Hardware shop...

[fletcher]

I have put in a bid to purchase a hardware shop (business not doing too good but have been trading since 1950's and there is room to expand)

Any thoughts from any forum members who have been/are still in the hardware business?

Thanks
F

 

[sysops]

Location is everything. Is it in a good location? Can you identify reasons why business may have slowed down?

 

[fletcher]

Hello and thanks for the reply..Should have introduced myself first...the location is ok...and has kept one person in work since the 1950s...the shop just disappears into the local high street, its not town centre, but a suburb, and is surrounded by the usual hairdressers and is next door to a newsagents. I will have to extend both the shop and introduce a flat upstairs (which will all in cost around 125,000 when complete)

Based on these figures it is a punt...but I feel one with a 50/50 chance of succeeding.


Im just a bit worried that I'm being carried away with the "dream" of sole prop as my uncle and my family before them were all shopkeepers.

 

[sysops]

I think a suburb is a tough location for something like this. You need a hell of a lot of footfall.

 

[fletcher]

Thanks for your input...I'll have another think:|

 

[VMHardSoft]

Hardware is really difficult business to be in due to margins. Unless you can think about how you are going to expand on the line items or what difference you are going to make to it then I would not bother.

 

[fletcher]

I just think that of the high st shops the owd hardware stores still seem to be putting up a good fight!

All thoughts appreciated.

F

 

[Beachcomber]

I think a suburb is a tough location for something like this. You need a hell of a lot of footfall.

Location is very important but I don;t think footfall is as crucial to hardware as it is rarely an impulse buy. Most customers will visit for a particular item rather than a browse. Just be sure there is adequate parking as the need to pay an extra £1 for parking just to visit your store will go against you.

I would consider the main concern to be competition. Are any of the major DIY stores nearby (B&Q / Homebase etc) If so, what can you offer that you won't find at the major outlets?

Will you rent out the flat or occupy? If you could rent it out that will certainly subsidise the whole venture.

Might be worth talking to tradesmen in your area - talk to as many people as you can and find out what kind of materials / supplies are always tricky to find / which supplies they need the most etc. See if you can tap any niche markets that are currently lurking in the skilled trade as well as catering for the public.

Of course it will be essential to find out why the business is in decline - is it dropping demand, adverse competition or just not being run as well as it should?

Any new business is a punt these days but with the right product, the right promotion and the right attitude it should be do'able.

 

[saxondale]

sorry but Fletcher and hardware shops in the same thread



fork handles






there thats better





anyway, how well do you know your product .......?

 

[papverpoppies]

sorry but Fletcher and hardware shops in the same thread



fork handles






there thats better





anyway, how well do you know your product .......?

Four Candles....

Hardware shops around here are closing down..they have to sell other things to be able to stay in business (so it seems)!
Also they tend to be pricey..which does put folks off.

Poppy

 

[saxondale]

Four Candles....

Hardware shops around here are closing down..they have to sell other things to be able to stay in business (so it seems)!
Also they tend to be pricey..which does put folks off.

Poppy

no .......................fork handles ......................handles for forks

 

[fletcher]

Thanks Beachcomber for yr input.

Fletcher is mi dogs name...nowt to do with forks or handles.


I do intend to rent out the upper flat.

The business is run down due to the present owners desire to retire...they are really on their last.

It is still a punt but I do have plans to expand into a a complemetary business...should i get the backing.

All your points are taken on...and I appreciate them all... but God help me teaching secondary and approaching 45 I just feel I should take a leap of faith!!!
Have a nice weekend all.. F

 

[papverpoppies]

At the end of the day only you can make that choice.

You know the area, if the business is likely to succeed, and the funds needed to get the business up and running...

You will have the upper flat to rent (is there a chance to convert the shop to a flat)?

Good Luck with whatever you decide.

Poppy

 

[fletcher]

Thanks Poppy

Will bare all that everyone has said in mind.

 

[Zeno]

Where you might do well is to offer a proper, full customer service approach with plenty of advice, ideally from someone who knows what they are doing. B & Q somewhat cynically have older staff in the hope that people will equate that with "knowledgeable, experienced and trustworthy" while they may not know one end of a hammer from the other while Homebase has spotty kids who seem to have half the stock hanging out of their ears & noses.

 

[JoyDivision]

The hardware shops in South Manchester all do very well. It needs to be in area with high home ownership and away from the main shopping centres where places like Wilksinon's and B&Q will hurt sales.

I go to local hardware shops al the time but rarely spend more than £2 in them. You can branch into other markets too though, such as selling coal, gas, wellies, heaters, summer stuff, christmas stuff as longs as you have a lot of seasonal lines you can become a sort of woolworths.

 

[Lee Jones Jnr]

You can branch into other markets too though, such as selling coal, gas, wellies, heaters, summer stuff, christmas stuff as longs as you have a lot of seasonal lines you can become a sort of woolworths.

Yep - Bankrupt!

Avoid seasonal lines like the plague, the supermarkets will always smash you on price and you will always end up storing stuff until next year.

PM me if you need advice on suppliers, I stock a lot of hardware in my shops and can pass on the details.

 

[Tej]

TTP.. thats really being a gent with that offer.

and poppy, sax.. guess the OP don't get the fork handle lark

pity!

but brilliant choice of name

IMO

 

[sysops]

and poppy, sax.. guess the OP don't get the fork handle lark

Wonder if he'll sell Os...

 

[Matt1959]

we have a long established hardware shop in our local shopping centre which is very busy and has all the big name shops. This particular shop always seems to be busy and they do other stuff like key cutting and petfood. Also, they are allowed to have a display outside their shop which must account for approx 200 sq ft! quite a big shop as well. Huge rents for the units in this particular centre but maybe they are still into a previous long lease. It does amaze me that shops like this can keep going. We have a B&Q half mile away as well!

 

[weareable]

One thing you may want to consider is B&Q are planning smaller local stores. A bit like tesco with tesco express.

 

[papverpoppies]

Not that it makes one jot of difference, I do not like BQ.

OK, for baths and large things...but not as exciting as rummaging around in a real old fashiond DIY store.

Its just that real old fashiond DIY stores cannot compete on price.

Poppy

 

[saxondale]

Its just that real old fashiond DIY stores cannot compete on price.

Poppy

all I wanted to buy was one bolt, one nut and one washer, no really I did ................ score one point to the local hardware shop - pound for pound he was more expensive than B&Q

 

[saxondale]

Wonder if he'll sell Os...

oh the fun we have fitting grommets into electrical boxes - get me the black O`s mate ........


http://www.youtube.com/watch?v=Cz2-ukrd2VQ

 

[fletcher]

Ookay Ok I love the 70s have fond memories of hardware shops trad stylie and do get the ref to both fletch, fork handles and Os but personally found the saw tips bit more amusing.

Thanks to all posters for their input and may take up some posters on their offers of help.


Cheers

F