Trexit: Another Consequence of COVID-19

 Just before Christmas, I wrote about an irony of the COVID-19 pandemic:  The dramatic increase in bike-related sales has actually forced some small shops, like Larsen's Bicycles of Powell, Wyoming, out of business.  The same surge in demand that has filled the coffers of bike companies and larger shops has left smaller shops like Larsen's--usually the last to be supplied--without inventory.  

It seems, though, that some other shops are closing, or their owners are shifting their focus to related businesses, by choice. 

People often look at the price tags on bikes and assume that the bike industry is lucrative.  The reality is that margins on bikes are new bikes are smaller--and, the more expensive the bike, the smaller the margin.  Prior to the pandemic, the bike could stand on the showroom floor for months, or even years.  In the meantime, the shop's owner or manager had to pay all the overhead of running the business, not to mention the mechanic who assembled the bike.

In addition, most bike shop owners, like their counterparts in other industries, carry long-term debt, whether for the business itself or in mortgages for their business buildings or homes.  That is often a deterrent to any would-be buyer of a bike shop, or any other small business, and a reason why shop proprietors are running their enterprises long after their peers have retired from salaried jobs.

I have just described some of the reasons why I have no regrets over not opening a bike shop or a book store, even though I was offered opportunities to do both in my youth.  One retailer described the situation well:  "It just did start to feel like we were in the store-running business instead of the bicycle business."  Having worked in both bike shops and book stores, I realized that I love books and bikes, but had absolutely no love for "the store-running business."  That, in essence, is why Chris Kulczyki sold the business he started--Velo Orange--almost four years ago.

Unfortunately, according to that retailer, "the store-running business is where this industry is going."  That is one reason, I think, why some are leaving the industry. The retailer in question admits that he, and other shop owners, have benefitted from the current "boom." Their "store running" has allowed them to pay off old debts and put some money in the bank.  It's also allowed them to get out from under a pile of old inventory.  For the first time, many who opened bike shops during the 1970s and 1980s, can leave with a "clean slate."  

As sad as it will be to see some of those shops go, I really can't blame their owners for selling out or closing down.  You really can't blame anybody for quitting while he or she is ahead, especially if it's taken decades to get to that point.  Also, as more than bicycle entrepreneur has said, "I'm tired; it's time to retire."

Some of those shops were Trek dealers. In recent years, the Wisconsin-based company called in some of its debts by taking over stores, essentially leaving the proprietor with nothing.  Some shop owners were on the verge of such a fate early in 2020.  But the COVID-induced surge in demand allowed them to pay down their debts and allowed negotiate more more favorable terms to their Trexits.

From the Financial Times

Citizens and Business Owners

A motorist once accused me and other cyclists of using "for free" the things he and other non-cyclists pay for.  I pointed out that he pays only one tax that I don't pay:  for gasoline.  Roads and other infrastructure are not, as he and others believe, wholly funded by that levy on fuel.  In fact, in most US states--including New York--most of the money for roads comes from general taxes, whether at the local, state or federal level.

In essence, I was telling that driver that I am as much of a citizen as he is, and that cyclists pay their share as much as anybody does.  If anything, we are taxed more heavily because motorists can often deduct the expenses of owning and operating their vehicles.

Now, if cyclists are citizens, just as motorists are, what does that make bicycle shop owners?

Business owners.  Mostly, small business owners.

That is the point made by several bike emporium proprietors in a letter to Washington, DC Mayor Muriel Bowser.  In it, they point out that their interest in Vision Zero--which, they believe, Bowser's administration has been slow to implement--is for the benefit not only of their customers, but also the community as a whole.  They say a few things about themselves that, really, any conscientious small business owner could say:

Bikeshops are active in their communities. Although we compete for the same customers, we share the same goal: put more people on bikes. More people on bikes helps all of us as business owners and the city where our shops are located.

We provide emergency repairs and some of us provide free tool use to get our customers and neighbors moving again.

We donate to local charities.

We create jobs and train young people that have just started working.

We create positive activity in retail corridors.

We create sales tax revenue for the District.

In other words, they're saying that they are serving, not only cyclists, but the Washington DC community as a whole.  That also reinforces the argument I made with the motorist I mentioned at the beginning of this post:  Cyclists are part of the community, too:  We come from "every Ward and all walks of life," in the words of the letter.  We hold the same kinds of jobs, have the same kinds of families, live in the same kinds of places and have all of the same needs as other members of the community.  One of those needs is safety, and the one major difference between us and motorists, or other citizens is--as the writers of the letter point out--we are more vulnerable on the roads.

Oh, and we are customers, not only of bike shops, but the other businesses in their vicinity:  greenmarkets, book sellers, hardware stores, haircutters and beauticians, clothing boutiques, coffee shops, supermarkets and eateries of any and all kinds.  If I owned any of those businesses, I would want my customers to remain safe--and alive.