Frame and Wheel reads in the NBDA "statpak"that the number of independent bicycle stores (IBS) shrank 1.5% y-y to 4,256 in 2009. This is part of a trend: the number of IBS has shrunk 30% from 6,195 in 2000. Although the number of stores are decreasing, the same number of bicycles are being sold through them (3m). The conclusion is that this channel is consolidating and fewer IBS are selling more of the bicycles. The reasons for the shrinking number of IBS is most certainly high labor costs and overheads combined with keen competition on the bicycle prices themselves. Internet retailers are no doubt making things more competitive for the IBS. One interesting result of consolidation is that the IBS has the opportunity to carry more brands. This can result in too many brands and at the very least can become expensive or cumbersome for the IBS. Indeed, the IBS is being encouraged to carry fewer brands.
Frame and Wheel will have to target the owners of the IBS: these are the people who decide which brands to carry. They look for customer service from the manufacturer, reasonable terms of authorized dealership and the reputation of the brand in the market. Frame and Wheel believes that the "slot free" business model and the niche market appeal of the frames will make the frames a compelling choice for an IBS. The customer service, the warranty programs, safety certification and crash replacement programs will have to be strong too in order to help make the sale. Frame and Wheel recognizes that it will have to have all of this in place long before the first pitch to an IBS.
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