By: Greg Koch
First and foremost, thank you for the overwhelming support for my last post. It wasn't easy to write, but the response has been incredibly humbling and supportive. I want to provide more details today because our business, and many other local businesses, need your sustained patronage. Here are a few points to expand on from my previous post, especially relevant as Amazon Prime Days approach. Supporting Local Businesses I would be willing to bet you've heard this phrase, “A rising tide lifts all boats.” My call to action is to give local businesses a chance to earn your dollars. At 605 Running Company, we know that running can be intimidating. Yet, the benefits of a healthy running community are vast. Did you know about seventy percent of people wear the wrong size shoe? The running shoe industry is huge, and even if you're not a runner, being well-fit for shoes is beneficial. This is why we exist. Additionally, some of the most popular brands in fashion got started in running (Hoka, ON, some brand with a famous logo ....) now is your chance to see the next trend and shop with us at 605 Running Company. During the pandemic, there was a strong push to support local businesses. Has this engagement faded in just a few short years? Early responses to my viral post suggest no. Many retailers have thanked me and reported an uptick in business due to the coverage. Shopping local stimulates economies and supports the American dream. Shopping local is a cultural shift that shapes a community. Online Shopping: The Local Alternative to Prime Days Yes, online shopping impacts markets, and the convenience of next-day delivery from giants like Amazon is undeniable. With Prime Days here, it's tempting to make purchases there, but I'd like to remind you that many local stores, including 605 Running Company, have robust online platforms that offer similar conveniences. You can shop our inventory and our vendors' products with options for in-store pickup or shipping. Supporting local businesses online still counts as shopping local (as long as you make those purchases on our sites). When you purchase from 605 Running Company’s online store, you support a local business that contributes to the community, rather than sending your dollars out of state or even out of the country. Here’s how shopping local online helps:
As a special thank you, we’re offering an online coupon worth 15% off purchases. Use the code "LOCAL" at checkout on shop.run605.com to save. Rent and Expenses Every business owner will tell you that rent is too high, but it's a part of doing business. Our top three expenses are rent, payroll, and cost of goods. We signed up for our rent because we believe in the value we offer. The point of my editorial is that not enough people are choosing to shop locally. Even the smallest purchases at local stores make a big impact. Politics My conversation is about choice—where we choose to spend our dollars. There's a place for politics, but not at the running store. After ten years in business we've operated under multiple administrations at every level of government. Truthfully it hasn't made much of a difference who is in office - retail business is hard work. Our retail struggles are not about politics but about community support. When folks choose to shop local, the entire community thrives. Isolation and Community Support In my previous writing, I shared feelings of isolation. Many local businesses feel the same. For those feeling isolated, The Helpline Center offers valuable resources, including the 988 number. You are not alone. Positive Outlook and Future Plans Customer Experience: We train our team to create a welcoming environment and offer solution-oriented service. To that point we are also working with Downtown Sioux Falls to create a unique secret shopper program. Our store recently was named a 2024 Best Running Store winner by The Running Event. This included a study on our wages, benefits, community support, and a national secret shopper program. We are committed to service. Community Events: Registration is open for the 605 Trail Race Festival. Soon, we'll open registration for our 4.37 Community Run supporting the 437 Project, our Trick or Treat Run supporting The Special Olympics of South Dakota, and the Gobble Wobble 10k supporting The Banquet. The Future: Our stores future remains uncertain. What I can tell our readers is that I personally don't have a Plan B other than 605 Running Company. That being said I cannot risk further financial hardship on my family to fulfill a business vision. These coming months are critical for our future and that means our sales have to be strong to survive. Because I'm not one to just call out problems I've got a list of action items every reader can partake in. Call to Action
This business and this community mean the world to me and to see both thrive is my goal. Sioux Falls is truly a great place to live and to work. I know times are difficult for a lot of folks. We are not looking for handouts, business advise, or marketing gurus. We just want the opportunity to sell you shoes, clothes and gear from great brands. Thank you for being part of our journey. Let's work together to ensure 605 Running Company remains a vibrant part of our community for years to come.
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By: Greg Koch
When I started at 605 Running Company, a dream was shared with me by The Watley Brothers. They cast a vision that was simply intoxicating. This business connected with me in such a way that it completely changed the trajectory of my career. The vision was as follows. Support the Community with Compassion and Expertise: We strive to be more than just a retail store; we aim to be a cornerstone of the community in Sioux Falls. Our goal is to provide not only top-quality products but also expert advice, support, and a welcoming environment for every health journey. Be a Vessel for Philanthropy: Giving back is at the heart of what we do. We are committed to supporting local charities, sponsoring community events, and using our platform to make a positive impact on Sioux Falls. Create Jobs and Provide Real-Life Experience: We believe in investing in people. By creating job opportunities, especially for young adults, we offer valuable real-world experience that helps shape future careers. Our commitment to staff development ensures our team provides exceptional service and grows within the community. As we approach our ten-year anniversary on July 14th, we find ourselves at a critical crossroads. This milestone is bittersweet; we celebrate a decade of serving the Sioux Falls community while facing the reality that our business is on the brink. Simply put, if we don’t improve sales, we will not be here. For years, we’ve been asked how business is going. Here’s the 2024 truth: Our retail business isn't making money. Despite our best efforts, our retail operations are struggling to turn a profit. We’ve strategized, tweaked, evolved, moved, added services, expanded, run promotions, and so much more. You name it, we’ve tried it to make our stores appealing to shoppers in Sioux Falls. We’ve had highs and lows, but retail has always been a challenge. Our ratings, reviews, and awards speak highly of the service we provide. Our team has attended additional training and coaching in every aspect of our business. We keep products in stock and available so that we can be solution-oriented when a customer walks in the door. Our goal has always been to listen to the needs of our customers and provide them with a solution today. It’s just all very hard. We face tough competition, and Sioux Falls is a saturated market. The bottom line is that not enough folks are shopping with us. We’re not getting enough foot traffic at either of our locations, especially at our new store The Bridges. Not only are we not hitting our growth goals, but we are down in sales compared to last year when we had just one store. Over the years, we have positioned our business in some of the highest traffic areas in town. Retail has always been a struggle, and it hasn’t mattered if we were on Phillips Avenue, Minnesota Avenue, or Western Avenue—sales have lagged everywhere that we’ve set up shop. We’ve added parking, remodeled, run sales, endured construction projects, put on races, and organized group runs. We’ve done it all. We’ve advertised on billboards, radio, social media, TV, Google, YouTube, magazines, and with posters around town. We’ve donated dollars, invested in others, and tried everything we can to stay afloat. Yet, for every dollar we earn, we spend three. While our coaching and events have been profitable at times, they haven’t been consistent or generated enough revenue to cover our retail operations. The low retail turn rate and insufficient margins are not enough. One side of the business can’t support itself and the other side of the operation. Addressing Common Misconceptions We Are Too Expensive: We don’t set our prices. We follow MAP (Minimum Advertised Pricing), an agreement with our vendors. The price you see at our shop is the same price from brands like Hoka, ON, New Balance, Saucony, Lululemon, and every other brand we carry. We even offer rewards programs and price match any advertised price for the same product. Shopping with us has its advantages, including personalized service and community support. Our Shop is Hard to Find or Isn’t Open: We have two stores, both with FREE parking. One is located in Downtown Sioux Falls and the other at 57th Street and Western Avenue, one of the busiest intersections in town. You can park right in front of either door. Additionally, both stores are open seven days a week, and we have a robust online presence, allowing you to shop with us 24/7, 365 days a year. We Don’t Have the Brands, Products, or Sizes You Want: While we might not offer every single brand available on the market, we do have a wide range of options including trail shoes, hydration gear, clothes, super shoes, track spikes, cross country spikes, daily trainers, walking shoes, gym shoes, and more. We have something for every lifestyle. Keeping up with product trends is nearly impossible, but our job is to have a solution that works. It might not be the up-to-the-minute option, but it works and can be bought from us. And when you buy our options, it helps our business. We can special order products and we value that option, but it isn’t as great as selling what we already have. Discounts and Return Policy: We match any advertised discounts or sales, including those for military, first responders, and medical personnel. Our return policy is excellent. We want you to swap products first to ensure you have the best experience. We also offer store credit and cash returns if needed. We are a service- and experience-oriented business built on relationships. We are here not just for today’s transaction but to support you on your health and wellness journey. Our Commitment One thing we’ve always prided ourselves on is recruiting and retaining our staff. Most of our crew have been with us for multiple years. We know our customers by name, and we’ve shared in countless journeys together. We regularly train on our customer service skills and study markets and trends. Additionally, we provide a first job experience for young adults in our community. As a community leader, I understand the importance of giving young people an opportunity to learn and grow. I studied education and spent eleven years working with youth at the Sioux Falls Family YMCA. Too often, the expectation for young people is unreasonable. We train our team well and provide them with opportunities to figure things out on their own, learning through doing, sometimes even knowing that they might not get everything right. We all make mistakes, but how we learn from them is critical. Showing grace in the workplace is essential for us. If things don’t change, it is time to imagine a 605 Running Company without a retail presence in Sioux Falls. When you read that, how does it make you feel? Would you miss our stores and the things we provide? That is the reality we are living in right now. A Personal Note As the Minority Owner of this business, believe me, this isn't the way I want to celebrate both my birthday and Independence Day. I'm proud to be an American, and I believe we live in a country that fully supports entrepreneurship, hard work, and capitalism. I'm not writing this post to ask for a handout. I take full responsibility for our business decisions. From the outside looking in, most people agree that we have done an admirable job in this community. From the inside looking out, we are drowning and isolated. The reality is we have not been self-seeking, we have not looked out for what is best for us as owners, we have given first when we had nothing to give. Our solutions have included longer working hours and more capital investment. Trust me we are well aware of how unhealthy that sounds. Our dream might not be sustainable long term unless we can change the tide. A Call to Action As we celebrate our ten-year anniversary, we’re reaching out to you, our community, to share this struggle and to ask for your support. If you believe in what we’ve been doing, if our presence has made a positive impact on your life or the community, please help us by shopping with us, spreading the word, and showing your support in any way you can. We want to continue serving Sioux Falls, but we need your help to keep going. I’m not asking for marketing tips, financing, or business advice. I just want you to let my team earn your business. The folks that work here are truly exceptional, and I believe in them. Experience what our fit process is all about. Try our products and trust us to journey with you through this adventure we call life. Let’s do it in comfortable athletic shoes and clothes, preferably. Thank you for being a part of our journey. Let's work together to ensure 605 Running Company remains a vibrant part of our community for years to come. Greg Koch - Owner - 605 Running Company
This weekend, The Bridges is closed because we are "short-staffed." While it's true that I wish we could maintain regular business hours, is 605 Running Company truly short-staffed, or are we just incredibly busy? Today, we timed a 5K in Harrisburg, timed a triathlon in Mitchell, hosted the 1st Saturday Group Run at The Cookie Jar, had a coach at a race in Viborg, and kept our Downtown store open. We describe our business as an ecosystem, but we are often judged solely by our sales, especially our weekend sales. This makes weekends like this one bittersweet. We want to serve our customers at our shops, but when the community is out being active, we need to meet them where they are. Unfortunately, this means not directly selling them shoes and gear all the time. Some days, I wonder if we have spread ourselves too thin. We offer coaching, race timing, manage races, have a race crew/team, and operate two stores. The bottom line is we can do so many things because of one thing: SALES. If I'm being honest, we need to make more sales. Sioux Falls is an incredibly saturated market for running shoes. Without much thought, I can name five stores not named 605 that sell the same products as us. Even with our record growth, this isn't a good formula for success. While I often claim to be a low-ego guy, in this area, I have a lot of pride. I'm confident that our sales floor team provides the best fitting experience in town for shoes and gear. We know that other businesses care about our community, and we strive to do our part by listening to and serving our community whenever opportunities arise. Take race timing, for example. Chip timing is a significant and valuable service, but it comes with its costs. You'd be shocked at our wireless bill. While we have some great races in town, we've noticed a decline in participants at many events in and around Sioux Falls. This decline is partly due to the pandemic and partly due to past business practices that may have left a negative impression. It's clear from my travels timing races across the state that our community has faced challenges. Unfortunately, this has affected everyone, and many events didn't survive. Still, some local races have opted to skip timing and just have a "fun run." While fun runs have their place, let's be real: timing is a critical component for a successful event. It provides accurate results, adds a competitive element, and enhances the overall experience for participants. Proper timing can attract more serious runners, boost participation numbers, and ensure the event's reputation for quality. That's why we entered the race timing business. It wasn't part of our original plan, and we didn't intend to become independent contractors timing races. It was a challenge presented to us, and after years of requests, we eased our way into the timing game. I'll be the first to admit that we're not perfect, but we get better with each event. We've been running the timing business on a shoestring budget, but it's growing, and we're excited about the future possibilities. However, we need community support to continue growing. Some of the largest events in the area contract timers from out-of-state, and despite being local, we've never had the opportunity to bid for some of the bigger races. I'm working tirelessly to change this, but it's challenging. Let's shift gears. We listen to our customers and take risks to provide solutions. For example, when we moved to our current downtown location, which includes parking, more space, and more event opportunities, it was a risk that has proven beneficial. However, some of our audience isn't satisfied with downtown and let us know through our customer survey. In March, we opened a second location at The Bridges, off I-229 and in the premier Western Avenue corridor. Many folks praised this move, but it has been slow to yield results. It's a high-risk venture that depends on customers buying products exclusively from 605 Running Company. We pride ourselves on offering exceptional service, and our prices are competitive with other retailers because our brands set the prices through dealer agreements. We understand that some perceive us as expensive, but we assure you that you’re getting the best value with the expertise and personalized service we provide. Our team is dedicated to ensuring you find the perfect fit and the right gear for your needs, and we believe this sets us apart in the market. We believe in the quality of our coaching, retail, timing, event management, and philanthropic efforts. However, my team and I are reaching our limits, and our sales are not enough to sustain our community initiatives. It's not just about being short-staffed; it's about being stretched too thin. As the leader, I am fully committed to nurturing and growing our ecosystem, but we need your support to continue this journey. If you believe in what we're doing and want to support our mission, consider choosing 605 Running Company for your running needs. Every purchase helps us continue improving our community every single day. Thank you for being part of our journey. ![]() Life doesn’t happen on a screen. That's the philosophy we live by at 605 Running Company. We believe in the power of personal connection and the importance of finding the perfect pair of shoes to fit your lifestyle. As the owner of 605 Running Company, I understand the allure of online shopping, YouTube Vlogs, and online articles; but I also know the value of a proper fit assessment. Our fit advisors are the heart and soul of our team. They're here to guide you through the process of finding the ideal footwear, whether you're a seasoned runner, a walker, or just someone who spends a lot of time on their feet. Our fit advisors undergo extensive training, including trying on every style of shoe we sell. They receive brand-specific training to ensure they're as informed as possible about our footwear. Our process is simple but effective. We take measurements, observe your movement, and offer informed recommendations based on our extensive knowledge of the products we carry. With our help, you can walk out the door with a pair of shoes that not only looks great but feels great too. That second part is critical. We want your shoes to fit and feel great! In an age where online shopping dominates, we recognize its convenience. That's why we've created an online store where you can view our available products, reorder your favorite shoes from a previous fit assessment, and stay connected with us, even if you don't live close to Sioux Falls. We have a very competitive rewards program, offer membership benefits, include an industry standard return process, and offer free group running events each week. Additionally, our fit process includes your Fit Score Card, which is digitally sent to you after your visit. We want to build a relationship with each and every client. Our goal is for you to have the best possible experience with products we have available. We want you to try a lot of things on so you know exactly what you like and dislike. At 605 Running Company, we're more than just a store. We're a vital part of our community, providing jobs, supporting local events, and offering a wide selection of running shoes that you won't find anywhere else in town. Step into comfort and confidence with the 605 Running Company difference in shoe fitting. Visit us today and let us help you find the perfect shoes for your life. Greg Koch Owner, 605 Running Company As winter descends upon us, the decision to keep our retail store open or to close the doors becomes a challenging dance. While we have tried to establish standardized processes, the unexpected – weekends, school breaks – often throws a curveball into the mix. In this post, I'll delve into the intricate world of retail leadership during winter weather, exploring the tough decisions and delicate balance between responsibility and the bottom line.
At 605 Running Company, we've set a policy to close when schools close during winter. But what about weekends or school breaks? The answer often boils down to my decision as a leader. My responsibility extends beyond profits; I am also accountable for the well-being of my team. Winter weather in South Dakota can be unforgiving, yet the desire to keep the store open persists. Why? The answer is simple: paychecks. With a team comprised largely of hourly workers, the store being open directly impacts their livelihood. The dilemma intensifies as I grapple with the decision to stay open, knowing that the chances of making up the difference in sales during severe weather are slim. It's a delicate balancing act with financial implications. A mental push-pull effect comes into play as I weigh the options. Staying open ensures employees get paid, but the harsh reality is that sales might not offset the costs. It becomes a vicious cycle, where the decision to remain open is both a financial gamble and a commitment to supporting the team. I was once told hope is not a strategy. Often times during weeks like this one I find myself hoping a little too much that sales will magically pick-up in a blizzard (if only we delivered pizza in monster trucks). Amidst the financial considerations, I must also prioritize the health and safety of my team. Deciding when the weather becomes too dangerous for commuting is a responsibility that weighs heavily on my shoulders. Striking the right balance between maintaining operations and ensuring the well-being of employees is a constant challenge. In light of the imminent blizzard warning and extreme cold in Sioux Falls, I find myself making the difficult decision to close early today and remain closed tomorrow. This decision is not taken lightly, as I understand the impact on both my team and the bottom line. It's a reminder of the tough choices that come with leadership. In the world of retail leadership, winter weather adds an extra layer of complexity. The delicate dance between financial responsibility, employee well-being, and the unpredictable nature of the weather requires me to navigate a challenging landscape. As we temporarily close our doors, we hope our customers understand the difficult decisions we face and continue to support us online or through our mobile app. After all, inclement weather may be bad for business, but a community's support can weather any storm. -GREG KOCH | CO-OWNER 605 RUNNING COMPANY |
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