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By Tom Demerly for tomdemerly.com

Two bicycle specialty stores closed in Metro Detroit this year. Three more suddenly changed “ownership” in November on their way to eventual closure.

On the national scale, Advanced Sport Enterprises, parent company to Performance Bicycle and Bike Nashbar, filed Chapter 11 bankruptcy last month.

After decades of failure to adapt, Southeastern Michigan bicycle retail is in a brutal phase of enforced transition. Despite an overall economic boom many bike shops are a bust. Southeastern Michigan bike store closures and hasty ownership spin-offs that precede further closings confirm that.

The questions are; how did this happen; how can it be avoided and what will the industry look like once the rules of business exact their toll?

Like most significant shifts in business there is no singular cause.  A conspiracy of factors combines to weigh heavily on traditional bicycle retail. The reality that the industry has ignored these factors for so long manifests itself in this crisis.

Not every bicycle retailer is in crisis though, and some old-skool bike shops not only survive but are capitalizing on the increasing failures of retailers who thought they knew it all but had neither solid financials or enough vision to adapt in the changing retail landscape.

Southeastern Michigan bike shops like Jack’s Bicycle and Fitness, Roll Models in Allen Park, Michigan, Brick Wheels in Traverse City and Wheels in Motion in Ann Arbor are still there, still doing business and quietly surviving and growing as the others collapse around them.

In the renaissance of downtown Detroit, a new generation of bike family businesses has emerged on the shoulders of men like Jon Hughes of Downtown Ferndale and Downtown Detroit bike shops. Hughes also leads the family effort to grow the Lexus Velodrome and launch a new demi-empire in media and cycling in post-recession Detroit. He comes from a dynasty of bicycle business that stretches back three generations to Mike Walden and the formation of the country’s second oldest cycling club, the Wolverines. Even Bob Akers, who runs the decades-old, dingy, crumbling International Bike Shop in Garden City has survived as the shiny newcomers who thought they knew it all have tumbled.

Why do some shops survive while others fail? One factor common in the surviving Michigan bike retailers is they own their own real estate. But the ingredients for success, not just survival, are more complex than just owning your building.

Harvard MBAs don’t start bike shops. Bike shop owners don’t have business degrees. They start bike shops because they love bikes or have no other opportunity. They’re hobbyists. Not businessmen. The barriers to entry are low. Got $100K? You can open a bike shop. You’ll never tell a bike shop owner he doesn’t know business. As far as bicycle retail store owners are concerned, they are experts at retail. The crash of Michigan high-end specialty retailers proves otherwise.

I was this guy.  I lost my own store after 17 successful years during the recession. Then, like a scene from a movie where the plot repeats again and again, I went to work for two other retailers around the U.S. who, like me, thought they knew everything and couldn’t be told anything. They’re gone now too. More will follow.

Failure is only failure if you fail to learn. But in bicycle retail, no one listens. The first bike shop I worked for when I was 15 years old went out of business because the owners failed to adapt. The last bike shop I worked for four decades later did exactly the same thing. The owners refused to adapt. In a repetitive pantomime, I tried to convince the owners of the last shop I worked at to move the cash register to facilitate better customer traffic flow. It was a minor change that may have resulted in a minor improvement. I tried for a year. They never moved it. They went out of business months after I finally quit in frustration and left to work in another industry.

I take some small satisfaction in knowing the store that lasted the longest was mine. But business is pass/fail. You can run a successful business for 6,205 days like I did, but if you fail on the 6,206th day, you are a failure.

The first lesson I learned in losing my own store is you have to own your failure. Mine was my fault. While there were factors including a global recession that contributed to my 17-year-old store failing, I could have moderated them. Others did. I wasn’t smart enough or humble enough at the time. Some people pay college tuition for an education. I paid in bankruptcies and a modern day “Grapes of Wrath” by losing everything. While the second way may be a more durable education, it’s also more painful.

I went on to work for two more bike retail owners who made exactly the same mistakes I did while ignoring the changes that could have saved them. But bike shop owners don’t listen.

The specifics on what is killing some of Michigan’s bicycle retailers is a fascinating case study in the evolution of business that could fill a book. Bike shop owners and bike shops are, in many ways, indicative of the American economic condition. They are the epitome of small business America. As the small, independent bike goes, so goes all of small retail- good and bad. Small restaurants, pet stores, book retail, independent jewelers and all small retail can learn something from the enforced evolution and bizarre non-evolution of bicycle retail.

Small bicycle retail has been quick to scapegoat the big, ugly mega-retailer and the .com as the reason for their bust. That is a lie. In the broad sense, bicycle retailers are killing themselves by failing to adapt and innovate. They do it in hundreds of small ways every day they continue to do the same tired things over and over and over. Even the bicycle retailers who have survived could do better. For most of the survivors a major reason they still exist is they own their own real estate and remain impervious to swings in the volatile southeastern Michigan economy. But even their future is increasingly in doubt as forward-thinking innovators understand new opportunities in the age of Amazon One-Click.

What will happen to Michigan small bicycle retail? One thing is certain: it will continue to change at a rate that outpaces the ability of most shop owners to adapt. That means we’ll see more southeastern Michigan bike shops closing. Unless they learn from someone’s mistakes the cycle of failure in Michigan cycling retail will continue.

 


 

Tom Demerly is a 42-year bicycle industry veteran who owned his own business for 17 years. Today he is a defense and aviation analyst for several international publications including TheAviationist.com published in Rome, Italy.

 

 

 

 

 

 

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By Tom Demerly

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The greatest fear I had going into Jack Ryan: Shadow Recruit was that it would be a sad eulogy to Tom Clancy’s genius. I’m pleasantly surprised to be wrong.

Director Kenneth Branagh did his homework and borrowed subtle and successful elements from each of the Jason Bourne, James Bond, Mission Impossible and Tom Clancy franchises to weave a surprisingly good story thread that is visually well done.

Jack Ryan: Shadow Recruit is a tight and snappy spy thriller. It’s well written, tightly shown and quickly paced. Camera, sound and production techniques are tasteful and pay homage to its influences. Very little is over blown. Even the sets are well dressed and chosen.

Writers David Koepp and Adam Cozad used Tom Clancy’s character Jack Ryan with reverence for Clancy’s original vision of Dr. Ryan, the nerdy analyst turned reluctant but capable action hero.

Jack Ryan gets his first kill James Bond style, in a bathroom.

Jack Ryan gets his first kill James Bond style, in a bathroom.

Chris Pine as Jack Ryan is fantastic as is Kevin Costner as Thomas Harper, his CIA boss. And because no great spy film is a success without great villains, it is a pleasure to have Kenneth Branagh as the dangerous Russian, Viktor Cherevin.

The plot hits ominously close to home, literally and figuratively, with a story line that weaves into the little known world of economic warfare. Villains originate from Dearborn, Michigan in the shadow of Ford World Headquarters. The plan is to crash the stock market in a combined terror and economic attack; a scenario everyone hopes will remain fiction.

But Tom Clancy’s fiction has an ominous way of weaving its way into the headlines.

Jack Ryan: Shadow Recruit never sags and builds well to a strong climax. There are a few corny moments but remember, this isn’t a strict Clancy plot. It weaves influences from every corner of the spy thriller genre, and does it with respect and tribute to each. While these stories do become somewhat cookie-cutter this one is flavored uniquely and with enough craft to make it a snappy 105-minutes. And yes, there is a sequel planned that hopefully continues with this fine cast in the upcoming Without Remorse.

Tom Clancy would have loved Jack Ryan: Shadow Recruit. It is tight, quick and nice looking. This is a pleasant surprise after the painful loss of a great author and storyteller who created these characters. That new writers are able to execute on Clancy’s vision confirms their talent and reverence for his mastery.

Taking to the streets with a nod to Bourne franchise in "Shadow Recruit".

Taking to the streets with a nod to Bourne franchise in “Shadow Recruit”.

By Tom Demerly.

Cmdr. Brian W. Sebenaler, commanding officer of Naval Special Warfare Basic Training Command (BTC) speaks to members and guests during an establishment ceremony for the command held at Naval Amphibious Base Coronado. BTC reports to the Naval Special Warfare Center and is charged with the basic training of all naval special warfare forces, including both Navy SEAL and special warfare combatant-craft crewman (SWCC) basic training programs, which include the BUD/S course and SEAL qualification training for SEAL candidates, and basic crewmen training and crewmen qualification training for SWCC candidates. (U.S. Navy photo by Mass Communication Specialist 2nd Class Kevin S. Beauchamp/Released)

Cmdr. Brian W. Sebenaler, commanding officer of Naval Special Warfare Basic Training Command (BTC) speaks at Naval Amphibious Base Coronado. (U.S. Navy photo by Mass Communication Specialist 2nd Class Kevin S. Beauchamp)

52 years ago today President John F. Kennedy signed into law the formation of a new special operations unit called the U.S. Navy SEa, Air and Land” or “SE.A.L Teams”; the U.S. Naval Special Warfare Teams, the Navy SEALs.

No military unit is more misunderstood, misrepresented or misquoted. The Naval Special Warfare Teams are also justifiably celebrated as one of the most vigorous, capable and successful combat units in the entire U.S. arsenal.

Over the past 30 years I’ve been occasionally privileged to work and socialize with members of the Naval Special Warfare community. I’ve never failed to be impressed by their internal standards, training and capabilities. And by their humility.

The history books tell you the Naval Special Warfare Teams were born from the Underwater Demolition Teams, the “Frogmen”. Since then their mission and capabilities have expanded to include intelligence gathering, direct action, rescue, security, reconnaissance, technical and operational development and a host of other missions so diverse it has presented major challenges to these units.

(left) Athletes participate in the Navy SEAL Fitness Challenge in Dearborn, Michigan. (right) Naval Special Warfare Operator Mitch Hall wins the annual SuperSEAL triathlon in Coronado, California. (Photos by Tom Demerly).

(left) Athletes participate in the Navy SEAL Fitness Challenge in Dearborn, Michigan. (right) Naval Special Warfare Operator Mitch Hall wins the annual SuperSEAL triathlon in Coronado, California. (Photos by Tom Demerly).

Another great challenge facing the Naval Special Warfare community is the media’s love affair with them. Officially and unofficially the Navy has fed into this, with everything from support of Hollywood film projects to unsanctioned technical support of computer games and thousands of books.  In 2008 and 2009 Naval Special Warfare promoted a national fitness competition called the “Navy SEAL Fitness Challenge”. Naval Special Warfare has supported an annual triathlon called “SuperSEAL” and “Superfrog”.  Naval Special Warfare also sponsored the Ironman World Championship along with several triathletes who are active members of The Teams.  Next week a new Hollywood movie, “Lone Survivor”, joins over 40 popular movies featuring Naval Special Warfare operators as diverse as “G.I. Jane”, “Transformers” and “Act of Valor” that featured cast members from the Naval Special Warfare teams.

In the past decade there has been tremendous growth in the Naval Special Warfare community.  The last time I visited the Phil Bucklew Naval Special Warfare Center in Coronado, California during 2007 there was a construction project underway to house new Basic Underwater Demolition School students and expanded administration activities.

Naval Special Warfare has also seen its share of controversy.  In 2010 a west coast Naval Special Warfare operator and instructor was arrested for trafficking weapons smuggled from Afghanistan and sentenced to over 17 years in prison.  In 2013 Esquire magazine ran a feature story alleged to be an interview with a Naval Special Warfare Operator who claimed to have killed Osama bin Laden during a U.S. raid on Pakistan. The interview was sharply critical of treatment of Naval Special Warfare veterans.

What I’ve learned from the Naval Special Warfare Teams and their members is that they are human. While they are exceptionally dedicated, incredibly well trained and maintain an impressive level of proficiency in a vast array of skill sets they still suffer the fallibilities of the common man. They have difficulty in personal relationships like the rest of us and struggle with divorce and emotional challenges.

(left) At the Phil H. Bucklew Naval Special Warfare Center for SuperSEAL triathlon. (center) On board an 11-meter RIB off Coronado Island. (right) With Naval Special Warfare Development Group original member and author Chuck Pfarrer

(left) At the Phil H. Bucklew Naval Special Warfare Center for SuperSEAL triathlon. (center) On board an 11-meter RIB off Coronado Island. (right) With Naval Special Warfare Development Group original member and author Chuck Pfarrer.

One of many things that makes them exceptional is they do all this set against the backdrop of a necessity to maintain operational security and rarely disclose their true challenges among non-military relationships. This makes their tremendous burden even greater.

Naval Special Warfare is a community worthy of effusive praise and recognition. They have shouldered a mighty share of the burden of the Vietnam Conflict, numerous “peace time” actions, Operation Iraqi Freedom, the Global War on Terror and other conflicts while maintaining a level of inter-unit quality almost unmatched in the world.  On their 52nd birthday it’s worth acknowledging their contribution.

Authors Note: If you are a fan of books about the U.S. Naval Special Warfare Teams you may find my review for MILTECHREV.com of Greg E. Mathieson Sr. and David Gatley’s impressive new book, Naval Special Warfare here of interest. It is the definitive work on Naval Special Warfare available to the public:

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2014 New Year's fireworks on the Burj Khalifa, Dhubai.

2014 New Year’s fireworks on the Burj Khalifa, Dhubai.

1. You do not know when you will die.

2. It will be sooner than you expect.

3. There will be things you wish you had done.

4. Not fearing death makes you more alive.

5. You will fail in life. Try again. Don’t give up.

6. Don’t fear failure. Instead, fear not trying.

7. Happiness is a balance of striving for new and being content with now. Do both.

8. True friends are one of the most important things.

9. Understand what you can control and control it vigorously. Let the rest go.

10. Plan for later but live for now

By Tom Demerly.

Photo Credit: Collin Rodefer via Viral Nova.

Photo Credit: Collin Rodefer via Viral Nova.

The year I was born, 1961, journalist John Howard Griffin disguised himself as an African-American man riding buses through the segregated south. He chronicled the racism, discrimination and bigotry he experienced in the masterwork, Black Like Me.

Fast-forward 51 years and our country has made significant progress in all areas of equality.

Mostly.

I’m a 52-year old Caucasian male. Several months ago I left a good full time job as a writer in California to assist in a business a friend opened. Before the new business became fully operational my plan was to get another full time job in retail management, writing or other field I’ve had success in. I have a college education, a good work history and a strong resume in two different industries.

I filled out over 100 online applications that asked my name and other basic information. The questions included, as an “option”, my age. Most also asked me if I would answer optional questions about race and ethnic origin. I always did. I figured the more complete my application, the better my chances.

I got one interview. They weren’t interested.

In reviewing my experience, qualifications and accomplishments and also counting the demographic of the staff in a few of the businesses I was applying for I realized something. I am now a member of a new undesirable demographic, the white, middle-aged male.

My experience does not compare to the brutal racism and discrimination of African-Americans in the Deep South during the 1960’s. It does not. I have never been refused service in a restaurant, relegated to poor seating on public transportation or threatened with lynching.

Quite the opposite in fact. Because I am a well-spoken white middle-aged man everyone assumes I am well off. I get good seats in restaurants; great service and young people treat me with respect. They assume when they see me that I own a car, a house, have a good job. They pre-judge that. I have none of those things.

What I do have is a new appreciation for the type of silent, antiseptic discrimination afforded by online job applications and data-sorting algorithms. They compare key words and “optional” responses to a predetermined desirable profile of the best hire. Regardless of my experience, results, qualifications or talent my key words may not match their key words. So, in a competitive job search something in my key words on an automated job application is kicking my applications out.

Something. I wonder what that is…

I now have the slightest notion of what being discriminated against may be like. I don’t pretend to understand the full gravity of discrimination in our historical context. But, I couldn’t help but reflect on the Nelson Mandela quote, “For to be free is not merely to cast off one’s chains, but to live in a way that respects and enhances the freedom of others.”

If we claim to have made progress against discrimination in the United States then any mechanism that facilitates it based on age, race, national origin or ethnicity is wrong. That an online job application can even query this data as an “option” is wrong.

If we’re going to rest on the laurels of reduced racism and improved equality it means we favor no one, exclude no one, either in person or through an antiseptic, automated system. I don’t think we’re there yet. That means we need to improve our standards of equality in all areas, including job searches and candidate screening.

Until we do, we’re simply trading one version of discrimination for another.

By Tom Demerly.

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When I woke up in the room I had no idea where I was but something smelled like dust and urine.

There was a man I had never seen before asleep in the twin bed next to the one I was in. He snored.

I sat up, put my feet on the floor and saw they were in decent shape, slightly swollen, skin mostly intact, nine toenails, only one gone. Much better than last time. My mouth was dry. I had a headache. I could stand on my own though.

It took two showers to get all the dust, sand, grime, urine, blood, smoke, stale sunscreen and even fabric bits off of me. I was thankful I didn’t run out of hot water. There were some dead insects in my hair that rinsed out. I took mouthfuls of warm water from the shower. Brushed my teeth four times. After I threw out the clothing that was producing the smell of piss and dust in the room I actually felt clean.

Petra, Jordan, 9 November, 2001; 105.38 miles from the Gaza Strip, 168 miles (by helicopter) on heading 24.1 degrees to the Syrian border, 267.16 miles on heading 55.4 degrees to Iraq.

The Jordan Telecom Desert Cup was a 105-mile non-stop running race from Wadi Rum to Petra, Jordan. I had just finished as the top American, or the second American, I don’t remember which. I had informally allied with a man named Andrew during the previous night. He was a soft-core pornographer from South Africa.

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Andrew and I had a mutual interest in racing together. As the youngest male in the race at 22 he was competing for a special prize at the finish line. I had an interest in being the top U.S. finisher. If we worked together to keep each other on course, awake and from freezing to death in the high desert during the night, then made a 30-mile dash at sunrise into Petra we would each achieve our independent goals.

As we trotted into the desert night, packs on our backs, Andrew recounted lurid tales of his business to keep us awake. He met an opulently configured, 18-year old aspiring young lass he described as a… “milk maid”, apparently a common South African colloquialism. The pair drove her father’s expensive Land Rover to the beach one night where she intended to “audition”. Apparently her performance was so commanding that Andrew neglected to notice the tide coming in. It swamped their Land Rover. They only noticed when it began to float and teeter. They were forced to immediately abandon the vehicle, sans apparel, before it capsized. They were left naked on the beach with a long walk ahead of them. Andrew volunteered for the nude jog for help while the young lady searched the tide for swaddling clothes. He considered it training for this race.

It was so cold in the freezing, high desert wind just before dawn that we stopped at a nomadic encampment and asked to roll ourselves up in their rugs for warmth. The incredulous Bedouins obliged and we made ourselves into a kind of human shawarma-wrap in their tent carpets. I promptly passed out. Andrew did too. We slept for over an hour.

Just before we arrived at the finish line we descended a series of ancient steps carved into the wall of a deep desert wadi or canyon. They led to the Lost City of Petra. Jesus Christ had walked these steps. It was said that if you descend these steps you are cleansed of your sins. I could use that.

I remembered we were lunching with staff from the U.S. Embassy in Syria. After I dressed and returned from lunch I learned the man in my room was a U.S. helicopter pilot, and this adventure had only just started.

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By Tom Demerly.ap_twinkies_comeback_jt_130623_wgOwn it.

Before you can change it, you have to own it. Owning your failures is the first part in not repeating them. Understand that owning your failures may be different from fixing them. Some failures can’t be fixed, they can only be owned. The difference is taking a hard look in the mirror and understanding what you did to fail in the first place so you never repeat it. Making excuses and blaming others doesn’t work.

Dissect it.

Once you own your failure you can examine it in a forensic manner. What did you do wrong? Hindsight is 20/20. A detailed accounting of what got you into failure is the second step in climbing out of it and, most importantly, avoiding it again.

One warning: Avoid the paralysis of analysis. Once you dissect your failure and own it you must have control over it. It can’t own you through fear. The perspective of friends and associates can help with this. Understand what things are inside your “sphere of influence” (Stephen R. Covey, The Seven Habits of Highly Successful People) and what lies outside it. Control what you can control and let the rest go.

Get to Work.

There is only one way back from failure: Hard work. This means work without pay, work without sleep, work without adequate food, work without convenient transportation and work without the things that make work easy. It’s just ditch digging. You may need to work in an austere environment and not make excuses while doing it. Accept that. In fact, embrace it. This is the filter through which you must pass to achieve success again and the reason why few people do. They simply aren’t tough enough.

No excuses, no shortcuts. Hard work, measured risk and good decisions led to the only American to ever win the Tour de France, Greg LeMond's, spectacular victory in 1989.

No excuses, no shortcuts. Hard work, measured risk and good decisions led to the only American to ever win the Tour de France, Greg LeMond’s, spectacular victory in 1989.

Except in dire need (such as feeding children), avoid government social programs to assist you. They are time consuming to apply for and laden with bureaucracy. You are better served working a minimum wage job. This is part of the axiom in any survival situation that following the crowd will make you a refuge. Refuges don’t have control of their future. They are victims. The real danger of reliance on social programs is that once you get on them it could be hard to get off.

Don’t Compare Your Situation to Others.

When you own your situation you don’t look at other people and feel sorry for yourself. Instead, you celebrate the successes of others and take inspiration and hope from them. They are a source of strength. Be focused on your own life and goals. Don’t permit distractions. Maintain a “glass half full” mentality that author Stephen Covey called the “abundance mentality”.

Network.

While it’s tempting to crawl into a hole and hide when you fail, resist that temptation. Instead, show others how proactive and vigorous you are. Instead of just asking for help, ask to help them. You always have something to offer even if it is shoveling snow or listening to someone’s problems. Helping others boosts your self worth and keeps you positive. Remember that no job is beneath you. Even if you were the owner of a million dollar company and you land a job cleaning toilets treat those toilets as your business and a reflection of yourself. Make them the cleanest, best toilets you know how and find ways to improve on that. Always strive. Never settle.