A salesperson who starts fixing bikes. A mechanic who has to sell them. It happens, and sometimes it really does work out. But what if it gets technically challenging? Or if the customer has very particular wishes? Then you need the expertise that belongs to that trade.
The bike shop as a chain in miniature
That is why in a good bike shop you rarely, if ever, see a salesperson in the workshop or a mechanic on the shop floor. The salesperson listens, advises and sells the bike with the right accessories. The mechanic makes sure every bike leaves the shop properly set up and keeps running.
Everyone understands why that works. A mechanic who has to help a customer halfway through a repair makes mistakes and falls behind schedule. A salesperson who has to do repairs misses customers and revenue. Each in their own place delivers more than two people who both do a bit of everything.
Yet the industry is doing the opposite, en masse
Look around the industry and you see the reverse. Manufacturers open their own stores. Retailers build their own brands.
Admittedly, the first is nothing new. Many brands started that way. Batavus began in 1904 as a small shop in Heerenveen, where Andries Gaastra sold clocks and sewing machines. Two years later bicycles were added, and soon a brand of his own. Trek started in 1976 in a red barn in Waterloo, Wisconsin, co-founded by a bike shop owner. But back then they were not established brands yet. Once they had earned their place, they built a dealer network and left selling to the end customer to specialists.
About the second you could say: that is entrepreneurship, go for it! Jonico in De Meern, for example, sold its own Jongerius label alongside the big brands. Still, I arrive at the same answer as for the first point. History shows that brands grew big when they left selling to specialists, not by continuing to do everything themselves.
I understand the temptation: whoever owns the whole chain keeps the margin. But every link needs its own knowledge, people and attention. Whoever invests a little in everything is truly good at nothing.
What goes wrong when everyone wants to do everything
In recent years, the industry has shown what happens when one party tries to fill too many links itself.
- VanMoof wanted to do everything itself: design, its own parts, its own stores and its own service. The brand grew fast, but repair capacity did not keep pace. Customers waited a long time for parts and repairs, and in July 2023 the company went bankrupt. A strong product did not help when service fell short.
- Accell had, besides its bike brands, a parts wholesaler, retail formulas and repair concepts such as Bikes&More and Fietsherstel.nl. Whether that breadth contributed to the bankruptcy is for the trustees’ report to show. What you do see is that the buyers are now picking exactly the separate parts they are strong in.
The lesson is not that big or integrated is wrong by definition. The lesson is that you have to choose deliberately which link you excel in.
Specialisation only works with a good handover
Back to the bike shop. Salesperson and mechanic each having their own trade only works because the handover is right. The salesperson notes what the customer wants, the mechanic knows when the bike must be ready, and the customer notices nothing of the seam in between.
In the chain it is no different. Specialisation without good agreements creates isolated islands. Three things make the difference:
- Clear roles. Who does what, and who is the customer’s point of contact?
- A fair split of the margin. Every link must be able to earn from its work, or one will drop out.
- Shared information. Stock, maintenance history and warranty must be able to move from one party to the next without the customer having to start over.
That, for me, is the core: a truly good solution is a win-win for everyone involved. Specialisation is not a way to pass on work, but a way to get better together.
Where is your last?
Extend the metaphor to the whole chain, and every party has a clear core:
| Party | What it excels at | What it is better off leaving to partners |
|---|---|---|
| Bicycle manufacturer | Designing and making good bikes, building a brand | Selling to the end customer, day-to-day service |
| Bicycle retailer | Selling new bikes and accessories, customer advice | Developing own brands, financing schemes |
| Workshop / service partner | Maintenance, repair, uptime | Sales and marketing |
| Lease company | Financing, contracts, administration | Doing repairs, developing own bikes |
| Refurbishment company | Buying, refurbishing and reselling used bikes | Producing new bikes |
That does not mean a dealer cannot have a workshop. It does mean you choose consciously where you make the difference, and organise the rest well with partners who are as good at it as you are at your trade.
Strong in your trade, strong in the chain
The cycling industry faces a major reshuffle. Brands are changing owners, sales of new bikes are falling and new models such as leasing and refurbishment are growing. Right now the temptation to want a piece of everything is great.
So: cobbler, stick to your last. Choose your trade, become the best at it and find partners who are just as good in their link. With clear roles, a fair split of the margin and good agreements in between. Then the chain becomes a win-win instead of a fight over everyone's piece.
Not sure where your company makes the difference, or looking for the right partners in the chain? The Great Ride helps you sharpen your proposition and connects you with parties that complement you. Get in touch with Johannes for a no-obligation conversation.
Johannes de Bruin helps companies in the cycling industry grow through The Great Ride, with strategic advice, project management and partnerships. More about me