The Tri Town Times: 2/26/24

• Posted on 26 February 2024
• By Antonio Gonzalez
• Posted in the tri town times
• 0

What's the most the market will bear?

Hi all,

Here is your weekly Tri Town Times newsletter:

Training thoughts and updates:

• A good rule of thumb for your long aerobic rides and runs: fastest mile last.

Quote that struct a chord:

"What's the most that the market will bear?" - A bad bicycle retailer.

I was sitting in a business meeting last week with a group of bicycle shop owners from across the country. The discussion was on labor rates for tune ups. The group went back and forth on the best price to charge, and the consensus leaned towards charging as much as the local market will bear.

I proceeded to lose my sh*t.

The easy way is to say, "Raise prices!" However, this simply shifts the financial burden onto the client, robbing the business of the painful yet valuable exercise of seeking operational improvements.

Most businesses default to the easy way.

When it comes to service pricing, a better question to ask is, "What is the lowest price we can charge for the highest quality tune up and still make an honest profit?"

This is a much harder question to answer. It requires an honest attempt at defining the word 'quality" for the ideal client. It requires a thorough analysis of fixed expenses, service department layout, and service processes. In short, it promotes a continuous self-improvement process. When done correctly, clients will benefit from not only lower prices, but faster turnaround times and higher quality service for the price paid.

The best athletes do the same. They ask, "How can I complete this race as fast as possible?" then critically examine their habits and methods for improvement. They don't obsess about what others are doing, or obsess over factors outside their control like the weather or who will show up to compete against them. They simply do the work, day in and day out, with an eye for detail and steady improvement.

Many businesses would be benefit from doing the same.

Have a great week!

Antonio Gonzalez

Tri Town Bicycles

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