Within today’s rapidly evolving retail market, small businesses face a myriad of challenges that can make long-term survival seem like an uphill battle. Due to increasing competition from retail giants and shifts in the market due to global crises, navigating the turbulent waters of small business ownership requires resilience and adaptability. However, despite many obstacles, large numbers of small businesses not only survive but thrive, carving out their place in the market and building lasting success. In this article, we explore the journey of Ragged Mountain Running Shop, a longstanding small business located in the heart of Charlottesville, Virginia.
Mark Lorenzoni and his wife Cynthia founded Ragged Mountain Running Shop 42 years ago. They began their business venture with a small store located on the “UVA corner,” which is a strip of restaurants, shops, and bars situated right beside the University of Virginia. While they have moved operations to a larger store, Ragged Mountain has remained on the same street for its entire existence, which Mr. Lorenzoni believes is crucial to building a community and in turn, customer loyalty.
From the beginning, their mantra has been clear: “Do everything we can to be the best and provide the best service possible.” Mr. Lorenzoni says that this commitment to excellence isn’t just about making money or providing top products; it’s about delivering unparalleled levels of service that keep customers coming back. “For us, it’s not about making money,” Mr. Lorenzoni explained. “When we opened the business, it wasn’t about money. Instead, we thought we really want to help people, and we really think we can help people.”
Over the past four decades, Ragged Mountain has seen impressive success and has built a trustworthy reputation, due in part to its unique business model. A typical Ragged Mountain visit includes a diagnostic process that allows each customer to identify the shoe best suited for them. Each purchase a customer makes is recorded to their personal account and over time they will build a “shoe history,” which allows for ease and efficiency in the diagnostic process. Their efficiency service-wise is evidenced by the high number of employees present during peak hours, ensuring that each customer receives personalized, one-on-one attention. Ragged Mountain also extends this service to their online customers, utilizing direct communication, free delivery, and discounts to make their offerings competitive with online retailers. This unique take on customer service has seen Ragged Mountain gain many loyal customers, with many continuing to shop at Ragged for decades.
When asked about competition from retail giants like Dick’s Sporting Goods, who recorded 12.4 billion dollars in sales in 2022, Mr. Lorenzoni wasn’t very worried, saying “it is almost impossible for a big store like Dick’s to recreate the service you have when the owners are present, the owners are training the staff, and your mantra is to give the very best service possible [2].” He believes that there is a stark difference in the way Ragged Mountain operates compared to large retailers, which has allowed for their continued success. “The expertise of the owners and staff is oftentimes not there or is not accessible at big stores,” Mr. Lorenzoni highlighted. No matter your age or ability, you will receive top-notch service at Ragged Mountain that is hard to replicate elsewhere.
This expertise is also reflected in the products that Ragged Mountain sells. They offer a wide variety of options, from your traditional running shoes to trail shoes to Birkenstocks. However, they will not offer a product to a customer that they do not believe is a quality one. No matter how popular or expensive a shoe is, Mr. Lorenzoni says he could not bear the thought of sending home a customer in a pair of shoes he knows would not work for them, regardless of how many pairs he can sell.
On the other hand, Ragged Mountain isn’t afraid to take risks. One of the most popular brands on the market currently is Hoka, evidenced by their 1.4 billion dollars in sales in 2023 [3]. Hoka’s rise to dominance in the shoe market is undeniable, but until recently they were a mere afterthought, only known by dedicated runners. Ragged Mountain was the first store in the Charlottesville area to sell Hokas, well before any large retailers added them to the shelf. Mr. Lorenzoni says that many people scoffed at Hokas initially due to their bulky and chunky look. However, Ragged Mountain recognized that Hoka made a great, functional shoe, and therefore was able to stay ahead of the curve and meet demand when Hoka took off in popularity.
Beyond its business achievements, Ragged Mountain takes pride in mentoring their staff and helping them grow as humans. Mr. Lorenzoni believes that an investment in the staff is also an investment in the business, which has played an integral part in Ragged Mountain’s survival and growth. Mr. Lorenzoni makes an effort to keep in touch with former employees, as he believes their success in life beyond Charlottesville speaks to their time at Ragged Mountain.
In a world of corporate giants, Ragged Mountain Running Shop stands tall as a beacon of small business success. By prioritizing customer loyalty, providing unparalleled service, and adapting to a constantly changing landscape, Ragged Mountain has carved out a niche for itself in a competitive industry. Founded on a love for running and a genuine desire to serve their community, they have not only survived but thrived. Two of Mr. and Mrs. Lorenzoni’s children, Alec and Audrey, have since taken over the business and have continued with the Ragged Mountain philosophy: “In the end, it’s not just about making a profit; it’s about making a difference in the lives of those you serve.”
As Ragged Mountain celebrates over four decades of business, it’s clear that their success is built on more than just selling shoes and apparel. It’s built by fostering a sense of community, providing exceptional service, and staying true to their core values. Their story serves as an inspiration and roadmap to aspiring small business owners, showing that with dedication, passion, and a commitment to excellence, it is possible to thrive in a competitive market.
One of the key aspects of Ragged Mountain’s success is the focus on customer loyalty. They understand that building strong relationships creates repeat customers who trust the business, which is essential for long-term success. This is why they go above and beyond to provide personalized service, ensuring that each customer feels valued and appreciated. Many customers would claim that they are part of the “Ragged family,” with the belief that Ragged Mountain can offer tailored solutions to their problems that keep them coming back for more.
Another important factor in Ragged Mountain’s success is its ability to adapt to changing market conditions. Over the years, they have seen it all, from economic downturns to changes in consumer behavior and preferences. To adapt, it takes a keen understanding of the market one is operating in. Mark, Cynthia, and their children have been lifelong runners themselves, so they understand and can even predict changes in the way runners operate and what they’re looking for out of their products. They have innovated the aforementioned “shoe history” system, making the switch from handwritten index cards to computer systems that allow for greater ease and efficiency.
The most notable difference in business models between Ragged and their competitors is the strong emphasis it places on employee training and development. In fact, a new employee must undergo a semester-long training and shadowing process before they are allowed to work with a customer one-on-one. While this may cost the business extra in labor, Mr. Lorenzoni believes it is the only–and right way–for employees to be able to truly provide the best service possible. Ragged Mountain understands that their employees are their greatest asset and that investing in their growth and development is key to the success of their business. By ensuring that their employees are well-trained and motivated, Ragged Mountain can provide the high level of customer service that sets them apart from their competitors.
The success of Ragged Mountain also highlights the importance of community involvement and giving back. Ragged Mountain participates in a year-round shoe donation program, where customers can donate their old shoes to be sent to families in need in exchange for a 10% discount on their purchases. They also routinely volunteer at local races, helping set up, clean up, and run water stands. Perhaps the biggest impact Ragged Mountain has made on the local community is the founding of the Charlottesville Women’s Four Miler race. Established by Mr. Lorenzoni in 1983, the Women’s Four Miler has grown to become the largest womens-only race in Virginia and has raised over 4.2 million dollars for the UVA Breast Care Center [5].
Looking to the future, Ragged Mountain remains optimistic about the road that lies ahead. They are well aware that the retail landscape is constantly changing, and their decades of experience have prepared them to adapt to whatever challenges come their way. With their focus on customer loyalty, service excellence, and community involvement, Ragged Mountain is well-positioned to continue thriving for many years to come.
All content is the intellectual property of the Virginia Undergraduate Business Review.
REFERENCES
[1]. DICK'S Sporting Goods - Financials - Annual Reports. (n.d.). DICK'S Sporting Goods - Investor Relations. Retrieved April 11, 2024, from https://investors.dicks.com/financials/annual-reports/default.aspx
[2]. Schaneman, B. (2023, May 26). Hoka adds more than $500 million in revenue for year - Outdoor Retailer's The Daily. The Daily by Outdoor Retailer. Retrieved April 14, 2024, from https://thedaily.outdoorretailer.com/news/brands-and-retailers/hoka-adds-more-than-500-million-in-revenue-for-year/
[3]. (n.d.). Wikipedia. Retrieved April 16, 2024, from https://runsignup.com/Race/VA/Charlottesville/CvilleWomens4Miler.
Images (in order):
[1]. (n.d.). Ragged Mountain Running & Walking Shop. Retrieved April 16, 2024, from https://www.raggedmountainrunning.com/uploads/1/7/6/9/17699005/img-1813_orig.jpg
[2]. (n.d.). Ragged Mountain Running & Walking Shop: Welcome. Retrieved April 11, 2024, from https://www.raggedmountainrunning.com/welcome.html
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