Quote Originally Posted by KSH View Post
WOW! What a great letter! That would put a smile on anyone's face.

Hey... I'm wondering... have you priced your competition?

While kudos are great, they don't always pay the bills (but referral business does!). It sounds like you need to find a way to give outstanding service while not going into a complete black hole of debt.

Also, how are you marketing what you provide.. in a tune-up, etc.? If you are giving WAY MORE for the money... why not point that out in the shop? You don't need to put down the competition, but clearly state somewhere what they are paying for. Someone who is a serious cyclist will know how it compares to other shops.

It sounds like you two have the human/customer service aspect of this business down pact... now how to make that translate to lots of customers and money... that is the question!

How is your marketing around town? Your website? etc?
KSH has hit the nail on the head. What you provide has VALUE. The harsh reality is that you can't give it away for free or almost free. You need to charge a fair, competitive price. You're running a business, not a non-profit organization. If you provide outstanding customer service (which it certainly sounds like you do! ) then your customers should be delighted to have such an amazing resource available to them, and should be happy to pay for that service.

If some one thinks (s)he should get it everything for free, then (speaking quite bluntly here) that is not the customer that you want to cultivate. You can't pay your employees, provide a living for you and your family, pay back your debts, and remain a community resource unless you cultivate customers who understand and are willing to pay you for your hard work.

Carrying KSH's referral comment to the next level - referrals are a wonderful way to build your business, but you don't want to be the shop that everyone comes to "cuz my buddy got a smokin' deal and a bunch of free stuff. He said you'd hook me up too." That's a sure way to go out of business even faster. You want the referral from the customer who is appreciative of your knowledge and outstanding customer service, who understands you *deserve* fair price for that knowledge and service.

I truly hope you figure out how to get through these tough times. Our communities need our local/small businesses to thrive. I'd hate to see us come out the other end of this recession with no one left standing except big box stores and ginormous conglomerates.

Susan