Local Bike Store's Bet on Downtown Pays Off
May 2nd, 2009
Bingham Cyclery's gamble on a downtown drug infested neighborhood pays off as area realizes rapid improvement
by Richard Markosian
Salt Lake City--Across the street from the brand new 7000 square foot Bingham Cyclery is Utah's most notorious park for drugs, violence, and police raids-- Pioneer Park. The problems associated with Pioneer Park gave Bingham Cyclery owners pause when considering the neighborhood--but their bet on an sketchy area--that has seen rapid improvement--has by all measures paid off: "It was a concern, when we came to see the building. Back in January we saw drug dealers walking around...But the transformation of the park after they installed the [surveillance] cameras has been amazing," said Bingham Cyclery Manager Chris Tolsma.
Tolsma says that their new location has exceeded their expectations. "There is so much life in this area. All of the foot traffic and great food around here has brought a whole new element to the store that we never had before."
Bingham Cyclery was formerly located South of Foothill Village on the upper-east bench of Salt Lake City. Their old location brought in a lot of cyclists due to its proximity to the Bonneville Shoreline Trail. The shop had a loyal customer base from the neighborhood but not many customers who lived outside of Foothill area. Now Tolsma says the majority of his customers stroll in during their lunch break or live in the area condominiums. They see new faces all the time.
Their bet on downtown has paid off. Bingham's new store offers twice as much showroom space as the old building and despite the economic downturn they have seen a large increase in bicycle sales. This is a great transformation considering 10 years ago Bingham's Salt Lake City location was a small neighborhood bike shop, that was known much more for its great mechanics and repair shop than its inventory for new bicycles.
Bingham first move happened five years ago when they relocated their 2100 East location into a less than ideal former bank building. They made the move so they could own rather than rent and put more of an emphasis on sales.
The move worked out despite the difficult building layout. Then one day an investor walked in and asked them how much it would take to purchase the building. "They asked for a huge amount, realizing if the investors accepted their offer they would be required to move."When the offer was accepted we said, we better start looking for a new building." The hunt for a good space where they could retain their loyal clientele was a challenge. Moving into a location with a uncertain future hinges their success on the future of downtown Salt Lake City improvement. While the area they have chosen is improving, according to area police surrounding blocks are still plagued with a thriving drug trade.
It's clear that Bingham's arrival to the Pioneer Park area has opened a new chapter for the neighborhood, which just 20 years ago was considered a lost cause against the war on drugs. Tolsma says he realizes the drug trade hasn't stopped, "they just moved a few blocks away." But at least now they have no concerns that when they offer a test ride, both the customer and bike come back in one piece.
Bingham Cyclery's Success Formula
Tolsma says that the reason for Bingham Cyclery's success over the years has been the owner's conservative yet shrewd money management. Working within their means and maintaining a focus on "providing something for everyone", has helped Bingham to expand to five locations along the Wasatch Front. For the past 15 years Bingham has been systematically purchasing their own retail spaces and getting out of their long-term leases.
excellent bike mechanics and customer service.
Bingham Cyclery was founded in 1962 by Blaine Bingham. the family business is now in its their generation. Today Skylar Bingham is the CEO and maintains complete ownership of the Bingham Cyclery Corporation.
Skyler Bingham's decision to continue to improve locations and properties has helped his business flourish. The proactive developer of the Pioneer Park area conviced Skyler rapid improvements were on the way. The long-term vision of the developer was to transform the area into a "mixed-use: live-work-play setting". While this description sounds like the mantra of every modern developer, the Pioneer Park area had one big advantage over other failed developments: a track-record. In 1997 Tony Caputto's Italian market transformed a vacant Firestone tire store building into a local destination. The success of this store began the transformation of the entire block over the next 12 years into a unique local retail hub. Bingham's presense fits in well with the other unique local businesses.
Bingham's business has always maintained a culture that has allowed for long-term employees. Tolsma says he started as a "bike builder and cardboard breaker."--spending about half of his time building bikes and the other half breaking cardboard boxes. Tolsma management and their new location have realized outstanding sales in the past few months. Bingham's new building has large bay windows that open the entire South-side of their building. Display racks on rollers allow their inventory to easily move outdoors. "We are very excited to see the farmers market start and have vendors and bikes on our patio, said Tolsma.
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