We’ve had some expensive services go through our workshop recently. When we’ve sent the estimate to the client, we can practically hear the sharp intake of breath.
I understand; seemingly, the cost of everything is increasing. It’s frustrating, but I’d like to explain why the cost of servicing is so high, while bike mechanics (apparently 105,000 more of whom will be required in the next six years) are rarely seen driving around in Ferraris.
Undercover Mechanic
Cycling Weekly’s Undercover Mechanic will be publishing his thoughts on the state of the industry once a month. He’s been working with bikes for over two decades, offering servicing on models from some of cycling’s best (and worst) marques. You’ll find him at all major trade shows and events, just don’t expect him to make himself known.
At our workshop, our standard rate is £80 per hour, which is pretty typical in this area. Quite often, when people see that written down on an estimate, we can practically see the cogs turning as they compare that to their own hourly rate.
But, as is the case with most hourly charges, the mechanic does not take home £80.
Firstly, there’s the 20% VAT, so you can take off just over £13 straight away. Then there are overheads: premises, rates, utilities, tools, consumables, training, insurance, software, admin fees, accountancy, card fees, shrinkage (which is a posh term for things getting stolen), and so on.
By the time you take all of that out, you’re lucky if the mechanic takes home much above minimum wage.
No mechanic on the planet charges for eight hours of work a day. They’ll book bikes in, book bikes out, identify parts to be ordered, write estimates, sort out warranty claims, do test rides and answer the phone.
And, customers really like to talk, again, entirely reasonably. Most clients respond poorly when you then slide the card machine towards them to pay for that time.
Adding to the bill is the fact that bikes have become increasingly complicated.
And a lot of this increased complexity means simple jobs take longer, the classic example being replacing a headset bearing. This job used to take five minutes, but now can take up to four hours and require both brake hoses to also be replaced.
A changing ecosystem
Things weren’t like this when I was growing up and visiting bike shops. Chatting to the mechanic was part and parcel of the visit and bike shops used to have a nice relaxed atmosphere.
The blame does not lie entirely with the birth of the integrated cockpit. The economics of modern bike shops have changed fairly dramatically in recent years.
Historically, a bike shop worked as an ecosystem. Bike and accessory sales and servicing all worked together harmoniously, each subsidising the other through the year. Customers tended to be pretty loyal to their preferred mechanic, and shop, and the staff became loyal to the customers.
But then The Internet arrived, bringing an online marketplace and price comparison.
Suddenly, it was easy to find that the same tyre or cassette was cheaper somewhere else. So customers quite reasonably followed the cheaper price. Who wouldn’t? No matter that a bricks-and-mortar shop would lose money applying the same discount, due to the inconvenience of business rates, keeping the lights on, and allowing its staff reasonable breaks.
The shop would lose money applying the same discount, due to the inconvenience of allowing its staff reasonable breaks.
As soon as bike shops realised they could no longer rely on profitable retail, they had to lean into the one thing you can’t buy in a cardboard box: services; fixing bikes, professional advice and bike fitting. When the only thing you have left to sell is your experience and knowledge, you’re not going to give it away for free.
Unfortunately, not all bike shops were able to pivot quickly enough into a more service lead business model, and many have gone the way of the dodo. This has brought about a scarcity of reputable service centers, meaning demand is beginning to outstrip supply, and what always happens then? You don’t have to be Adam Smith to realize the price is going to start creeping up.
So, what’s to be done?
It’s all well and good me moaning about the internet and internal cable routing, but that doesn’t stop the cost of your next bike service from making you wince.
So, what can we do? Well, firstly, be respectful of your mechanic’s time. If they’re clearly snowed under, that story of the puncture you picked up at the base of Alpe d’Huez can wait. If they are working on your bike and you’re paying them for it, they may be a little bit more receptive to conversation.
Secondly, next time you’re about to press the button on another online purchase, just think about whether the £5 you’re going to save will be worth it when the lights go out at your local bike shop.
