Supermarkets grew at the expense of local greengrocers and butchers to name just two casualties of what were traditional local stores. Arguably a similar trend is occurring with local bike shops; quite a few are struggling to compete with the large specialist online retailers.
It's understandable that price is a factor and results in many purchasing online. In our defence as a retailer it is frustrating that we can often buy products from online retailers cheaper than from the official distributor; a large topic in itself but none the less one reason why stores do not have the product ranges they once stocked. The most affected stores are those that focus on mid to high end products, less so the those that focus on entry level products. A customer buying a £200.00 hybrid is less likely to be seduced by a saving online, often they would much rather have good advice with their product choice, the chosen bike built and set up for them and probably a first free service.
Sadly I have noticed stores closing, most recently
M Steel,
Ilkey Cycles and
Velo House to name just three, all were quality stores that struggled to the extent they closed, although note I am not privy to what was personal to each store. Of course a business needs to compete to survive and a bike store is no different. Trying to take on the internet giants with what they do best is difficult; supplying products with little or no margin and often at a loss is not sustainable. In some ways this is nothing new, before the internet it for was for many years 'mail order' that a LBS had to compete with, take the internet out of the equation and their business was model similar, as was their customer base. A store will often view a knowledgeable club rider who is capable of maintaining their own bike more as a friend than a revenue stream; but they may need the odd thing now and then, or a bike for their kids, plus often they recommend someone who may need the service that a quality bike shop can offer.
So it is not all doom and gloom, many stores have evolved their business model to offer what the internet struggles with. Fortunately there are still enough customers that need advice about their potential product choice and often covet a shopping experience that they simply can't get online; this is where personable, experienced quality staff add value to any store. Many customers are new to cycling and what a store offers should cater for that customer, as such I have seen a massive growth in the demand for 'bike fitting' and 'bike servicing', both an asset to any store who can offer a quality service for each. Many customers choose a bike fit prior to a purchase, as listed bike sizes often can and does confuse. I have seen more than a few buy a bargain online only to discover they bought the wrong product, or in the wrong size, or both! To correct this error often costing far more than the initial saving. Back to the title of this thread, many customers don't look at it as what "premium to support LBS", they look at it as an investment to help them chose the correct bike in the correct size to maximise their enjoyment of cycling and avoid potential costly mistakes.
Yes times change and a store must change with it, implement those changes correctly and it maybe possible to not only survive, but to thrive; although the latter maybe down to the individuals perception as to what thriving actually equates to of course. I can say this much, I have worked in the cycle trade for over 30 years and the majority of that experience has been in retail, I would never say the trade has been easy as there has always been challenges and competition, peaks and troughs; yet I have never worked in a store where it has gone backwards while I was there as each had evolved to meet the challenges of the moment.
I'm as passionate about the cycle industry as I am about cycling, cyclists' and everything that goes with it. For me personally it would be such a shame if we lost our quality local bike shops; the good ones can and do compete and long may they continue to do so.