The chance of a lifetime: You are asked to start a bike shop. How should it be done?

[PeeJay]

A charge out rate of $80 means the mechanic is recieving around $30 per hour. I would be suspicious of a mechanic who is prepared to work for less than that. Alternatively the shop is not charging enough to meet overheads and I would question how long they will remain in business to back up their service.

If mechanic works for less than $30 an hr you think there is something wrong with him?
$62400 per annum before overtime? 25 sat mornings another $4500
$67000
4 weeks holidays
12 stat holidays
I should get more for the specialist qualifications I have, lets say another $5 an hour.
$78050 per annum

I'm all giddy with anticipation
this is like winning lotto

where do I sign up??

[PeeJay]

this is exactly the attitude I was referring to, despite me being there and waiting for over an hour (i remember this cos i was bored for 30 mins, the other was spent looking at the fancy bikes on the showroom ), this plonker tries to tell me it didn't take that long. WOFs are a flat rate item so it doesn't matter how long it takes you get billed the same, or are you going to tell me I somehow got billed for more than I paid too?

Wofs are a flat rate item? a shop can charge what they like for an inspection.
So you had to wait an hour?
A mechanic should have immediately dropped everything he was doing to do your bike?
Some one else turns up they should stop doing your bike and start on the next one?
Shops should have a designated wof mechanic who just waits around for wofs to turn up, that way no waiting.

[PeeJay]

So customers wants
Extended opening hours especially weekends and perhaps a late night or 2 during the week
hold a large amount of stock
pricing similar to the internet
knowledgable, friendly staff with excellent product knowledge, no plmples or people who wear hats backwards allowed
Workshop charge out rate lower but in some cases higher(i dont believe that one)
Mechanics should be qualified, experienced, with excellent product knowledge
Loan bikes and scooters for customers who have to wait for their wofs
Loan bikes and scooters for customers who drop their bikes in for repair (apparently this wont cost much)
Extended workshop hours for those customers with a busy lifestyle
As a senior highly qualified mechanic, call me a technician or even an ENGINEER, pay me a base of $73000.
PS For $73000 you get to call me whatever you like.

[sidecar bob]

I bet none of the experts have recieved company tax bills just willy nilly either.
I have a late model BMW car, & if anybody dares to give me shit about it i will tell them that it cost me 3 (yes three) percent of the tax my company will pay over the period i plan to own it.

[bogan]

Wofs are a flat rate item? a shop can charge what they like for an inspection.
So you had to wait an hour?
A mechanic should have immediately dropped everything he was doing to do your bike?
Some one else turns up they should stop doing your bike and start on the next one?
Shops should have a designated wof mechanic who just waits around for wofs to turn up, that way no waiting.

The shop can charge whatever they like for an inspection, but its almost always a value agreed upon beforehand, hence the flatrate where time isn't a factor. Also, the wof was booked, so they knew it'd be there at 9, they also knew I would be waiting around. My suggestion (thats what this thread is all about btw) was that a courtesy vehicle would be handy in such situations, that way the service dept could take as long as they want on/getting to my wof, and I could get on with what I needed to do. And how much would it cost to have a courtesy scooter, rego is fuck all, fuel is fuck all, maintenance is fuck all, insurance I'm not sure about though, that would probably be the main issue unless the bike shop had some policy that covers that sort of thing.

[Virago]

Someone suggests that bike shops need to be more competitive with their prices compared to what you can purchase overseas.
Someone else suggests that the hourly rate charged out is too low and that businesess rely on 'large'margins in parts to survive.
Someone suggest that the true charge out rate should be $200. Someone suggests that it should be$100. Countered by it should be $200, but even at $100 the market won't support it.
Someone suggests that it cost a lot more than we think to run a business. Someone else agrees and wonders how they even survive.

So can someone explain to me exactly how bike shops should keep their doors open, be competitive with prices available online, and keep their charge out rate at the current level. I'm all ears. Or in this case, eyes.

It's easy enough to juggle figures to come up with "facts" to suit oneself.

The suggestion that it costs $200 an hour to employ a mechanic is rather silly. If it was true, there wouldn't be a bike service shop left trading.

A general rule of thumb in service industries is that the tradesman's charge-out rate should be between 3 to 4 times his hourly rate. Where that figure falls in that 3-4 times range depends on his expected productivity rate, i.e. his normal ratio of chargeable hours. For a mechanic on $25.00 an hour, that would equate to a mimimum charge-out rate of $75.00, preferably higher. At $75.00, he would be pressured to produce 30+ hours of chargeable work a week.

If the business can't survive at those rates, then the problems lie elsewhere in the costing and overhead structure.

[Katman]

Interesting that no-ones chosen to reply to post #59.

[Owl]

Interesting that no-ones chosen to reply to post #59.

I will, though you may be disappointed.

Nothing unfair or unreasonable about your post!

[2wheeldrifter]

Interesting that no-ones chosen to reply to post #59.

Your post 59 has NO relevance to this thread.

And the customer is always right

[Katman]

I will, though you may be disappointed.

Nothing unfair or unreasonable about your post!

And bear in mind that those are only some of the gripes I've personally experienced many times in the 5 short years that I've had my own business (that would only be a tenth of the size of most bike shops). Imagine the frequency with which they happen in the big shops.

[bogan]

Interesting that no-ones chosen to reply to post #59.

I agree with Owl, nothing unreasonable there, in fact the lending of tools sounds like super good service!

Now we've conceded to your suggestions, will you do the same for us?

[Katman]

I agree with Owl, nothing unreasonable there, in fact the lending of tools sounds like super good service!

Now we've conceded to your suggestions, will you do the same for us?

I don't have to concede to anything.

I'm confident my business lives up to (or exceeds) all reasonable expectations from my customers.

[Pussy]

I don't have to concede to anything.

I'm confident my business lives up to all reasonable expectations from my customers.

It helps that the owner of the business has integrity! YOU deserve your success

[jellywrestler]

It's a little dumb thing, but I really like it when I walk into a shop and am greeted by my name.



.

thats easy, join ulysses and you'll get a name badge

[vifferman]

To me (especially as someone pretty new to riding), it's all about customer service. You can get parts and gear online but it's not the same as the service you get in the shop. The shop I go to for service and for a new helmet when I needed one (most other gear bought online) was excellent for service and advice. I pay perhaps more for parts and oil than I would online, but not what I would consider unreasonable prices. Service also not overly cheap but not unreasonable.

But what really makes the difference is honest advice and customer service.

I agree - very good points.
I'm not that fussed about price, if items are actually in stock, or fairly readily available. I don't mind the shop owner making a good profit, as long as he treats me well, is honest, and I feel like I'm a valued customer, regardless of whether I spend $12000 or $12. There's a certain bike shop that's permanently lost my custom because of this. One thing I cannot tolerate is arrogance, greed and dishonesty - to have all three at once is a "Strike three - I'm outta here!" offence.