Your Readers Survey Results Are In!

Thanks to all 238 of you who took the time to complete our readers survey last week.

This was strictly a trade only survey. No members of the public were invited to take part.

The vast majority of respondents were independent bicycle dealers. There were also some wholesalers and a few specialists businesses such as workshops, cycling tour, event and training businesses, manufacturers and so on.

Below you’ll find your responses to the first six questions of our 10 question survey. The final four questions specifically related to Bikecorp and the results are not for publication. Thanks again to Bikecorp who provided two great incentive prizes for survey entrants. We won’t be announcing the winners today as they have not yet been contacted.

Here’s what you said. 

Question One: What do you think are the biggest challenges facing your business today? (You may pick more than one) 

Overseas internet mail order was your biggest concern by far.

151 of you said overseas internet mail order was one of your biggest challenges compared to 98 who said pressure on margins.

44 of you made additional comments. Your most common additional comments centred around discounting but other comments included:

• Tax free mail order can make bike shops just unviable service centres
• Too many small wholesalers relying on high margins
• Lack of well-trained sales staff
• Suppliers not having stock
• Gaming consoles and computer games
• Strength of the Australian dollar
• Greedy wholesalers supplying backyard shops
• Most players are under capitalised and have a lack of business resilience
• Hard to gauge exact cause, when customer doesn't return to purchase
• Weekend/public holiday overtime rates
• The general lack of vision from mainstream shops as regards growing the transport / commuting sector in Australia
• Government policy on bicycles lags needs & public interest
• Poorly managed Aussie distributors
• 99 Bikes
• Bikes that don’t wear out
• Not enough focus on stores to educate their staff. Only this will ensure customers have a good instore experience
• Dealers don't want to range enough, consumer has the range in their hands. The web!

Question Two: Where do you see the best profit growth potential for your business over the next three years?

Repairs was far ahead with bike sales and P&A sales almost level pegging.

Amongst those 42 respondents who said ‘Other’ specific answers included:

• Events
• Ebikes (several comments like this)
• Training and workshops
• Hiring bikes
• Tours and hire
• Fleet bicycles
• Custom builds
• Growth of our online store
• Hire and lease of high end ebikes
• ‘Content – I’m a blogger’
• Teaching cycling skills
• Niche markets
• Being a pioneer and staying ahead of the curve
• International expansion.

Some respondents commented that there was no growth potential for their business over the next three years. 

Question 3: What is your opinion about the impact that ebikes will have on Australian bicycle dealers over the next three years?

As you can see, we got a nice bell curve result with most respondents thinking that the impact would either by moderate or significant and fewer at either extreme.

Here are some of the comments from the ‘Other’ category:

• They will wreck trails and be negative for trail advocacy work.
• Their impact will vary dramatically between markets based upon demographics for as long as e-bike prices remain relatively high.
• Big impact as long as the prices are competitive and the bikes are reliable (several comments like this)
• Very geographically and culturally specific impact, in the eastern suburbs of Sydney it's likely to be very little; in Melbourne or Brisbane - much greater
• E-bikes are hard as we are bike mechanics and not electricians so we can’t fix the components on these cheap internet models that have come out.
• It’s on the upward for us, once prices become more affordable, and the consumer has a better idea of what they do it will increase more I think
• It might get more older people riding - this is a good thing
• Little impact but market will expand as new riders will enter
• Bike shops can be part of the ebike trend
• There are too many illegal ebikes getting around and the legal ones struggle to meet the market for the people who want to go faster with more watts for half the price.
• If it gets people on bike it’s a game changer. You have to start somewhere.
• It will start small due to the lack of infrastructure to ride in safety away from cars.
• It will take longer than three years in Australia 

Question Four: Please rate these current Bicycling Trade article categories according to how relevant you find them for your business, with 1 being extremely irrelevant and 5 being extremely relevant. 

Every category scored a weighted average of three or better, meaning that on average they were all considered to be at least moderately relevant.

Trade News was most relevant, followed by Retail News. Interestingly, How’s Business, which is often our best read article of all, only came half way up the rankings. Perhaps that was because we only run How’s Business once a month, whereas Trade News and Retail News are in virtually every week’s newsletter. 

Question Five: What type of articles would you like to see more of in Bicycling Trade? 

This was a free format response question, so we don’t have any tables or charts to share.

In total 151 people left comments. Quite a few were along the lines of ‘I like what I’m getting.’ There were a number of other more general responses such as ‘retail and trade news’, which are already large parts of our coverage.

Many of the comments below were representative of multiple comments along similar lines, particularly those comments about examples of best practice, more ebike news and more data.

I’ll be referring back to this list as I prepare future newsletters and print editions. Most of them are quite ‘doable’ so these suggestions will definitely influence the future content that you see. 

Here is a selection of other responses with more specific requests:

• Would love more on the business models of OEM manufacturers.
• Business management.
• Educating the retailer on the value of the buying experience.
• Retail hints & tips.
• Factory visits
• Niche, fringe businesses.
• More business building / store improvement stories.
• Businesses that are doing things differently… how and why and if successful.
• Feature local shops that are doing stuff in their community that encourages cycling.
• How other retail stores are evolving.
• More stories on innovative business and less about how hard it is to be in business.
• Trade shows and events.
• Innovation based on bike performance.
• More women!
• Best practice tips, efficiencies.
• Interviews with sales reps , as they are the interface.
• What businesses are doing differently to adapt to changing markets.
• Interviews with interesting people beyond retail.
• Possible section on bike business for sale. We often hear businesses are closing but never knew they were for sale. This might be beneficial to lots of people
• Focus less on money. Put more emphasis on the LOVE.
• Reality type example where a panel helps turn a store into a more profitable business? BT could report on progress etc.
• More in depth interviews with some of the historic shop owners.
• More news regarding import stats, sales mixes etc.
• Articles on the arrogance of major bike brand management and staff
• More wholesale news.
• E-bike news.
• Trade tips like how to advertise efficiently.
• Advocacy success stories from around the world, more e-bike news.
• How's business - as a brand without reps on the road, it's a great way for me to identify potential dealers.
• Business support - improving business operations, those ‘soft’ skills.
• Real world examples of issues facing retailers and solutions, not just complaints.
• Tips on sales techniques, staff training.
• Product innovation.
• A focus on Australian companies and innovators within the cycling industry.
• An interview with me (!)
• Do a ‘How’s Business’ with wholesalers.
• More statistical articles with eg - which areas in the country are doing well and which aren't.
• Industry/supplier how to articles. We have to search for so much of our own product education. Who feeds info about hydro brake adjustment & maintainence? Who's giving us the differences in e-bike power sources? The industry lacks SBCU type training and you could be the link for us.
• New ideas in advertising/marketing/in store presentation
• Overseas bicycle industry trade news.
• Stuck in our shop, it is really hard to see what other people are doing in their shops and get ideas of how we might do things better, it would be great to see inside more shops, say some inside pics with the how's business reports, or a little feature on a different shop each issue.
• More wholesalers telling stories. Not all about the poor retailer crying because they can’t run a business.
• Retail price comparisons on parts and accessories & labour.
• More on how retailers are doing things differently overseas.
• Articles promoting the industry as a viable business path.
• How people are doing in other channels - online, eBay, expos, etc
• Success stories are always good.

Question Six: Complete the following two sentences:

The thing I like most about being in the bike industry is...

The thing I like least about being in the bike industry is...

It was great to see that the vast majority of respondents had a crack at these, with 210 finishing the ‘like most’ sentence and 209 completing the ‘like least’ sentence.

Many of the ‘like most’ responses included words such as ‘people’, ‘passion’, ‘lifestyle’ and ‘positive impact’. There were easily over 100 comments that included one or more of these words. Of all the words, passion and people were the top two.

Of all 210 responses to this question, not one mentioned money. (I’m not counting one response that said ‘Profit margins’ because I think they were joking!)

A cynic might argue, ‘That’s because there’s no money in the bike industry!’

But countless surveys over the years covering a wide variety of different industries and companies have found that money is not the primary motivation for business owners and employees.

Of course, we all need to make a living, but people typically rank things such as ‘job satisfaction’, ‘making a difference’, ‘lifestyle’ and ‘being recognised’ ahead of financial income.

Here’s a selection of our readers’ responses to, ‘The thing I like most about being in the bike industry is...’

• the casual environment and great customers.
• an ever changing business to be part of.
• the capacity to change people's lives.
• the people I meet each day.
• challenges, making people’s dream bikes, the thrill of sales.
• the varied product offerings and the ability to draw on different suppliers to meet market needs.
• I can promote sustainable transport and healthy living
• the diverse range of people we meet through the timeless and resilient machine that is the bicycle.
• seeing the smiles on children/adults when trying/buying a new bike.
• design, innovation, ideas
• the lots of varied task that need to be performed every day to get ahead.
• at the end of the day it is all about feel good products! No one gets excited about a new clothes dryer… but a bike... yes!
• The mechanical aspect of a bike, the enjoyment they bring, and how they socialize people.
• I like the challenge of a difficult repair.
• helping people.
• just helping people get into cycling or back into cycling.
• sharing our passion with the greater community.
• the positive impact our industry has on health, transport, environment and community.
• that the general attitude of the industry in Australia is old and slow moving. This presents lots of opportunity.
• passionate people to work with.
• happy customers and selling products built to last.
• overreaching customer's expectations.
• seeing people get fit and healthy
• bicycles are the most marvellous invention. I get to play with them every day.
• working with something I’m passionate about and enjoy. Not having to sell garage doors or lay bricks for a living.
• having a customer say thank you.
• it has always been such a 'positive' and feel good industry, and it has provided me with a livelihood for almost 20 years. I have combined my passion with my job - something very few people are able to do.
• bikes are good in every aspect. The health of rider and health of planet are at the fore front of what is most important to people. We have nothing without our personal health and humanity does not stand a chance if the planet gets too stinky...
• doing something I enjoy and introducing new people to cycling and watching the smiles on the kids when they get the bike that THEY actually wanted and not the one their dad wants them to get.
• spending three hours making improvised tool fixing Italian bikes
• selling a customer their second bike, after they've outgrown their first.
• I love cycling and bikes, so its personal.
• being my own boss and the whole bike concept.
• we not only get people fit physically but they also feel better mentally.
• being involved with outgoing, upbeat people.
• the people we meet coming through the doors that are interested in cycling/outdoor life. Very different attitude to selling brown goods/computers/etc where the item is a necessity for modern living rather than a lifestyle choice / activity choice.
• that I will be out of it in just over three years!
• enjoyment of bikes still after 18years. Enjoyment of making people’s bikes work the way they should.
• that everybody has a bike story and that we are contributing to the health of our country.
• the never ending flow of new tech.
• I fit in here. Working in the bike industry feels natural - and I've worked in a lot of diverse industries. I've worked on bikes my whole life - it's great to be able to choose a career that also chooses you!
• having established great friendships over three decades.
• if you have the passion and you love satisfaction in you work you will go a long way and you are always learning something new!! after 45yrs
• the wide range of categories eg road, trail, bmx etc. When one is quite another may be strong.
• wearing shorts all year and smiling customers
• being able to do something genuinely useful
• other stores are so busy being upset that they are easy competition.

In stark contrast, when it came to the question, ‘The thing I like least about being in the bike industry is...’ then money and related problems that flowed from a lack of money was high on our respondents’ agendas.

Interestingly, government policy came in for a lot of flak as well. Not surprisingly, internet sales also featured prominently on the ‘like least’ list as did certain wholesalers, long working hours and certain customers.

There were mentions of a couple of wholesalers by name with particular complaints attached to them. I have not included these. I do not think this is the appropriate forum for specific complaints as I’d normally ask those wholesalers if they would like to respond.

Here’s a selection of our readers’ responses to, ‘The thing I like least about being in the bike industry is...’

• low margins and hard work.
• dealing against unfair government regulation of overseas internet sales.
• the misinformation provided to customers.
• the lack of professionalism.
• stress from the hours and margin erosion.
• lack of loyalty, Lack of respect from customers for what we do.
• its sense of elitism.
• the decreasing number of people who are passionate about bikes - bikes being reduced to widgets.
• lack of leadership and unification of our industry.
• unhelpful wholesalers/sales reps and the idea that everyone needs to become a megastore or they will go broke.
• internet sales.
• poor pay as an employee.
• its horribly underpaid and respected as a trade.
• lack of government support for the industry.
• the marketing that puts certain products above other products when there is no difference other than the amount of money spent on marketing.
• parallel importers.
• people expecting their bikes to be fixed on the spot - it is not expected with any other retail item.
• internet undercutting prices.
• lack of loyalty from consumers including cycling clubs and groups.
• the fear that everybody needs to undercut everyone else to make a sale, putting fear above quality.
• the players who don't care about people's needs or their safety.
• that the general attitude of the industry in Australia is old and slow moving. This makes it hard to work within the current system. Example the requirement of needing a bricks and mortar store to get accounts.
• bullying by some of the larger bike brands. They call it ‘Concept’.
• big player arrogance
• rude over demanding unreasonable customers (few as they may be ) Energy sapping.
• seeing consumers buy poor quality dressed up products that leaves a negative experience .
• male dominated industry, with male dominated attitudes.
• everyone being worried about everyone else.
• customers not taking good advice.
• always thinking the grass is greener on the other side and could probably make more money elsewhere :-)
• low wages.
• public perception that we are making millions and have huge margins.
• not having enough time off.
• struggling to financially support my family.
• not making as much profit as I would like.
• the industry, in my opinion, is on the cusp of a substantial structural change that smaller retailers will struggle to cope with. I don't necessarily believe that it is the shops doing the best work that will survive but, rather, those that simply have access to the most capital and a larger customer/population base. The viability of small independent stores (like mine) is probably more vulnerable now than what I have seen before.
• increasing (often unrealistic) customer expectations and the pressure of being an owner/operator.
• low quality, lazy dealers lowering the public's perception of bike retailers.
• shops not working together.
• bike enthusiasts thinking they are retailers.
• inconsistency in supply chains AND the consumer perception that online is always cheaper, even when it's not.
• waiting for the next customer.
• the total lack of loyalty between wholesalers and retailers.
• the lack of truth rampant at retail and wholesale level.
• people being judgmental about me being in the bike industry!
• lots of over opinionated alphas.
• cleaning dirty bikes. Dealing with narrow minded impatient motorists!
• having to have risk in investment and guarantees.
• handling warranty claims from bike store back to wholesaler.
• the lack of standards.
• a bike being a different year model means the customer assumes we will be discounting the crap out of it. I would like to see more brands dropping the year model structure/advertised end of season sales as discounting a bicycle that you've paid full margin for and losing the small % you actually make from it sucks.
• disorganised nature. Non-collaborative approach. No cohesion.
• conservative attitudes of most retailers
• it’s an old boys’ club.
• poor government support for cycling, component complexity & incompatibility, shonky dealers.
• narrow-mindedness - Try phoning around to pitch my brand to bike shops in Wollongong and having a storied internationally respected brand that's a major profit driver for good dealers rejected on the grounds that, ‘We don't like (that category).’
• dealing with people who seem to place little value on our work, knowledge and expertise. ‘It's only a pushbike mate, how can you expect me to pay for that!’
• the negatives from the motor vehicle industry and roads.
• that I can`t get out any sooner!
• chain store bikes.
• working seven days.
• new wave of ‘experts’ coming through, just getting on the band wagon as they think the bike industry is a place to make lots of money.
• churn in models and proliferation of suppliers confusing the market place.
• idiots that don’t know how to hold a margin.
• lazy reps and terrible wholesalers.
• weekend work.
• it attracts a lot of unskilled workers, who then do not fix bikes correctly, giving the customer a bad riding experience.
• trying to compete with big retailers.
• when selling an item, price is always negotiated. there seems to be a lack of trust that value for money is automatically provided.
• the oversupply of shops, internet suppliers. I’m closing down.
• I don't think it gets the credibility it deserves. ‘It's just a bike,’ is a poor attitude for our industry.
• some wholesalers not dealing with you.
• too many shops/internet shops.
• how we are too fixated on what the guy around the corner or across town is doing.
• the mentality of a lot of retailers. They may have flashy new shopfronts paid for by their suppliers, but their internal processes are still outdated. The turd got a new coat of polish.
• price cutting by cashed up online Australian retailers.
• suppliers not bringing in enough of the product people want to buy; don't they do any market research? They certainly don't talk to their dealers!
• small-minded dealers who think it's a zero sum game and won't work together to grow the pie.
• owners’ lack of focus to work on the business instead of in the business.
• demanding wholesalers, putting pressure on shops to hold more stock, when they should be the stock holders & the shops are the sellers.
• working in an industry that far too often only looks inwards; there is life outside our industry and quite often some great ideas and innovations to be found.
• the online local sales - driving low margins . But at the same time backed heavily by our suppliers who want a hand in both parts of the pie.
• engineer and school teacher customers.
• winter and whinging customers, petty theft problems particularly the process that's to go through and inaction from police.
• suppliers that can't supply.
• the lack of professionalism from other retailers, wholesalers and brands themselves. We need to wake up and make this industry profitable for the future.
• Competing retailers who discount margins but cannot look at how much their electricity and rent have gone up over ten years? Why?