Tuesday, February 26, 2008

Consequences of one choice affect many others.

Good story, from "Mountain Bike Like a Champion" by Ned Overend.

A classic epic ride from my hometown of Durango in Colorado is called the Kennebec Pass loop. You head out of town and into La Plata Canyon before climbing to the top of the 13,000-foot pass. From there, you can get on the Colorado Trail. It's a spectacular ride with a ton of climbing. Depending on your pace, it will take you between 6 and 10 hours to get out and back. Or it could take a couple of days. People get lost up there all the time. Several trails intersect, so it gets disorienting. The big mistake is turning away from Du­rango and dropping in on the wrong side of the divide. Once people realize their mis­take, it takes a major effort to ride back up again. There's no way to get home before sundown.
One day, the search-and-rescue guys asked me to help them get two riders out. They wanted me to show them the area where people take the wrong trail. I drove part of the way up the pass, and then got into a helicopter.
It was a super windy day. At that altitude, the helicopter didn't have much power. We climbed toward a notch in the mountain, and everything seemed fine until we hit a downdraft. I could feel the chopper sinking. I could also see the pilot sweating. He fought with the stick as we jerked all over the sky. He couldn't turn around, because we would lose momentum and then really sink. We were so scared. I've never felt that helpless. Just as we were being pushed into the ridge, the downdraft eased and we made it over. When we finally landed, the co-pilot got out and immediately threw up.
Be responsible on epic rides. If you get lost or have a major problem far from the nearest help, you're not only putting your own safety at risk but you're also en­dangering everyone who tries to find you.


Many riders think that they're out for a "short ride", or "I'm in cell phone range" so they skip the basics of safety. When they get nailed by dehydration, or a flat tire in the middle of no-where the problem gets shifted to others. Their choices can affect many others, so let's make sure we spread that understanding.

Wednesday, February 13, 2008

Showcase and Repair Parts Ordering?

Back in early 2005 no one was coordinating our parts orders. Some stores were just ordering whatever they needed. Both situations needed improvement. Each store was doing the work that we already had a buyer doing. Although market specialization is a good thing, it means we had 45+ buyers doing a job inefficiently. We have a corporate buyer, an E3 analyst and our E3 system to keep the stores supplied with essential parts. Rick Stryker volunteered to step in, and coordinate the orders for a few months. He set up a system of ordering that simplified the process to something that’d make sense to all of our distributors and speed invoice processing in our Accounting Dept. That was rolled out to all stores in August 2005.

The process worked well enough that it has continued to this day. It also grew, and Rick was eventually returned to the position of Bicycle Training Coordinator. The coordinator(s) for those orders are now Tom Connell and Aaron Dunn, who are our Fitness and Bicycle Buying Team. However, we still have too many people doing "buying". If you consider it fully, each store is still forming repetitive orders for repair and showcase parts. Those who are doing an excellent job are still only affecting their individual stores, which is a waste of good work and intelligence.

We have three types of orders in the Bike Dept.
1. Repair parts- these are things that are used in the process of normal repairs. Cable housing, tubes, chains, etc. If communicated to the buyers, these items should be coming into your store by way of our E3 system. It is far more efficient to have these items on-hand in our warehouse, and send ‘em out on the next truck.
2. Showcase parts- this category of parts is used to attract customers, and show the range of service that we are doing. These parts may also be “cutting edge” or used to grow a category of bike sales/customers.
3. Special order items- sometimes you have to order something in for a customer. We currently have to dance around some distributor “minimum order” amounts, but those orders are still being processed well.

Here’s the plan for orders in the future:
1. Repair parts- No one goes from zero tune ups a month to 60, so your rate-of-sales on all parts would change over a month, instead of a day. These parts are tracked and reordered thru E3 now. The parts that E3 orders and stocks will need to be increased in their range and depth, but this is something we are likely changing now. Shop Personnel time should not be spent generating orders for basic items that ALL stores are ordering. Future state: Repair parts are automatically ordered by way of E3 and tuned to your store's range of customers by communication with the buyers and E3 analysts.
2. Showcase parts- we demonstrate our expertise by ordering parts that are compatible and interesting to our customers. We can and should be relying on the buyers and E3 system more, by communication of hot new products and customer interest/demand for products that we don’t stock yet. Example: if stores begin consistently sending in organized “Top 10 items to add” and “Bottom 10 items to lose” emails we will manage our inventory across 50+ stores in a very smart way. Instead of ordering "one at a time plus shipping x 50 stores", we put the power of our organization into the ordering process. This will have to be managed by the Buying team if it’s going to work well.
3. Special order items- trying to change this will only reduce our ability to please the customer. If they want something, we order it when pre-paid. “Please the customer”, it’ll never be a bad policy.

When the Bike Trainers first heard this, we were “not happy”. After some discussion, we saw the value. You may be in that stage right now. Think about how much time you spend on basic orders, and how you could be growing your repair volume instead; it just makes sense. As ever, your comments are appreciated.

Monday, February 04, 2008

Dorel buys Cannondale

This story is a little dull, until we realize Dorel owns Pacific Cycle. Pacific moved Schwinn to Target stores and that class of retailers. It wouldn't make sense to do that with Cannondale, but life is full of surprises.

From BicycleRetailer.com today:

Dorel Buys Cannondale


MONTREAL, Quebec (BRAIN)—Dorel Industries has just announced the acquisition of the Cannondale Bicycle Corporation.

The total value of the all-cash transaction will be $190 (U.S) to $200 (U.S) million, subject to Cannondale's earnings results for the year ending June 30, 2008.

The transaction, which will be immediately accretive to Dorel's earnings, is being financed through debt.

Cannondale and Sugoi are being purchased from an affiliate of Pegasus Capital Advisors, which acquired the company in 2003. 2007 sales for Cannondale and Sugoi were approximately $200 million.

Dorel president and chief executive officer Martin Schwartz said that in light of the acquisition the Company's Recreational/Leisure segment is being split into two distinct operating divisions.

A new Dorel Independent Bicycle Dealers (IBD) division, the Cannondale Sports Group, is being created and will focus exclusively on this category with premium-oriented brands.

Backed by Dorel's extensive resources, the Cannondale Sports Group will build on Cannondale's strengths to grow significantly within the IBD channel.

"Our intention is to build a world-class company that dealers will want to buy from," said Schwartz. Pacific Cycle will become a stand-alone division with an exclusive focus on mass merchant customers.

"The Cannondale purchase is consistent with Dorel's plan to concentrate on its core businesses. Since buying Pacific Cycle in 2004 we have learned a great deal about the bicycle industry and have found it to be a true value driver for Dorel. We are committed to pursuing this sector, and this important transaction will position us globally in a most material way. Dorel recognizes the importance and potential of the Independent Bicycle Dealer channel and is purchasing Cannondale as the first step to become the world's number one IBD player. Cannondale will be the crown jewel of this new Dorel division, which will seek additional such growth opportunities," he added.

"We're excited about the future for Cannondale and our retailers. Cannondale's goal is to be the number one supplier to the IBD channel. Dorel's vast resources and experience provide us with long term stability and the ability to accelerate our goals for growth with our retailers," said Matt Mannelly, president and chief executive officer of Cannondale.

Dorel purchased Pacific Cycle (Schwinn, Mongoose and GT Bicycle brands) in 2004.

—Jason Norman

Friday, February 01, 2008

Headset Spacers, how many?

There's been some discussion regarding steer tube material and the number of spacers between the headset and the stem. All of the discussions I've read are focused on racing-quality lightweight stuff. If you have a thin aluminum or carbon fiber steer tube, it makes sense that zero spacers focus the stress right at the focal point of the structure. This is how a Pro racer, like George Hincapie in the recent Paris-Roubaix, can have a catastrophic failure. His steer tube snapped at mile 131.5 of the 161 mile race. This is a very demanding race, and this failure put him in the car with a damaged right shoulder. Big George'll understand it's a risk of racing, your customer will not be understanding about it if you set it up.
In the opposite case-by having a large number of spacers in place, the mechanic adds leverage to the rider handlebar input, which may also quickly fatigue the steer tube.

What do you do?

One industry expert has gone on record:
The number and placement of spacers does have an effect on the fatigue life of an aluminum steerer tube. Running less than 5mm of spacers under the stem can concentrate or "point load" a great deal of stress in one spot on the steerer. Therefore, Bontrager recommends a minimum of 5mm, and a maximum of 40mm of spacers between the stem and the headset to maximize the fatigue life of the steerer.
Scott Daubert Trek Bicycles

This has little to do with a $400 hardtail bike as set up by the manufacturer. But if you are replacing a fork, or even considering using a steer tube extender (BAD!), it is a factor to be aware of. If your customer is asking for a large amount of steer tube spacers, be sure to let them know they probably have the wrong size or type of frame. Do not install a large number of spacers, or get into a physics debate on the leverage difference of a long handlebar and tall stem vs. stem extenders etc. There is no set guideline, as it varies to the quality of the components.

"BE the Expert, do it right!"

Tuesday, December 18, 2007

Why did we get a "Heads-Up" memo?

It was probably 2002. We had been pursuing a vendor for over a year, and we'd finally got them to consider us. They visited several of our stores, and only one of them dropped the ball. Their Natn'l Sales Manager walked up to our counter, and wasn't greeted in a minute and a half by the tech who was doing a tune up. Not a difficult tune up, but the tech felt like that person would wait. At the 91st second she pivoted from the counter, called our buyer and let them know the deal was off.

We have people working in our stores, and people make mistakes. We do not expect you to do everything perfect, but you are expected to do your best. If the tech above was in the middle of Brain Surgery, his response would have made sense. His action did not, and lost for all of our stores a valued vendor by his choice alone.

The details always make a difference. Please be the one in your store that goes the extra mile, and achieves perfect customer service this month. Make it your goal, and you'll be much more able to do it.

Sunday, December 16, 2007

That "Easy Button" looks good.

It's tough to not love those Staples commercials, where basic problems are solved by slappin' a red button. Nice!

But are we helping our customers to find the same thing in our stores? For cyclists, the "button" is called a "Survival Kit". Think of the things that ALL novice cyclists should own, maybe just five things. What would those be?
1. Patch kit, 2. Tire levers, 3. Trail use pump (As opposed to home use), 4. Spare tube, 5. Wheel removal tools if needed. This is the absolute minimum I'd want to sell, to pretty much anyone. I know some things aren't on the list, like how to carry it all on the bike. (Seat bag, Camelbak) Everyone needs water, that should be on there too. (Bottles/cages or Camelbak).
What next? Better tools, Tire liners or Slime tube sealant, and a good lock. We've now outfitted the bike, don't forget the rider...

We are experts, let's do everything to get our customers off on the right foot, er, pedal.

Wednesday, November 21, 2007

Why should we do Rack Installations?

In case that question has ever visited your mind, look closely at the pictures. Yakima and Thule make towers that fit into the slot-like roof raingutters on some vehicles. This Kia does not have that fitment, it has a roof panel that uses "character lines" that channel water away from the doors and requires a "Gutterless" mount tower/pad setup. This vehicle has been or will be damaged by the cargo pressure of anything placed on the crossbars. BTW- I think that's a ten+ year old set of Saris towers, could be Thule, but they're so old and wrong for this vehicle it really doesn't matter.

Why would the car owner do this? I'm sure that answer is personal, but it's probably related to budget and hard-headedness. If asked, he'll say "it works fine". That's because it has not dismounted under freeway wind pressure yet. "Yet", it will in time.

We offer advice and installation service on the rack systems we sell for this exact reason. This owner has not been informed of the consequences that will happen to him in time. This is unsafe. Our certified technicians would never suggest this, and the driver following this guy wouldn't get a big surprise.

We do good things. Let's do them more often. Find these people and help them.