The wheels are always spinning
A bike shop should be a high-end experience, Neworld owners say
Meredith Macleod
Brothers Jeff and Victor Sharafbayani are building a cyclist's dream store. It's not an uphill climb for them, because they are both avid gear-pushers themselves.
Their Plains Road, Burlington, Neworld Cycle shop is about to get a lot bigger. At 3,000-square-feet, it's jammed with bikes, clothing and accessories. But construction is fast and furious on a huge extension that will add 2,000 square feet to the shop and service department on the main floor, a second floor spinning gym and a huge basement for much-needed inventory storage.
"It's going to be a destination store. We want people to come from all over because this is the place they'll see the great stuff they only normally see in magazines," said elder brother Jeff, 40.
The Sharafbayanis take great pride in their store, choosing high-end fixtures and setting high standards for tidiness and displaying product.
"The vibe, the energy you create is your silent salesperson," explained Victor, 34.
Framed jerseys from renowned cyclists such as Clara Hughes and Lance Armstrong line the walls of the former bank building the brothers bought 11 years ago. A front area is set up like a Parisian museum, celebrating the much-vaunted Tour de France. Bicycle frames are set in picture frames, alongside chandeliers, bold yellow walls and a huge flower arrangement.
They know that's not your typical sports store.
"Our customers are used to buying their coffee in Starbucks and wearing designer clothes. Why shouldn't visiting their bike store be a high-end experience, too?" posed Jeff.
Hardcore cyclists are very attached to their bike shops, says Victor. They take it as seriously as others take their favourite bar.
"It's a source of pride for them. People come in here just to hang out, talk cycling with kindred spirits, see what's new. It's a gathering place."
Neworld staff have to be serious cyclists, too, says Jeff, because they have to speak the language to customers.
"It's a passion that's unspoken. The first thing on your mind in the morning is whether it's a nice day for cycling. That spirit gets communicated. It's not a sport, it's a lifestyle," he says.
Store manager Darren Link and head mechanic Ivan Jambrosic share the passion for bikes. "We sit around a table, and we all have the same ideas. It's magic," says Jeff.
That passion, along with a commitment to doing all the small things consistently right, are the reasons the brothers say they have survived when more than half a dozen cycle shops in Burlington have failed.
"It's a very competitive industry. You have to be on your game all the time," said Victor. "Success as a fisherman, a businessman, an athlete is all about persistence, consistency and pushing through the hard times."
And they've also developed a niche. They don't sell the Sears catalogue bikes you learned to peddle on. Most of the price tags start at $1,500 and climb steadily upward. That's just for the bike out of the box. Most riders want a lot of customization from there. Last year, a custom bike rolled out of the shop at $20,000.
For eight years straight, Neworld has been a top-10 seller of Trek bikes in Canada and the second-best independent dealer in Ontario. Trek is the industry's premier brand. As Victor describes it, Trek is the Nike or Sony of cycling. The Wisconsin-based company has sales of more than $1 billion a year, compared with about $130 million for its nearest competitor.
For the serious gearhead, there is a replica of seven-time Tour de France champ Lance Armstrong's Trek for $12,000. It's lighter than many laptops. The store has already sold one of the three replicas it was allocated by Trek. There are only 12 in all of Canada. Another big seller is Cervelo, a bike made by a Canadian company responsible for the fastest time trial ever. The bikes don't last longer than a week on the store floor, says Victor.
Some Neworld customers have bought a dozen bikes there. There are riders who keep five or six bikes at a time to ride in different weather and on different terrain.
"It's the ultimate toy for some people. We have people who come in here and tell us they've wanted this particular bike for 20 years and now they're buying it for themselves. Some people put all their nickels and dimes away to treat themselves to a dream bike."
There is a huge boom in the popularity of road and off-road cycling, they say. It's attracting people interested in competitive racing, getting fit, finding an environmentally friendly way to commute and those looking to enjoy the growing number of bike paths and simply smell the roses.
The recent national and world racing championships held in Hamilton gave a new cachet to cycling, say the brothers. Where they used to be one of only a handful of people touring local back roads in spandex shorts, there has been an explosion in popularity.
"Kids who used to swing a baseball bat are now pushing the gears," said Victor. Woman are the biggest growth segment in the sport, and boomers and seniors are taking it up, too.
Neworld organizes regular group 60- or 80-kilometre rides twice a week during the cycling season. Many cyclists don't get a chance to ride in packs or to get advice from veterans, says Jeff.
The rides attract a huge age range, says Victor. "People are either spending their allowances or their pensions."
The brothers also run a 100-mile ride in July and a gruelling 285-kilometre tour around the Niagara Peninsula at the end of the season.
Bringing in the spinning gym, along with Pilates and yoga, is designed to attract new customers to the store and to give the regulars a reason to visit during slow fall and winter months, says Jeff. The spinning classes will be geared to serious riders.
"We typically say goodbye to our customers in the fall and cross our fingers they'll come back in the spring. This will keep us in contact with them."
Jeff recalls his much-dreamed-about first bike, which he had to share with his three brothers. It was his ticket to freedom, exploration and independence. He named his shop for that feeling.
It was a combination of "ignorance and passion," laughs Jeff, that convinced him he was ready to open his own bike shop just one year after graduating from Aldershot high school.
He rented a tiny 900-square-foot storefront just a few doors down from his current strip-mall location and next door to his sub-shop high school job. Neworld opened its doors in 1988. Victor worked there part time while still in high school. Their father, who owned a textile business, gave advice.
"It was the proverbial school of hard knocks," recalled Jeff. "I was trying to get the sport off the ground here while racing myself. As the store grew in success, I had to concentrate on that, but the racing was really great experience to bring to my customers."
They can now do in a month the sales they once did in a year. And it's just as fun as it ever was, Jeff says.
"After all these years and all these bikes, everything stops when new stuff comes in. We just want to get it together and try it out."
One focus, one store
Biggest challenge :
Victor: "Staffing can be an issue, especially when there is a team dynamic. It's a bit different when there is a top-down hierarchy. This sport brings a technical requirement, but there are also the personal skills, retail skills and the professionalism that's needed. That's an issue for a small business."
Jeff: "The hours can be exhausting. The sheer energy it requires. There is never a time when you just lock the doors and walk away. The wheels are always spinning."
Biggest surprise :
Jeff: "How much we've grown. Opening this building next door, being recognized by the industry, having such a presence in market share."
Victor: "How much pent-up demand there is for this sport. There is so much out there, and we're trying to harness it."
Best decision :
Jeff: "Buying our location here and building next door. It raises the bar for everybody else. It's going to be a dream store for the cycle lover."
Victor: "Definitely having one location and putting all our efforts here."
Worst decision :
Victor: "Diluting our effort by opening a second store (in Waterdown in the 1990s). It divided our team effort. But it made us more focused and driven. We learned from it."
Jeff: "We see the virtue of being a bigger store now, rather than more locations. When we talk to the biggest vendors in the U.S., they have done the same things we've done and that's great encouragement to us."
Learned the most :
Jeff: "Both Vic and I are very aware of service and having a good experience when we go to a restaurant or go buy a shirt in a store. I learn from those experiences. I learn from the hands-on, retail side."
Victor: "I learned academically in a business administration program at Mohawk and a commerce degree program at Ryerson (University). That brings in some of my strengths."
Best advice given :
Jeff: "Follow your heart. It will always lead to happiness."
Best advice to give :
Victor: "Divide and conquer your tasks, but always work as a team."
Secret to success :
Jeff: "Persistent hard work and motivation."
Victor: "Take calculated risks and invest in your business -- your time, your money, your energy -- and have fun. Keep things light and fun."
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