Is good customer service important to long term bikeshop survival and growth?

[FROSTY:Me]

Is good customer service important to long term bikeshop survival and growth?

The question I would have thought should be really easy to answer. a resounding YES.
It does seem though that facts actually make a lie of this.

In Auckland I've been around long enough to see some pretty passionate and customer focussed shops come and go.Some in a fairly quick space of time.
Yet I see places where there are a fair few complaints about the atitudes and service offered still doing well.
There are exceptions of course but in one case the owner is still grafting hard out "on the tools" 10 years after opening the company.
What do you folks think explains this?
Or am I totally wrong here?

[breakaway]

Because only a few people have bad experiences? Maybe out of 50 people served, 3 or so have 'serious issues'. Out of these 3, only 1 will come bitch on the internet. The other 2 will just never go back.

[AD345]

If not relying on just SELLING bikes then more key issues are:

Quality workmanship

Price


Customer service helps as a point of differentiation when the other two are equal but motorcyclists are an odd bunch and actually put their bikes before their egos (although one is often an extension of the other in the first place...)

[Headbanger]

All I know is I've had better service at Mcdonalds then I have had at a few bike shops, But I'll still shop on price rather then service, There is only 2 or 3 bike stores I would never shop with no matter how cheap they were.

As for what makes a bike shop survive?, No idea, Plenty of people more clued up then me have tried and failed.

[Edbear]

All I know is I've had better service at Mcdonalds then I have had at a few bike shops, But I'll still shop on price rather then service, There is only 2 or 3 bike stores I would never shop with no matter how cheap they were.

As for what makes a bike shop survive?, No idea, Plenty of people more clued up then me have tried and failed.

Now there's an idea, a McDonald's bike shop! "Would you like fries with that, Sir..?"

[Milts]

It could be economy-driven. In/around a reccession, people have less money and will put up with poorer service if it will save them money. I guess the region the shop is in could also be a factor (region where people have less disposable income).

Conversly in good economic times or in areas where people have greater disposable income, they are more likely to be put off by bad customer service and go elsewhere.

I think the fact is that there are hundreds or probably thousands of factors behind a shop getting more or less customers, and customer service is just one of those reasons. Different circumstances could make it a more important or less important reason, but there will always be other factors.

[Mom]

Price - Service

The reason piss poor service based shops survive is because in most cases they cut service margins to give a "best deal" financially to their clients, sharp sales teams are an added bonus. So they establish a rep for a "good deal".

The reason great service shops survive is because they have a "loyal" customer base that on sell their great service by word of mouth. Yes they may be a bit more expensive, but hell teeth they give great service, sharp sales teams are an added bonus.

The above reasons are also why so many shops fail as well.

By all means chase the almighty dollar, but please be fair in the process. Employ honest staff that are not so hungry, they will fit your clients into anything to secure a sale and some income for themselves. Pay your staff well. Reward them for suceeding. Be realistic with your margins, I know it is so hard to survive in this day and age. Dont buy deals. Give GREAT service, go that extra mile. Work hard at your business.

Sit back and reap the rewards of a great business plan.

[bogan]

depends on the competition, if they all treat customers like shit then you can survive doing the same. However, if the others offer similar workmanship and pricing then customer service will tip the scales in your favour.

Only one place I wouldn't ever go back to because of customers service, and thats a cage servicer, the guy was just a total asshole. Though I do tend to avoid a bike shop as they once did a lot more work than I asked for and charged me for all, which I guess counts as poor customer service.

[Conquiztador]

I started a thread resently where we trashed this to death. The thread was filled with experts who knew how to do it right, and what was wrong.

What I have seen in my life in business (and that includes stuff outside the bike scene too) is:

- The passionate guy who wants to do the best job will kill him self working long hours for little money. (Normally he has very little money to start it all) Once he needs to expand the ones he gets onboard lack his passion and it turns to crap as the reason the customer came to him was his passion and care.

- The small guy who has some business knowledge but not deep pockets will struggle from day one. He will start to fall behind with GST and PAYE and paying suppliers. And he will disappear. No matter how brilliant his service is.

- The small/medium guy with some money will survive longer as he can buy some stock and perhaps pick up a agency or two (but not really any of the big ones). There will come a time when he either closes shop as he can make a better living and have a better life by working for someone else, or he gets a break by one way or another (an agency, someone offers him to take over their shop or whatever)

- The guy with business knowledge (and not too much bike knowledge) that has money will approach it as a business and has no sentimental hangups why he is starting a bike business. To him it is a income earner. He runs it mean and lean, tramples over some of the small guys to grab what they had and he makes a good living. His shop will have some bling and magnets that pull noobs. And he will stay in the business until he has made enough to do what he really wants to do.

So the answer to your question is sadly a NO. The secret to survival is being a schrude business man, having money, having contacts and ability to sleep well at night after ripping others off. (Be that customers or opposition)

[Motu]

You are in business Frosty,you should know how it works.With the number of customers I told to ''Fuck off and never come back,and tell all your mates never to come here too!'' you would think I would never have had any customers left.But I still had a loyal customer base and many who would come in on recommendation.Look at the customers I say,there are more good and bad customers than there are good and bad businesses.

[Edbear]

So the answer to your question is sadly a NO. The secret to survival is being a schrude business man, having money, having contacts and ability to sleep well at night after ripping others off. (Be that customers or opposition)

That's me doomed then...

[FROSTY:Me]

You are in business Frosty,you should know how it works.With the number of customers I told to ''Fuck off and never come back,and tell all your mates never to come here too!'' you would think I would never have had any customers left.But I still had a loyal customer base and many who would come in on recommendation.Look at the customers I say,there are more good and bad customers than there are good and bad businesses.

Ya know mate I thought that too but looking back from the 80's till now the guys till around (in auckland) seem to be ones complained about the most.
I think Mom and CQ have hit on it. Lean and mean.

This begs an interesting question.
In the BIG picture isn't a bike shop best to look after number 1 (themselves) first?
In so doing they are able to survive so they are still in Business therefore able to continue supplying bikes and parts when more customer orientated shops have gone?

[scott411]

- The guy with business knowledge (and not too much bike knowledge) that has money will approach it as a business and has no sentimental hangups why he is starting a bike business. To him it is a income earner. He runs it mean and lean, tramples over some of the small guys to grab what they had and he makes a good living. His shop will have some bling and magnets that pull noobs. And he will stay in the business until he has made enough to do what he really wants to do.

i think the first part of this statement is true, you need to be a good businessmen first and foremost, but this does not have to be exclusive to being passionate about riding bikes, and i think you statement over trampling over small guys is a bit over the top

[avgas]

There is legitimate answers to this, that I have picked during my mba. changed my perception as to how I thought things worked.
However I feel it would be pointless for me put them here - as I found in the prev thread (re: Conquiztador) it would be like trying to educate a zombie horde.
Feel free to request me to put the information into this thread, otherwise I will just sit back and laugh at how people think the world around them works.

[aprilia_RS250]

Develop relationships with your customers. Because with personal relationships comes trust. Its something a customer is willing to pay a little bit extra for and it's free for you to provide.

I've worked on the floor with some of the best and most successful salesmen for a few years while in varsity. 70% of their business came from the customers they have built relationships with over the past. The rest was superb sales technique.

If you just can't build relationships with people, sorry but you won't do that great.