The All-Mighty Dollar and Being Short-Staffed: A 605 Running Company Dilemma

Greg Koch - Owner - 605 Running Company
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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.