The business plan: need and want

Evidence supporting the idea

I spoke with going concern independent bike stores in the region. I learned that some IBS very much want the opportunity to compete with the prices found by the consumer online, but they don’t always get the chance; consumers automatically assume that the online retailer has the better prices and they never bother to check with the IBS to see if they can beat the price. Other IBS do not want any e-commerce on their website because it means they will have to set the prices they have in the store with the prices found on the Internet. I also learned that the IBS does well in terms of gross margins (the difference between the selling price of a bicycle and the price for which the IBS purchased it), but struggles with high operating expenses (labor and rent) and storage and display space for bicycles.  I learned that manufacturers require the IBS to order a certain number of frames in the fall so that the manufacturer can more accurately identify how many bikes they need to make; some manufacturers will allow the IBS to order a smaller amount, but it depends on the manufacturer. All the IBS note the expense and risk of ordering bicycles in the preseason. One IBS pointed out that despite the popularity for testing and fitting services, the IBS still must sell bicycles to remain viable. I learned that despite the efforts of the IBS to encourage the consumer to buy their bicycles or obtain their fitting and testing services in the fall or winter, most consumers are still “I need it now” consumers and make their buying decisions according to the weather.