By Stacy Perman

When Gary Boulanger decided to open up an independent bike shop in Dayton, Ohio, two years ago, he sought inspiration from a pair of hometown heroes: Orville and Wilbur Wright. The famous brothers, who were raised in the Gem City, had built a bicycle company there in the 1890s before garnering much greater fame as aviation pioneers.

So in January, 2003, timed to coincide with the 100th anniversary celebrations of the Wright Brothers first flight, Boulanger introduced modern versions of the Wrights' original VanCleve and St. Clair models, with the opening of Cycles Gaansari in downtown Dayton.

NO MONSTER BRANDS.  Before opening Gaansari, Boulanger had held a variety of jobs in the bike industry, from PR consultant to freelancer for bike magazines to running a custom repair shop out of his basement. Although he had seen six cycle shops in Dayton shuttered in three years, based on his wealth of experience, he figured there's still room for a different kind of bike peddler.

Instead of going head-to-head with the big manufacturers and retailers, Boulanger decided to tip his hat to Orville and Wilbur, creating his own niche with a retro line of bicycles. "We're able to strike a nice chord with folks," he says. "And people identify with the Wright Brothers."

Boulanger decided to upend the model of the typical bike shop, in which the average merchant views two-wheelers as a commodity that needs to be sold quickly. "I wanted a bike boutique," he says. "The average shop pays rent and waits for people to come to you and hope you have the right color or style. I decided not to carry the monster brands. I learned not to hitch your wagon to a big brand."

"TOO MUCH FUN."  Instead, Boulanger decided to manufacture his own custom line, based on the throwback designs of the Wright Brothers but built with modern steel and aluminum components. Having met and interviewed a number of bike company executives during his years in the industry, he says they repeatedly stressed two things: Always be willing to fail and always try and do something unique.

One of the best bits of advice he got came from Joe Montgomery, the founder and former CEO of Cannondale Bicycles. "He told me he had hard times, but he said to keep trying things because bikes are too much fun," Boulanger recalls. "When all is said and done, there's nothing negative about a bike. Everyone has a fond memory of it."

The U.S. bicycle industry generates an estimated $5.3 billion annually. According to the National Bicycle Dealers Assn. (NBDA), some 2,000 companies are involved in making and distributing bike products and 100 different bicycle brands. While most bikes are sold through specialty shops, mass merchants like toy or department stores, or sporting goods retailers, the independent specialty shop has made gains of late in a business that has had flat to moderate growth in recent years.

INDIE ADVANTAGE.  The number of indie stores has dropped to an estimated 5,000, from 6,000 five years ago, in large part because of consolidation at the hands of big manufacturers. But during that time, the independents have actually captured the larger share of consumer spending. Specialty stores account for only 16.2% of all bike retailers, but they capture 46.6% of the market in terms of the dollar share.

"There are fewer independent shops," says Megan Tompkins, editor of Bicycle Retailer & Industry News, a Laguna Beach (Calif.)-based trade publication. "But their business is stronger and more profitable, with more bike sales per store front." With increasing consolidation around them, the smaller shops are able to charge a premium for specialty bikes and services not available everywhere.

Gaansari -- the name is a composite of Gary, his wife Jean, daughter Samantha, and son Henri -- makes five different models. Boulanger says the shop brought in $140,000 in sales during its first year, $250,000 last year, and he expects revenue to double this year.

"PROACTIVELY REACTIONARY."  The custom road bikes are manufactured in Eugene, Ore., and sold at the Dayton store and on the company's Web site. Boulanger caters to what he calls a "connoisseur" customer. They're typically men in their 40s to 60s, and this is likely the fifth bike in their personal collection. They're bike savvy to the point that, Boulanger says, sometimes they "ask us to send them the parts and components because they want to assemble it themselves." With an average price tag of $2,100, Gaansari bikes cost almost three times as much as most comparable bikes.

Boulanger says he stresses customer service, unlike the mass-market stores. In turn, he says, "our customers are brand loyal." To that end, he has begun selling a line of clothing and accessories with the Gaansari logo. And he even began marketing a signature brand of coffee (with blends like "Skid Mark" and "Greaser") to satisfy customers' in-store caffeine cravings.

With customers all over the U.S. and new ones in Germany and Britain, Boulanger has plans to open a European manufacturing and distribution center to better tap the trans-Atlantic market. And this month, Gaansari is rolling out its latest model -- the Whirlwind 29er, an off-road bike.

"We're proactively reactionary to what people are asking for," Boulanger quips. Like the Wright Brothers before him, it looks like Gary Boulanger's business has definitely taken flight.