Ray’s Soapbox: Dramatic Changes in Bicycle Retail, But the Core Strategy Remains

sandee@communitycycles.orgNews, Sustainability

Submitted by: Lester Binegar. Lester is the CFO/Bookkeeper for University Bicycles at 9th and Pearl. He has been there for 18 years. He served as the GM for Ubikes for 14 years. Before this role, he worked in sales for Trek Bicycle Corp and has spent his entire working career in the bike industry. Promoting bicycling, advocating for access, and employing successful business strategies are his calling.

Starting my career as a bike mechanic in 1989 for $6 per hour, I have seen some changes. My intention with my education at Indiana University was to understand business success, understand human behavior, and to work in a career that was “good for the world”. I discovered the joy of cycling a year before I graduated, and from the moment of my first pedal stroke, I knew where I would spend my career. I knew nothing of the challenges inherent in the business (low pay, undiversified customer base and employees, seasonal business challenges) but paid attention and have tried to continually change and be a part of the present and future of the industry.

So what are the changes since the late 1980’s?

  • Introduction and use of electric assist bikes
  • A more diverse customer base (we have more work to do)
  • A more diverse employee pool (we have more work to do)
  • Higher pay (more room to grow here too)
  • Use of sophisticated technology
  • A much more diverse offering of bicycle types(road, mountain, gravel, cargo, etc…)
  • Much better working bikes (often at the cost of durability)
  • Much more access of safe riding spaces
  • Bicycle tourism
  • The advent of the internet as a business competitor to the local retailer.

What has not changed

  • The joy and benefits of riding a bike (ability of the bike to be your own psychiatrist, fitness tool, affordable minimally polluting transportation, social club and hobby)
  • The difficulty in operating a successful retail operation

Core Strategy for Bike Retailers

The core strategy for a local Boulder, CO bicycle retailer remains – we must earn the support of our local community in order to provide products, services, local employment, and be a draw for tourists from all over the world. We must focus daily on community/culture, 5 star service, and efficient processes in order to survive!

If we want to pay our staff of local workers a decent wage and provide products and services our community needs, we must walk a fine line between price competitiveness and profitability. University Bicycles and the other bike shops in Boulder need our community’s support and our community needs our services, and our passion for delivering the joy of cycling to all.

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Ray’s Soapbox welcomes submissions from Community Cycles members and supporters. Timely cycling-related topics of local interest are given first preference. Our guidelines: Maximum length is 350 words. No name-calling or ad hominem attacks. Keep it positive, please. All submissions are subject to editing. We reserve the right to not publish submissions. Photos or other graphics are encouraged. (soapbox photo credit: Peggy Price)

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