To retail or not to retail....

[thinksigns]

Although I just signed a brand new 5 year lease, there have been times that I start to think that working out of my home might be better. I know I would lose the drive by customers, but most of my best customers never come to my store.

Has anyone made the switch either direction and are you glad you did or do you regret it?

 

[WildWestDesigns]

Most of my best customers I go to them. That appears to be a reoccurring theme. Drive bys, in my experience, are typically just one offs, very really are they repeat ones.

Best advice I can give is do a C/B and see if it favors working from home or not. It isn't going to be the same situation for the next person.

 

[Craig Sjoquist]

This discussion comes up at least twice a year and you'll get a 100 different answers.

But after signing a 5 year lease, means you either need space for your equipment, workload, showroom inventory, appearance with image, employees needed for all of this you got going on.

But working out of home if without the space or a place to really do business well or not a norm for area, means your income is lower, and those options are less.

 

[Accelerated Graphics]

I moved out of my house in 2008 to a location without a view, was a 2 blocks any main roads and had very little walk in business. Business was good but cash flow was kind of slow as most of my customer were corporate accounts that like to be on 30 day accounts.
In April of 2010 I moved into a retail store front on the interstate that 100k cars go by a day and things have really picked up. I get quite a bit of walk in business now with lots of cash flow to ease the burden of carrying the 30 day accts. . Business is up 20% over last year and will have the best sales year in my 10 years of being open..

 

[thinksigns]

Craig - right now I do not have the space at home to run the business. However, I do plan on buying a new home within the next 5 years. By then, I will have paid off the new equipment coming in tomorrow.

Rick - I ran some numbers this morning and for the last 5 years, my top 10 accounts are 40% of my business. I would have figured it was higher. Two of my top five are on 60 day accounts. I guess walk-ins really help the cash flow.

 

[Accelerated Graphics]

think,
I just looked at my last 5 years..here are the % of my top 5 accounts
2006-27%
2007-41%
2008-29%
2009- 29%
2010- 19%
In 2010 the top sales category is "Cash" which is not included in that 19% .. it accounts for 7% of sales...

 

[Techman]

need cheap space to work?
Get a hobby self storage space. Often they will have power oin them.

 

[Mosh]

I wish my shop was not on the main raod in town (4,500 cars daily).
I spent lots of time with people wanting $10 names on mailboxes and boat numbers.
Lots of old ladies wanting ONE t-shirt printed, that takes an hour to explain why we don't do just one shirt. Lots and lots of tire kickers.

 

[wetgravy]

I
Lots of old ladies wanting ONE t-shirt printed, that takes an hour to explain why we don't do just one shirt. Lots and lots of tire kickers.

You should do heat transfer vinyl and tell them there is a $35 art fee, $25 for a 8x10 piece of the vinyl and the shirt should be your cost with a 100% markup.

 

[Mosh]

Not worth it! It usually takes three hours for them to decide what color of shirt they want! Been there done that when we first got our printers!

 

[WildWestDesigns]

Not worth it! It usually takes three hours for them to decide what color of shirt they want! Been there done that when we first got our printers!

Never really had that problem with one off shirts, but then again, I might have been lucky. Most of the people that I deal with know what they want and how they want it. That can be a little disconcerting when something that they want just doesn't look right to me.

 

[thinksigns]

Not worth it! It usually takes three hours for them to decide what color of shirt they want! Been there done that when we first got our printers!

A customer last week spent 45 minutes deciding colors and typestyles for what would normally be $25.00 worth of stickers. I told her it would be $50.00 and of course she says, "for that little bit of vinyl". She did pay it like they usually do.

 

[wetgravy]

Not worth it! It usually takes three hours for them to decide what color of shirt they want! Been there done that when we first got our printers!

Use these type of jobs to punish your help when they goof off or REAALLYYY mess up (but not enough to can them) then afterwords tell them that they can shape up or deal with nothing but those customers.

 

[visual800]

Ive known more people that have had retail and closed it down. sales tax, fire marshall, city codes, dealing with customers over a freaking $20 car tag...NO! I drive to customers it saves me time and no headaches, well sometimes. Im not trapped in a retail location. Lots more freedom

 

[Farmboy]

I love my retail location. We get a pretty steady stream of onesie and twosies. So far, in the 6 years I've been there it doesn't seem to hamper us from getting larger jobs done. I would say that maybe 1 outta 20 walkins can be a pain in the keister. For the coming year I'm taking a serious look at opening a second location, store front only as all work will be done in the current location. This will all depend on finding just the right spot.

 

[thinksigns]

. For the coming year I'm taking a serious look at opening a second location, store front only as all work will be done in the current location. This will all depend on finding just the right spot.

I've given thought to doing this as well. My worry was that since it would have to be located where customers are too far to drive to your main store, it would be a pain to do deliveries between the two stores. Plus the extra employees, rent, phones, utilities, internet, etc. - I couldn't wrap my brain on how to make it work. I wish you good luck with it and please keep us updated on how it goes.