500 to less than 4500 and I would wager that there are probably 500+ that would close their doors this month if their lease was up and they could liquidate their inventory. The bike business is not a big profit industry and it's easy for ssome shmucky the clown to set up a website and sell his inventory cheap all over the country further killing the retail business model. Too many shops are under-capitalized (they don't have enough money to run their store well) and because of that they are under-staffed but they run their shops because they love the bike business. They certainly aren't doing it for the money. That's why I doubt anyone in the bicycle retail business would consider their pricing as "premium." I DID however like your attitude on "I want my 10% discount" as if you are some kind of dignitary that deserves special treatment but because of all the things the store does for you you are "willing" to pay their "premium prices." They must love watching you walk thru their door...

  20. Alex M says
    January 5, 2012 at 2:56 pm
    As a consumer local bike shops have some of the worst turn around times on getting stuff in and following through on inquiries. I don't know what the issue is as it appears to be a cultural thing all the way back to the manufacturer (I'm currently waiting on a bike that has been delayed four months now from the manufacturer). For me it's the inability to get what I want in a timely manner that has me going online for a lot of purchases. The local shop I go to is run by a great knowledgable guy who'll work with me on putting together what I want. However if I want it done in a timely manner I know he's not the guy to go to. And other shops I've tried are no different. I'll be looking for something that will require being ordered and I simply won't get called back. So rather than wasting my time with LBSes on a lot of harder to find items I'll just do a bit of googling and order from someone I know has it in stock.

  21. Dean Buckeridge says
    January 5, 2012 at 4:55 pm
    @ Pope If I were to hire sub par employees for my business to give sub par service to my clients while my competitors find new ways to service our client pool I wouldn't need a crystal ball to see where my business was headed. Personal service is the biggest and best offering an LBS has for its clients. When I bought my last Cervelo I got it though the shop because they measured me and my previous bike to get the right size for my body and riding style. They built the bike and did the complete bike fit and offered me 2 free services and on one of those trips back I bought a set of Zipps. However if the guy behind the counter doesn't know more than me about these things then I'll do the research myself and buy on-line. I'm not going to lay out serious cash on something that is very important to me without having a whole lot of confidence in the people I'm dealing with.

  22. Pope says
    January 5, 2012 at 6:36 pm
    Dean: I'm in full agreement with most of what you say. I have been fortunate in my three decades as a bicycle retailer to have outstanding employees who are not only mechanically talented but also knowledgeable and good with customers. But I hear the complaints regularly about shops which employ less than top notch employees. And again it is a result of brick and mortar shops being put at a disadvantage by the system the confers tax free status on their competitors. We all know that system is wrong--you know it even though you may not want to admit it. All we want is a level playing field. I'm glad you bought your Cervelo from your LBS but that shop could have sold you the bike for hundreds of dollars less if they didn't have to collect sales tax. And I'm certain that the streets you drove to get to that shop were paved and that there were fire hydrants nearby. And you knew that you were safe from getting mugged as you got into your car because the city has a police department. That's my only point.

  23. John P says
    January 5, 2012 at 10:52 pm
    Fitz: In your comment "I DID however like your attitude on "I want my 10% discount" as if you are some kind of dignitary that deserves special treatment but because of all the things the store does for you you are "willing" to pay their "premium prices." They must love watching you walk thru their door..." You completely missed the thrust of my argument. You sound like the bitter shop owner who can't adapt and is blaming everyone but himself. BTW the 10% discount is offered to ALL members of the Active Transportation Alliance by most Chicago LBS's not just me. I spent over $10K at Village CycleSport in 2009 alone: Here's Vince Boyer's phone number: (847) 439-3340. Call him and ask him how he feels when John & Lisa P****gal walk through the door at Village Cycle Sport. Then learn how to swim in the deep end my friend. That's where the sharks are but that's where the fishing is best.

  24. fitz says
    January 5, 2012 at 11:45 pm
    Wow... 3 or 4 years ago you spent a lot of money. Of course it's worth repeating that 15 years ago there were probably twice as many places in the Chicagoland area where you could get the service you demand now. I guess the sharks got them. My point about the original guest feature was that we are at a point in time when most bike shops don't venture into ecommerce partly because they don't have the time/bandwidth and partly because most of the products/suppliers ask that they don't mail order their products. If 50 more shops decided to get into ecommerce the bike business would be like the camera business. You call to mail order a widget because they guy doesnt have it he tries to sell you a cheap copy or takes your money and then a week later when it doesn't come you call to find it's backordered. That's because competition drives most out of the game and that level of service (or lack of) is the inevitable outcome of the spiral downward. Then Vince boyer has to close one or two of his stores... he stops giving the 10% discount... he starts charging to do pedal/shoe fits just so he can stay in business... and instead of buying bikes and equipment from experienced cyclists who love cycling you liken the experience to going to best buy and asking a kid what the difference is between these 4 models. Why don't you go ask Vince if he would be OK if Specialized allowed all of their dealers mail order their bikes.

  25. Scott Walker says
    January 6, 2012 at 12:26 pm
    In a market where good shops come and go and good people come and gothe brick and mortar business does something that the internet cannot do.I do understand the mindset of the consumer. In this economy we need all the advantages and deals we can get.I don't get upset with my customers who buy online. I get it. The web is great for buying most anything howeverThe brick and mortar stores provide the service that you need.I have allways said that the mail order/web stores cannot true your wheel on a saturday!

  26. Mike J says
    January 6, 2012 at 4:57 pm
    There are those who believe that when a bike is bought online that bike shops don't get any business but speaking for myself I can say that isn't always the case. I bought a road bike online in Arpil 2010. The bike had to be tuned so I took it to a local Trek dealer which is essentially a one-man operation. At the same time I invested in some better rims than what came on the bike and had those installed too. Next I took the bike to the local Specialized dealer to utilize their BG fit system; well worth the money. Finally I needed some shoes and bought them at a third bike shop (from which I bought my hybrid in 2009). The moral of my story is that while I bought online 3 local bike shops also gained from that same purchase.

  27. John Neugent says
    January 6, 2012 at 7:29 pm
    I probably haven't been clear about this but my focus for this year is to develop a plan that includes both the online store and the brick and mortar store. I have both now but they are far from optimized. I started out in a brick and mortar store in the early 70's. Now most shops are either online or not. My goal is to do both successfully and ideally to create a model that I can duplicate elsewhere. The new programs being introduced by Trek (although I am not a Trek dealer) QBP Hawleyand SmartEtailing are game changers and are available to most bike shops. They require shops to learn new skills to maximize their benefits (operations and Internet skills) but give the opportunity for most shops to have the same tools available to only the biggest and most sophisticated retail operations only a few years ago. Ultimately that will mean shops will need to focus more and more on customer relations (marketing) as the operational side becomes more and more automatic. Very cool stuff.

  28. John P says
    January 6, 2012 at 10:09 pm
    Fitz you still don't get it. I can tell you didn't call Vince to get his opinion of me and my relationship with his shop(s). I'm the guy going to the LBS because I want good old-fashioned customer service and at Village CycleSport I get it. If Village failed to give me that service I'd go somewhere else. I can't find any fault in that logic. I abandoned Kozy Sportif and Village Cycle Center (not affiliated with Village Cycle Sport). They failed my tests: am I greeted at the door? does the person selling me a bike know at least as much as I do (preferably more)? Does he listen to what I'm saying and make recommendations based on it instead of what he wants to unload? Is he willing to compete with other area merchants for my business? The $10K I spent in 2009 was exceptional but I'm in there all the time. All the sales staff and mechanics know me on sight and know my bike collection. And I know them by name too. You seem to think I OWE my business to a merchant simply because he put up a sign. Screw that! I require that EVERY MERCHANT I give my hard earned money must EARN my business. And now you know what it takes to earn my business. If you or any other businessman can't meet my conditions well it's YOUR loss not mine. There's PLENTY of other places to shop and the best ones will NOT evaporate as you seem to believe. Au Contraire they will prosper even more as their inferior competitors go out of business. So as it has been so it will always be in America land of free commerce.

  29. Jon L. says
    January 9, 2012 at 11:09 am
    Can I ask why this is a "revelation" now when we have been ordering from bike shop discount catalogs (SupergoWheelWorld Nashbar) years before internet search engines? Maybe the "pain" has accelerated? On the surface of it it seems that we may have had to many IBS and now only the truly strong and smart will survive. I don't think the serious competitive cyclist with higher tech bikes ever relied on thier LBS for long. Most bikes require constant work and you learn to become your own bike shop based on time and money. The LBS will still exist but need to cater to the well off recreational/parttime cyclist. This is the demographic they need to focus their resources/marketing on.

  30. John P says
    January 9, 2012 at 9:34 pm
    Here's why I go to a local bike shop instead f buying online: Just ordered a professional retrofit for myself at my LBS (Get A Grip in Chicago) from a Specialized/Serotta certified fit specialist. He will take all my measurements find out my physical limitations (I am 61 after all!) evaluate my bikes (I'm bringing 2) put me on a trainer with my bike in full riding gear and video record my pedal stroke position and power output. He'll take my riding history and goals. based on his expert findings he'll recommend adjustments stem handlebar or saddle swaps if necessary in order to make the ride as comfortable as possible while addressing power and aerodynamic concerns as well. I'm not getting this at Amazon.com or CompetitiveCyclist.com or WrenchScience.com! Simply not possible is it? And you can't do this yourself no matter HOW experienced you are! If I need a narrower saddle or handlebar I'm getting right there and then and getting back on the bike (which I also bought there) to confirm its validity. How do I know how well this service works? My wife had it done last year and she can now bike longer and faster with less discomfort than ever! Unless you're buying the exact same frame as you already own it's a crapshoot buying online. better than 50% odds you get a bike that either doesn't fit or can't be made to fit you or your riding style. Long live the LBS dedicated to SERVICE both before and after the sale!

  31. Dan O says
    January 10, 2012 at 12:18 am
    Very interesting debate - this topic has interested me for years. I worked in a bike shop from 1981 - 1984 and still know a few folks in the industry. I've riding/racing/reading and still generally obsessed with bikes and the industry ever since. So quite a long time now. As mentioned in one comment in a sense selling online isn't super new. Back in the '80s; Performance Nashbar and others were doing the same thing via mail order. The Internet just makes the process quicker and more slick. The same debate raged then as now. Online sales isn't going away shop owners who complain about it can continue to stick their heads in the sand and just wish it away. Keep dreaming. Successful shops will build up strengths where online is weak - provide really good local service build up a riding community and culture. Really successful shops will be a mixture of online and local sales. What Neuvation Sette Airborne are doing is an interesting business model. What it's missing for now is the hip factor. Once that's dialed in if ever - very cool set up. Even so online sales isn't for everyone. There's room for successful local shops and online folks as well hybrids of both. With the right business model and folks running the show both can win. For people shop owners and customers who bad mouth online sales I ask this: Forget anything bicycle related for a moment - have you or do you buy other products online? If so why?

  32. Ltrain says
    January 14, 2012 at 8:44 am
    This comment thread is great! Pope I live in a state WITH NO SALES TAX. Who has an advantage here? Hmmmmm. Sales tax is not the issue here. If you think sales tax is why people are buying online then you are in big trouble already and missing the point. The younger generation LIVES online. Facebook Twitter blogs news all of it. All the time. On a smartphone. So of course we want to shop online. One click ordering from Amazon. Does it get any better? I want one click ordering of derailleur cables! This is the future. Stop whining. Go get an Iphone and figure out how to use it. Use it like a 20 year old uses it. FOR EVERYTHING. Once you do this you will understand the new reality. Ask your kids to help you. Does your shop even have a facebook page? Start figuring out how to compete. Sales taxes are NOT the issue and if you keep thinking it is you're done for.

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