December 1, 2012 1

Culture, bike paths power Portland’s retail engine

ortland’s stature as the top city in the U.S. is well documented. Th e PCity of Roses has the high- est percent of bike commuters of any major U.S. city with 6.3 per- cent of total commute trips done by bike. Cycling is such a part of the DNA in this city of 600,000, that it’s a major driving force for the lo- cal economy. A 2008 study by Alta Planning + Design pegged total economic activity from the bike in- dustry at $90 million, with retailers accounting for about 60 percent of that or $52 million. But Alta Planning president Mia Birk says that number is likely higher now. She says that at least 20 new retail stores have come onto the scene since the report. Local retailers and manufacturers estimate that around 80 business- es sell, rent or repair bikes in the Portland metro area, which has a popu- lation of just over 2 million. Th is high concentration has led to greater competition among stores, which have not only had to up their game but also focus on a specifi c rider or category to set themselves apart. “Th ere are so many niches in this town,” said Jay Graves, owner of Bike Gallery, a landmark Portland retailer with six stores in the area. Whether it’s retailers who sell practical, transportation and cargo bikes for families or full-suspension trail bikes, shoppers in this city have a wide range of options not only for buying bikes and accessories but also for maintenance and repairs as a new wave of service-only shops open for business. Retailers who have been around since the 1980s and even into the 90s recall a time when the city was overrun by crime and traffi c and bikes were a rare sight. Today, much has changed thanks to in- vestments in bike facili- ties and public transit coupled with Portland’s nascent cul- ture of sustainability and active living. Th e city’s vast network includes 328 miles of bikeways, making it easier and safer for more people to ride more oft en and that means more money to power Portland’s retail engine. “It’s everything—it’s investment in infrastructure, it’s city programs like SmartTrips where every person that moves here gets information on biking, walking and public transit,” said Rob Sadowsky, executive di- rector of the Transportation Alliance, a statewide nonprofi t that promotes cycling. “It’s also a city with a real commitment to sustainabil- ity that promotes composting, recycling, water management and other Photos by robert huff Continued on page 19 Giro_BICYCLE_RETAILER_SEPT12_1.pdf 1 7/30/12 11:46 AM

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THE REVERB HELMET DESIGNED FOR LIFE ON THE MOVE The world is changing, and nowhere is that more evident than in the streets of New York City. Paul Steely White of Transportation Alternatives in NYC is leading the mission to create more efficient, livable cities. From advocating for a massive bike share program and infrastructure improvements, to championing the benefits of mass transit and the rights of pedestrians, Paul is helping to reshape America’s greatest city. Roll along with him at giro.com to learn more about T.A. and see the transformation first hand. December 1, 2012 19

Family owned Bike Gallery rooted in advocacy ay Graves has been a part of pride in shopping at locally owned, or more—and advocacy, a tenet Portland stalwart Bike Gallery independent businesses, although on which the Bike Gallery was Jsince the beginning when his Graves has talked to Trek about the founded. Graves was an early sup- parents opened their first shop in idea. He came close to pulling the porter of Portland’s Bicycle Trans- 1974 in the city’s Hollywood neigh- trigger on a concept store in 2008, portation Alliance; and a founding borhood. Graves is now the sole but scrapped plans when the econ- board member of Cycle Oregon and owner of the business, which oper- omy took a nosedive. He has gradu- Community Cycling Center. He ates six stores in an 8-mile radius. ally amassed six stores by buying began supporting the BTA in 1993 But the family tradition continues; shops from retailers who couldn’t by paying the postage for its mail- Graves’ 25-year-old son Simon is a survive the saturated market. ings at about 100 per month and has mechanic at its downtown store. Even a seasoned retailer like watched it grow into an organiza- Bike gallery The Bike Gallery is Portland’s Graves doesn’t always hit the mark. tion with 20 employees and a bud- hollywood only Trek retailer and runs efficient- Last month, he moved his Division get in excess of $1 million. Employees: 14; 85-100 companywide ly with one central warehouse at its location because the spot turned out “Advocacy is local first,” said Shop floor space: 10,000 Years in business: 38 flagship location on Sandy Boule- to be unfriendly to retail with very Graves, who regularly attends the Emphasis: Full service: kids to pro vard and scheduled freight deliv- little foot traffic. National Bike Summit and speaks level eries during the week to the other Graves considers his biggest at advocacy seminars for the Na- Main brands: Trek, Bontrager, Shi- shops. Trek does not have a concept successes his staff—with numer- tional Bicycle Dealers Association. mano, Pearl Izumi Owner: Jay Graves store in the city, where residents take ous employees tenured at 15 years —Nicole Formosa Small-shop attention but big-shop selection iver City rings up run things his way. Over the span we’re on your number,” Guettler sales that perhaps nip at the of nearly two decades he’s created a said. rheels of larger, multi-store sizeable retail empire that consists Depth of inventory—he’s got competitors in town. But owner of a three-floor store with indoor a corner devoted to stems on the Dave Guettler manages to do so test track and outside BMX ramp, second floor of his main store, for with a mom-and-pop approach that a nearby 20,000-square-foot ware- example, and can display up to 800 stresses top-notch service, relies on house, a fit studio, and an outlet bikes while housing up to 1,500 the expertise of its staff and priori- where he sells closeouts. On a busy more at the warehouse—and num- tizes community involvement. day in early spring, River City can ber of bike and accessory brands is “We’re more human-based than easily crank out $100,000 in sales. unusual, but something Guettler data-based,” said Guettler, who ad- And that’s sans the Internet. takes pride in. A bike geek at heart, mits that he has no point-of-sale His staff is his most valued as- he has worked to make his shop a system. He doesn’t need one to set so he invests in it, paying high- candy store for enthusiasts with vin- know what to order or how his busi- er-than-industry-average wages, tage bikes hanging from the ceiling ness is doing, he says. “It’s about fo- providing health benefits, profit and rows upon rows of bikes, cloth- river City Bicycles cusing on the basics,” he notes, and sharing, commissions and other ing and parts in almost size and Employees: 55 at main store; 8 at making the shop a place that’s fun less-tangible perks like beer and color at hand’s reach. outlet for himself, his customers and his pizza lunches and flexible hours. Guettler, a musician in his Shop floor space: 10,000 square feet at main store employees. Community is another priority. spare time and woodworker who’s Years in business: 18 That philosophy seems to have River City is the title sponsor of the built the display counters, coffee Emphasis: Full-service: kids to pro worked for Guettler, who first cut Cross Crusade Series, the largest bar and signs throughout his store, Main brands: 20 or so bike brands his teeth in bike retail in the Bay cross event in the region, gives and is humbled and surprised by what and too many P&A brands to name Owner: Dave Guettler Area as part owner of a multi-store participates in dozens of other races River City has become. “I truly have chain there before moving to Port- and rides, and sponsors local clubs the best job in the world,” he said. land in 1994 to start a business and and teams. “If you race in Oregon, —Lynette Carpiet

Continued from pg. 17 September for its Sunday Portland hosts nearly 4,000 bike- Parkways. It also works with related events including races, rides and Portland facts: 80 schools citywide on Safe tours every year, mostly put on by indi- Routes to School programs viduals, clubs or retailers. Pedalpalooza, a • Portland is one of only three platinum Portland Dealer Tour level Bicycle Friendly Communities in that encourage biking and three-week festival celebrating all things the U.S., a designation awarded by the land use issues.” walking. The number of bike, brings people together in June with League of American Bicyclists. The foundation for biking in the students who walk or bike to school has a schedule of close to 300 events, includ- city was set back in the 1970s when skyrocketed from 8 percent before SRTS ing the famous Naked Bike Ride that PortLAnd hAS 328 miLeS oF Oregon passed a law requiring that to 31 percent, Sadowsky said. regularly draws 5,000 participants. BikewAyS, whiCh inCLUde: new roads accommodate bicycles and The city also has installed 85 bike And Portlanders are nearly as crazy that a portion of transportation dol- • 69 miles of bike boulevards or neighbor- corrals—on-street bike parking in front about advocacy as they are over cycling, hood greenways (low traffic, low volume streets lars be spent on bike and pedestrian of commercial businesses—and another coffee and beer. Inside nearly every shop with no stop signs and marked with shared arrows) facilities. That policy focus has be- 85 are in the works, Geller said. And visited during the Dealer Tour, there come stronger over the years and is citywide bike sharing is set to launch was a story of an owner or staff member • 180 miles of bike lanes supplemented by public outreach and next spring. sitting on the board of the local trail al- • 79 miles of off-street bike paths education, said Roger Geller, the city’s “Encouragement is perpetuating use liance, sponsoring Sunday Parkways or bicycle program manager. of bikes and helping them become part lobbying for cycling-related dollars at thiS iS UP From 250 miLeS A deCAde For example, in the summer Port- of the city and part of the local culture,” the national level. This is one city where Ago And 81 miLeS 20 yeArS Ago. land shuts down miles of roadways to Geller said. “People like to ride bikes, find retailers understand that trails equal cars once a month from May through it fun and create opportunities to ride.” sales. —Lynette Carpiet Source: Oregon Department of Transportation 20

Internet retailers boom in tax-friendly Oregon

ogether Universal Cycles and battle with the California Legisla- 6,000-square-foot retail space is at- Western Bikeworks ring up ture the year before over whether tached to a warehouse of the same T$30 million in annual sales— e-tailers should have to charge the size that stocks 10,000 SKUs to ful- roughly half of Portland’s total bike sales tax. fill online orders. retail tally—but only about one- Seeing a shift on the horizon, Universal has developed its third of that gear is sold to custom- both Western and Universal opened business by focusing mostly on ers walking through the Portland storefronts in Portland in recent parts and accessories like tires, shops’ doors. years and plan to expand their phys- tubes, fenders, helmets and bags— The bulk of those purchases ical footprints in the future to offset commodity items that typically end up on the doorsteps of cyclists a potential decline in online shop- sell well online. Inside the shop, in neighboring California or Wash- ping as the sales tax issue inevitably Universal does carry a small as- Universal Cycles ington who ordered online through evens out across all channels. sortment of complete bikes from Employees: 11 one of Western’s four Internet sites Western, whose No.1 mar- commuter-focused brands like Shop floor space: 6,000 square feet or Universal’s web store. ket is California, opened its Surly, Salsa, Civia and All-City, but retail (19,000 square feet total) Years in business: 15 The two businesses aren’t re- 10,000-square-foot space in Port- it is better described as the Napa Emphasis: Parts and accessories for lated, but they have a similar sto- land’s Pearl District in May 2011, Auto Parts of the bike industry, said commuters, high-end U.S. made parts ry: both were started by Bay Area which now accounts for one-third manager Victor Sandrin. Main brands: Surly, Salsa, Civia, Troy Lee Designs, Castelli, Endura, entrepreneurs who ultimately left of Western’s overall sales, and one- “We carry everything you can Shimano, SRAM, Chris King, Sellwood pricey Northern California for tenth of company sales. Owners think of besides the car,” he said. and Paul Components, Brooks, Fox Racing Shox, Ortlieb Portland’s lower-cost and tax ad- Torborg and Louis Doctor, who met While, Universal and Western’s Manager (left, photo): Victor Sandrin vantageous climate. on the first day in college in 1976, online business model isn’t always “The original idea was to go run 11 e-commerce sites including viewed favorably among Portland’s to Portland because there was no biketiresdirect.com, urbancyclist. brick-and-mortar contingent, sales tax,” said Jay Torborg, co- com, cyclocross.com and sites for many of which have yet to start sell- owner of Western Bikeworks. “But billiards, golf, GPS and action sports ing online at all, they have managed there’s such a great wealth of em- camera equipment. Next up, they to coexist. ployees here and it’s become such a plan to further build their physical For Universal, one strategy has cycling Mecca.” storefronts to include additional lo- been to stay out of the down-and- Because Oregon does not have cations along the West Coast. dirty pricing game; Sandrin said a sales tax, online businesses carry At Universal, a second brick- he chooses to work primarily with a significant advantage over their and-mortar shop opened last suppliers that are serious about en- Western Bikeworks web-based competitors, as they are month in Ogden, Utah, near its forcing their pricing policies. The Employees: 15 in-store; 50 total not required to charge sales tax on warehouse there. Universal, which shop also contributes time and including Web business purchases originating in states that started as an Internet retailer in money to local advocacy efforts, Shop floor space: 10,000 square feet Years in business: Website, 9 years; do have a tax. That is changing, San Bruno, California, in 1997, sponsoring Portland’s popular Sun- storefront since May 2011 though, as brick-and-mortar retail- also staffs distribution centers in day Parkways, which closes various Emphasis: Road, higher end urban ers lobby for a level playing field. Santa Fe, New Mexico, and Min- downtown streets to promote walk- bikes Main brands: Cannondale, Focus, In September, Amazon.com began neapolis, Minnesota, and is consid- ing and biking and working to gain Cyfac, , All-City, Felt charging sales tax to consumers ering opening a fourth warehouse mountain bike access in the city’s Owners: Louis Doctor, Jay Torborg in California after losing a heated on the East Coast. In Portland, a Forest Park. —Nicole Formosa Shop is top venue for cycling, community events

elo Cult is less a bike shop café and bar setup; a performance way into the main floor of Velo Cult than a place where cycling stage for bands fashioned from the without even seeing any bike stuff Vculture, in all its varied and 1,500-pound drawbridge of a 1920s for sale. Nearly all complete bikes— idiosyncratic forms, comes togeth- castle home that flips down like a including cyclocross, urban, tour- er to be celebrated by bike geeks. Murphy bed; a 100-inch projec- ing and rigs from Owner Sky Boyer closed his tion screen TV for showing bike Surly, Redline, Bianchi and Linus— 5-year-old shop in San Diego, races and movies; and benches and are displayed along the back wall. California, at the start of 2011 tables in front of the service area so The full-size bar and café and and brought his staff to the Rose customers can chat with mechan- table seating dominate the front City—both a lifestyle and business ics. The finished basement houses of Velo Cult, the better for host- decision. Steeped in culture, art a lounge and photo studio for ing bike events—advocacy and cy- Velo Cult and niches such as randonneuring maintaining Boyer’s online bicycle cling groups get the space or the Employees: 6 and touring, Velo Cult was always museum; a screening room with downstairs theater for free—as well Shop floor space: 5,000-square-foot a Portland shop stuck in a triath- vintage theater seating for 40; and as concerts, square dances and a showroom/tavern and 5,000-square- lon town. “I was trying to create much of Boyer’s vintage mountain burlesque show. Two weddings are foot finished basement Years in business: About 7, including Portland in San Diego. I was really bike collection. scheduled next summer. time in San Diego; open 7 months in pushing it, but in the end there was All of it is the product of Boyer’s Meanwhile, repairs and service Portland a ceiling to it,” Boyer said. single-minded obsession with bikes have become the biggest contribu- Emphasis: Culture and bike subcul- tures such as commuting, touring, Boyer is now set up in a and the culture and lifestyle around tors to Velo Cult’s bottom line. Boy- randonneuring and cyclocross 10,000-square-foot former an- cycling. He knows what he likes. He er hopes to be in the black within Main brands: Raleigh, Surly, Bianchi, Linus, Redline tique mall that dwarfs his cramped also knows what he doesn’t like— two years, but admits he has always Owner: Sky Boyer Southern California shop. He’s built and that includes most bike shops. reinvested any profit into his shop. out the main floor with a full-size That may be why one can walk half- —Toby Hill Yakima_bicycle_Retailer_DealerTourFINAL_messing.indd 1 11/1/12 3:02 PM 22

Fat-tire retailer thrives in commuter town f off-road specialty shop Fat Tire are within an hour’s drive, while Recent headway on access is Farm faces one central challenge, the epic selection of purpose-built encouraging. Renegade trails in the Iit’s the lack of quality sanctioned trails in farther-off Bend lures many Lewis & Clark area outside Lake mountain bike terrain in Portland. for long weekends. Downhill riding Oswego are on track to be legiti- Fat Tire Farm, for example, is at lift-assisted Ski Bowl on Mount mized, and Portland Parks and Rec- a short pedal from Portland’s For- Hood and challenging terrain at reation Commissioner Nick Fish est Park, but bikes are marginal- Port Angeles keep long-travel rigs has called for the building of bike- ized there mostly to dirt and gravel from the likes of Devinci, Santa specific single track in Forest Park, roads. Single track remains the do- Cruz, Specialized and Giant mov- though that has been floated in the minion of hikers and trail runners. ing out the front door. past, Chambers said, with no result. “I’ve been at the trailhead for 15 Not that Chambers is content Chambers, who also operates Fat Tire Farm Employees: 8 full time, 4 part time years, and there’s a lot of money that with the status quo of trail access. Portland commuter and road shop Shop floor space: 3,000 square feet opposes bike access,” said owner His shop supports trail advocacy 21st Avenue Bicycles, stays in con- retail, 1,500 square feet service Park Chambers. group the Northwest Trails Alli- tact with land managers with the Years in business: 15 years under Fortunately for Fat Tire Farm, ance, and he has had a full-time em- goal of improving relations with the current owners Emphasis: Mountain the city’s dirt-addicted are willing ployee dedicated to building trails crowd. “It helps Main brands: Specialized, Giant, to put in some drive time to get at Sandy Ridge, a Bureau of Land with riding in the community. It Santa Cruz, Kona, Pivot, Scott, Rocky their fix. First-class trail facilities Management trail system dedicated doesn’t matter whether the riders Mountain, Devinci, Deity, Salsa like Post Canyon and Sandy Ridge to mountain bikes. know about it,” he said. —Toby Hill Owner: Park Chambers Co-op keeps commuters cycling … and recycling oing business as a co-op can owners are gone,” said Hazel Gross, hand business license from the city, be an egalitarian ideal. But who joined Citybikes four-and-a- all used bikes taken in are subject Dsometimes, it’s just a pain. half years ago and is one of seven to a 15-day hold and police serial Decision-making gets bogged current co-owners compensated number check. down in the pursuit of consensus— based on the work hours they put The shop’s bike rehabs dovetail one of the reasons Citybikes Annex in each year. with Portland’s ethos of recycling still doesn’t have a POS system. And Citybikes started out selling and repurposing, Gross says. City- the retailer, which deals primar- only secondhand bikes but couldn’t bikes also recycles all leftover metal, ily in refurbished transportation keep up with demand, so new bikes tires, tubes and plastic bags. Rubber bikes—plus new bikes from KHS, were added in 2003. The shop’s big- goes to Portland company Cycle Surly, Jamis and Birria—and also gest seller now is its own custom Dog, which turns tires and tubes operates a repair and accessories KHS Urban Express, which gets a into “earth-friendly” pet products, Citybikes Annex shop 11 blocks from the Annex, swept-back bar rather than a flat and to a local maker of rubber floor Employees: 26 has six committees to address such one, plus upgraded tires and de- mats. Shop floor space: 5,000 square feet Years in business: 26 issues as finance, personnel, opera- railleurs. Citybikes orders the $550 The two-shop operation em- Emphasis: New and refurbished tions and inventory. But the model bikes from KHS about 200 at a time. ploys 25-30 staffers, all of whom transportation bikes works for the quarter-century-old On the used side, reconditioned are trained mechanics in order to Main brands: KHS, Surly, Jamis, Birria business. transportation, children’s and help with any service issue or head- Owners: Seven co-owners; pictured are two: Hazel Gross and Ryan Smith “The idea is that the shop can mountain bikes fly out the door. As scratching bike rehab. No one is a keep going long after the original a condition of the shop’s second- manager; all are equals. —Toby Hill At tiny neighborhood shop, it’s all about repairs t’s not the size of the bike we didn’t have to take out a loan,” open until 7 p.m. during the week shop that matters, but Druzdzel said. for riders who need to drop in for “Iwhether the mechanics can In addition to the main service on their way home from use their tools properly,” is the slo- 400-square-foot location, they work. It also sells a few refurbished gan that greets visitors to the Up- lease a smaller space a couple doors bikes and offers basic bike mainte- Cycles website. It’s a fitting motto down where they house a third nance classes. for this small business, which Kai work stand. Their rent is a manage- Hoskins, a United Bicycle In- Druzdzel and Mark Hoskins start- able $600 per month. While they stitute graduate who worked at ed out of a converted car garage on would like more room to be able several local shops before buying NE Dekum Street. to stock more product, including his own stand and tools, said they UpCycles is among a growing new bikes, they’re also wary about have seen steady growth in busi- number of service-only neighbor- raising their cost of doing business. ness since opening two and a half hood shops in Portland. Tune-ups, They prefer to keep overhead low years ago. “The neighborhood has flat fixes, wheel truing and bearing and service prices reasonable: tune- embraced us,” he said. overhauls are its bread and butter, ups start at $35 and go up to $180 The two co-owners—and the UpCycles Bike Shop but the shop also handles a fair for a full overhaul. shop’s only employees—work on Employees: 2 amount of wheel builds and assem- Despite cramped quarters, the just about any bike, even beaters Shop floor space: 400 square feet bles custom touring and commuter co-owners have built up their busi- that other shops turn down. Dru- Years in business: 2.5 bikes with Soma frames. ness serving the area’s commuters. zdzel said they put into service old Emphasis: Service and repair Main brands: Soma for custom builds Druzdzel and Hoskins started The shop is located in the revital- bikes for customers en route to Owners: Mark Hoskins and Kai the business with little to no inven- ized Woodlawn neighborhood the annual Burning Man festival. Druzdzel tory, funding it with their savings. close to Holman—a bike boulevard “Many come in and say, ‘I just want “We didn’t need huge inventory so and popular commuter route—and it to pedal.’ ” —Lynette Carpiet December 1, 2012 23

Concept store flourishes in downtown location ark Ontiveros may own one walk around and can’t believe what’s counts for about 75 percent of prod- of the newer shops in Port- going on,” said Ontiveros. uct. “We’ve done $1.5 million in the Mland, but he’s not new to West End is located in a corner first year with no ads or Internet bike retail. A 16-year employee and building that dates back to 1911 sales,” he said. at onetime part owner of River City and used to house Django Records, While West End has a very pol- Bicycles, he left to open a Special- and Ontiveros kept some of the ished look, Ontiveros stays true to ized Concept Store in January 2011 old signage and wallpaper when Portland’s tastes and needs, stock- with business partner Mike France. he remodeled. The space, which he ing a wide selection of commuter West End Bikes is aptly named leases, required extensive renova- apparel and messenger bags from after the West End shopping dis- tions, but he said the location on San Francisco company Mission trict, an eight-block enclave in SW Stark Street with a protected Workshop, and ’cross and city bikes West End Bikes Employees: 13 downtown Portland that over the bike lane was key. “I wouldn’t have from U.S.-made brands such as Sto- Shop floor space: 5,000 square feet past decade has seen a major face- opened the store if not for the dedi- emper and Beloved. Portlanders Years in business: 1 year, 11 months lift. Run-down apartments and cated bike lane out front,” he said. prefer to buy American and locally Emphasis: Urban/city and road bikes, empty storefronts have been trans- West End is the only Special- made products, after all. and 4- to 5-inch-travel mountain bikes Main brands: Specialized is 75 percent formed into mixed-use retail and ized Concept Store in Oregon and He also rents out space to the of product mix; also sells Wilier, urban housing. And trendy new the first in the Northwest. So far, Maglia Rosa, which offers curbside Calfee, Beloved, Santana, Brompton restaurants, coffee shops and ho- Portland seems to be welcoming espressos using Stumptown Coffee and Cinelli Owners: Mike France, Mark Ontiveros tels now teem with customers. “You this model, in which Specialized ac- beans. —Lynette Carpiet High-end road rules in swanky Lake Oswego pecializing in high-end bikes $2,250 before business started slow- are always a handful desperate to and accessories hasn’t been ing down, first after the dot-com make a deal,” which has made it Seasy in recent years in Port- bust and followed by the start of the nearly impossible not to wiggle on land, hard hit by the global eco- recession in 2007. prices, Haber said. nomic downturn. But Lakeside That’s in addition to the dilution But Haber has a few tricks up his Bicycles is making the best of a dif- of the market and increased pric- sleeve to set his shop apart from the ficult situation by shaving costs or ing pressure due to the rash of new pack. He goes to the Eurobike trade seeking out European brands that shops opening in the city. Competi- show to seek international brands differentiate the shop from its vast tion is so fierce on items like tubes that may not be represented in the competition. or black road shorts that prices stay U.S. market, like Maloja, a small Lakeside Bicycles “You scramble,” said owner the same even as operating costs go German apparel manufacturer. Employees: Seven full-time, three Gordon Haber. “Basically, every up, Haber said. “That’s been our most successful part-time morning I get up and I sprint until I The store pulls in about $1 mil- women’s clothing brand,” he said. Shop floor space: 5,000 square feet go to bed at night.” lion in annual revenue, compared He’s also considering starting an Years in business: 15 These days, Haber rolls 400 to to $1.5 million in more prosperous online store and stocking a ware- Emphasis: High-end road bikes and accessories 500 bikes every year out of his shop times, even with its location along house near the Canadian border so Main brands: , , Peg- in Lake Oswego, an affluent sub- Highway 43, a main thoroughfare shoppers avoid paying sales tax on oretti, Bianchi, Assos, urb seven miles outside the city, at for 45,000 cars per day. Web orders and pick up their or- Owner: Gordon Haber an average selling price of $1,750. “The Portland market is so ders from the warehouse. —Nicole That’s down from an average of heavily populated by dealers, there Formosa Used bikes and little debt at core of success ellwood Cycle Repair started known figure in Portland’s cycling ness the way he sees fit without be- two decades ago selling only circles. Tonkin has been a partner ing beholden to banks or suppliers. Sused bikes on consignment in the business since 1999 and sole The business is debt free -(ex for locals. New bikes are part of owner since 2009. cept for a small mortgage on the the mix now too, but the original About 90 percent of the used building) and reinvesting profits foundation is still tightly weaved bikes that roll through the door back into the operation is the top into Sellwood’s DNA with close to eventually find a home, but Tonkin priority. When Tonkin moved into half of the shop’s $1.5 million in an- admits his laidback approach to a new space, five times the size of nual sales coming from previously consignment may need to change Sellwood’s longtime location in the owned bikes. and he’s considering instituting a height of the recession, he was able The formula is fairly straightfor- 90-day review to make sure the in- to pay half the asking price in cash. Sellwood Cycle ward: if the bike sells, the customer ventory is turning in a reasonable The staff of 12 is paid between Repair gets two-thirds of the selling price, amount of time. Because Sellwood’s $14 and $16.50 an hour, including Employees: 12 full-time or three-quarters if they spend their business model differs from most Tonkin, which eliminates a man- Shop floor space: 5,500 square feet profits at the shop. It may seem Portland shops, it’s found itself on agement hierarchy and allows more Years in business: 21 more lucrative than selling only neutral ground, and often buys or money to go back into the shop. Emphasis: Consignment bikes, road, mountain, urban bikes and frames new bikes, but the margin is less sells used bikes from other shop So far, so good. Sellwood has Main brands: Kona, Giant, Scott, Yuba on used bikes due to the amount of owners or employees. seen annual sales growth of 25 to 30 and whatever rolls in the door labor involved, said Erik Tonkin, a Another reason Sellwood percent over the last few years and Owner: Erik Tonkin former Kona Factory Team rider, stands out is Tonkin’s unique finan- has little to no employee turnover in U.S. cyclocross world champion- cial and management philosophy, a highly competitive bike retail em- ship team member and a well- which allows him to run the busi- ployment market. —Nicole Formosa

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Editors’ Picks: What works in Portland

Solving the closeout conundrum: Customers are always looking Keep kids entertained: Clever Cycles gets a lot of fam- for a deal and suppliers always have those bikes that don’t move or ily traffic. And many of the parents like to linger over missed their selling window. That sparked the idea for Dave Guettler the shop’s stylish wares. So Clever has a children’s play to open the River City Bicycles Outlet two blocks away from his area stocked with Legos and other toys to keep tots main store where he sells closeouts, overstock or bikes that were occupied for what can turn into a lengthy stay. “We delivered late. Everything is close to 30 percent off suggested retail. have customers who easily spend an hour, an hour- Bikes are color-coded by size so shoppers can easily find one that and-a-half here milling about,” said co-owner Martina suits them. Better yet, it’s separate from River City’s main store, Fahrner. “It’s a comfortable atmosphere and there’s a lot keeping margins there intact. Plus, the RCB Outlet also serves as a to look at. They like to pick up all the stuff.” testing ground for bringing in a new bike brand or product with less risk. If it sells well at the Outlet, they move it into the main store.

Play to your strengths: Acknowledging the fierce Diversify to fit your surroundings: TheAthletes Lounge is the city’s clear pricing competition from online sellers, Fat Tire Farm leader in with a shop stocked full of aero bikes, wetsuits, running owner Park Chambers focuses more on stocking a shoes and apparel, but it happens to be located next to the city’s 5,100-acre broad selection of complete mountain bikes over Forest Park. Dirt cycling trails are minimal, but the terrain that is avail- components and accessories that are more vulnerable able is perfectly suited for cyclocross so it devotes a small corner of its to price slashing on the Internet. Double-tiered racks 6,000-square-foot shop to Scott and Stevens’ ’cross bikes and gear. hold 110 completes on the sales floor, with an addi- tional 100 or so either built or boxed in the back of the shop. Merchandise sales break down about 70 percent bikes, 30 percent components and accessories. Espressos served curbside: Great coffee shops are a dime a dozen here—and many bike shops include a coffee bar in their stores. So West End Bikes in the Find your financial comfort zone: Velo Teach women to wrench: It’s no secret that bike shops heart of downtown had to offer something unique Cult owner Sky Boyer started out sell- can be closed-off boys’ clubs. Citybikes and Citybikes if it was to compete. Owners Mark Ontiveros and ing vintage bikes from his condo, then Annex, however, want to break down those barriers to Mike France lease space to Phuong Tran, a United opening a small repair shop—which may better serve its diverse customer base. “Women really States Barista Champion, who runs the operation. be why he still prefers a cash business. He appreciate our apprenticeship program” that trains No fancy caramel macchiatos or chai tea lattes here. funded Velo Cult’s move from San Diego future employees, said Hazel Gross, one of the three The Maglia Rosa, which has a handy bike-through to Portland in part by selling off 70 percent female co-owners, out of seven total, at the two-shop street counter, only serves up single origin espressos of his vintage bike collection, but he also retailer. For some women, the “From Cyclist to Me- using beans from Stumptown Coffee. had to take on terms with suppliers for the chanic” apprenticeship can be their first step toward a first time. It’s not something he’s comfort- career in bicycle retail or the larger industry. able with. “I’ll pay that off, then I’m never doing that again,” Boyer said. On par pay: Sellwood Cycle Repair long ago instituted a flat Tailor hours to your customers: Universal management model in order to Cycles scored a premium location about create a workplace where every- 18 months ago along SE Ankeny Street, a one on staff could do well. All 12 main commuting route for cyclists heading full-time staff members are paid into downtown from the east side of the between $14 and $16.50 per hour, river. With shared-road arrows and a direct including the owner, regard- line to the Burnside Bridge, some 14,000 less of tenure or job title. It’s a riders whiz past in either direction during philosophy that has fostered a the busiest days. So, Universal opens its stable workforce and it also allows doors at 6 a.m. on weekdays and serves free more profits to be reinvested into Look for branding partners: coffee to early morning pedalers. the shop, helping Sellwood to run Portlanders love their beer and love virtually debt-free. their bikes. Bike n Hike’s Kevin Chudy found a way of combining both. A longtime friend of local Keep it simple and local: Be creative to retain staff: A big challenge in Portland is keeping full- brewmaster Christian Ettinger, he In a city where there’s a time staff employed during the slow winter months. At Bike Gallery, rebrands a line of urban SE Bikes bike shop just about on head mechanic Brett Fleming has found a way around this by slashing with Ettinger’s Hopworks Urban every corner, UpCycles the price of a service overhaul from $275 to $145 during the winter. Brewery name. SE’s line of beer- Bike Shop has carved out a By convincing customers to pay for a tune-up during the busy sum- named single-speeds—the Draft, niche by offering afford- mer months and save the comprehensive cleaning for the off-season, Draft Lite, Lager and Tripel—come able repairs and service he creates plenty of work for his staff. As a result, the mechanics at with integrated bottle openers. only. Kai Druzdzel and Bike Gallery churn out 1,000 to 1,300 overhauls in the winter with an Chudy had a local graphic artist Mark Hoskins keep prices average ticket price of $260. create Hopworks stickers to slap reasonable by controlling on the frames. “We sell more bikes their overhead; inventory from Advanced Sports (SE’s parent is limited to a few essential Think internationally: Lakeside Bicycles’ owner Gordon Haber has been in the bike retail company), it helps brand Hop- accessories. They focus on business for 15 years in Portland so he knows how pivotal it is to stay one step ahead. A works, and for us it’s a bit unique,” their neighborhood—em- while back he started flying to Germany to attend Eurobike, the industry’s largest trade Chudy said. Chudy’s been selling ployees from local busi- show, to seek out unique brands that might set his high-end Euro-focused shop apart from the Hopworks Pub Runner since nesses are regulars. the pack. As a result, he’s picked up brands like Parlee, Enve and Maloja, a small German April, throwing in a beer with each apparel manufacturer available in only one other shop in the U.S. purchase for good measure. UN STOP PABLE Philippe Gilbt 2012 WORLD ROAD CHAMPION BMC RACING TEAM BELLHELMETS.COM/GAGE 28

Longtime owner aims for higher bar at retail evin Chudy gave up his news- brands to give more selection but at is part of Chudy’s vision to raise the paper delivery gig for his first the end of the season we found that bar of bike retail. Increased compe- Kbike job at Bike n Hike’s Cor- the second-tier brand didn’t move tition from new shops, combined vallis store. Ten years later he be- and were left with product we had with the economic downturn and came partner in the business, and to mark down.” three very wet springs and sum- in 1984, helped expand the name Becoming a GRP also upped mers, has tempered growth at Bike north with the Beaverton store. the retail environment as both n Hike. Sales have been flat follow- Chudy now owns four of the six stores underwent a merchandising ing a record year in 2008 and Chudy Bike n Hike stores in the area, in- makeover that included energy effi- is predicting more of the same at cluding the Portland store. cient lighting, modern fixtures and the end of this year. Bike n Hike has carried a vari- graphics. Chudy even invested in a But he’s confident that Bike n Bike n Hike ety of brands, but in the past decade scent service to drown the odor of Hike is primed for growth when the Employees: Portland store: 12-15; grew its business with Giant, con- rubber and lube. climate and the economy make a total for all six locations: 42-44 Shop floor space: Portland store: verting two stores—Beaverton and At the Portland store, a turn for the better. “At the end of the 7,500 square feet; mezzanine about Portland—into Giant Retail Partner 2,000-square-foot women’s depart- day, we have a good thing going. We 2,000; basement 3,400; 34,000-plus locations. Bike n Hike is not the ment was added during a 2009 GRP own some buildings, have good re- square feet for all locations only Giant dealer in town, but it is remodel. Now, more than 50 per- lationships with suppliers and good Years in business: 41 Emphasis: Women’s-specific prod- the largest, Chudy said. cent of adult bikes that roll out of leases. We’ve created this machine ucts, flat-bar road and city bikes “We’re super loyal to those guys,” the door are to women. that feeds people,” he said.—Lynette Main brands: Giant, Electra he said. “We’ve carried alternative A big focus on merchandising Carpiet Owner: Kevin Chudy Athletes Lounge taps into area’s tri community or as booming a bike market Portland is not exactly a hotbed tomers through a deep inventory as Portland is, triathlon is one for triathlon, but it is showing signs commitment to gear for all three Fsegment that hasn’t captivated of growth—this year’s Portland Tri- of the sport’s disciplines, Athletes the city’s cycling crazed the way athlon saw 900 racers, up 30 percent Lounge’s clinics, open swim classes other two-wheeled options have. over the previous year, making it and race and athlete support and But that hasn’t stopped Athletes the largest tri in Oregon. its reputation as the city’s experts Lounge from making its mark as The Athletes Lounge name has on aero and fit have cemented the the go-to, one-stop-shop for triath- been around Portland for more shop’s importance in Portland. letes in the Pacific Northwest. than a decade, first as an online While most of Portland’s bike “You will not find too many tri forum and store, then in physical retailers rely on the weather to dic- stores outside of San Diego with form for the past eight years. Benja- tate business, Athletes Lounge is Athletes Lounge this kind of inventory,” said Scott min and his business partners, Gary not as subjected to Mother Nature’s Employees: 10 full-time in the peak Benjamin, one of the shop’s three Wallesen and professional triathlete whims. season owners, standing in the middle of Chris Boudreaux, bought the busi- “The Ironman calendar really Shop floor space: 6,000 square feet Years in business: 3 under existing the 6,000-square-foot shop filled ness out of near bankruptcy three determines our sales,” Benjamin ownership, 8 total with aero bikes from Cervélo, Gi- years ago. Since then, the trio has said. “In spring, weather is an issue, Emphasis: triathlon ant, BMC, Argon 18 and Scott, a moved into a building that is four but if an athlete signed up for Coeur Main brands: Cervélo, BMC, Scott, Ham- mer, Newton, BlueSeventy, Orca, 2XU wide range of wetsuits, running times the size of the old shop and D’Alene, they’ve got to be training, Owners: Scott Benjamin (pictured), shoes, apparel and nutrition, show- doubled revenue to $2 million an- they can’t wait for nice weather to Gary Wallesen and Chris Boudreaux ers and a fit studio. nually. Along with appealing to cus- get on their bike.”—Nicole Formosa Transportation shop has the practical answers artina Fahrner describes Martina says she emphasizes and accessible apparel and accesso- one typical customer to listening to what customers want ries—nothing is behind a counter Mwalk through Clever Cycles’ out of a bike, then opening them up and many products are displayed front door: the road rider who got to new possibilities. For instance, a in the cargo bays of oversize Bakfi- married, started a family, and now commuter might not ever consider ets—Clever fosters a warm, relaxed wonders, “What do I do with my that rather than a stylish mixte, shopping experience. Clothing, kid on the bike?” their needs might be better met by from brands including Endura, Ibex It’s a situation the shop’s owners, a Surly Long Haul Trucker touring and Showers Pass, is both practical couples Todd and Martina Fahrner bike fitted with swept-back bars to and stylish, as are bags from Car- and Dean and Rae Mullin, all have give them a comfortable riding po- radice, PoCampo and Koki. Brooks dealt with in their own lives. sition while also providing all the saddles and accessories command Clever Cycles For five years now, Clever Cycles gears they will need for the ups and significant shelf space. Employees: 9 has been meeting Portland’s utili- downs of city streets. It’s all about instilling “brand Shop floor space: 3,500 tarian cycling needs, whether it be Prices range from the low hun- evangelism” in customers—both for Years in business: 5 young, hip commuters after a fash- dreds for children’s and balance their chosen bike and, by extension, Emphasis: Commuter, transportation, cargo and folding bikes ionable city bike, car-less urbanites bikes to $3,000 and more for Port- for Clever Cycles, noted Martina. Main brands: WorkCycles, Breezer, in need of a Dutch-style Bakfiets to land- and Dutch-made cargo bikes. “We’re always learning,” she Brompton, Surly, Tern, Linus haul groceries, or families seeking The average bike sale comes in at said. “It’s a long process. None of us Owners: Todd Fahrner, Dean Mullin and Martina Fahrner (not pictured: balance bikes or mini-cruisers for about $1,000. had been in retail before. It’s just a Rae Mullin) their growing brood. With wood floors, high ceilings labor of love.” —Toby Hill December ,   Portland Dealer Tour 2012 Guest Editorials Portland is model city Portland shops have for bike facilities in U.S. limited inventory dollars his was my  rst time in Portland. I arrived expecting a rainy and deso- and category choices Tlate city, but to my surprise found a town alive with dynamic people liv- he Portland Dealer Tour ing active lives. Portland o ers a diverse brought us into some of the landscape of walking and biking paths, Tstrongest bicycle retailers unique restaurants, and a thriving bike in the business: ˆ e Bike Gallery, culture bolstered by a young, vibrant River City Bicycles, Bike n Hike community. and others. I was unique in the Portland is home to a group of deal- group in that I was the only at- ers who have coexisted for many years, tendee representing a rack com- next door to retailers who have just re- pany. cently opened their doors. We visited a Quite frankly, it was humbling wide array of shops while traveling the Frank Zimmer to see how few bike racks were of- city by bike, touring businesses that spe- fered by these strong retailers. For cialize in repairs, shops with assembly fenders, lights and racks for storage of those in the category, racks seem David Fee lines of pre-built product ready to hit the rain gear and dry clothes (a must in the like such an obvious product line. space. ˆ ey only have so many dollars  oor, and even a store that moonlights as Portland weather), we  t right into the A“ er all, most people who buy a bike and square feet, they said. It is clear that a brewery with an amazing collection of local biking and transportation culture. get there by car, and they all need to get the challenge facing the rack companies museum-quality, retro bikes. Bike lanes were aptly placed, and routes their new bikes home. Many bike deal- is the same facing many accessories Hopworks Urban Brewery, the HUB, throughout the city were easy to follow. ers have tremendous success with the manufacturers: it’s up to us to commu- featured a collection of frames and parts I never once felt unsafe despite the city’s racks. Managed correctly, the category nicate why racks are a wise investment strewn throughout the building and high volume of car, bike and pedestrian o ers high margins and turns. But the in their limited inventory dollars and lends its name to a run of custom single- tra‡ c, and I started to wonder more and reality is that the rack category was not retail  oor space. speed bikes sold through Bike n Hike, more why every American city isn’t like well represented in most of the stores Further, although cars and bikes be- another local landmark retailer we were Portland. We should all take a cue from we visited. come more complex, the onus is on the fortunate enough to visit. its infrastructure. Each retailer we visited said that rack manufacturers to present to bike And thanks to our tour guides from ˆ ey say that commuting by bicycle they sell racks, and see it as a valuable dealers only those products that are River City Bicycles, we were able to see reduces stress—if you need proof, spend category. But they also voiced concerns right for their speci c consumer, and no unique parts of the city that we may have a day in Portland. — Frank Zimmer, di- about category complexity, competition more. —David Fee, general manager for otherwise missed. As we toured around rector of U.S. sales, Advanced Sports In- from large retailers and limited  oor U.S. and Canada, Yakima Products on our Breezer bikes, fully equipped with ternational

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A perfect holiday gift for active kids. www.burley.com 30

We rode scenic switchbacks up River View Cemetery on our way out to Lake Oswego, a Photo op during a short detour to Washington Park on the second day. suburb about eight miles south of Portland.

BRAIN editor Lynette Carpiet and Advanced Sports Advanced Sports International’s Kaitlyn Phillips fits International president Pat Cunnane lead a group Knobby tires as bathroom mirror frames? Only at into the crime scene outline at River City Bicycles. through Tryon Creek State Park. Portland’s Fat Tire Farm. Hmmm.

Rapha’s Chris DiStefano and Breezer’s Joe Breeze take in game one of the World Series One of our ride leaders from River City Bicycles, Dani Dance, brought daughter at the Rapha headquarters. The building used to house offices for Paramount Pictures. Zoe along for the ride on day two. Rapha has stayed true to the Hollywood history with a 25 theater-seat screening room. December 1, 2012 31

ASI’s Karen Bliss and Pat Cunnane met Jake Gillum during our visit to Lakeside Bi- cycles. Gillum, an Oregon native, recently recovered his stolen 2009 carbon fiber Andria Klinger of Interbike and JT Burke of Breezer Bikes battle it out for an Oreo cookie- Fuji himself. He documented the civil arrest with a video posted on YouTube. covered Voodoo donut. Clever Cycles welcomed us with two pink boxes full of goodies.

Athletes Lounge retail manager Brittany Olsen Shop cats were as popular as shop dogs in this city. introduced us to her darling Jack Russell terrier Ben. Here’s Magnus from Lakeside Bicycles. Joe Breeze fuels up at River City Bicycles.

Fenders are big sellers in Portland with several retailers ordering them by the pallet. We saw some of the most creative displays, too, like this one from Clever Cycles. The ASI crew hang out and play Uno at Velo Cult after taking a tour of the shop.

Chula, Sellwood Cycle’s resident pooch Portland’s Hawthorne Bridge in the early morning 32 Portland Dealer Tour 2012 Guest Editorials Portland is home to diverse Bike culture is more than shops, inclusive community skin deep in Portland

ortland is regularly touted as the thought I could escape unnoticed by model city in our nation for its doing the sheepish, fast walk, don’t- Pbike facilities and bike-centered Imake-eye-contact thing as I rolled culture. Being able to ride in BRAIN’s my grimy bike down the freshly swept Dealer Tour and see it firsthand was a hallway. But no dice—the mechanical great opportunity. carpet sweeper stopped moving and I One thing that became apparent in could feel his eyes on me. the Portland bike community is its in- “Hey,” said the hotel cleaning guy clusive nature. Whether you are fixed or as I braced for a scolding. free, townie or race, helmet or hat, ev- “That blinky light is insanely eryone seems to be building bike karma. bright—what kind is it?” he continued, No culture or class wars here. Ultimate- apparently unconcerned about the grit ly, the winner will be bicycling and the stripe I just painted on his carpet. community at large. I gave him the rundown on the The 14 shops we visited could not Blackburn Flea light clipped to my have touched on a broader cross section backpack, then ducked into my room of the industry. Included in our stops for its USB charger and gifted him the were big concept stores, Internet parts kit for his third-shift commutes. Don Palermini retailers and a service shop in a for- Steve Strickland While we had our share of “Port- mer garage that would barely hold one landia” moments during the BRAIN ers was enlightening and educational, American car. 300 square feet. Each shop emphasized Dealer Tour, I took this encounter as this was my ah-ha moment. With its rainy climate, Portland’s quick turnaround on service and repairs an encouraging harbinger—proof that I was reminded of the democratic significant number of bike commuters to keep people on their bikes. Many bikes here are about more than the nature of bikes and, how given the right requires service quite regularly. Each times it may be the only transportation “Unipiper,” a guy dressed as Darth Va- confluence of culture, necessity and location took a different approach to that person has. der in kilt who plays the bagpipes while infrastructure, they can be truly trans- service. One shop opened at 6 a.m. to The city has made it virtually trouble- unicycling. (The Unipiper was featured formative. I ride away with a renewed be accessible to the morning commuter. free for residents to go by bike. Could it on Portlandia, a satiric comedy show vigor for both our industry and advo- Another shop that did 75 percent of its actually be safer than a vehicle? It certain- filmed in Portland.) No, this was just a cacy, because it occurs to me that we’d sales in service is on a “bike boulevard,” ly is easier and healthier, which is leading regular guy, working an everyday, real be a whole lot better off with more hotel guaranteeing a steady supply of custom- to a growing and vibrant bike business world job—THIS is the guy we as an guys on bikes…and maybe even another ers. This auto-garage-turned-service- in this model city. —Steve Strickland, ac- industry want to connect with. While Unipiper or two. —Don Palermini, direc- center could not have been more than count manager, Burley Design our tour of Portland’s finest bike deal- tor of marketing, Bell and Blackburn

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