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roadwarrior
@Tonts
Speaking in more general terms than profit/loss, if I were in the same position, I'd aim to encourage a community of cyclists around the bike shop, weekend/weeknight rides, accommodating for novices, be generally the best and most helpful shop going, nice place to be, get a good rep with local clubs. Hopefully word of mouth will then do some of the advertising for them. The shop I use is local to my work and the main 'sales' guy there is always the most friendly, helpful guy, happy to chat about bike stuff and generally a nice chap. Always happy to give them my trade.