Just give it all away...

You cannot survive by giving things away.  All of those discounts will eventually catch up with you one way or another.  Here's an example..

I have a 2.5" x 5.5" full color card from a small local shop that has been around forever but has recently been resurrected by the same owner in a different location.  Some form of a discount is mentioned no less than six times!!! 

• Over 150 new bikes to choose from...30-50% off!
• We discount quality parts and accessories daily!
• GT and Schwinn accessories up to 50% off
• 10% off sale with flier!!!
• Coupon good for One free wheel truing
• and 20% off All Labor

That's alot of discounting...  It seems that discounting is all that this shop is about.  Most of what he sells can be found in a big box store.  Why do shops feel that they have to give stuff away?  If the most that you can offer your customer is cheap prices, your in for a world of hurt.  Because how I see it, if someone only wants the lowest price, one of the last places where they'll look is the local bike shop.  Those who continue to do so are only delaying the inevitable...

Comments

[John Satory]

...is there such a thing as too much red wine?!?!? Anyway, I gave 12+ years of my life to owning a retail store... I like to say that I'm in the 12 Step retail recovery program. I won't put myself or my family thru that type of punishment again. Retailing (especially bicycle retailing)has changed,and I think that we're going to see more changes soon...

[gwadzilla]

funny
I commented on this post months ago
perhaps I have had too much red wine tonight

[gwadzilla]

I worked in a shop where the owner had no issue with using that same sign trick that the electronics store uses

thinking people will only see the sign when they are looking for the store or decided that they are looking to purchase the product

it was embarressing....

especially since the shop was tucked in a historic neighborhood that had lost of daily passerby traffic going to work, the metro, or the main drag on Capitol Hill

now it is a rug store
the owner is a friend of mine
I still ride my bike by
we joke about him letting me take some of his products out for a magic carpet ride

[gwadzilla]

shamefully..
the shop I worked in had a going out of business feel to it
sort of like that electronics shop that is always having a "going out of business" sign in the window
like it was just put there
but
it has been up there all year
if not for years

[John Satory]

Thanks for the comment MrBigRing. I believe that most consumers are well educated and are well aware when someone's trying to pull a fast one... especially in bicycle retailing.

[MrBigRIng]

When you raise prices by 30% and give a 20% discount, are you really getting a deal? At least they think they received a deal with the 20% off.