Random Thought: Creating a bicycle parts/tools distributor for Community Bike Shops.
Distributors ( http://www.bikecollectives.org/wiki/index.php?title=Distributors) are just the middle men separating manufacturers from retailers. Just like food cooperatives that buy in bulk and disseminate food at bulk rates, we could do that with bike parts. For those of us that buy using distributors it would save an roughly 25% off of wholesale, and for those community bike shops that aren't established enough to get a distributor account -- we would be providing an option that is 75% off of MSRP.
Ideally we would get accounts with tool manufacturers like park tool, pedros, hozan, etc.,... as well as wearable items like grease, bearing, chain lube, patch manufacturers, and then lower-end (but quality) parts manufacturers for things that we don't get enough of donated, or that aren't worth re-using. This will be different for each shop, but as an example in SLC we don't re-use bearings, spokes, cables or housing -- they get recycled and we put new ones on bikes. We also buy new road tires (27" & 700c) because we don't have enough decent ones donated, either they are too worn or dried out.
I can think of 2 conclusions:
- It isn't worth doing. The 25% cut a distributor gets is worth paying
given the hassle and it is just another random thought that might result in spending $5 to save $3. 2) It is worth doing.
I think this sounds like a great idea, and only wonder who would run this distribution co-op. At any rate, it seems worth looking into how hard this sort of thing would really be to set up . . .
nice random thoughts and brainstorming always welcome in my book . . .
jennifer austin yellow bike
On Wed, Mar 12, 2008 at 6:32 PM, Jonathan Morrison < jonathan@slcbikecollective.org> wrote:
Distributors ( http://www.bikecollectives.org/wiki/index.php?title=Distributors) are just the middle men separating manufacturers from retailers. Just like food cooperatives that buy in bulk and disseminate food at bulk rates, we could do that with bike parts. For those of us that buy using distributors it would save an roughly 25% off of wholesale, and for those community bike shops that aren't established enough to get a distributor account -- we would be providing an option that is 75% off of MSRP.
Ideally we would get accounts with tool manufacturers like park tool, pedros, hozan, etc.,... as well as wearable items like grease, bearing, chain lube, patch manufacturers, and then lower-end (but quality) parts manufacturers for things that we don't get enough of donated, or that aren't worth re-using. This will be different for each shop, but as an example in SLC we don't re-use bearings, spokes, cables or housing -- they get recycled and we put new ones on bikes. We also buy new road tires (27" & 700c) because we don't have enough decent ones donated, either they are too worn or dried out.
I can think of 2 conclusions:
- It isn't worth doing. The 25% cut a distributor gets is worth paying
given the hassle and it is just another random thought that might result in spending $5 to save $3. 2) It is worth doing.
-- Sincerely,
Jonathan Morrison Executive Director Salt Lake City Bicycle Collective 2312 S. West Temple Salt Lake City, UT 84115 w: 801-328-2453 c: 801-688-0183 f: 801-466-3856 www.slcbikecollective.org
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I think it's a pretty great idea too, with lots of potential- would take some capital and finding space and some heavy organizational structure, but doable.
josh
On Wed, Mar 12, 2008 at 6:31 PM, yellow bike austinyellowbike@gmail.com wrote:
I think this sounds like a great idea, and only wonder who would run this distribution co-op. At any rate, it seems worth looking into how hard this sort of thing would really be to set up . . .
nice random thoughts and brainstorming always welcome in my book . . .
jennifer austin yellow bike
On Wed, Mar 12, 2008 at 6:32 PM, Jonathan Morrison < jonathan@slcbikecollective.org> wrote:
Distributors ( http://www.bikecollectives.org/wiki/index.php?title=Distributors) are just the middle men separating manufacturers from retailers. Just like food cooperatives that buy in bulk and disseminate food at bulk rates, we could do that with bike parts. For those of us that buy using distributors it would save an roughly 25% off of wholesale, and for those community bike shops that aren't established enough to get a distributor account -- we would be providing an option that is 75% off of MSRP.
Ideally we would get accounts with tool manufacturers like park tool, pedros, hozan, etc.,... as well as wearable items like grease, bearing, chain lube, patch manufacturers, and then lower-end (but quality) parts manufacturers for things that we don't get enough of donated, or that aren't worth re-using. This will be different for each shop, but as an example in SLC we don't re-use bearings, spokes, cables or housing -- they get recycled and we put new ones on bikes. We also buy new road tires (27" & 700c) because we don't have enough decent ones donated, either they are too worn or dried out.
I can think of 2 conclusions:
- It isn't worth doing. The 25% cut a distributor gets is worth paying
given the hassle and it is just another random thought that might result in spending $5 to save $3. 2) It is worth doing.
-- Sincerely,
Jonathan Morrison Executive Director Salt Lake City Bicycle Collective 2312 S. West Temple Salt Lake City, UT 84115 w: 801-328-2453 c: 801-688-0183 f: 801-466-3856 www.slcbikecollective.org
Get Addicted to Crank! http://www.slcbikecollective.org/crank/ _______________________________________________ Thethinktank mailing list Thethinktank@bikecollectives.org
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I really like this idea as well, mainly because we here at 1304bikes fall into the not established enough to get a distributor account. This means we usually have to pay retail prices for anything we happen to need. A lot of the local bike shops to give us a nice discount, but we still pay some markup on wholesale.
I agree with option 2, that it is worth doing. I'm just not sure how one would go about doing so; but i certainly love the idea.
-Doug 1304bikes Raleigh, NC
On 3/12/08, Jonathan Morrison jonathan@slcbikecollective.org wrote:
Distributors ( http://www.bikecollectives.org/wiki/index.php?title=Distributors) are just the middle men separating manufacturers from retailers. Just like food cooperatives that buy in bulk and disseminate food at bulk rates, we could do that with bike parts. For those of us that buy using distributors it would save an roughly 25% off of wholesale, and for those community bike shops that aren't established enough to get a distributor account -- we would be providing an option that is 75% off of MSRP.
Ideally we would get accounts with tool manufacturers like park tool, pedros, hozan, etc.,... as well as wearable items like grease, bearing, chain lube, patch manufacturers, and then lower-end (but quality) parts manufacturers for things that we don't get enough of donated, or that aren't worth re-using. This will be different for each shop, but as an example in SLC we don't re-use bearings, spokes, cables or housing -- they get recycled and we put new ones on bikes. We also buy new road tires (27" & 700c) because we don't have enough decent ones donated, either they are too worn or dried out.
I can think of 2 conclusions:
- It isn't worth doing. The 25% cut a distributor gets is worth paying
given the hassle and it is just another random thought that might result in spending $5 to save $3. 2) It is worth doing.
-- Sincerely,
Jonathan Morrison Executive Director Salt Lake City Bicycle Collective 2312 S. West Temple Salt Lake City, UT 84115 w: 801-328-2453 c: 801-688-0183 f: 801-466-3856 www.slcbikecollective.org
Get Addicted to Crank! http://www.slcbikecollective.org/crank/ _______________________________________________ Thethinktank mailing list Thethinktank@bikecollectives.org
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Love the idea, if there is a shop willing to set themselves up as a distributor, I'm sure the kickstand would be interested in being on the distribution list. We are still so very new, I doubt we could set ourselves up for that position. Though down the road, I'm sure we would be able to help alot more. -vyki
On Wed, Mar 12, 2008 at 9:59 PM, 1304bikes 1304bikes@gmail.com wrote:
I really like this idea as well, mainly because we here at 1304bikes fall into the not established enough to get a distributor account. This means we usually have to pay retail prices for anything we happen to need. A lot of the local bike shops to give us a nice discount, but we still pay some markup on wholesale.
I agree with option 2, that it is worth doing. I'm just not sure how one would go about doing so; but i certainly love the idea.
-Doug 1304bikes Raleigh, NC
On 3/12/08, Jonathan Morrison jonathan@slcbikecollective.org wrote:
Distributors ( http://www.bikecollectives.org/wiki/index.php?title=Distributors) are just the middle men separating manufacturers from retailers. Just like food cooperatives that buy in bulk and disseminate food at bulk rates, we could do that with bike parts. For those of us that buy using distributors it would save an roughly 25% off of wholesale, and for those community bike shops that aren't established enough to get a distributor account -- we would be providing an option that is 75% off of MSRP.
Ideally we would get accounts with tool manufacturers like park tool, pedros, hozan, etc.,... as well as wearable items like grease, bearing, chain lube, patch manufacturers, and then lower-end (but quality) parts manufacturers for things that we don't get enough of donated, or that aren't worth re-using. This will be different for each shop, but as an example in SLC we don't re-use bearings, spokes, cables or housing -- they get recycled and we put new ones on bikes. We also buy new road tires (27" & 700c) because we don't have enough decent ones donated, either they are too worn or dried out.
I can think of 2 conclusions:
- It isn't worth doing. The 25% cut a distributor gets is worth paying
given the hassle and it is just another random thought that might result in spending $5 to save $3. 2) It is worth doing.
-- Sincerely,
Jonathan Morrison Executive Director Salt Lake City Bicycle Collective 2312 S. West Temple Salt Lake City, UT 84115 w: 801-328-2453 c: 801-688-0183 f: 801-466-3856 www.slcbikecollective.org
Get Addicted to Crank! http://www.slcbikecollective.org/crank/ _______________________________________________ Thethinktank mailing list Thethinktank@bikecollectives.org
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-- 1304bikes 2419 Mayview Rd. Raleigh, NC 1304bikes.org _______________________________________________ Thethinktank mailing list Thethinktank@bikecollectives.org
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i love the idea.
what about creating some sort of blanket national/international organization/club/something that community bike shops could belong to, and then creating accounts for that group, the members of which would then reap the benefits?
i dunno how chain stores--rei, performance, etc--get their accounts set up, but surely every brick and mortar store that is a part of a chain doesn't have to go thru the hassle of getting an account set up?
i also love that jonathan called grease "wearable." it certainly is at community cycles...
there was some talk of this at bikebike! in 07, perhaps we should get a discussion group going, and have a workshop about it in 08?
On Wed, Mar 12, 2008 at 9:41 PM, Vyki Englert vyki.englert@thekickstand.org wrote:
Love the idea, if there is a shop willing to set themselves up as a distributor, I'm sure the kickstand would be interested in being on the distribution list. We are still so very new, I doubt we could set ourselves up for that position. Though down the road, I'm sure we would be able to help alot more. -vyki
On Wed, Mar 12, 2008 at 9:59 PM, 1304bikes 1304bikes@gmail.com wrote:
I really like this idea as well, mainly because we here at 1304bikes fall into the not established enough to get a distributor account. This means we usually have to pay retail prices for anything we happen to need. A lot of the local bike shops to give us a nice discount, but we still pay some markup on wholesale.
I agree with option 2, that it is worth doing. I'm just not sure how one would go about doing so; but i certainly love the idea.
-Doug 1304bikes Raleigh, NC
On 3/12/08, Jonathan Morrison jonathan@slcbikecollective.org wrote:
Distributors ( http://www.bikecollectives.org/wiki/index.php?title=Distributors) are just the middle men separating manufacturers from retailers. Just like food cooperatives that buy in bulk and disseminate food at bulk rates, we could do that with bike parts. For those of us that buy using distributors it would save an roughly 25% off of wholesale, and for those community bike shops that aren't established enough to get a distributor account -- we would be providing an option that is 75% off of MSRP.
Ideally we would get accounts with tool manufacturers like park tool, pedros, hozan, etc.,... as well as wearable items like grease, bearing, chain lube, patch manufacturers, and then lower-end (but quality) parts manufacturers for things that we don't get enough of donated, or that aren't worth re-using. This will be different for each shop, but as an example in SLC we don't re-use bearings, spokes, cables or housing -- they get recycled and we put new ones on bikes. We also buy new road tires (27" & 700c) because we don't have enough decent ones donated, either they are too worn or dried out.
I can think of 2 conclusions:
- It isn't worth doing. The 25% cut a distributor gets is worth
paying given the hassle and it is just another random thought that might result in spending $5 to save $3. 2) It is worth doing.
-- Sincerely,
Jonathan Morrison Executive Director Salt Lake City Bicycle Collective 2312 S. West Temple Salt Lake City, UT 84115 w: 801-328-2453 c: 801-688-0183 f: 801-466-3856 www.slcbikecollective.org
Get Addicted to Crank! http://www.slcbikecollective.org/crank/ _______________________________________________ Thethinktank mailing list Thethinktank@bikecollectives.org
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-- 1304bikes 2419 Mayview Rd. Raleigh, NC 1304bikes.org _______________________________________________ Thethinktank mailing list Thethinktank@bikecollectives.org
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-- Vyki Englert "sprocket" acting Director of operations Member Board of Directors Gainesville Community Bicycle Project, Inc "the Kickstand" 722 South Main Street Gainesville Fl 32601 www.thekickstand.org vyki.englert@thekickstand.org 850.819.8808
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I think it's a great thought, but i'm in agreement with the number "1" conclusion. You would have to set up a warehouse/storage area for parts that you receive from manufacturers. Then the problem lies in fulfilling "orders" from CBS's. Someone has to process, ship, keep track of money, inventory etc. To make it work out would probably require at least one full time employee. The reason that distributors get stuff so cheap is because (what jonathan said) they order in bulk. We'd have to have a lot of up front money to say, purchase 200 chain breakers, 100 27'' tires or whatever the minimum order is for *every part* to be stocked. You'd still end up having to ship everything to a central location and ship orders to CSB's all over the country.
Perhaps if someone were to start a "benevolent distributor" that would sell to regular bike shops as well as giving reduced pricing and less account restrictions to community based organizations? Shops that are geographically close could also form a purchasing Co-op, managed by one of the shops, to approach manufacturers with large orders.
My cents, Brian
On Wed, Mar 12, 2008 at 7:32 PM, Jonathan Morrison < jonathan@slcbikecollective.org> wrote:
Distributors ( http://www.bikecollectives.org/wiki/index.php?title=Distributors) are just the middle men separating manufacturers from retailers. Just like food cooperatives that buy in bulk and disseminate food at bulk rates, we could do that with bike parts. For those of us that buy using distributors it would save an roughly 25% off of wholesale, and for those community bike shops that aren't established enough to get a distributor account -- we would be providing an option that is 75% off of MSRP.
Ideally we would get accounts with tool manufacturers like park tool, pedros, hozan, etc.,... as well as wearable items like grease, bearing, chain lube, patch manufacturers, and then lower-end (but quality) parts manufacturers for things that we don't get enough of donated, or that aren't worth re-using. This will be different for each shop, but as an example in SLC we don't re-use bearings, spokes, cables or housing -- they get recycled and we put new ones on bikes. We also buy new road tires (27" & 700c) because we don't have enough decent ones donated, either they are too worn or dried out.
I can think of 2 conclusions:
- It isn't worth doing. The 25% cut a distributor gets is worth paying
given the hassle and it is just another random thought that might result in spending $5 to save $3. 2) It is worth doing.
-- Sincerely,
Jonathan Morrison Executive Director Salt Lake City Bicycle Collective 2312 S. West Temple Salt Lake City, UT 84115 w: 801-328-2453 c: 801-688-0183 f: 801-466-3856 www.slcbikecollective.org
Get Addicted to Crank! http://www.slcbikecollective.org/crank/ _______________________________________________ Thethinktank mailing list Thethinktank@bikecollectives.org
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At Free Ride we have a purchasing policy that directs us to buy local, union, and sustainable products when they are available. If there were a distributor that could source parts the best complied with this policy I think we'd definitely be interested.
Of course, this would be a huge undertaking for the person(s) that wanted to do it. I imagine one has to order in very large quantities from manufacturers to be able to offer wholesale prices comparable to other distributors, and that the amount of cash tied up in stock at any given time is rather signficant. Having to rent or maintain a warehouse on top of that means that there's a minimum rate of consumption a distributor would need to maintain to avoid losing money. That rate is going to depend on the size of the niche market for community bike shops, and the assumption that other distributors wont alter their own policies to capture that market - it's not clear to me that there is enough demand, even combining all the major community bike shops into a single bloc, to solely support a single distribution operation. But that's just a guess and a real answer would require market research on the part of interested parties.
It seems to me that QBP supplies most of the CBS's right now. Maybe someone should approach them about identifying and stocking products that conform to our purchasing policies (i.e. green/fair trade/us made/union made/etc icons in the catalog) and ask about discounts for non-profits promiting bicycle use? I'd think the best way for that to happen would be for several shops to work together to create a request that could be delivered on all our behalfs. Does this interest anyone
- I'd be willing to help with such a project.
Stuart
Stuart, I agree with your take on this very interesting topic (thanks for starting it, Jonathan):
On 3/13/08, Stuart O Anderson soa@ri.cmu.edu wrote:
It seems to me that QBP supplies most of the CBS's right now. Maybe someone should approach them about identifying and stocking products that conform to our purchasing policies (i.e. green/fair trade/us made/union made/etc icons in the catalog) and ask about discounts for non-profits promiting bicycle use? I'd think the best way for that to happen would be for several shops to work together to create a request that could be delivered on all our behalfs. Does this interest anyone
- I'd be willing to help with such a project.
I would also help work toward a special CBS account at QBP rather than try to start a distributorship -- definitely "a huge undertaking"!
I think QBP would be willing, with the right guidelines: I learned at the LAB Summit recently something about Steve Flagg, QBP founder, that I could have found on the QBP website: "After graduating in 1974 he helped found Freewheel, the first bicycle co-op in Twin Cities. Though he enjoyed serving the community's passionate cyclists, Flagg realized independent bike dealers also needed a knowledgeable, go-to source for acquiring hard-to-find parts and resolving sticky technical issues. And so the inspiration for Quality Bicycle Products (QBP) was born."
For QBP to find this attractive would require some commitment from CBS's that would build trust with their LBS customers, AND make QBP's job easier (perhaps CBS's contribute some research into most-sustainable products?)
At OCBC, we take seriously QBP's stringent account qualifications, and keep in mind that not competing with LBS's is in the broader interest of cycling -- we have very clear pricing policies for parts sales that don't undercut LBS's, and send folks to their LBS when that makes sense.
I hope we can keep this discussion moving forward, and at least develop a draft plan to show to QBP.
Jim Sheehan Director, Ohio City Bicycle Co-op 1823 Columbus Rd Cleveland, Ohio 44113 216 830 2667 OhioCityCycles.org
participants (9)
-
1304bikes -
Jim Sheehan -
Jonathan Morrison -
joshua muir -
Stuart O Anderson -
Urban Bike Project of Wilmington, Inc. -
veganboyjosh＠gmail.com -
Vyki Englert -
yellow bike