Marx Archives - Aberdeen Voice

Defying The Economic Cycle, By Bike

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Jan 272012

In these bleak and pessimistic economic times, it’s always heartening to hear of a thriving business looking to expand. All the better when its success is built on an alternative business model which genuinely appreciates its staff, rewards and motivates them appropriately,and involves them at the core of decision-making. Surely this can’t work in the cut-throat commercial world? Jeremy Miles, MD of the Edinburgh Bicycle Co-operative has proved it can. David Innes cruised alongside him in high gear (definitely NO Lycra though) to ask him how it works.

Expanding? In the current economic climate?

What looks like a sudden announcement of expansion is really a plan we have been quietly executing for just over ten years. For 25 years we only operated in Edinburgh where we built up a £3m store. We decided to expand in 2001 and acquired Cycling World in Aberdeen’s George Street.

By 2011, turnover increased to £12m, with stores operating in Newcastle, Leeds, Manchester and Sheffield. We were developing our online presence at the same time. Our aim was to double in size in each of the two five-year periods – every self-respecting socialist-minded business has to have a five-year plan! These are among the most challenging times traders have ever faced. Our business is no different. Customer spending on discretionary items is down, on bicycles as much as sofas and flat screen TVs. We’re seeing growth, but its hard work to keep that going, although it’s very positive in current conditions.

Our optimism and our ambitions are based of a number of factors. Cycling is enjoying a very positive momentum at present with concerns over health, transport costs, congestion and the environment all helping the industry to grow. We also feel that our co-operative structure presents an alternative to discerning customers who want to spend with a company with real values as well as a genuine focus on high levels of service delivered by owners of the business.

we work within our general vision of doubling turnover every five years.

Look how the Co-op has positioned itself against the corporate strength of the major supermarkets. The Co-op has heavily engaged with its local communities to help fund projects. It projects an image of being off the beaten track in terms of their offer.

Since we face similar challenges as our competitors become more organised and supported financially by private equity, we must also target a particular market where the growth in cycling is focused – in family leisure cycling and commuting.

Our previous expansion plans were about big stores in big cities with the right demographic spread; a fairly rigid plan which worked well for us in good times. The bike market is changing, however, with the development of some huge internet players in Wiggle and Chain Reaction Cycles. Significant retail chains like Evans and Cyclesurgery are expanding rapidly and bicycle retail is very different from even five years ago. We’re also seeing more established brands such as Specialized and Giant opening branded stores, whilst the government-driven Cycle to Work initiative has also helped change the landscape.

Expansion opportunities are broader and more flexible as the customer base widens. Business-to-business relationships develop through government-funded initiatives and the internet offers new ways to market and support the bricks and mortar business. We look to capitalise on these opportunities when they emerge. We don’t have plans for x stores in y years, but we work within our general vision of doubling turnover every five years.

This co-operative structure – how does that work?

Within the spectrum of employee-owned businesses we are a traditional workers’ co-operative, so as hardline as it gets!

We have around 180 employees, full-time and part-time, of whom 135 are co-operative members. Members are invited to join after 12 months service by purchasing a single £2.75 business share. Around 75% of our workforce are owners of the business.

Having secured membership, they’re entitled to receive a share of profits, free shares awarded annually, a single vote on issues put to the membership and the opportunity to be elected to the Board. They have access to communication mechanisms allowing information to move freely from top to bottom and vice versa, ensuring that opinions and ideas are fully utilised. It’s an open and consultative approach to management and operations.

Aside from the ownership model, our business structure is fairly traditional with a board of directors, including an executive management team where I am MD, a group of elected employee directors to represent the membership, and an external non-executive director to provide guidance and expertise. I manage the staff in a conventional manner via Divisional and Department Managers.

This obviously works – tell me why

We’ve always been structured this way. We started out in 1977; seven hippies fixing bikes in a small repair centre in Edinburgh. Two of these hippies are still with us today!

The central philosophy was always to have an alternative view of how a business was structured, but I don’t suppose your readership is all that interested in very deep philosophical musings about the prevailing mood of the 1970s and detailed Marxist rhetoric!

We are very much a business which values its people. We see them as the key asset of the business, so it makes sense that they control the business.

We spend 10% of our targeted profit every year on supporting grass-roots cycling projects

A prime retail challenge is delivering an all-round quality customer experience. To be effective at this, you must ensure that customer-facing staff are heavily engaged with your business. Many retailers struggle, paying minimum wage rates and providing a fairly uninteresting working environment. They turn staff over very regularly.

As a co-operative, we put owners in front of customers in most instances. This makes it much more likely that customers are speaking to someone with a deeply-vested interest in making sure the experience is positive. The fact they are almost always very passionate about the product they are selling helps too!

We see ourselves as much more than just a shop selling bikes and bits. We’re all about added value and the wider customer experience. Promoting cycling as a leisure activity and a genuine alternative mode of transport is at the heart of our vision and mission. We spend 10% of our targeted profit every year on supporting grass-roots cycling projects, from school fairs to individual charity rides through Vietnam. We support key charity-focused cycling events which also promote cycling, for example the Edinburgh to St Andrews Ride and the Great North Ride in Newcastle.

We don’t just write a cheque. We’re hands-on involved, with starting line presence, repair services en route, food stops, and finish line presentation. We’ve run a range of hugely-successful maintenance and training skills classes for customers for years, and have a real commitment to providing repairs services to a high level. Our workshops are prominent in our stores rather than tucked away in a back room.

We see our engagement with customers as a vital part of the character of our business and put huge effort into getting feedback from them. Customers contribute to the content of our catalogues with family photos, and will soon be helping with blogs and social media content.

We have a very loyal base who are genuinely interested in our values and want to be part of our success as a genuine community co-operative.

An Interview With Maggie Craig – Part 1

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Jan 122012

Voice reviewed ‘When The Clyde Ran Red’ a few weeks ago. So impressed was David Innes with Maggie Craig’s excellent take on a vital part of Scottish history, that he spent an afternoon in her cosy kitchen on the wrong side of the Balloch, discussing the book’s background, her passion for the subject, and much more besides. Here is Part One of that interview.

How much of your background is in ‘When The Clyde Ran Red’?

A lot of my background. My dad was very involved with Labour politics and was an Inverness town councillor in the 1940s. He moved to Glasgow and became election agent for Cyril Bence, the Labour MP for Dunbartonshire East after Davie Kirkwood, in the early 1950s.

My dad was born in Coatbridge in 1913, so grew up during the Depression. We were told stories about them going over the farmer’s dyke to nick a few neeps and the farmer turning a blind eye because he knew everyone was really hungry.

In fact my dad’s in the book. I discovered a big pile of my dad’s papers which showed he’d written to the Commissioner of Distressed Areas about the Scottish Allotments Scheme for the Unemployed. He was a great gardener and a railwayman and you know how these two things go together.

People say, “Let’s not talk about politics”, and you think, “If you ignore politics it won’t ignore you”. It was my dad’s lifeblood. I remember him crying about a neighbour’s baby who’d died and they’d no money even for a coffin. This would have been, I suppose, in the early 1930s. They wrapped the baby up in brown paper, and he said, “Tied up like a bloody parcel”, because nobody had any money.

There was always the big hoose and the mine owners. He went apoplectic about Sir Alec Douglas Home, who they were working for at one point, because they were living in the lap of luxury when their workers were living in poverty.

My dad was one of about ten and they were really a bright, clever family, and there was this idea that girls who were clever were going to work in factories at 14 and the boys didn’t get a chance either. It was such a waste of potential.

I remember my aunt telling me about how the doctor would come out. It cost five shillings, but they’d a good doctor who’d say, “I’ll get it next time, Liz”. My aunt says they were on first name terms with the doctor, who must have been an idealistic man who saw himself on the same level as the miners he was treating. When you think of some doctors now who insist on their status, it’s an interesting turnaround.

You grew up in the Glasgow area?

I grew up in Clydebank. My dad then got a job as station master which moved us from Clydebank to Bearsden, quite an interesting culture shock! My mother had come from a farm, and the station house we lived in came with a third of an acre of ground which my dad was proud of. It was semi-rural. He came from Carnwath and loved being in the country.

If you go there now the industry’s gone and it’s back to being a rural area. A lot of these Clydeside places were. There were shipyards and tenements, but you went up to the farm to buy eggs. I think there was a love of the land even in industrial areas.

My mother’s from Barthol Chapel on the Haddo House Estate and she used to talk about Lord and Lady Aberdeen. I don’t think her family was as poor as my dad’s, but she told me that her mother sometimes had to sell their butter and buy margarine. That really hit me – the one benefit of being on the land is that your children are going to have healthy food, but that wasn’t always the case.

I think their rural background helped them speak fantastic Scots. There are words my mother used that we still use, like “fair forfochen”. Because my dad came from what he called the Upper Ward of Lanarkshire he had that rich Scots and that’s all running through the book too.

I think there’s an obvious really good prose rhythm in the book, and that possibly explains it, but it’s your passion for the subject that really shines through.

I grew up with it and thought a couple of years ago that it was time I wrote another non-fiction book. I thought, “What do I feel passionately about?” and the book’s the answer.

I went and looked at some of the other books and some of them are pretty dreadful. The Legend of Red Clydeside is hard going, and you come up against the party line quite often. The Marx Memorial Library gave me permission to quote from Helen Crawford which a lot of people said they wouldn’t allow.

You also have to make a judgement about what’s been written and have to say to yourself when reading some of the memoirs, “You’re presenting yourself in a bit of a heroic light here”. I love the wee vignettes, and I don’t think they’re frivolous. Like when James Maxton gives Davie Kirkwood a clean hanky when he gets arrested because he always liked to have one. Somehow you think, “Well, that’s true!”

I think I had a passion to write about it because it seems to have been forgotten. People are talking about austerity nowadays, and I think, “Not yet”. We’re not at the level of poverty where people couldn’t go to work because they didn’t have a pair of shoes, or they had to share a pair of shoes with their sister.

We’re now seeing the prospect of our children doing less well than we did, which is very hard because you want your children to do better than you’ve done. Both my husband and myself are working class kids who’ve made good but you feel as though you’re almost being hit for that – the idea that if you can afford to send your kids to university, you have to bear this cost. This is fine, but you don’t have the cushion that someone like David Cameron has. I had to have a full grant to go to university otherwise I couldn’t have gone.

Next week: The author speaks about her books on the Jacobites, ‘Bare-Arsed Banditti: The Men of the ‘45’ and ‘Damn Rebel Bitches; The Women of the ‘45’, and how this period of Scottish history is misunderstood and worthy of re-evaluation.

Those of you who want to meet Maggie and hear a bit more about her influences have the opportunity on Saturday 21 January when she and fellow writer Kenneth Steven will be at The Central Library, Aberdeen at 11.00 to talk about their love of books.