25Seven

The Future of Fit – An Interview with BRAIN - Part II

A while back Bicycle Retailer and Industry News Magazine asked me and others in the industry about the future of bike fitting.

Here I will reprint the entire transcript in three parts.  I reprinted the first part already.  Of course, it was edited down significantly in the magazine.  I preceded my answers to Sean Hong’s questions with a disclaimer.  It went a little something like this…

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It is always dangerous to make generalizations regarding topics as complex as ‘fit in the bike industry’.  Generalizations become more difficult when the outcome is so important to so many constituents and interested parties—retailers, large bike suppliers, small bike suppliers, and customers, to name a few.

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BRAIN:  What is a bike company’s responsibility to making sure a customer has a well-fitting bike? What is a retailer’s responsibility?

The Future of Fit – An Interview with BRAIN

A while back Bicycle Retailer and Industry News Magazine asked me and others in the industry about the future of bike fitting.

Here I will reprint the entire transcript in two or three parts.  Of course, it was edited down significantly in the magazine.  I preceded my answers to Sean Hong’s questions with a disclaimer.  It went a little something like this…

______________________________

It is always dangerous to make generalizations regarding topics as complex as ‘fit in the bike industry’.  Generalizations become more difficult when the outcome is so important to so many constituents and interested parties—retailers, large bike suppliers, small bike suppliers, and customers, to name a few.

______________________________

BRAIN:  Why is proper fitting so important? Is it any less important with lower end bikes, compared to the higher end stuff Seven sells?

Question from November 1 Issue of BRAIN

BRAIN—Bicycle Retailer And Industry News—magazine asked the following question to ten retailers in their most recent issue.

“Will the financial crisis impact our industry, spending?”

It’s a direct question that elicited some tough answers. 

It’s been enlightening to see how the retailers—domestically and internationally—with whom Seven Cycles works are affected by the economic climate.  Answers to BRAIN’s question reflect what we are hearing from our retailers; some retailers are definitely seeing a serious change in customer behavior, and some of the responders don’t feel that recent events have made any difference at all.  Regardless, overall the mood is cautiously positive.

Some people have mentioned they expect a brand like Seven, how ever a person might define our brand—high end, ‘luxury’, expensive, niche product, small brand within most stores, limited floor presence in stores, no pre-season requirements—to be heavily impacted by the recent slowing economy.  Maybe so, although September and October have been Seven’s best months of the year so far.  I think this is in large part because of the way our sales team and our key retailers have refocused on listening to customers.

It is actually supplier behavior that concerns me the most.  This uncertain time period has suppliers overreacting to the situation; this, in turn puts more pressure on retailers, and that makes suppliers nervous, and now we are in a vicious loop.  The answers to BRAIN’s question highlight this negative feedback cycle.  Here are some of the key points retailers brought up about how they intend to weather the economic turmoil:

Question from October 1 Issue of BRAIN

BRAIN--Bicycle Retailer And Industry News--magazine asked the following question to ten retailers in the most recent issue.

"Will supplier price increases for 2009 affect your business?"

Price increases have been a common topic in the US economy this year.  I have been surprised by how Seven Cycles retailers seem unfazed by this economic concern.  In all my conversations with retailers at Interbike last week, not one person discussed this as a concern.  Regardless, price increases impact the way you run a business. 

Here's how a cross section of retailers answered BRAIN's question.  Their responses were fairly consistent.  The main thoughts were:

• Closely watching wholesale price increases; expecting increases throughout the 2009 season
• Some products will be pricing themselves out of the market
• Control inventory levels; try to get more turns; be more selective in products they carry--fewer products on display
• Sell your store as a brand; rely less on bike brands
• Focus on service:  "Treat your clients great"
• Easier to get rid of 08 inventory; blow it out
• Sell value; not just price

As you might expect, I think of the way retailers answer this question as it relates to Seven Cycles and how we can address retailer concerns--on any question--and make a positive difference in their businesses and communities.  So, here are some ways in which Seven thinks about the above bulleted list of retailer desires.