Sydney Morning Herald wrote:Hard to brake even as another bike store struggles
Sydney bike chain Cranks is believed to have become the latest casualty in the bicycle world, amid rumours it has closed at least four of its five well-known stores.
Cyclists have reported Cranks' North Sydney store has been cleared out, while phones at the remaining four stores in Balmain, Chatswood, Enmore and Ryde ring out. Fairfax has not been able to get in touch with the owners.
The chain's website is still operating but contains no information on any difficulties.
Cranks bike shops gone?
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Cranks bike shops gone?
Postby Nobody » Fri Jan 04, 2013 2:49 pm
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Re: Cranks bike shops gone?
Postby AUbicycles » Fri Jan 04, 2013 4:06 pm
The GST debate is mentioned but as we have seen on BNA is a non-issue.
In discussions of price differences, stats show that there has been an impact on some local bike stores with accessories however bikes the percentage of bikes purchased overseas are so small that they hardly make a dent. On the accessories some bike stores adpat and change to brands that are less competitive or who have more consistent global pricing.
It is a hard market but it is not only overseas competition, as they note Bike Exchange is massively successful - which some retailers and brands argues accommodates the 'price fight'. There are plenty other online based retailers also in on the market - but lets not forget, plenty of highly successful local bike shops.
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Re: Cranks bike shops gone?
Postby sogood » Fri Jan 04, 2013 4:26 pm
RK wrote:And that is Wikipedia - I can write my own definition.
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Re: Cranks bike shops gone?
Postby The_Eggman » Fri Jan 04, 2013 7:54 pm
The notion that this will be good for anyone is short term thinking. Every job and business that is lost has a ripple effect that makes the whole Oz economy weaker.
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Re: Cranks bike shops gone?
Postby sogood » Fri Jan 04, 2013 9:32 pm
RK wrote:And that is Wikipedia - I can write my own definition.
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Re: Cranks bike shops gone?
Postby Howzat » Fri Jan 04, 2013 11:31 pm
It's hard to draw macroeconomic conclusions from one small business closure. But signs of economic contraction are signs of economic contraction. As a data point, this is a spot of bad - not good - news for the bike industry.sogood wrote:Consolidation will permit the remaining LBSs to better weather the coming changes.
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Re: Cranks bike shops gone?
Postby sogood » Fri Jan 04, 2013 11:40 pm
If you read the report, also known directly to me, three good sized LBSs have closed down in the inner city and surround in the past 1-2 months. But I agree, it's a data point, not definitive, but good enough to postulate.Howzat wrote:It's hard to draw macroeconomic conclusions from one small business closure. But signs of economic contraction are signs of economic contraction. As a data point, this is a spot of bad - not good - news for the bike industry.
RK wrote:And that is Wikipedia - I can write my own definition.
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Re: Cranks bike shops gone?
Postby Sparx » Mon Jan 07, 2013 8:14 am
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Re: Cranks bike shops gone?
Postby zero » Mon Jan 07, 2013 9:02 am
Cranks (in Balmain) "left" their store (I don't know the details), and another bicycle store took their place. Which by default would have split their maintenance market in half, because unlike the usual new store opening up scenario, Balmain bikes and not Cranks is sitting where everyone remembers the bicycle store to be. (and probably in all honesty the more convenient location), which probably directs a lot of maintenance business back to them.The_Eggman wrote:Just the latest victim in the Australian economy going to pot. We've transitioned into a global economy at a time when we are one of the most expensive places to live and do business in the world. Not good. It's the less astute players that will go to the wall first, and for mine that kind of masks the trend. It's easy to just put this down to bad planning and execution rather that the economy transforming for the bad.
The notion that this will be good for anyone is short term thinking. Every job and business that is lost has a ripple effect that makes the whole Oz economy weaker.
The internet retailing phenomenon in Australia has not hurt Australia. ie some stuff is more easily sold overseas from Australia than it used to be, which makes up for any losses in the horribly innefficient and expensive australian retail system. If nothing else a surfeit of cheap rentables helps people try different businesses.
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Re: Cranks bike shops gone?
Postby warren.suen » Mon Jan 07, 2013 12:00 pm
its a pain to us.. but i'm assuming the people that invested into the company are probably in more pain
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Re: Cranks bike shops gone?
Postby Snowie1 » Mon Jan 07, 2013 1:07 pm
Hope you guys get a job somewhere soon.
Agree it must be hard to compete, sometimes it feels like they aren't even trying, but seriously who works hard to go broke.
I am curious though, I have been commuting by bike for the last 10 years and have noticed a big increase in other riders, both commuting and weekend warriors.
Surely there are enough customers to keep the good stores alive.
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Re: Cranks bike shops gone?
Postby sir_camel » Mon Jan 07, 2013 4:00 pm
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Re: Cranks bike shops gone?
Postby AUbicycles » Mon Jan 07, 2013 5:12 pm
Anything official known yet (aside from the stores not being open for business)?
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Re: Cranks bike shops gone?
Postby The_Eggman » Mon Jan 07, 2013 6:57 pm
You might be the only person in Australia that believes that.zero wrote: The internet retailing phenomenon in Australia has not hurt Australia.
Like what?ie some stuff is more easily sold overseas from Australia than it used to be.
Manufacturing isn't even close to being competitive globally, so why on earth would anyone buy stuff from here?
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Re: Cranks bike shops gone?
Postby orbeas » Mon Jan 07, 2013 7:11 pm
did they hold a gun at your head to make you pay?? you shoulda put the cash back in ya wallet and walkedSparx wrote:After they charged me $35 for two tubes and some tyre levers I'm not surprised.
Orbea Erandio Hybrid
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Re: Cranks bike shops gone?
Postby ThePhil » Tue Jan 08, 2013 1:28 am
Not saying they may not have gone bust anyway, but what a kick in the face from your own government. And anyone who may have problems with warranty or service that will be nothing compared to those poor business owners who will probably lose their houses.
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Re: Cranks bike shops gone?
Postby WyvernRH » Tue Jan 08, 2013 8:43 am
This whole statement is invalid in so many places that all I can say is, well it's all wrongThePhil wrote:It's super competitive, but that is no reason for the govt to subsidies o/s shops. If you bought an item overseas for $500 then if a local store got that same item it would be $500 plus 10% duty if it was clothing, then gst to the customer, $605. OK $577.50 if it was 5% duty on parts.
Not saying they may not have gone bust anyway, but what a kick in the face from your own government. And anyone who may have problems with warranty or service that will be nothing compared to those poor business owners who will probably lose their houses.
Cheers
Richard
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Re: Cranks bike shops gone?
Postby ThePhil » Tue Jan 08, 2013 10:10 am
Imagine if the fixed taxes for your business were 20% higher than your competition, would you survive?WyvernRH wrote:
This whole statement is invalid in so many places that all I can say is, well it's all wrong
Cheers
Richard
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Re: Cranks bike shops gone?
Postby silentbutdeadly » Tue Jan 08, 2013 10:50 am
In this case...yes. Simply because o/s only supplies bicycle parts...LBS does (or should do) so much more besides. So if I were an LBS...I wouldn't even try and compete with O/S on parts (except perhaps wear parts like chains, tubes and tyres). But I would go all out on service - that gets them back through the door every time.ThePhil wrote:Imagine if the fixed taxes for your business were 20% higher than your competition, would you survive?WyvernRH wrote:
This whole statement is invalid in so many places that all I can say is, well it's all wrong
Cheers
Richard
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Re: Cranks bike shops gone?
Postby ThePhil » Tue Jan 08, 2013 11:26 am
What exactly are you getting them back in the door for if you are not going to sell them any parts? Coffee?In this case...yes. Simply because o/s only supplies bicycle parts...LBS does (or should do) so much more besides. So if I were an LBS...I wouldn't even try and compete with O/S on parts (except perhaps wear parts like chains, tubes and tyres). But I would go all out on service - that gets them back through the door every time.
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Re: Cranks bike shops gone?
Postby AUbicycles » Tue Jan 08, 2013 11:52 am
On the Coffee - why not? Sounds funny but a lot of people associate cyclists with coffee and a number of stores are building up on this - building the social character around the business and securing repeat business.
SilentbutDeadly has a valid point - not everything is available online and overseas, I know of bike shops that have reduced stock of certain brands and items which have become uncompetitive and opened up other brands or items which are harder to get online or are not significantly cheaper. This is adapting.
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BTW, in the SydneyCyclist forum a member suggested that Atelier de Velo in Sydney was insolvent and linked to an ASIC document. I was suprised and gave the shop a call, obviously they are not going to pass over details on the phone to a stranger though I suggested that the ownership/business model has changed and they said yes. So Atelier de Velo still serving coffee in the CBD.
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Re: Cranks bike shops gone?
Postby silentbutdeadly » Tue Jan 08, 2013 12:03 pm
Why not?ThePhil wrote:What exactly are you getting them back in the door for if you are not going to sell them any parts? Coffee?In this case...yes. Simply because o/s only supplies bicycle parts...LBS does (or should do) so much more besides. So if I were an LBS...I wouldn't even try and compete with O/S on parts (except perhaps wear parts like chains, tubes and tyres). But I would go all out on service - that gets them back through the door every time.
Parts (in many cases) are almost loss leaders. A typical LBS is trying to make most of its margin on the sale of new bikes and accessories and the labour component of servicing bikes. Margin on parts is icing since many parts (apart from typical wear parts) are not typically held in stock these days - it is too expensive and capital intensive to hold the diversity of inventory. However, some LBS make this process work by providing and maintaining a level of service that encourages customers to place orders, spend the extra money and come back time and time again (think ForTheRiders and TBSM for example). Many don't...and that is often why they fail.
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Re: Cranks bike shops gone?
Postby sogood » Tue Jan 08, 2013 12:15 pm
There's more story to it based on my understanding of the sequence of events. Cranks leased their previous Darling St store front and gradually established their presence on the peninsula. Then the landlord did not renewal the lease and opened his own bike store (dodgy!). Cranks then went hunting and opened their just shuttered Montague St store. To me, this new Montague St location is a superior one, with far better foot traffic and visibility. It's a real shame they are now closed and the excellent staffs are now lost. In terms of bike services on the peninsula, I think 3 is too many (Cranks/Balmain/Velofix). Now we are down to two.zero wrote:Cranks (in Balmain) "left" their store (I don't know the details), and another bicycle store took their place. Which by default would have split their maintenance market in half, because unlike the usual new store opening up scenario, Balmain bikes and not Cranks is sitting where everyone remembers the bicycle store to be. (and probably in all honesty the more convenient location), which probably directs a lot of maintenance business back to them.
RK wrote:And that is Wikipedia - I can write my own definition.
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Re: Cranks bike shops gone?
Postby ThePhil » Tue Jan 08, 2013 12:34 pm
Adaptation is fine and all successful businesses adapt on an ongoing basis, just no need to tax them more that the other lot, whilst they are trying to do so. On the coffee thing most shops would not be zoned for food service or even have a kitchen. Then it gets a bit self defeating, imagine if somebody wanted bike service and the staff was busy making skinny latte's. You'd end up really annoying people.AUbicycles wrote: SilentbutDeadly has a valid point - not everything is available online and overseas, I know of bike shops that have reduced stock of certain brands and items which have become uncompetitive and opened up other brands or items which are harder to get online or are not significantly cheaper. This is adapting.
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Re: Cranks bike shops gone?
Postby grantw » Tue Jan 08, 2013 1:53 pm
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