tonywhittier
New Member
If you had the chance to open a new wrap shop where would you open it?
-
I want to thank all the members that have upgraded your accounts. I truly appreciate your support of the site monetarily. Supporting the site keeps this site up and running as a lot of work daily goes on behind the scenes. Click to Support Signs101 ...
Where would you open your next wrap shop?
- Thread starter tonywhittier
- Start date
phototec
New Member
According to Forbes, of the 11 Fastest-Growing Cities in the US Since The Recession, four are right here in Texas, list below.
No. 1: New Orleans, La.
No. 2: Chula Vista, Calif.
No. 3: Irvine, Calif.
No. 4: Charlotte, N.C.
No. 5: Bakersfield, Calif.
No. 6: Fort Worth, Texas
No. 7: Irving, Texas
No. 8: Laredo, Texas
No. 9: Greensboro, N.C.
No. 10: Austin, Texas
No. 11: El Paso, Texas
So, the best place for a new wrap shop would be in one of these fast growing economic cities listed above.
http://www.forbes.com/sites/joelkot...s-fastest-growing-cities-since-the-recession/
No. 1: New Orleans, La.
No. 2: Chula Vista, Calif.
No. 3: Irvine, Calif.
No. 4: Charlotte, N.C.
No. 5: Bakersfield, Calif.
No. 6: Fort Worth, Texas
No. 7: Irving, Texas
No. 8: Laredo, Texas
No. 9: Greensboro, N.C.
No. 10: Austin, Texas
No. 11: El Paso, Texas
So, the best place for a new wrap shop would be in one of these fast growing economic cities listed above.
http://www.forbes.com/sites/joelkot...s-fastest-growing-cities-since-the-recession/
tonywhittier
New Member
Well I'm in Charlotte and Charlotte is growing but it's an extremely tough market because of NASCAR. So it means this market is saturated with wrap shops.
What better place could you want to find ??
phototec
New Member
True, however, typically, old established markets are SATURATED, while NEW expanding (growing) markets are were the growth is, and new shops will be needed.
When areas are growing (expanding), there are typically not enough services to keep up with demand, so new plumbers, electricians, service companies need to come to town or existing companies need new vehicles to keep up with the growing demand (and need vehicle wraps).
Techman
New Member
New Orleans?
Detroit?
No way on any day.
As for market saturation. That has nothing to do with it in my opinion. It has every thing to do with being open and available and doing good work every time and on time. All that plus having a unique marketing position will get a shop plenty of good paying work.
I mention the following to make a point and not to brag.
My shop is between a dozen others, has no sign out front, is in the back garage of a building and is as low profile as one could get. It is stuffed to the gills with machines, tools and supplies. I believe that developing a unique marketing position makes the difference between worry about market saturation and not worrying at all.
Detroit?
No way on any day.
As for market saturation. That has nothing to do with it in my opinion. It has every thing to do with being open and available and doing good work every time and on time. All that plus having a unique marketing position will get a shop plenty of good paying work.
I mention the following to make a point and not to brag.
My shop is between a dozen others, has no sign out front, is in the back garage of a building and is as low profile as one could get. It is stuffed to the gills with machines, tools and supplies. I believe that developing a unique marketing position makes the difference between worry about market saturation and not worrying at all.
mark in tx
New Member
You can't swing a dead cat without hitting a shop that does wraps in Austin.
If I were going to open a shop based entirely on doing wraps, it would be in an industrial park close to a major interstate highway, preferably the intersection of 2 interstates or even 3.
Make it easier to bring in fleet business, and easier for delivery from suppliers.
If I were going to open a shop based entirely on doing wraps, it would be in an industrial park close to a major interstate highway, preferably the intersection of 2 interstates or even 3.
Make it easier to bring in fleet business, and easier for delivery from suppliers.
Pat Whatley
New Member
Inside the local commercial truck/van dealership.
Craig Sjoquist
New Member
Would not worry about a wrap shop, hone your skills in 3 main ones ..Design, Print, Install.. the best will always get work at best prices
nashvillesigns
Making America great, one sign at a time.
i would open up a wrap shop in wonderland, next to Alice's Crib. all those pretty colors!!!
TXFB.INS
New Member
why even bother with locations?
set up a network of fleet vehicles / companies and then get/contract good installer and do the work at the clients location.
Lets face it you don't have to have/need a store front. everything can be done digitally There are countless threads here for a shop in CA asking for an installer in NY
set up a network of fleet vehicles / companies and then get/contract good installer and do the work at the clients location.
Lets face it you don't have to have/need a store front. everything can be done digitally There are countless threads here for a shop in CA asking for an installer in NY
spectrum maine
New Member
not in maine
TammieH
New Member
I think looks like a promising locale ...no competition, that's if you felt like going to work.
http://www.fiji.travel/sites/defaul...lic/Bay of Islands Cruising.jpg?itok=7WpeBAZG
http://www.fiji.travel/sites/defaul...lic/Bay of Islands Cruising.jpg?itok=7WpeBAZG
printhog
New Member
its all about data folks..
Sorry Phototec but i disagree -
Growth will attract new vendors just as most of you are thinking, but there's no way to guarantee that you're the only new vendor. In fact you could have ten new vendors in one year! In any rapidly growing market there will be existing vendors with established market share. Its expensive to enter into those markets as the old guard will not be very welcoming, and the new people havent built ties to the community. Add to that sky high rents, labor shortages, and in most cases shop space shortages. All that adds up to a money pit. Rapidly growing markets deteriorate rapidly. Boom Bust.
Better is to find a market that is depressed and unserved or underserved and likely to grow. For that you need data.
Look at the demographics of the community, look at the economic engines, and the real estate activity and trends.
Look at the building permits pulled and reasons for them. Look for remodels, not new construction. Look for sub $10,000 permit values. New home construction doesnt equal lots of plumbers and such needing to advertise, in fact its the opposite, service companies are generally called 5-10 years after the home sells, and the service sector is strongest in cities with a large base of existing older homes. Most new homes in high growth areas are built by corporations like KB and Lennar. No wraps sold there and the contractors are so busy they dont need the ad. Further they have home warranties and that translates into contracted work for service firms, again no ad.
Find a community with a fairly equal spread of population ages and incomes. Concentrated incomes in one segment can be harmful. Same for ages. Younger people (under 35) are more inclined to risky new business startups, often with family money, and they are more inclined to buy wraps, but reaching them is a challenge. Older folks (over 50) are the driving force in new business startups, but they are inherently conservative in the marketing aspect and are operating on rigid budgets.
Look for a community with a high prevalence of self employment - govt data will show you that. The data shows employers and self employed sole props.
Look for communities with a higher U6 unemployment rate (those out of work for 6 months or more), as they will likely have a segment of self employed people that have yet to file with any agency as a business. Each business, self employed or under employed person is a likely client.
Look at the chambers of commerce, the ad agencies, and the total number of design firms you can leverage. Youre trying to sell a $3-4000 item without financing in a town you're new to... its a big nut for small firms both financially and trust wise. Avoid bedroom communities and those with high government or single source employment concentration, and those with chambers that dont have a big body of active members. i.e if 30% of the town is employed by XYZ company, one shut down could kill the economy, and government budgets are always rocky to rely on.
50% of your business will come from people and businesses within 5 miles.
For signage - Look for a town with a solid commercial center and a sign shop to population ratio of 1:25,000 or better.
For wraps - you'll need at least twice that ratio (1:50,000) to specialize, but likely higher than 1:200,000. Otherwise you'll be doing banners and signs as much as wraps.
Example - my new market has just 4,000 businesses with employees, but 15,000 additional businesses are self employed people, and a total population of 125,000 with just 3 sign and wrap firms. so there's 1 shop to 40,000 people, 1 shop to every 1300 businesses with employees, and one shop to every 5,000 self employed folks. Theres easily room for a new shop. Probably room for three or more because of the high self employment numbers.
Lastly tour the area - look for the condition of commercial signs. These say a lot about every community. Lots of hand painting, faded graphics, or home made stuff may mean a shortage of professional shops, or a market so depressed or unappealing that no one serves it. Signs of vandalism will indicate the latter. While an economic opportunity may be made in a depressed market, it may be rife with challenges. If the market is just not served professionally, the opportunity is likely going to be successful.
Overall -remember that youre not looking for where the growth is now.. youre looking for where the economic growth WILL BE in 3-5 years.
I have started a number of shops with this method many times and it has worked. Its based on SBA and franchise site selection standards.
Sorry Phototec but i disagree -
Growth will attract new vendors just as most of you are thinking, but there's no way to guarantee that you're the only new vendor. In fact you could have ten new vendors in one year! In any rapidly growing market there will be existing vendors with established market share. Its expensive to enter into those markets as the old guard will not be very welcoming, and the new people havent built ties to the community. Add to that sky high rents, labor shortages, and in most cases shop space shortages. All that adds up to a money pit. Rapidly growing markets deteriorate rapidly. Boom Bust.
Better is to find a market that is depressed and unserved or underserved and likely to grow. For that you need data.
Look at the demographics of the community, look at the economic engines, and the real estate activity and trends.
Look at the building permits pulled and reasons for them. Look for remodels, not new construction. Look for sub $10,000 permit values. New home construction doesnt equal lots of plumbers and such needing to advertise, in fact its the opposite, service companies are generally called 5-10 years after the home sells, and the service sector is strongest in cities with a large base of existing older homes. Most new homes in high growth areas are built by corporations like KB and Lennar. No wraps sold there and the contractors are so busy they dont need the ad. Further they have home warranties and that translates into contracted work for service firms, again no ad.
Find a community with a fairly equal spread of population ages and incomes. Concentrated incomes in one segment can be harmful. Same for ages. Younger people (under 35) are more inclined to risky new business startups, often with family money, and they are more inclined to buy wraps, but reaching them is a challenge. Older folks (over 50) are the driving force in new business startups, but they are inherently conservative in the marketing aspect and are operating on rigid budgets.
Look for a community with a high prevalence of self employment - govt data will show you that. The data shows employers and self employed sole props.
Look for communities with a higher U6 unemployment rate (those out of work for 6 months or more), as they will likely have a segment of self employed people that have yet to file with any agency as a business. Each business, self employed or under employed person is a likely client.
Look at the chambers of commerce, the ad agencies, and the total number of design firms you can leverage. Youre trying to sell a $3-4000 item without financing in a town you're new to... its a big nut for small firms both financially and trust wise. Avoid bedroom communities and those with high government or single source employment concentration, and those with chambers that dont have a big body of active members. i.e if 30% of the town is employed by XYZ company, one shut down could kill the economy, and government budgets are always rocky to rely on.
50% of your business will come from people and businesses within 5 miles.
For signage - Look for a town with a solid commercial center and a sign shop to population ratio of 1:25,000 or better.
For wraps - you'll need at least twice that ratio (1:50,000) to specialize, but likely higher than 1:200,000. Otherwise you'll be doing banners and signs as much as wraps.
Example - my new market has just 4,000 businesses with employees, but 15,000 additional businesses are self employed people, and a total population of 125,000 with just 3 sign and wrap firms. so there's 1 shop to 40,000 people, 1 shop to every 1300 businesses with employees, and one shop to every 5,000 self employed folks. Theres easily room for a new shop. Probably room for three or more because of the high self employment numbers.
Lastly tour the area - look for the condition of commercial signs. These say a lot about every community. Lots of hand painting, faded graphics, or home made stuff may mean a shortage of professional shops, or a market so depressed or unappealing that no one serves it. Signs of vandalism will indicate the latter. While an economic opportunity may be made in a depressed market, it may be rife with challenges. If the market is just not served professionally, the opportunity is likely going to be successful.
Overall -remember that youre not looking for where the growth is now.. youre looking for where the economic growth WILL BE in 3-5 years.
I have started a number of shops with this method many times and it has worked. Its based on SBA and franchise site selection standards.
Jean Shimp
New Member
[For signage [/B][/U]- Look for a town with a solid commercial center and a sign shop to population ratio of 1:25,000 or better.
Where do you find this data?
Where do you find this data?
printhog
New Member
You have to pool data sources..
overall Sperling's best places is a good start.. Best Places to Live | Compare cost of living, crime, cities, schools and more. Sperling's BestPlaces
for most of it, the quick facts at UScensus.gov is good you can drill down to your community in the search box.. UNITED STATES QuickFacts from the US Census Bureau
For number of competing shops and also likely customers, I map an area with InfoUSA.com and then select the target industries I want to see. You dont need to buy anything to get the raw counts, but if you do buy the lists they are fairly accurate and can be used for mailing and sales contacts. Only issue - their sales people might call you once you register. this can be annoying. But the mapping function allows you to determine how far your sales people might travel, or to highlight potential shop locations with different highways, routes, etc.
for general population locations and general business counts, the EDDM page at USPS USPS.com allows you to see some demographics about each zip code and mailing route. this can help you locate the streets and zips that have a high incidence of businesses, and avoid those that are bedroom communities. no sense concentrating a business to business operation in a residential area.
For U6 unemployment google the town, city, county and the words U6 unemployment.
For drilling down into the local economy contact the Small Business Development Center for that area, its usually on the web and often linked to the SBA.
For real estate the local boards of realtors are generally full of info.
For building permits you may have luck with Building Industry Association and local builder exchanges. If not, the local county or city building dept will have that data.
have fun -
Jean Shimp
New Member
Thanks for the info, printhog!