Bike shop economics 🚴♂️
Let's say you own a bike shop.
You sell all kinds of bikes to all kinds of people:
- Road bikes
- Gravel bikes
- Mountain bikes
- Kids' bikes
- Triathlon bikes
- BMX bikes
- Vintage bikes
- E-bikes
- Fat bikes
Since you sell so many different kinds of bikes, you only have room to stock a few of each.
And since you only have a few of each, triathlon enthusiasts (people who spend a lot of money on bikes), don't shop with you.
BUT let's say you decided to go all-in on triathlon bikes and alienate everyone else.
You begin to carry several brands, several models, and several sizes of triathlon bikes.
Word spreads like wildfire in the tight-knit triathlon community.
You quickly become known as an authority in the space.
This even attracts top bike mechanics who work exclusively on triathlon bikes, which attracts even more triathletes to your shop.
Triathletes begin traveling from out-of-state to visit your little bike shop.
Now you sell a bunch of expensive triathlon bikes every month and life is good.
Establishing a bold market position is a risk worth taking.
– Charles
Song of the day