Am i over thinking that a retail store front will work better?

[john1]

Hey guys, I have a competitor up the road about 1 mile who has opened a shop about a year and half ago.

The next retail front sign shop is about 7 miles away and there are 2.

The guy up the road is always backed up 2 and 3 weeks at a time i hear and is a "A hole" as some people have said around here.

There is a vacant shop literally behind his shop (150 ft or so) for rent and it's only $1,000 a month and it's 750 sqft with a 1 car bay (his has no bay)

I priced around other areas here and they want more and the areas aren't even on the main road like this one is so the deal is great but it would be nothing but a pissing match if i was to open up behind this guy and i'm sure hes not going to fold anytime soon.

I work from home and i do pay my bills since things have picked up lately but i would love to have a retail shop. What should i do guys?

 

[Homestead Embroidery]

We were just in the same boat. My wife and I went to the mall looking for a seasonal location. A 10x10 kiosk (that we had to provide) was 5k a month for 3 months. We then went to the Outlets in our area. for a 2000 sqft store it was 2k a month for 3 months (Oct - Dec). We were about to sign on the line when I was driving to my other job and saw a storefront that we had wanted a long time ago was up for rent. 2500 sqft and we couldn't beat the price. 1.2 miles from home. The 1 question that we had to ask ourselves was are we ready to get busier? We have been open 3 weeks and we have been swamped (now mind you we do embroidery and screen printing and our store front is a gift store of sorts specializing in personalized gifts). We are so glad we have made the jump.

 

[showcase 66]

I am planning on moving into an old service station at the beginning of the year. I know about what it is going to cost for the first 6 months. For me I will not have any competition within about 8-10 miles and most people that will be down where the shop is usually dont go to the other side of town for many things. Plus within a 2 mile radius of the shop is all the city building, most county buildings, and 2 federal buildings. I wont move in until I have enough for the first 6 months in the bank. Thats just me.

As for your situation. If you are right behind the other guy, you may get the overflow from this guy but your clients are going to see him first. If they have talked to you on the phone and are planning on coming in, they may get confused seeing him first and go there instead. To me being with in a block of the guy is not a big deal. Being behind him would be.

 

[BobM]

Visibility as campared to his shop? Pissing contest every day? Confused customers going into the wrong shop, your's and his? Would his customer be comfortable walking by his store to get to yours? Sounds like it would be more trouble than it's worth and would be stressful for everyone involved at best.

 

[mark in tx]

Opening a store front based on what you hear about another shop is not a good idea.

Opening a store front because you have built up a client list and a reputation that has caused you to outgrow your garage and will support the added expense is a good reason.

 

[Colin]

Everyone's different, but when I started my business 18 years ago, I had no interest in a commercial lease space, and have kept it home-based ever since, and wouldn't change it for the world.

Yes, a commercial lease space/storefront will draw in more customers, but at what cost?

- You have to crack that rent/lease nut every month before you make a dime.

- With a lease space, you will likely need to hire someone, whereas being home-based allows for it just being you.

- The above two can inherently mean "stress" - the silent killer.

- Being at home all day has numerous benefits, such as home-security, write-offs, always able to do various things around the house when it's not busy, keeping the fire going in the house during winter (huge heat savings), and a commute that can't be beat.

- "Keep it small, keep it all."

 

[Cross Signs]

Opening a store front based on what you hear about another shop is not a good idea.

Opening a store front because you have built up a client list and a reputation that has caused you to outgrow your garage and will support the added expense is a good reason.

+1

 

[ams]

I would not recommend renting behind his. Mainly because the first shop they see is the one in front, very few will bypass it to go around the back. Also he can tell all his customers bad things about you, and it's legal to put up signs against your business on his property. Just not worth the trouble.

There is around 12 sign shops in my town and all of them are really busy and backed up. I am a mile or less than the major one, but I have a prime location on a major road.

I pay $650 a month for rent, water electrical heating and air is all included in the rent. I have 876 square feet, which is pretty small, I am upstairs on the second floor of the building, and I do my vehicle lettering in the parking lot. Yeah it gets cold out there, but cheaper rent.

 

[CheapVehicleWrap]

I'd say do it or you'll be driving by HIS new bay. Sounds reasonable and the price sits ok with you. You'll find a way to divert traffic around him. Hell, try it for 3 months. BEST!

 

[binki]

We opened our retail space across the street from 2 other shops doing the same thing (they were next to each other) and a total of 8 places doing the same thing within 1/2 mile, basically all in the same business district.

When I say retail I mean retail, not commercial or industrial. We have a storefront in an historic downtown area that has hair salons, barber shops, antique stores, clothing, furniture, restaurants, and lots of professional offices. While it is considered a run down part of town it does bring a lot of foot traffic.

We planned on 3 years before it was self sustaining and 14 months into it we started covering the nut on a monthly basis.

Don't price based on what the other guy does but do price based on the product. I am low on some items and high on others. The funny thing is even though the place across the street sells banners at a lower price than us (his price is half ours) we still sell banners.

For us, a retail location was the best thing we did.

Rents are down so far right now. It is a good time to open up.

 

[fmg]

How would you feel if you were in his shoes?

 

[VizualVoice]

- Being at home all day has numerous benefits, such as home-security, write-offs, always able to do various things around the house when it's not busy, keeping the fire going in the house during winter (huge heat savings), and a commute that can't be beat."

Not to mention being able to work in your underwear.

 

[binki]

Not to mention being able to work in your underwear.

what, you can't do that at the shop too?

 

[Fatboy]

I don't think it is a good idea! I will rather get on well with my opisition. How would you feel if another shop do it to you?

 

[CheapVehicleWrap]

I don't think it is a good idea! I will rather get on well with my opisition. How would you feel if another shop do it to you?

If he waits long enough I'm sure he'll have an answer.

 

[AUTO-FX]

what, you can't do that at the shop too?

"wearin' yer skivvies and surfin the easter net!"


i loved that commercial



seriously though - it might work out ok -maybe you can do something that guy doesnt do, and he'll actually refer customers to you. or if you have a bay and he doesnt, maybe you could do his vehicle installs when it's cold or raining???

 

[john1]

Thanks for all the information everyone. I'm going to stick it out at home, network more and more and if he folds i'll move in

 

[HulkSmash]

John,
Having a storefront will bring a whole different type of business. If you're ready to make the move i'd do it

 

[kgirl]

Not to mention being able to work in your underwear.

Very true!...

 

[Mosh]

Be ready for 4-5 hours of "how much is.." per day. We have a retail location
and I hate that part of it. The plus side you can make any home based place look
like a half rate operation by having a great display area and signs ready to sell
off the shelf. People get a better feeling that you are a pro than just some dude working
out of his garage.