E-bikes aren't bikes

 What has two wheels, handlebars, a crankset with pedals, and weighs fifty pounds? The answer could have been one of the first "safety bicycles," but these days it's a smokeless moped, aka an electric bicycle.

The first e-bikes we saw in our shop had throttles. I don't recall that they had pedal assist. Pedal assist required more sophisticated electronics than anyone had been bothered to design. Just as with a gas powered moped, the pedals were a technicality, and largely decorative. On the original moped, you needed them to spin up the engine to start it. On the smokeless version, you didn't even need to do that. Theoretically, a rider might pedal the hefty beast on the flats and down hill, using the throttle for quick acceleration and hill climbing. In reality, the pedals were used as foot rests as the riders buzzed around on battery power alone. 

The machine evolved. Now all of the classes have pedal assist, and the lowest category has no throttle override.

The first e-bikes we saw did not look like conventional bikes. The designers made no attempt to mask its difference. Later, Tidal Force came out with a line that was much more based on standard bike configuration, using a lot of available parts. If nothing else, it proved that most of those parts were completely inadequate on a vehicle that weighed about twice as much as a meat-powered bike. Brakes and suspension forks in particular flexed alarmingly. Engineers learn through failure. Tidal Force soon sank.

Motorized bicycles have a place in the transportation mix. But for bike shops they represent a trap. A big shop, perhaps controlled by a big company, can support that company's offerings as well as the parent corporation is willing to provide, but that is only a tiny fraction of the wide selection seeking to attract consumers. The different brands use a lot of parts in common, but a bike shop will need to gear up with a complete electrical department to be able to service them. In the meantime, all of the different shapes and sizes of e-bike demand a huge investment and vast floor space to present them to potential customers. 

Two smokeless mopeds I worked on yesterday had stickers from Electric Bikes of New England on them. I have not been there, but I've known about them for years. Places like that represent the best retail channel for consumers who want to buy in person, rather than roll the dice to buy online and have the bike shipped to them. These things arrive now almost fully assembled, along with instructions that have the words "Don't Panic" in large, friendly letters on the cover. Well, maybe not those exact words, but written to coax the reader through the remaining simple processes to put their vehicle on the road. We get to assemble a lot of those for people who still could not be convinced to take up the tools provided and follow the steps in the manual or the assembly video that a QR code links to.

We work on just about anything vaguely resembling a bike that someone brings us. This has included pedal-powered outboard motors, scooters, and actual bikes covering a span of more than 70 years. But we can no longer sell a decent representation of everything that falls under the general heading of bicycles. The categorization of purely pedal powered bikes already exceeded the capacity of any small shop. E-bikes represent another whole division, not just a category. They have to be designed around their motorized nature, not just modified from the roughly 150-year-old pattern of the evolved bike frame. All that remains is the basic premise of a two-wheeled vehicle straddled by a rider. The parts are connected in the same orientation as on a conventional bicycle, but the frame they're hung on is more of a fuselage. The form has evolved to the needs of the actual vehicle.

Corporate greed further impacts the freedom of bicycling

 As the big two companies, Specialized and Trek, continue to pull in large independents and chain shops in major market areas, the black hole of corporate accounting continues to pull away chunks of what had been a workable system of distribution at all levels of population density. The latest casualty is Quality Bicycle Products, which recently announced layoffs even as it expanded its warehouse locations, and has now begun to offer some of its house brand products direct to consumer.

Currently, the QBP plan will share profits with dealers enrolled in their Dealer's Choice program, but it indicates that QBP's status as the top distributor of parts and accessories has suffered inroads from the vertical integration pursued by Spec and Trek, pushing their own lines of parts and accessories through their controlled network to consumers with less and less choice.

You don't have to build a better mousetrap. You just have to market yours more effectively, or otherwise gain control of the market so that no other mousetrap gets enough visibility to compete. Consumers can only vote with their wallets a limited number of times. Usually, once we own a product, we have to put up with it because that portion of our budget has been expended.

The bike industry faces a peculiar challenge because of the strange niche bikes occupy. From their first emergence they have been controversial. Their haters hate them and their lovers love them passionately. The great neutral middle blobs toward use and neglect in response to forces as hard to calculate as the actual parameters that make bikes work at all. So when money started pouring in during the mountain bike boom of the 1990s, no one in the business knew how to keep it going. The power players only knew that they were finally earning like real capitalists, so they'd better start acting like it. Partly due to their own technological and financial decisions, and partly due to the inevitable public swing away from any boom activity, the wave broke by the turn of the century, leaving the industry leaders trying to figure out how to hold onto what they'd gained.

Small brands have vanished, folded outright, or folded into a larger consolidation, and perhaps sold online, "ready to ride out of the box." Small shops have gone under. And now, the major supplier to the independents dips a toe into direct consumer sales. They're strong enough to become a dominant force in direct consumer sales. One hopes that they will continue to supply the kind of durable, simple stuff that allows a truly independent rider-mechanic to build and maintain the kind of bikes we used to have in the second half of the last century. In any case, it's always a good idea to stockpile parts if you can. I'd rather be on foot than ride some gimcrack marvel of flashy technofashion.

Big Dealerships take over bike retail

 As part of the bike industry's damage control response to the Covid-19 bike boom, major players like Specialized and Trek have cut loose dozens (at least) of small shops in what they consider minor market areas. At the same time, they have started offering online direct sales, and bought up larger independent retailers to establish concept shops for their own brand where population is more concentrated and disposable income theoretically more common.

In 2021 we managed to wrangle several Specialized ebikes for wealthy customers who ordered them fully prepaid in the fall of 2020. First the orders were delayed by the supply issues that racked every industry, but hit the bike business particularly hard. Then the Big S jacked the price on them even though they were fully paid at the original price, requiring the customer to fork out hundreds more dollars per bike. Then Specialized told us that they didn't think they could deliver the bikes, which would have required us to refund all that money. The full order arrived eventually, a bike at a time over months. We ordered electronic diagnostic equipment to communicate properly with the brains of these technological marvels. Then Specialized terminated our dealership, leaving the people who bought their bikes in good faith with no reliable product support. 

Schwinn used the dealership strategy to build and hold market share for decades. Capitalizing on the dealership concept accepted without question in automobile sales, Schwinn had its shops, where a customer could be assured that all the parts were "Schwinn Approved," and would definitely fit. They had their own size of 26X1 3/8-inch tire, so that a generic 26-inch wouldn't fit the rims on Schwinn bikes. Their shop manuals standardized procedures for their mechanics. The bikes were mostly notoriously heavy, but undeniably durable. The business model weathered competition in the 1970s bike boom, but fell apart in the mountain bike boom that followed, although a lot of that could have to do with mismanagement by the inheritors of the company, who considered the family fortune to be as indestructible as the bikes themselves.

In Concord, NH, Trek has gone into direct competition with one of its own established and popular dealers. Trek bought the Goodale's chain of shops and converted them to Trek concept shops. This included the Concord location. Sorry, S&W. You're just collateral damage.

To the bean counters, a shop network that only follows the money is a good thing. The accountants don't care if riders find themselves in a town or village many miles from an authorized service center and suddenly need a proprietary part, or "dealer-only" service on an electrical component. While I have no sympathy for riders who shackle themselves to proprietary parts and electrical components, I acknowledge that new riders don't think about those issues when they buy their great new bike. Even a lot of riders who have been doing this for years never thought to worry about the trend. The onus is on them for enabling and encouraging the bike industry to do this to us all. Only a few relentlessly annoying voices spoke out against it.

Interesting footnote: I found some ridiculously expensive rigid mountain bike forks on the QBP site the other day when I was looking for rigid 26-inch forks to retrofit customers' bikes that have cheap suspension. This indicates to me that a cult of rigid mountain bikes may be taking hold. While they still embrace the ridiculous drivetrains currently fashionable, the new converts to rigid bikes are seeking refuge from the ongoing costs of maintaining suspension, and the generally poor function and heftiness of cheap and mid-price suspension parts. By making some crazy expensive forks of space-age materials, the industry helps the convert to rigidity show the world that it's a step up, not a step back. See the price tag? For that kind of money, it's got to be good.

The big dealer concept is going to hurt Big Bicycle eventually, if not sooner. In the meantime, my advice is what it always was: buy simple, durable stuff whenever you can. Hold on for its eventual return. There may always be people who will pay too much to have a very limited and expensive experience like technical mountain biking, but I wonder how long that sort of indulgence will survive the kind of economic and social reckoning that is being forced on us by consumer society's willful neglect of the consequences of its appetites since the mid 20th Century.

Specialized strong arm

Big Bicycle is always putting the squeeze on independent shops. I don't know how it was in the 1970s boom, but in the 1990s, large brands like Trek, Specialized, and Cannondale put increasing pressure on shops to make large preseason commitments and meet hefty financial thresholds.

Even though technofascism and lack of industry advocacy has fragmented the market, corporate titans are still more interested in their cut from shop income than they are in the realities of daily operations on the frontiers of bike shop territory.

The latest intrusion from Specialized is their insistence that every dealer sign up for automatic bill payment, so that the Big S can suck money directly from the shop account for the full balance due. You get a few days' warning in case you have to ask for some indulgence, but the default is that they get to drain your coffers on their schedule. They feed upstream from every other expense you have, unless some other vendor has sunk a suction line that draws earlier in the month.

The rationale for such things is always the same: If you're not doing anything wrong, you have nothing to fear. Of course you will sell through by the deadline. Doesn't Specialized do everything they can to support their dealers and enhance sales?

Everyone knows that the restaurant business is tough. What are people going to feel like eating? Are they going to want to consume all of those perishable items you had to buy, or have you created a walk-in full of expensive compost? Fortunes can change at the speed of a blackening banana in hot weather. You can see the good times melt like ice cream in a power failure. Spoilage in specialty retail takes longer and does not generate as much obvious odor and muck. But we get stranded just the same. What will the fickle public feel like doing this summer? What unrequested innovation will turn expensive leftover floor stock into a clearance item and require that we buy more tools and watch more instructional videos as we record the loss?

Shops that change their focus in the winter face the added challenge of all the winter vendors playing the same financial games.

I know from previous experience that some shops play games with their vendors. Who knows how many of us have been technically bankrupt for years, dodging from debt to debt to keep from facing the fact that we will never break even? I started wondering way back around 1980 how many people called themselves millionaires because a million people owed them a dollar. The job that lured me to New Hampshire was the brain child of a guy who would purchase equipment, get the delivery guys to do a quickie, half-assed setup, and then use the equipment while withholding payment because he never got a proper setup. To this day I don't know if he was a fully calculating con man or just an idiot. Guys like that make suppliers try to secure their receivables. We all pay the price. But there is also legitimately hard luck. The con man/idiot publisher claimed it was all hard luck. That still left everyone queueing up in bankruptcy court to salvage whatever they could.

It's a hard world. Did you know that if your employer writes you a rubber paycheck, your bank will charge you for taking bad paper? Here is your lifeline, your just reward for services rendered, your ticket to be a productive citizen, but you get screwed if the "job creator" who paid you isn't really good for it. That's a sickening thrill. Then the checks you wrote against it start to bounce, and the fees really pile up.

In a diversified small business, we're always trying to balance the costs and rewards of each facet. While cross-country skiing and bicycling are pretty stupid sectors to remain in, they're not entirely dead. Cross-country is on life support worldwide, but bicycles are the transportation of the future, once the greedheads manage to collapse both the economy and the environment. We may have to learn to make our own stuff in a charcoal-heated forge, but pedal power will endure after motors can no longer be maintained. As humans breed and breed, new bike motors are manufactured every second. But, for the moment, bikes are still a luxury item and a toy. The corporations that market them look for customers with disposable income, and shops that know how to harvest a lot of it.

Bike shops are never "raking it in."

El Queso Grande had to solo one day while I was away. A repair and rental load that would have seemed ominously scanty when we had a full staff is more than enough to paralyze the shop with only one or two mechanics available, and only one of them very experienced. With El Queso Grande juggling all the chainsaws by himself, it looked to the untrained eye like a man barely finding time to open the cash register to stash away the shower of doubloons that must be coming from all these customers lined up at every door and counter.

Someone even said, "You must really be raking it in."

Bike shops are never raking it in. One nice young man with money to burn did buy an eleven thousand dollar road bike from us this summer, but that was one guy, one bike, one time. The average bike sells for maybe $400, with a clear profit of less than $100, after you extract overhead expenses. Probably closer to $10. Bigger shops are just making more of those average sales, with correspondingly higher overhead expenses. They might also sell more of the higher end bikes, but probably not a lot of the $11,000 variety. And more expensive bikes require lots more diligence, skill, and experience to assemble correctly and tune precisely enough to satisfy a customer who has dropped anywhere from $1,500 to $4,000 for what is now a mid-range or barely high-end bike. It still seems like a lot of money to most of us, even if the steady march of generational inflation has made it worth less.

Because of our short staff, we have had to turn work away. This is the first time since I started there 30 years ago that I have seen the management say we just couldn't do something. We've always tried to cram it in. Granted, it's partly because they've realized -- belatedly -- that life itself is more valuable than money, and that they have to get out of the shop to enjoy that life, but it's also because business itself is now so scanty that we couldn't afford staff even if we could find any. We have to make do with our own selves, and the couple of welcome fill-in people who will work specific days. And one of them just got a real job, coaching cross-country running and cross-country skiing at Clarkson University. His last day was Sunday.

When the rush of business ends, it dumps us into a weird solitude. The town still looks pretty much the same. The late summer sun spreads its golden light over the waters that are still warm, the green trees abuzz with cicadas. But no one jockeys for parking. No crawling, baking parade of motor vehicles inches through Main Street. No throng of pedestrians spreads out in all directions from the center of town. No money comes into the cash register. Because summer has shrunk to Fourth of July weekend and the first three weeks of August, that's it for major earning potential. Foliage tourism has dwindled significantly since the 1990s. Winter tourism for us depends on good natural conditions, which have become even more unreliable than New England's schizophrenic weather already was.

The changing climate and polluted world have led to such things as algae blooms that will kill your dog if it swims in an infected lake or pond, and a surge in tick-borne illnesses. El Queso Grande got anaplasmosis this summer, on top of his other challenges. In our country's asinine treasure hunt of a medical system, that entailed driving to labs "in his network" that he can also afford. That really cuts into the "raking it in." And that was after his carpal tunnel and cubital tunnel surgery: more overhead expenses related to remaining alive.