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Orange County DealerDealer TourTour Photos by Jake Orness Retailers Confident in Consumer Spending ike shops operating inside the Orange County lush landscaping and ocean views abound, it’s hard to see bubble appear to have it made. Orange County is any signs of an economic downturn. Ba cycling paradise. Year-round sunshine, wide bike Indeed, the Orange County retailers that BRAIN editors lanes and plenty of protected bikeways create a bike-friend- called on in early November seemed generally insulated ly atmosphere. from the economic tempest bearing down on the rest of Southern California’s mild winter climate is also a bonus the country. for the region’s retailers. It’s not like selling bikes in the Mid- Among the 18 store owners visited on the magazine’s west, said Mike Milano, owner of Team Bike Works. Dealer Tour, most reported steady to strong sales through And in this wealthy enclave, where gated communities, last October, with many posting double-digit increases. continued on page DT-14

www.bicycleretailer.com Bicycle Retailer & Industry News • Orange County Dealer Tour DT-1 Revo Bicycles Dana Point, California “I resisted instantly,” Duhamel said. “Good customers want choic- es. Manufacturers have to realize Darrin Duhamel said that we’re their customers, not their employees.” to hell with the corporate In the coming year, Duhamel is adding another top-tier brand in his shop while most likely offering world seven years ago. some new boutique brands as well. “I decided to burn all the suits in my cause the shop sponsors a big local race, “I haven’t committed to anyone closet and open a small business,” said but because it has become a gathering yet,” Duhamel said. “But we’re talk- Duhamel, owner of Revo Bicycles. Con- place for the community. ing with everybody.” sidering his two passions in life were “On weekends this place gets crazy,” Duhamel, who employs 10 staff- biking and scuba diving, the choice was Duhamel said. ers in-season and five during the made simple by the lack of two-wheeled The reason for this craziness might off-season, expects 2009 to be a services in Dana Point. “I really wanted have something to do with cyclists and tough year. But he hopes to stay on to have ties in the community,” he add- their affinity for coffee. Tucked into the par with 2008, which saw 38 per- ed. front, right portion of the store is a cof- cent growth over the previous year. Mission accomplished. fee and tea bar with seating. “We’re holding our own,” Du- Besides offering bicycle service and “It’s created an environment of a des- hamel said. expertise inside its walls, Revo is going tination location,” he said. Next year, A couple years ago, Duhamel into its third year sponsoring the Dana Duhamel will add a more relaxed do-it- hoped to open a second store by Point Grand Prix. Last year’s race drew yourself coffee bar area for the cyclist on 2009, but he knows that wouldn’t be a “Multiple foot surgeries have kept me 7,000 locals, with 350 children racing in the move. prudent move in the current economic away from pedaling,” he said. But, he the younsters’ division. You might be hard pressed to find an climate. “In this economy it’s definitely a hopes, with his doctor’s guidance, to be “Ninety-nine percent [of those peo- owner as uncompromising as Duhamel. wait-and-see attitude,” Duhamel said. out riding again this year. ple] probably haven’t seen a bike race be- When approached not too long ago by Another “wait and see” is Duhamel’s Even if he can’t get on a bike right fore,” Duhamel, 44, said. He expects at a brand to become a concept store, Du- ability to get back on a bike. An avid road now, Duhamel still wakes up each morn- least 15,000 attendees this year. hamel most likely already had his black bike rider, Duhamel has been battling ing living a dream. “I’m around great Two years ago Revo won Dana Point’s marker ready to clear out inventory of major foot problems since a fall from a bikes and I’ve got a great cup of coffee Business of the Year award, not only be- that brand. cliff 10 years ago. in my hand,” he said. —Jason Norman

of Bicycle Discovery. Bicycle Discovery “If you want to get to Fountain Valley, California the beach to watch fire- works, you’ve got to have a bike.” Beach cruisers Bicycle Discovery sells a little bit of ev- rule the sales floor erything, from 12-inch at Bicycle Discovery in Fountain Valley, kids’ bikes to fixed- located about five miles from the sand in gear Masis to $3,500 Trek road bikes, Huntington Beach. but much of its sales floor is devoted to “My biggest day of the year is July 3,” cruisers, which account for about 40 per- said John DeHart, the longtime manager cent of bike sales. DeHart carries Nirve, Electra and Phat in a vari- ety of colors and styles to cater to the cruiser crowd, who is typically looking for “We didn’t have an urban classification space. If something doesn’t turn, you a ride that shows off their two years ago,” he said. just don’t need it,” he said. personality. He believes in forging strong partner- DeHart thinks the bike business is “It’s all style. It’s all fash- ships with his major suppliers, like Trek, quite recession proof, although last year ion. It’s 90 percent what it and blacklists brands that sell outside the he noticed all the usual signs of custom- looks like, what you look IBD channel. ers cutting back—bikes sales in units like and 10 percent how it “I’m old school and of the opinion that were down while parts and service were rides,” DeHart said. “One if you’re going to sell to that guy you’re up. brand can’t cover it.” not going to sell to me. I’ve dropped In fact, 2008 was the best year ever for DeHart has been in the brands for that reason. You can’t have it labor at Bicycle Discovery as high gas business for three decades both ways,” he said. prices propelled people to think about and, naturally, has seen a lot He believes bike shops shouldn’t be fixing up old bikes for commuting. In the change in the industry. The warehouses and keeps shallow quantities height of the summer season, wait times biggest change, he thinks, in stock. He reduced his BMX brands were 10 days with a backlog of 65 bikes is the market is splintering from five to three because the inventory waiting to be serviced. into more and more catego- wasn’t turning over quick enough. Bicycle Discovery also has a shop in ries. “It’s not the money part, it’s the floor San Diego. —Nicole Formosa DT-2 Bicycle Retailer & Industry News • Orange County Dealer Tour www.bicycleretailer.com BiciSport little bit crazed. Surf City Cyclery Laguna Hills, California “I have guys that send their Huntington Beach, California bikes to me via courier,” Calborn said. “It costs them $100. I deal to the whole country.” Marcel And although Calborn was re- High-end cently forced to cut his shop in Calborn is half because his rent increased, bikes reign the nondescript storefront located a retail icon in a strip mall with a neighboring supreme with some impressive numbers behind Chuck E Cheese and Big 5 Sport- at Huntington Beach’s Surf City Cyclery. his name. ing Goods still reeks of nostalgia. “We just sold a $10,000 bike last week,” He’s been at his Laguna Hills location, Whether it be his own frames— Surf City manager TJ Jordan said in No- BiciSport, for 26 years. Before that, the Celo Europa and Calborn—or vember, citing a Cervélo R3 spec’d with 64-year-old spent 18 years in Manhattan those of Colnago and De Rosa, Campy’s new 11-speed gruppo and a Beach. The former Colnago racer started Calborn’s shop is for someone sure I have a bike,’” Calborn said, with a $3,000 wheelset. his racing career at the tender age of 12, looking for excellence, both in product smirk. “‘No, I didn’t have a bike.’” and to this day still logs triple-digit mile- and repair. His first race was on a women’s-spe- age on the pavement per week. “Some people say the [repair] price is cific bike much too small for his frame. Beyond the numbers is a man with a high, but that’s what it’s going to be when “I had to ride the whole time standing loyal following, to the point of being a I’m working on your bike for six to seven up,” Calborn recalled. hours,” Calborn said. These days Calborn is more than hap- Like so many growing py to give back to the sport that has given up in Europe, Calborn him so much. Every Sunday for the past had a soccer ball at his six months he’s forgone his 50-plus mile foot. Next door to the rides for something much more mellow soccer locker room, how- for beginners. ever, was Calborn’s des- But that doesn’t mean he doesn’t like tiny—the bicycle. to challenge himself. “The guys [who ran the “Once a year I take a group of riders At 11,000 square feet, Surf City is the bicycle club] asked me if to the Dolomites,” Calborn said. “It’s so largest Specialized concept store on the I had a bike. I said, ‘Oh beautiful.” —Jason Norman West Coast. Specialized graphics adorn the shop’s red and white walls and the Orange Cycle ness. John Sr., now 82, still works the year bikes are making him nervous for brand’s accessories fill the racks. The Orange, California floor. And working behind the counter the coming year. shop is immaculate with an open floor on a busy Tuesday afternoon along with “People are balking a bit,” Pavlisin said, plan, exposed ceiling and bright lighting. John Pavlisin Jr. was his mom, and sister, particularly at price increases on cruisers, Surf City is known in the beach com- Among the Vicky. And like any family, they don’t al- BMX bikes and kids bikes. munity for selling high-end road bikes, ways get along. and is the No. 3 SL2 dealer in the coun- “We argue like siblings,” try. And while mountain biking isn’t ac- retail lessons said Al Boneta, the store’s cessible from town without a short drive, manager. Jordan attributes about 40 percent of John Pavlisin But that formula seems to sales to the mountain category. work. Pavlisin said sales were Although about 89 percent of sales are has learned up 38 percent in October, Specialized bikes, the shop also carries In- from his father is the importance of much of that due to increas- tense, Felt and Niner, as well as Nirve to owning your building. es in labor and parts from please the cruiser crowd that’s inevitable “Money stays in your pocket. I’ve heard people bringing in old bikes in any Southern California beach town. of stores doing OK moving, but you can for service. The shop is located in a former furni- be knocked out if someone else is willing “People are bringing out ture store anchoring a shopping plaza off to pay more rent. When you’ve put time relics—stuff I remember Huntington Beach’s main drag, Beach into a location, that can be devastating,” selling 20 years ago,” he said. Boulevard. It’s across the street from the said Pavlisin, whose father, John Sr., built Still, Pavlisin is playing it upscale outdoor Bella Terra Mall, which the building that houses Orange Cycle in safe with purchasing for this received a massive overhaul in late 2005. 1974 on a former gas station site. year. The following June, Sean Flynn opened John Sr. purchased the shop on a “In the past we’ve bought Surf City after leaving Supergo Bikes, whim in 1969. At the time an employee heavy; this year we’re not going as deep,” One other lesson Pavlisin has learned which had recently been bought by Per- of Douglas Aircraft, John Sr. didn’t want he said. from his dad: you gotta buy right. “If you formance. Jordan and 12 other Supergo to relocate to Long Beach with the com- Specialized is its No. 1 supplier, but the buy right, you can sell right,” he said. employees came with him. pany. He walked into a bike shop to buy shop stocks a wide range of brands in- To ensure the right product mix, he Choosing to be a Specialized concept a tube for his daughter’s Schwinn and cluding Giant, Diamondback, Schwinn, stays involved in purchasing. store was a no-brainer, according to Jor- walked out the new owner of the busi- Bianchi and Electra. “One thing I will never give up is buy- dan, as the group had already been selling ness. His wife said it was the only time he “My definition of concept is choice,” ing,” he said. “That’s a mistake most own- the brand at Supergo, and many custom- was ever late coming home for dinner. Pavlisin said. ers make—they give up on purchasing ers who followed them to the new store The shop remains a true family busi- He said price increases on new model and are out of touch.” —Megan Tompkins were loyal to the brand. —Nicole Formosa www.bicycleretailer.com Bicycle Retailer & Industry News • Orange County Dealer Tour DT-3 Rock N’ Road May 2007, was also built as a con- Edge Cyclesports Laguna Niguel, California cept store and the Laguna Niguel Laguna Woods, California shop has been remodeled to re- flect the concept style with hard- Armed with wood floors, custom displays and You won’t Specialized graphics. The Mission Viejo shop is slat- see any kids, a loan from ed for a similar renovation early this year. his father, The four locations employ 50 mountain, Rock N’ Road Cyclery founder Matt Ford people and Ford also maintains a opened his first bike shop in Mission Vie- business office and central ware- cruiser or jo in 1991 when he was just 22 years old. house in Lake Forest. By then, he’d already been working in In 17 years, Ford has built an commuter bike shops for six years and was ready to impressive company, especially venture out on his own. considering he’s still in his 30s, but he tomers are shopping. Sales under $1,000 bikes at Edge A decade later, he opened his second hasn’t done it alone—he has three busi- and over $6,000 are strong, but the mid- shop in Laguna Niguel. Next, Ford ex- ness partners who all have an ownership range has suffered as middle-income con- Cyclesports. panded into Anaheim Hills where, with stake in the company. sumers are holding onto their money. But for road and tri enthusiasts, walking Specialized, he built the first concept store That’s not to say there haven’t been “They’re playing it safe,” he said. into the 2,000-square-foot shop is like in the United States from the ground up. a few rough patches along the way. In As for the future, Ford says he’s in strolling the aisles of a candy store. For Ford, a former Trek dealer, part- 2007, the company experienced its first no rush to expand his Orange County Husband and wife team Hank and nering with a strong supplier like Special- down month in its history as wildfires bicycle empire, but new stores are likely Mary Ann Iglesias opened the business ized was strictly a business decision. closed popular trails and clogged the air, thanks in part to the security he enjoys 10 years ago to sell and service high-end “We were interested in making a big op- right around the same time as the Orange from his alignment with Specialized. road and tri bikes—a niche they claim eration, moving inventory and obviously County housing bubble began to burst. “We’re able to weather the storm pret- keeps growing despite mounting local making as much money as possible,” he Last year business rebounded, although ty well,” he said. “Some companies who and online competition. said. Besides Specialized, Rock N’ Road it still hasn’t surpassed 2006 numbers. aren’t partnered with a Specialized or “We wanted to build the shop around also stocks Look, Nirve and Haro bikes. September and October were up in 2008, Trek won’t weather the storm as well.” enthusiasts, racers and triathlons. Dis- The Irvine location, which opened in but Ford has noticed changes in how cus- —Nicole Formosa tributors were skeptical at first and look at us now,” Mary Ann Iglesias said. The Path Bike Shop myself selling my friends mountain bikes The biggest dip occurred in late 2007, “Many shops are now doing it. But up at shops I had no affiliation with,” Wall- when a series of devastating wildfires until four years ago, we were the only tri Tustin, California ing said. ripped through the region, forcing the shop in the area.” So he opened his own. The Path Bike closure of nearly all the popular moun- The shop expanded four years ago, Shop debuted in 1998 in tain bike trails nearby. adding 800 square feet of showroom Tani Walling a 500-square-foot space Business flatlined for space. in a small commercial several weeks. The shop Hank got his start in the industry in was a 24-year- building in downtown was ringing up $200 1979 working for various bike shops Tustin. days compared with the in Ohio. He worked for Raleigh in the old bartender Little by little, Wall- usual $6,000 days. 1980s when the company gave concept ing has taken over more To adjust, Walling cut stores a try, opening five shops in three and manager space as it’s become his costs by foregoing states with central buying in Columbus, at the Tustin Brewing Company when he available and today his new hires or technology Ohio, Iglesias said. decided to trade in pints for another pas- shop occupies 4,000 upgrades and changed But a job opening for a landscape ar- sion: bikes. square feet, including his product mix to in- chitect in California prompted them to “I liked working on bikes and I found storage rooms and office clude more transporta- move in 1990. The job fell through, but space. tion bikes, fixed-gear an opening for a mechanic at Bicycles Every nook and and single-speed urban Etc kept them in the sunny state where cranny of the main sales floor is filled brands and sub-$1,000 road bikes. years later they would open Edge. with display cases of components. Ar- “There were plenty of times through- The Laguna Woods shop, which em- mor, gloves, saddles and other accesso- out the last 12 months where it really ploys four full-timers and one part-tim- ries cover the walls. Wheels and frames was for survival. We’re not used to that,” er, lures in customers from as far as 90 dangle from the ceiling and Ellsworth, Walling said. miles away with brands such as Cervelo, Turner and Pivot frames protrude from At the end of 2008, things were look- Calfee, Felt, Guru, Independent Fabrica- the wall behind the cash register. ing good—as of October, sales were up tion, Ridley and Seven, as well as some The service area is in an adjoining 4 percent and service was up 20 percent tri accessories such as wetsuits. room, allowing customers to chat with over the year prior—despite one week- Business is evenly split, with 50 per- the techs as they work. Another small end of almost no sales courtesy of an- cent of sales coming from tri and the room houses neat rows of Bianchi, Spe- other round of Southern California wild- other half from road. And while road cialized and Kona bikes. fires. sales mostly span from January through Ten years after he opened The Path, This year, Walling is moving out of de- June, triathlon is almost a year-round Walling said he still enjoys bikes, but run- fense mode. He plans to hire more staff business, Iglesias said. ning a bike shop has been a bit of a roll- and start placing larger orders with sup- She attributes the shop’s success to its ercoaster ride. pliers. —Nicole Formosa longevity, Hank’s experience and their DT-4 Bicycle Retailer & Industry News • Orange County Dealer Tour www.bicycleretailer.com Two Wheels One Planet Costa Mesa, California As a child in the 1960s, Mike Mulrooney cut the ribbon for the mile away from the shop—welcomes grand opening of the bike shop that now customers as they walk in the door. houses Two Wheels One Planet. Four The environmental undertone of the decades later, he’s still showing up at the shops’ current name is no accident; Mul- shop. rooney wanted something that spoke to In 1972, Mulrooney’s the advocacy side of the family bought the Costa business. Mesa shop from a fam- Two Wheels One Plan- While the commuter category has ily friend, and Mulrooney et has worked with Rails done well for Two Wheels One Planet, now runs the business, to Trails and other local Mulrooney admits he’s pessimistic about which also includes a advocacy groups and this the current economic climate. shop in Lake Forest. For past summer started a After seeing strong growth during the many years the Costa commuter incentive pro- first nine months of the year, “October Mesa shop was known gram offering discounts hit and it was like slamming against the as Sea Schwinn Bicycle, to customers who pledge wall,” he said. but Mulrooney changed to go by bike. The shop is promoting its layaway the name two-and-a-half “In this part of the program and sales staff are upselling the years ago when it began country, in this part of the consumer financing program and follow- causing confusion because the shop no state, people are starting to realize that ing up with potential customers who visit longer sold Schwinn bikes. they can do a few things without being in the shop, but don’t make a purchase. customer base, made up of affluent and Now it’s filled with a range of bikes the car. For us, this whole thing is forcing “I think that’s the only way we’re go- highly active road and triathlon racers. from Trek, Giant, Nirve, Electra, Masi us to rethink the wheel,” Mulrooney said, ing to stay in business. We can’t just wait The Iglesiases have worked hard to and Haro. A large selection of cruiser standing in front of a poster displaying for customers to come in the door,” Mul- establish strong ties to the racing and bikes—a sign that the beach is only a customers’ commuting pledges. rooney said. —Nicole Formosa enthusiast community. Aside from sponsorships, their shop offers full race Team Bike Works 7-Eleven on the corner. Last year sales well-established community with a cul- support, including wheel and tri wetsuit Huntington Beach, California at Team Bike Works were up more than ture that thrives on “cool.” rentals, and through a partnership with 25 percent and he’s about to bust down Where else can you sell a basket for TriBike Transport, serves as the pick-up some walls in $25 and then sell and drop-off store for triathlons. preparation for a a Terry-cloth bas- Customers drop off their bike, which Mike Milano $15,000 remodel. ket cover to keep is then shipped fully assembled to their Is he worried your Chihuahua event or race destination. Afterwards, lives in the about the econo- from trembling for the bike is shipped back to the shop for my? Yes, but Mi- another $35? And, the customer to pick up. “This allows us heart of surf lano sells lots of for the truly fash- to have direct contact with new custom- bikes in the $200 ion-forward, one ers and it’s a good way for us to get in culture. to $700 range and cover isn’t enough. with the tri market,” Iglesias said. This ocean side town made famous by for most consum- “I can’t believe how Their clientele, many who are engi- Jan and Dean’s 1963 summer hit, Surf ers, it’s a price they are willing to pay to be many people put their dogs in those bas- neers or workers in high-tech and finance City, is a Mecca for low-tech, low-cost, seen on a cruiser in Huntington Beach. kets,” Milano said. sectors, demands quick service and im- high-style beach cruisers. While Milano’s main brand is Giant, Like other retailers in the area, he’s mediate response to e-mail or calls ask- And the beach goers flock to Milano’s it’s beach cruisers that fly out the door. seen a spike in fixie sales as young kids ing about new product in stock. To keep unassuming storefront in a tiny strip And, as he says with a smile, Christmas buy parts and try to build their own bikes. up, they installed a high-speed T1 line in mall with a pizza place next door and a comes twice a year—once in December And like others, he also enjoyed a sharp the shop a few years ago. “We have to be and once again on July 4th. spike in parts and accessory sales during on the cutting-edge—constantly shift- “This is my best year ever,” he said, last summer’s run-up in gas prices. ing to what’s hot,” Iglesias said. noting that his 3,000-square-foot store But as gas prices tumble to near record They also focus on quick service, pro- is one mile from the beach. Milano has lows, particularly in car-crazed Southern viding a 48-hour turnaround, and offer owned it for 10 years. California, it’s uncertain whether the re- same-day service by appointment. “We The 46-year-old Milano has been in gion’s newfound love of cycling will con- are built around service,” Iglesias said, the industry for 25 years and is a for- tinue at levels seen last summer. adding that bike fit is a big part of busi- mer regional sales manager for Serfas. If Milano has a concern—besides ness. The shop does on average 120 bike He enjoys another advantage in this the current economy—it’s the Internet. fits per year. small non-descript strip mall. His land- Young kids are very savvy when it comes Summing up the essence of their busi- lord is the convenience store chain and to the Web, he points out, and that puts ness model, Iglesias said, “Our custom- former cycling team backer 7-Eleven. pricing pressure on all retailers. ers come to hang out after work to talk He has cordial rental relationship with Still, Milano is optimistic and he of- tri. They’re not looking for the cheapest the company. fers two words of advice: Stay focused. price.” —Lynette Carpiet His store also lies in an upscale, —Marc Sani www.bicycleretailer.com Bicycle Retailer & Industry News • Orange County Dealer Tour DT-5 model. Within 30 days, he’d dropped Jax Bicycle Center to 23 vendors. Irvine, California In 2006 and 2007, he scaled back his marketing, implemented a pay- roll budget at his shops, reduced the Dave Hanson got his start number of employees in his business office from eight-and-a-half to three as a bicycle shop owner in a and began receiving shipments at in- dividual stores instead of taking prod- rather unusual place— ucts in at a central location then redis- television’s “The Newlywed Game.” The new building is 16,000 square tributing orders to his various stores. He and his wife won the game show feet, but Hanson plans to lease half He also reduced his inventory by in 1986 and sold their prize for a down the space. He will dedicate 1,500 14.5 percent and raised prices 2 per- payment on their first home. They later square feet of the new space to a cent on products like tubes, floor borrowed against the equity in the home women’s-specific store to help capi- pumps and helmets. so Hanson could buy his first shop. talize on that demographic. His adjustments seem to have paid Fast forward almost two decades, and “I don’t know how to do women’s off. Although he started the year in he’s built up his company to include seven business,” Hanson admitted. “By the red due to a slow second half of Southern California shops with an eighth going that direction, it will really 2007, by early November 2008, prof- in the works—all Trek concept stores. force us to sink or swim.” its were up 61 percent, although sales He recently broke ground on the new Hanson is a gregarious man who were down 8.5 percent. store in Murrieta, which is slated to open speaks in a booming voice and ges- Hanson’s goal is to run his business In the year ahead, he’s planning re- April 1. The new shop is the first he’s tures excitedly as he describes his busi- as efficiently as possible and he’s taken models at four stores as well as opening built from the ground up, and the logis- ness practices. steps over the years to achieve that goal. the Murrieta location. tics—from planning and permits to re- He prides himself on honesty and In 2005, he was working with 101 While it may seem a bit hectic, it’s all sponding to concerned neighbors—have shares the shops’ financial figures with his vendors and his top three suppliers were part of what attracted Hanson to the bi- proved challenging. 80 employees three times a month. He’s Specialized, Trek and Electra. cycle industry more than 30 years ago. “It’s the hardest thing I’ve ever done in a numbers man and abides by the motto: He decided to simplify and transi- “I like working for myself,” he said. “I business,” Hanson said. “If it gets measured, it gets done.” tioned his stores to the Trek concept like figuring stuff out.” —Nicole Formosa

gines, Densford reasoned. “I saw that Rainbow Bicycle Co. bike and thought, ‘That’s the perfect Laguna Beach, California form of transportation.’” Densford owns Rainbow Bicycle Co., a small, cluttered shop along the Chuck Densford main drag through Laguna Beach, California—a beachside town with saw his first attitude. This seaside resort attracts scores of tourists who flock to its mountain bike galleries and restaurants. And Dens- ford’s funky shop is easy to miss if in 1981— you’re not looking. a Mountain Goat built by Jeff Lindsay— But its ambience offers some of and chucked a 15-year career as a me- the old vibe that once characterized La- ing the steep hillsides that cradle Laguna needed to pump up the tires. Densford chanic wrenching on German machines guna Beach. It’s a hodge-podge of bikes, Beach. grabbed the air compressor hose, filled named BMW, Mercedes and Porsche. a mish-mash of accessories hanging from A few are parked outside his store, a the tires, and thanked him for coming Selling bicycles had to be more fun the wall and the repair area—wide open civic privilege bestowed by city officials in. than putting up with snooty customers to customers—takes up as much room as who blessed his motorized endeavor af- And if there’s a name-brand bike on complaining about their Teutonic en- his retail floor. ter much wrangling over the details. the floor it’s Densford’s own—Psy- Densford also operates the most “To me these are legitimate transpor- cleWerks—a full-suspension frame he diversified shop from those visited tation,” he said, noting the difficult ter- has made here in the States. A dozen, during the weeklong tour. He sells rain Laguna residents face when it comes most painted red, hung from the ceiling new bikes, he sells used bikes, he sells to day-to-day commuting. waiting to be built. his own brand of bikes, he services But Densford also has the mechanical Densford has been riding bikes all his and repairs bikes, and he services, training needed to service them, a skill life and once commuted by bike between repairs and sells FlyScooters and old most bicycle dealers lack. As a result, that Laguna Beach and Balboa, where he Vespas. part of his business now accounts for lived. Do you want a 1966 Vespa 150 Su- about 50 percent of his income. Densford has been a longtime advo- per, clean as a whistle, and painted a Bike rentals are also part of his busi- cate of mountain biking and devoted shade of green that shouts Bianchi ness. While talking, a customer dropped years to fighting for trail access. Many for $3,795? He also sells new Fly- in to ask about renting two mountain Laguna Beach residents at one time op- Scooters like the Il Belo. It pumps out bikes for him and his wife. “No prob- posed allowing mountain bikes on the 8.4 horsepower and gets 74 miles to lem,” Densford said. “Come in tomor- many trails that lace the San Joaquin the gallon. It seems to be the prefer- row,” he added. A few minutes later, foothills that rise abruptly from Laguna’s able choice when compared to pedal- a local walked in pushing a cruiser. He white-sand beaches. —Marc Sani DT-6 Bicycle Retailer & Industry News • Orange County Dealer Tour www.bicycleretailer.com Laguna Beach Cyclery two kids, and Fetzer owns Laguna Beach, California Laguna Beach Cyclery. Established in 1971 in a building styled after a red barn, the shop exudes Patrick Fetzer character with wood floors, jerseys hanging from the came to Southern rafters and a range of bou- tique bike brands including California Time, Cervelo, Pinarello, Yeti and Turner. “People because of bikes appreciate the charm,” said Fetzer, who took over the and stayed shop 10 years ago from an here when I bought it. Within two to one to promote his bike rentals to local older couple. three years the entire top row was road hotel concierges. He said the insurance because of a girl. “They maybe had one bikes,” Fetzer said. to cover rentals eats up his rental income, A native of San Antonio, Texas, Fetzer bike over $400. To them it With his long untrimmed goatee, the but pulling in customers makes it worth- came with his buddy who owned a bike was more of a hobby. I would drop by to 37-year-old looks more the part of a while. “When you factor in the premium, shop there to Anaheim to attend Inter- help out on the side or after a ride on the backpacker than a clean-shaven roadie. we’re not making much money, but it bike in 1995. His buddy’s sister took him weekend,” Fetzer said. His interest re- But his small frame and his racing pedi- brings people into the shop and gets to a beach party, where she wanted to in- sulted in an offer to buy the store. “They gree, which includes a year in Italy, give them spending,” he said. troduce him to an Australian girl. gave me the better part of a year to get him street credibility. “It assures I can He said he has seen the customer base Fetzer said from the moment he saw an SBA loan,” he said. speak confidently and truthfully when I change over the past 10 years to be much Mango he was smitten. Surrounded by Fetzer said buying into an existing give people advice,” he said. more broad. “The group of people is not admirers, he wasn’t sure how he could at- store was helpful because the locals knew The shop, located on Thalia Street, as exclusive,” he said. “The exotic na- tract her attention. But she picked him about it, but converting roadies into cus- made famous for its surf break, does a ture of brands has changed. Prices have out of the crowd and the rest is history. tomers took some time. steady rental business of high-end road come down, making it more accessible.” Fetzer and Mango are now married with “There wasn’t a single road bike in and mountain bikes. Fetzer hired some- —Megan Tompkins Santiago Cycling when they come in,” he said. ment to cycling that drives This former California master’s his business. And among Tustin, California champion (1986) and 61-year- the dealers visited during the old Vietnam Air Force veteran tour, Kahler is the only one has carved out a unique niche who runs a side operation Robert Kahler in Southern California’s diverse centered on his store. retail culture that combines his “My profit is far and away minces no words. love of cycling, bicycles and fit- in the exercise business,” he He describes himself as a lousy business- ness physiology. said. Kahler runs four fitness man and a reluctant retailer. His real passion is fitness physiology. classes a year: an eight-week But Kahler is modest when referring Lined up along a wall are more than a long session in the fall; a to his store, Santiago Cycling. At one dozen Monarch exercycles. Nearby is a nine-week class in the win- time The Orange County ter; a six-week session in the Register picked it as one spring and in late summer an of the county’s top eight-week class for middle- three stores—no small age riders 40 years and older. achievement given the He can manage about 50 number of retail out- people per class, but said his lets in the county. business has fallen off slight- And his store orga- ly over the last two years. nizes the Breathless He typically charges $300 Agony Ride, a century to $400 per person. Each rid- for the business and the industry.” And that starts in Sylvan er’s VO2 max is tested; body fat is logged given the slumping economy, the time Park and gains 12,000 as well as weight and other physical infor- may be right for the public to see the re- feet in elevation over mation. Each participant logs data from turn of a genuine sports hero. 114 miles. Kahler bills every session and Kahler scrutinizes it While Kahler sells mostly road bikes, it as the toughest cen- for improvement. and has a strong local following, he has tury in Southern Cali- As for the retail side of his business, seen sales dip. “Sales are down for me, fornia. he’s been a Trek dealer for years, in part especially in road bikes,” he said. But Santiago Cycling, because Trek bikes had been made in the like others, his repair business boomed while a Trek store, also United States and he’s disappointed that last summer, with customers sometimes offers its customers a peek at cycling stack of rollers. And hanging above the most of them today are made in Taiwan waiting up to 10 days to get their bikes. history. Kahler has a dozen or more exercise area is an array of fans to cool or China. But he remains committed to As he looks back over his years in the old framesets hanging from the ceiling. off the riders. the brand. industry, he sums his experience up in a (When’s the last time you’ve seen a tita- And as a national team coach, it is Kahler predicts that Lance Arm- simple phrase: “It’s a good life.” —Marc nium Teledyne?) “I like to collect them training, fitness, discipline and a commit- strong’s return to cycling will be “great Sani www.bicycleretailer.com Bicycle Retailer & Industry News • Orange County Dealer Tour DT-7 with vendors and he could man- Cycle Werks age a warehouse.” Costa Mesa, California After Deem left Lawee, he slowly grew Cycle Werks into a five-store OC chain. Paul Deem took a But feeling burnt out and over- weight, the 51-year-old began to chance on a new retail look at reducing his store count. The lanky former racer who rode location nine years ago. on the ’76 U.S. Olympic team In Orange County, where the strip mall The 2,750-square- wanted to ride more. “I’d just is ubiquitous, a local developer had foot store looks bigger as soon ride my bike 300 to 400 pitched him on space in a strip mall with than it is due to high miles a week,” he said. a twist. ceilings and windows, He has whittled his stores down “I bought it on concept,” said Deem, but has little space for to two locations. He sold his the owner of Cycle Werks. Two years inventory. That’s not original Mission Viejo store to the later, he opened a shop in the upscale an issue, Deem said, owner of the local Jax chain last center, aptly named The Camp, which because he’s not in June. “We just continue to sim- exudes an outdoor, earthy vibe with an the business of stor- plify,” Deem said. outdoor store, an action sports store, a ing bikes. Though his many years in the yoga studio and a vegan restaurant. “That’s what bike companies are for,” model year to keep stock from becom- industry tell him he will weather this “The center has only come of age in he said, adding that inventory is a hor- ing outdated. “All we sell are new bikes,” economic storm, he said the key for the last three of the seven years,” he rendous burden on the retailer. he quipped. store owners will be to be present in said. “It used to be you could buy one Having worked in sales for Lawee Inc. their stores. “Owners have to spend In addition to the walk-in traffic, he model of bike and put them in a ware- in the 1980s, Deem was well schooled more time in the store. A friend of mine benefits from buying into a marketing house. Today that’s hard to do. No one by Ben Lawee in how to run an efficient who owns a pool business said, ‘I gotta pool with other tenants to promote the can stock anywhere near the product business. go back to the store,’” Deem said. center. “I’m always amazed at how hard representation,” said Deem, who carries “I don’t think what he did in the in- And though he, too, intends to spend it is to market a strip center. They do a primarily Trek bikes and considers Trek dustry many people understand,” Deem more time in his stores, he still plans lot of activity from a marketing stand- a strong partner. said, of the man behind Univega. “He to put in 200 to 500 miles per week. point,” Deem said. He said he refuses to sell based on could design a bike, he could negotiate —Megan Tompkins

panies need to stop promoting still gets out in the water five Buy My Bikes their own brands and cooperate to to six times a week. San Juan Capistrano, California promote bicycles. “That’s where Shortly after moving to this we’re flawed,” Curwood said. “We beachside community when have to stop bickering.” he was 20, he was asked to run Suppliers need He said the industry has to a bike shop in 1978 as a retail do its part to get people off the storefront for Laguna Dis- to get on the couch and onto bikes. “The whole tributors, selling BMX bikes. industry is just ripe to explode,” he He quickly added road bikes same page. said, gesticulating wildly. and later expanded the mix to But, he said the industry is guilty include mountain bikes and Jim Curwood, the owner of South Coun- of overanalyzing product trends. beach cruisers. He currently ty Cyclery, better known by its marketing “Just give me what I need,” he said. carries brands including Gi- catchphrase “Buy My Bikes,” said com- He said it’s difficult to know what to ant, Kona and Electra. buy when it’s time to place Over the years he has taken pre-season orders and it’s im- on additional space twice, possible to tell what will be spreading across three retail hot for Christmas. So he holds spaces. He said the building’s a Thanksgiving weekend sale, owner promised him for years where he’s been known to that he would have the op- make $30,000 in three days. portunity to buy the building. The following Monday, he puts But instead he sold it to the in orders with his vendors for mayor’s son, Curwood said. everything that sold well. Ev- Curwood said he still be- erything that didn’t sell goes lieves the store has greater on sale. potential, but he likes his “That’s the time to sell— low-key lifestyle. “I haven’t Instead of ambitious remodels or relo- don’t hang on to it,” he said. worked super hard since 1992,” he said. cations, he sticks to the basics. His rules With shoulder-length, sun- He said at one point he planned to to recognize and reward staff are simple. bleached hair, Curwood looks relocate and open a larger store, but fig- “Tell your employees thank you at the like he’s spent the better part ured he would spend $1 million to make end of the day,” he said. “Buy lunch of the past 30 years surfing. $4 million and simply have a bigger ego. for your employees each day.” —Megan And he has. The lifelong surfer “I just went surfing instead,” he said. Tompkins DT-10 Bicycle Retailer & Industry News • Orange County Dealer Tour www.bicycleretailer.com Ladera Cyclery planned community with more than Ladera Ranch, California 8,000 residents. Davis said 75 percent of his customers come from Ladera Ranch, an area that has been hard hit by the Orange County housing slump. Jeff Davis has followed a When Davis opened the shop, he worked the service area in the front of big learning curve since the shop so he could greet customers. He asked friends to bring in their bikes opening his store exactly to hang from the rafters to make it ap- pear that service business was brisk. Now, he said, he can’t keep service four years ago. away. “My biggest learning curve is if some- out, Davis had written a business plan for He ensures quick turnaround times one is going to pay $6,000 for a bike, a bike shop a few years before he talked of less than five days, even during the they’re going to wait for it. They know his wife into the business venture. Ladera summer crush. “We offer quick turn- we’re going to get it for them, and we Cyclery was the fifth business to open around times and set expectations that give them a realistic expectation for when in a strip mall in a new planned devel- are not more than we can achieve,” he to expect it,” said Davis, who said he has opment. In March 2007 Davis doubled said. learned how the more tenured customer his space by taking over the empty retail Although he has learned he doesn’t thinks. space next door. need to have the exact model in stock A cycling enthusiast who worked for “It grew with the community, it just to make a high-end sale, he carries an Siemens for 11 years before he burned snowballed,” said Davis, who lives in the array of brands, including Cannon- dale, Felt and Scott. His sales track about growth has plateaued, adding that mar- 70 percent road to 30 percent mountain, gins have shrunk. “It’s a little more dif- and he said he sold a few more flat bar ficult to maintain cash flow,” he said. road bikes when gas rose this summer. Among the steps he has considered to His best-selling bike is Electra’s Townie, deal with tight cash flow is consolidating which is a good fit for residents in the into his original retail space. “It’s one of hilly neighborhood. the things we have an option to do,” he “I hear the comment our selection said, adding that his landlord is flexible. is good, especially because we’re sur- Still, he said he is willing to ride out rounded by concept stores,” Davis said. these tough times. “I think it’s refreshing for customers to “I opened the shop to be in the com- see the number of brands.” munity for a long time, and hopefully Although Davis said he thinks the my son will take over,” he said, refer- media has made the economic down- ring to his 4-year-old who was born just turn sound worse than it is, he has seen weeks before the store opened.—Megan a slowdown in his business. He said Tompkins

years ago this March. totype Breakaway store—a base level Fullerton Bicycles Three years ago he took Giant Retail Partner store—and has Fullerton, California over the Buena Park prominent Giant racks, fixtures and store from the same signage. Franze said as part of the owner. remodel three years ago, he opened Mike Franze knows Combined store up the shop floor and created a retail sales were up 25 per- environment suggestive of high-end the dark side of the cent last year through brands like Armani and Gucci. October. And he said He said 55 to 60 percent of his pur- last year, for the first chasing dollars goes to Giant and he corporate world. time, Buena Park saw a does well with the brand. He said his The former vice president of sales and good sales bump. But Giant Maestro full-suspension moun- marketing for Arizona Iced Tea landed his Fullerton store still outperforms the tain bike sales, in particular, have been in New York on 9-11 just 15 minutes be- Buena Park location. phenomenal. fore the first plane hit the World Trade “The fact that it’s still a family store— “A lot of it is my passion for Gi- Tower. At 2 p.m. that day he sat in a not a stiff concept store—works. It just ant—if I’m hustling a bike, it’s going meeting where the executives acted as has a good aroma and good flow,” he to be a Giant,” he said. though nothing had happened. said. The store dedicates a good portion “I lost my passion for that job that Before Franze even purchased the of the floor to BMX bikes and acces- day,” he said. Fullerton store, he began talking to Gi- sories. Franze said BMX is a gateway Franze, a self-described inspired BMX ant about the potential for the location. for many of his family sales. He cited racer, conveys his passion for cycling “I said, if I buy this business, will you as an example a dad who came in to when he speaks about his current busi- help me out? Here we are six years later,” buy BMX parts for his son and came ness. He bought his Fullerton store, a Franze said. back a few months later to buy a Giant former Two Wheel Transit store, six Fullerton Bicycles was the first pro- Trance for himself. —Megan Tompkins www.bicycleretailer.com Bicycle Retailer & Industry News • Orange County Dealer Tour DT-11 Orange County Dealer Tour Photos by Nicole Formosa and Jake Orness

Road Warriors. Chris Zigmont of Pedro’s and Lance Camisasca of Life- boat Solutions lead the extended group through San Juan Capistrano on the final day of the Tour.

Kitchen God. Orange Captive Audience. Darrin Duhamel, owner of Revo Cycle’s founder, John Bicycles, explains to Tour participants his philoso- Pavlison Sr., pours phy of offering brand choice and selection. wine and espres- so in his ultra- modern kitchen In Tandem. Giant president Tony Lo in the rear of and BRAIN publisher Marc Sani share the shop. views on how specialty retailers are faring in this economy.

Caffeine Fix. The group fuels up on day two of the Tour with a quick pit stop at The Coffee Bean & Tea Leaf in Irvine.

DT-12 Bicycle Retailer & Industry News • Orange County Dealer Tour www.bicycleretailer.com Tech Expert. Giant tech Master Mechanic. Mainer Umana has rep Evan Kay sets up a been wrenching for 40 years, the last 10 Giant road bike for NBDA at Bicycle Discovery in Fountain Valley. executive director Fred Like other O.C. shops, it reported strong Clements. Giant provided repair business last year. bikes for all Tour riders.

The Love Van. Tyler James, the man behind the wheel of Pedro’s biodiesel love van, strikes a pose. James and his van accompa- Still Smilin’. The group enjoyed blue skies, nied riders, spreading sunshine and jaw-dropping ocean views on Pedro’s love to shops the last day of the Tour. Here, riders pose along the way. outside Revo Bicycles in Dana Point.

On Air. Callers to Giant’s toll-free line hear Giant athletes and dealers telling stories instead of hold music. Patrick VanHorn of Giant interviews Mike Milano, owner of Team Bike Works in Huntington Beach, for future air time. www.bicycleretailer.com Bicycle Retailer & Industry News • Orange County Dealer Tour DT-13 were up 38 percent in October thanks to Recognizing that consumer spending Trance full-suspension mountain bikes Retailers… service, labor and parts sales as consum- may tighten, Orange County retailers moving off the floor. Continued from page DT-1 ers brought in bikes for repair. are heading into the New Year with a With an estimated median household Propped up by stellar service business Still, not all reports were rosy in the healthy measure of caution. income in 2007 of $73,263, most Or- and a healthy commuter trend, many ex- region, which saw overinflated home Many have made adjustments, includ- ange County residents have discretionary pected to close out the year ahead. values fall back down to earth last year. ing buying more conservatively, choos- income. Even as locals have seen stock Looking ahead, they expressed confi- Many residents have lost home equity ing vendors more selectively and in some market values plummet and 401Ks wiped dence in an industry that offers a strong in Orange County, where median home cases delaying pre-season orders. out, many still have cash to spare and a value proposition to consumers looking prices declined 25.4 percent from Sep- Patrick Fetzer, owner of Laguna Beach willingness to spend it on bikes. for solutions to health issues, gas con- tember 2007 to September 2008. Cyclery, said for 2009 he has been ag- “There are still people with plenty of sumption or simply looking to fuel their In Ladera Ranch, a new housing de- gressive with softgoods buying but has money; we just have to figure out what passion for cycling. velopment that has seen one of the held back on bike purchasing. And he’s they want to buy,” Curwood said. Still, they see some dark clouds on the “These people are savvy and smart and horizon and are making business adjust- “They might not get their clothes they have money. They have jobs where ments in purchasing and inventory man- they have time during the day to search agement to weather the storm. to the dry cleaner or go skiing in Aspen, for new product,” said Mary Ann Igle- Concern over the environment and a but they buy and want the latest equipment.” sias, co-owner of Edge Cyclesports. desire to be less dependent on foreign Iglesias believes affluent and highly ac- oil brought new customers into Orange —Mary Ann Iglesias, Edge Cyclesports tive road racers and triathletes will con- County dealers last year. Many reported tinue to spend money to support their sales increases, buoyed by strong sales of worst declines in the region, median dedicated his dollars to brands that have cycling obsession. commuter bikes, fixed-gear bikes, and home prices fell 34.5 percent in the same shown flexibility with payment terms. “It’s their passion. They might not get parts and accessories. period. “I’ve gone aggressive with a few ven- their clothes to the dry cleaners or go ski- Jim Curwood, owner of Buy My Bikes, Ladera Cyclery owner Jeff Davis said dors we have good relations with,” Fetzer ing in Aspen, but they buy and want the said the store had its best June, July and last fall growth stalled, sales flattened, said. “Those who are really firm money latest equipment,” she said. August sales ever, attributing the boost and margins shrunk as he had to offer collectors, I’ve held off from them.” Surf City manager TJ Jordan agreed to the spike in the cost of fuel. more discounts. “It’s been a little bit Adding to the purchasing picture is cycling enthusiasts aren’t willing to sacri- Mike Franze’s sales at Fullerton Bicy- more difficult to maintain cash flow,” he concern over how price increases for fice their passion for cycling even in chal- cles and Buena Park Bicycles were up 25 said, adding that he’s considered mea- 2009 model year bikes will impact sales. lenging times. He sees no reason why the percent last year through October com- sures to reduce overhead. Retailers said price increases at the low- industry won’t continue to be successful pared to the previous year and were up Other retailers felt they had already end in cruisers, BMX bikes and kids’ this year, citing the return of Lance Arm- in the month of October. survived the worst of the housing fall- bikes were particularly worrisome. strong as a positive factor. “In June it looked like the commuter out the previous year. Matt Ford, owner “We’ve never seen this big an in- Cycle Werks owner Paul Deem, who bike boom was going to take off. We’ve of Rock n’ Road Cyclery, with five lo- crease. I think there are going to be a lot has more than 20 years of retail experi- seen some of that go away, but business cations in Southern California, said his of obstacles in the next year,” said Fran- ence, characterized the mindset of Or- is still better this year than it’s been,” business hit bottom in late 2007. ze, who carries a wide selection of BMX ange County retailers who are confident Franze said in November. “We saw our first down month in 17 bikes and parts at Fullerton Bicycles. they can withstand the economic chal- Much of the increase shops saw last years last fall right when the housing Although Franze has seen more price- lenges ahead. “Historically speaking, my summer also was due to a sharp rise in bubble burst,” Ford said, adding that conscious shoppers, he said he still sees knowledge tells me we’ll be just fine,” service business. At Orange Cycle, sales sales have since stabilized. traction in high-end sales, citing Giant Deem said. —Megan Tompkins

DT-14 Bicycle Retailer & Industry News • Orange County Dealer Tour www.bicycleretailer.com Where Everybody Knows Your Name Optimism Thrives Among So Cal Giant Dealers BY ELYSA WALK to buy BMX accessories for his son. A No, because I hear similar thoughts iant helped sponsor BRAIN’s few months later, the dad returned to from Giant retailers across the country. Dealer Tour of Southern Cali- purchase a Giant Trance X for himself. Is the upbeat outlook limited to shops fornia in early November. The He expects the trend for repeat business that primarily sell high-end products? G purpose was to get an idea how to continue. No again. Retailers that sell low-priced bicycle retailers in the area did in 2008, Michael Milano, owner of Team Bike and mid-ranged bicycles also tell me they what kind of business they foresee for Works in Huntington Beach, reported look forward to 2009. Bike stores that 2009, and what challenges they face. similar success. “We’re up quite a bit, are successful in a downturn do well for I rode part of this tour, as did Gi- approximately 18 to 20 percent for this the same reasons they’re successful in a ant president and CEO Tony Lo, and year,” Michael said. “It’s been almost like booming economy: they’re smart, they’re many others from the Giant team. Hear- a perfect storm this year, with everybody cautious, they plan carefully—and they ing from shop owners directly, in their wanting to be green, everybody wanting listen keenly to their customers. stores, gave both of us a good oppor- to be more fitness-oriented, and with the And, perhaps as important, they re- tunity to see if the optimism we feel is high gas prices at the beginning of the alize their customers look at them as shared where it counts. year.” something more than just another re- Mike Franze, owner of Fullerton Bi- Michael is seeing a trend where his tailer. Good bike shops are like the bar cycles, told us that he’s experienced a 25 customers are staying closer to home, “Cheers”—sometimes you just want to percent sales increase in 2008. He credits instead of traveling and spending dol- go where everybody knows your name. the success to his shop’s environment. lars elsewhere. “We have such beauti- Maybe it’s that a bike shop—like that “The fact that it’s still a family store— ful beaches and bike paths,” he said. favorite watering hole—offers a little Elysa Walk is the general manager not a stiff concept store—works. It just “Where people may have transported to bit of comfort in an uncertain world: a of Giant USA. has a good aroma and good flow,” he other parts of the country for vacations, friendly face, a product that is simple and told BRAIN editors. they’re spending time here at the beach he said. “If you can stay positive, stay familiar, and a staff that seems to enjoy Mike has a set aside a large part of now.” focused on the customers, there are defi- what they do. You know you can come his showroom for BMX bikes and parts. Things have gone so well in 2008 that nitely some brighter times ahead, too.” back time and again and the chances are That helps drive sales for all parts of his Michael is considering enlarging his store Time and again, these were the kinds good you’ll be greeted by name. family store, he reports, telling BRAIN in 2009. “We’re going to expand because of comments we heard. So, is this opti- How many other business can offer about a father who came into the store I think the consumers are dictating it,” mism just a Southern California thing? that now? Notes From the Handlebars The Independent Dealer in All its Diversity Is Alive and Well BY CHRIS ZIGMONT • Retailers get it. Most have suc- side due to a lack of bike racks. It seems noticed this morning that the rid- cessfully addressed and some have bike shops ought be ride-up-on-a-bike ing tan I earned on the Bicycle aggressively pursued the transporta- friendly. Retailer Orange County Dealer tion and utility business. Dealers we • Regardless of the aforementioned I Tour is fading. The education saw successfully promoted the bicycle optimism, the economic crisis has im- from the retailer visits is thankfully as an instrument of good in some way, pacted shops. While some retailers were more durable. promoting commuting and short trips less open, it is clear that some had to What fun, to ride every day and call by bike, fighting congestion and de- make adjustments in purchasing and it work. We do our best at Pedro’s with veloping the social benefits of riding. inventory management, shifting the lunchtime rides and squeezing in week- • There is apparently zero consen- burden up the supply chain. Real estate end time on the bike, but five days in a sus among dealers as to the value, fu- was a big issue, with some shops review- row on the bike for many in the industry ture or necessity of “concept stores.” ing lease and purchase options to secure is a true luxury, and it was for me. I recorded as many reasonable argu- their future. As the only sponsor representative to ments for the idea as I did of those • Baskets, fixies, asphalt bikes and ride every day of the tour, it was grati- against. repair parts. Invest now. That tip is on fying to make these valuable visits by • Orange County, California, has me. bike. many more Maseratis and Ferraris My 25 years spent in bike shops as an It was important to pedal. An objec- than Rockingham County, New employee, rep and manufacturer taught tive of ours was to remind ourselves and Hampshire. (We do, however, have me that the bicycle business is resilient others that much can be done by bike; a mighty impressive snow removal and adaptable. Today retailers are adjust- Christopher Zigmont is the president to remember that the bike is an excel- and chief executive officer of Pedro’s. fleet.) ing to shifting economics and changing lent conveyance and could and should • More industry types could spend demands on the floor. With our 3 per- replace the car for many short trips I learned a few things and I’ve offered more time behind the handlebars. cent of the planet’s population drinking and errands. I was fully self-contained, some here in no particular order: • More industry types could spend 25 percent of the world’s oil (and much bringing notepad, camera and riding • Despite the extreme diversity of more time listening to retailers. of that from unsavory places), there junk in my pockets. retailers, most feel optimistic about cy- • It is rewarding to do both at the truly hasn’t been a better time to peddle The notebook is full of the details and cling’s future, especially given the eco- same time. bikes. From what we saw in Southern anecdotes that the Orange County re- nomic climate. It is the right time to be • Surprisingly, it was sometimes diffi- California, the IBD, in all of its glorious tailers offered for the sweaty delegation. in the bicycle business. cult to ride up to some shops and go in- diversity, is alive and well.

www.bicycleretailer.com Bicycle Retailer & Industry News • Orange County Dealer Tour DT-15