Neuvation’s January 3rd Newsletter (removed since posting) struck a chord. John Neugent was writing about the cycling industry and competition between local bike shops and online retailers, but the same issues are at play in the ski industry (incidentally, many bike shops double as ski shops).
Neugent is biased as his internet sales are much more robust and profitable compared to his brick and mortar sales. I come from the opposite retail perspective: a brick and mortar store with higher sales than our rapidly growing online store. Yet our vision regarding loss of business to online competitors is the same. Neugent writes:
“My job, either in my retail store or on the Internet is to give customers what they want while at the same time make a profit. Because of the Internet and more recently smart phones, our customers have fundamentally changed. Retailers who don’t change with the market will die.”
“The debate in the cycling industry should be how we can best provide those core services to our customers at a profit and not try to figure out ways to change their shopping habits.”
This is well put and on point. Customers want to utilize the internet to get the best deal. Consumers have developed shopping habits that include internet based comparison shopping. Local shops cannot change customers shopping habits, especially by brow beating them with guilt.
Knowledge is no longer the bread and butter of local shops. Consumers can become more knowledgeable than many shop staff by doing independent research.
What local shops can do is step up their services. Shops need to make consumers want to shop locally first. A small difference in mark up is acceptable but a significant difference needs to be accompanied by value added services. The larger the price variance compared to the competition, the more extensive the services must be.
Shops need to create an experience and connection. Relationships and bonds are far more important than trite “providing excellent customer service.” Providing excellent service is a customer’s minimum expectation. Great service will get you one sale. Great relationships will keep the customer coming back for many sales.
Not only can shops not change consumer shopping habits, they need to create new customer habits: namely visiting a shop because it is a community center and reaches the customer beyond the pocket book and into the heart. Local Bike Shops have been doing this for years by hosting rides, events, and programs. I think ski shops have an opportunity to step up this local community element.
Check out this video about 718 Cyclery bringing an extensive and personal touch to buying a bike. This experience is certainly worth paying shop prices for:
The Inverted Bike Shop from Show Love on Vimeo.
How could a ski shop create this type of experience? Would you buy in store instead of online if you could talk shop with the tech and then watch or actively participate in mounting your bindings? Would having “shop time” with a tech make a difference?
Some shops sell custom footbeds, a very personal experience that can’t be duplicated online. But why doesn’t every shop include this free with the purchase of boots at full retail? My last three boots were all purchased online. I might have purchased in the shop if a free custom footbed was included. Instead, I purchased this service but at a lower total price than shop retail plus the footbed.
How about a backcountry shop hosting free “Intro to Backcountry Skiing” courses if you buy a full setup? How about hosting social events as a way for turn earners to connect and find partners?
What other services could shops offer to create a personally dynamic experience?
Do you feel connected to a specific shop? And if so, why?
5 thoughts on “Ski Shops & the Internet”
It’s true – the market will dictate the future. I guess the problem is that if the list of things you CAN’T do online is too small to support a business, then something will be lost. The Gear Source in North Creek (near Gore) is currently undergoing a renovation that is designed to do one of the things you suggest – adding coffee and other reasons to stop in on a regular basis. My connection to the Gear Source started a few years ago. I was on a weeks vacation and lost a binding screw. The owner pulled a part I needed out of new binding and didn’t charge me for it. I missed about an hour of skiing total. That was worth a lot to me.
Wow, that video was awesome. I’m just about to start my first bike building experience from a bunch of materials that I’ve collected online (Ebay frame, fork, headset, stem, handlebars, seatpost, clamp -all for $110! Plus Separately purchased wheels, crank, freewheel, brakes and levers). I liked to process of collecting the parts, but I’m kind of scared about the actual building – if there was a bike shop like this close to me, I would definitely have gone that route.
As far as the transference to Ski Shops, I’m not sure. You mentioned bindings and footbeds, but is there anything else that a shop could work through with you? Tuning? Fashion advice? Multimedia clinics? Like you said, it’s easy for me to get as much or more knowledge than most ski shop employees with a couple of hours of internet research. And once I get the feeling that I know more than the shop employee helping me, I start to question why I’m there in the first place.
I wonder if ski area owned shops in particular would best be able to address the needs of a customer. After a new ski purchase, maybe they could recommend an instructor at the mountain to help a customer get used to new skis. Maybe they could have movie nights for kids and young teenagers (kids get bored at resorts without waterparks, and would probably appreciate the chance to hang around with other kids). Maybe after selling a GoPro, they can have someone give an on hill clinic on how to use it.
Just a couple of ideas. You’re right, though. We seem to have gotten into a place where “providing excellent customer service” is enough. Maybe we should start expecting more.
Creating lasting customers is hard
Thanks for the comments, guys.
I totally dig the idea of a ski shop adding on extra services and becoming more than just a ski shop. Sounds like The Gear Source is on the right track. I know you love them, Harvey. And that means they are succeeding at doing one thing I suggested: they infected you with an emotional attachment. You have a relationship with them that goes beyond service. If they can keep doing that, they’ll be successful.
Matt, I agree that bike shop video is incredible. Bike Shops need to get with the times. Same with the marketing companies (some people call them bike companies, which they are not). Bike shops should be custom building bikes for everyone.
I’m currently reviewing a road bike upgrade. I’ve completely given up on big name marketing companies. Not only are their frames (which are sometimes open mold, even) over priced to pay for sponsorships but the components you get are a step below what you pay for. For us heavy weights, the standard wheels ALWAYS need to be replaced. I need 32/36 spoke, I’m a Clyde. But they make you buy the wheels with the bike, wasting money. Totally frustrating.
I’ve looked extensively at doing a build because of this issue. But I found an indie company with what I want at the price I want (Franco Bikes). I also looked closely at Neuvation (which I linked to earlier) but they don’t have the geo that I want. Pedal Force is another cool open mold frame that can get you a custom build with the parts you want. Companies like Neuvation and Pedal Force are the future. You name the components, they build it. It is what all bike shops should be doing. But they are up against the big name marketing companies that want to see big name brand logos on frames with sub-par components at premium prices. Ridiculous.
Any ways, good luck with your build. Clearly, there is a market if someone sees the demand and capitalizes on it. Back to ski shops, you are right that it is difficult to think of other value added services. Perhaps shops partnering with mountains to more easily facilitate rentals and sales? But the mountains probably aren’t friendly, they want the sales and services too. I don’t know. Maybe give me a few free tunes? Let me do a demo and knock the price of the demo off, mount the bindings free, and a two or three basic tunes? I don’t know how much the shops put for a dollar value on 5-10 minutes of service. That is all a mount or a tune takes.
Excellent and timely post. I will share this with my colleagues, who toil in the bike and ski shop biz. Any independent retailer who has not figured out that service and creativity are the key will not last long these days. It is all about relationships with customers, experiences and PEOPLE.
Very interesting post. I haven’t really found a ski shop near me in Bristol where I feel “at home”. I think that’s the key right there. The shop personnel need to engage the customer in a very personal way. Some don’t respond to this but I think most do. There’s nothing more disturbing to me than to walk into a store filled with stuff and not have someone ask me if I need any help finding something. Even if I know what I’m looking for if the place is chock full of merchandise I may not be able to find what I want. New Englanders aren’t wired this way but if shop owners put forth an little effort the pay off can be big.
Where I work in Holderness almost all of our work comes to us via the internet. Because of the specialized printing we handle we have to talk with the customers all the time. It helps to be chatty, friendly, not impatient and offering different alternatives. When someone knows what they want we don’t force our opinions on them. Nothing is more off-putting than a pushy sales person or technician. So you do have to know your boundaries.