Cell Bikes out of business

BobtheBuilder
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Re: Cell Bikes out of business

Postby BobtheBuilder » Mon Apr 30, 2018 11:05 pm

Thoglette wrote:That's unusual.


Yeah, I'd heard good things about them. Was two weeks ago. Maybe just one that slipped through or went to spam.

maillot jaune
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Re: Cell Bikes out of business

Postby maillot jaune » Mon May 07, 2018 4:02 pm

A sad day indeed when Cell closed.
Cell was a great local company and I have regularly used them since the 1990s.
I used them as a first point of contact for equipment and bicycles that I have needed.
Cell was for me a LBS (local bike shop) as well as mail order supplier, another of my LBS has closed recently and I fear that the economy is not tracking as well as we are told by the politicians. The state government's anti cycling stance must also be a contributing factor as figures show less trips being made by bicycle. Unfortunately the future is not looking bright for the cycling fraternity of Australia and NSW in particular.

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Re: Cell Bikes out of business

Postby mikesbytes » Wed May 09, 2018 6:11 pm

maillot jaune wrote:A sad day indeed when Cell closed.
Cell was a great local company and I have regularly used them since the 1990s.
I used them as a first point of contact for equipment and bicycles that I have needed.
Cell was for me a LBS (local bike shop) as well as mail order supplier, another of my LBS has closed recently and I fear that the economy is not tracking as well as we are told by the politicians. The state government's anti cycling stance must also be a contributing factor as figures show less trips being made by bicycle. Unfortunately the future is not looking bright for the cycling fraternity of Australia and NSW in particular.

Hi maillot and welcome to the forum

Which is the other LBS that closed?
If the R-1 rule is broken, what happens to N+1?

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AUbicycles
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Re: Cell Bikes out of business

Postby AUbicycles » Fri May 11, 2018 6:56 am

A few things to look at when understanding closures:

• Is the rate of bike shops opening and bike shops closing the same? i.e. is there an equilibrium or change?
• When a shop closes, are there other bike shops in the same general area? - i.e. was there too much supply for the demand
• Are other shops with comparable strategies closing? By strategy I mean, are other discount shops, or premium shops or specialist type shops or local bike shops having the same fate?

Often the changing industry with internet competition is cited as a problem by some shop owners BUT most businesses need to able to adapt and change to a changing market - plenty in Australia do and are successful. It could mean selling something that isn't competing or evening doing things (like growing a loyal customer base and reputation) - the proof is in a number of successful shops that operate successfully.

And what is going on behind the scenes - in Melbourne, BSC bike went through rapid growth and then closed all stores and went into liquidation owing a lot of money to suppliers. They were popular with customers and appeared to be going well but the management didn't check-out and this is actually a very common theme that there are spiralling problems but also owners sometimes down have the necessary skills to run a business successfully.

To summarise, it is not always just simply online competition or a decline in cycling. Something these may play a role but a business has to be in tune with their customers (and staff) and getting that bit right is also important.

--

Mikesbytes, recent other Sydney closure was Cheeky Monkey. Perhaps that is the one that was meant.

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Re: Cell Bikes out of business

Postby zebee » Sun May 13, 2018 7:40 am

Bike shops are also not great money spinners. If rents go up then a shop can be just not viable. That's what happened to Cheeky Monkey: the kind of work they did couldn't keep up with the increasing inner city rents. Worhshop work and niche bikes couldn't bring in enough.

Happens with the kind of motorcycle place I prefer too. They don't get the volume of business. Mate of mine was a motorcycle mechanic at a small old fashioned sort of place and quit to work at a bike barn closer to home. The new place was all about moving motorcycles through the workshop as fast as possible, so exactly what was on the card and don't take any extra time. If you find something else needing doing you tell them when they pick it up and they get charged another base fee... That and the churn of bikes and loan/insurance kickbacks kept the place going.

Small shops don't sell the small high margin stuff like accessories much anymore either, the internet did kill that revenue stream.

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Re: Cell Bikes out of business

Postby Zippy7 » Wed May 23, 2018 5:02 pm

This appeared in the mailbox this afternoon.

=========
Dear **SUBSCRIBER**,

It is with a heavy heart, that after more than 15 years in business, we have had to close Cell Bikes. Changing market dynamics have made trading too difficult to continue operating the Cell Bikes business. Thank you for all of your support over the years.

Our website domain has now been transferred to Bicycles Online. We have great comfort in knowing that our loyal customers will be well looked after by Bicycles Online for any of their future cycling product needs.

Bicycles Online has a similar direct to market business model as we did at Cell Bikes so you can have comfort in knowing that you are still getting great value, and if there is anything that you would like them to carry please let them know.

Kind Regards,
Cell Bikes Team

Frequently Asked Questions

1. How will warranty claims be managed for previous Cell Bikes purchases?
We recommend that you contact the importer of the brand for all warranty claims i.e. in the case of Shimano, you would need to contact Shimano Australia etc. For warranty claims regarding Cell Bikes frames and house-branded products, claims will need to be directed to the Administrator of the Cell Bikes liquidation. Details can be found on the ASIC website at this link: click here

2. I recently purchased an item from Cell Bikes and have not received it. What happens now?
We recommend that you inform your credit card company or Paypal so that they can issue you a refund.

3. I have a Cell Bikes gift voucher. How can I redeem it?
You will need to claim your funds back from the Cell Bikes Administrator. Details can be found on the ASIC website at this link: click here
==========
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Re: Cell Bikes out of business

Postby mikesbytes » Tue Jun 19, 2018 9:50 pm

Drove past the Cell Bikes shop today, as I often do and the poor sale sign is still out.

Anyway I was thinking about Stanmore Cycles, it was a shop selling top end bicycles and when Cell bikes when in, the business for Stannmore Cycles went up as Cell Bikes would draw customers to the location and some would spot another bike shop walking distance from Cell Bikes and go visit them. Anyway when Bob decided to retire he failed to find a buyer and closed down.

Now I'm wondering about 99 Bikes, who are also walking distance from Cell Bikes, is their business better off or worse off now Cell Bikes have gone?
If the R-1 rule is broken, what happens to N+1?

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Re: Cell Bikes out of business

Postby Calvin27 » Wed Jun 20, 2018 9:12 am

mikesbytes wrote:Now I'm wondering about 99 Bikes, who are also walking distance from Cell Bikes, is their business better off or worse off now Cell Bikes have gone?


Yes it's a little bit like the lygon st effect. Everytime someone asked my for bike recommendations, I'd take them there because in terms of range it was as good as it got. There are a few other spots like chapel st and port melbourne(don't like going there and the bikes are pitched at more high ends stuff). After that there is a little stretch on princess highway near caulfield that has a few shops. They do need to be close together and I don't think a bik shop could survive in isolation like that, but then again if one could 99 bikes would be it.
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Re: Cell Bikes out of business

Postby RonK » Wed Jun 20, 2018 9:25 am

Can't see any other comment about it, but I received an email on June 15 from BicyclesOnline explaining why they bought Cell Bikes.

Why we bought Cell Bikes?
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Re: Cell Bikes out of business

Postby mikesbytes » Wed Jun 20, 2018 2:11 pm

RonK wrote:Can't see any other comment about it, but I received an email on June 15 from BicyclesOnline explaining why they bought Cell Bikes.

Why we bought Cell Bikes?


I've wondered if those who clicked unsubscribe to their Cell Bikes mailing list have received this email from bicyclesonline. Suppose it depends on the quality of the info they got from Cell Bikes and whether they thought about it before mailing.
If the R-1 rule is broken, what happens to N+1?

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Re: Cell Bikes out of business

Postby Bunged Knee » Wed Jun 20, 2018 7:27 pm

mikesbytes wrote:
RonK wrote:Can't see any other comment about it, but I received an email on June 15 from BicyclesOnline explaining why they bought Cell Bikes.

Why we bought Cell Bikes?


I've wondered if those who clicked unsubscribe to their Cell Bikes mailing list have received this email from bicyclesonline. Suppose it depends on the quality of the info they got from Cell Bikes and whether they thought about it before mailing.


Yes, I've unsubscribed Cell Bikes mailing list last year due to in not displaying the prices of products but only reviews in emails. So I've lost interest in their emails.

And I did received the bicyclesonline email about Cell Bikes despite of me unsubscribing it.

I think that Cell Bikes had sold the mailing lists to Bicyclesonline
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