My First Retail Space Ideas?

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N

Nortski

  • #1
    Hi all,

    So I've been trading online for over two years selling gothic/alternative jewellery. Things have been progressing relatively nicely and I'm hoping to open my first retail store next summer, when I've paid my loan off.

    I had wanted to open up in Afflecks Palace in Manchester as it has great rates, excellent location, and a highly targeted customer base. However; my supplier said that can't continue to supply me if I open in there as they already supply another trader which would breach their anti-competition rule.

    So, I'm looking for somewhere similar and was hoping you guys may have some ideas?
     
    R

    Root 66 Woodshop

  • #2
    Anywhere similar to Aflecks Palace in Manchester would be your first port of call - however you'll probably also find that the shops in these places also have the same supplier, therefore you'll be told the same from the supplier again...

    Truth be told, no matter how much I hate saying this... (as I'm a B&M chap myself) stay trading online... your margins will fall as soon as you open a B&M you'll have no guarantee of footfall and most important of all... you'll regret it.

    :)
     
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    N

    Nortski

  • #3
    I'm not sure I agree. I lose way too much in commission fees to Ebay, Paypal, Stripe, Amazon and other online marketplaces. Also; my monthly postage costs exceed the monthly rent of a unit in Afflecks.

    Considering I only average 4 sales a day online, I'm sure I could easily sell more having a retail unit somewhere.
     
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    tony84

    tony84

    Free Member
    Apr 14, 2008
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    Manchester
  • #4
    What about somewhere near the uni's on Oxford road/fallowfield/Withington?

    Do you get the ages of the people you sell to?

    Do you think opening up a shop is a good plan? 4 sales a day online where the world and its dog can find you over a shop limited to passing trade where your ideal target market would probably be going to Afflecks? How many sales would you have to make to pay for the rent, rates, utilities, advertising etc etc. Chances are you would only be busy on 1 or 2 days a week....
     
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    R

    Root 66 Woodshop

  • #5
    Nortski said:
    I'm not sure I agree. I lose way too much in commission fees to Ebay, Paypal, Stripe, Amazon and other online marketplaces. Also; my monthly postage costs exceed the monthly rent of a unit in Afflecks.

    Considering I only average 4 sales a day online, I'm sure I could easily sell more having a retail unit somewhere.
    Click to expand...

    4 sales a day online = on average 120 sales a month

    120 sales a month average what... £10 or less? = £1200 a month

    space to rent from Aflecks Palace - no idea - guessing at £250 - £300 per month

    Add this to your existing costs for selling online... (unless of course you stop selling online)...

    then add additional costs of lets say - travel to the new shop - parking etc

    Advertising

    shop signage

    packing such as bags to give to your new customers...



    Your cost on the jewelry

    As I said - you can't guarantee your footfall in any shop or shopping centre :)
     
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    J

    john1989

  • #6
    When you are running a B&M, you don’t just have rent to pay.


    You need to factor in all the other costs:-

    1. Utilities

    2. Insurances

    3. Service charges

    4. Business rates

    5. Upkeep / maintenance

    6. Commuting, inc any parking charges

    Then you have the initial outlay such as fixtures and fittings, legal fees and additional stock.


    Have you crunched the numbers? How many more products would you have to sell per day to maintain your level of income.
     
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    N

    Nortski

  • #7
    OK.

    With just 4 sales a day, currently, I turn over £3000 per month.
    Last month I paid out £1000 in postage and commission fees.

    With Afflecks as an example, rent was £450 per month which includes business rates, utilities etc.

    Just based on this I can save myself £500 a month. However; I would expect to sell more than 4 items a day due to the highly targeted customer base.

    I only sell 4 items per day online due to the fact that places like Ebay and Amazon is saturated
    with cheap illegal Chinese knock-offs. I have no problem reporting traders who sell illegal items in retail units (waste of time reporting Ebay sellers).

    I've flat shared in Manchester city centre before and have no qualms doing so again so parking and commuting isn't an issue.

    ANYWAY.......My question wasn't whether or not to open in a retail unit. I was asking if anyone knows of somewhere, anywhere, that is similar to Afflecks, as in indie shopping centres within city centres.
     
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    J

    john1989

  • #8
    Sorry, I know I’m still going off subject…


    Do the prices on your website include postage?

    If so, can you maintain the inclusive price in store, or would you have to reduce prices accordingly? This may affect your calculations.
     
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    R

    Root 66 Woodshop

  • #22
    Peace Hall - before it was closed for renovations was full, and I mean... FULL of students, elderly and average aged people... :)

    They use to have a Biker club there too

    There use to be a cracking little shop called Friendly Dragon that sold similar stuff to yourself - including Wicca, Pagan clothing/jewelry etc - they've moved out now and probably won't be going back in as they're set up elsewhere and the cost of moving would stuff them up again.
     
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    C

    Chris Ashdown

    Free Member
    • Dec 7, 2003
    13,382
    3,002
    Norfolk
  • #23
    More important is not the footfall but the price people are looking to spend

    If you had a shop in Regent street in London you would have a footfall of very cash rich potential customers, in another area you may well find people are only looking to spend less than £20

    A stand in the wrong price area can be certain death
     
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    C

    Chris Ashdown

    Free Member
    • Dec 7, 2003
    13,382
    3,002
    Norfolk
  • #25
    Nortski said:
    I do have a website. The harsh truth is that people would rather buy from places like Ebay as they get purchase protections.
    Click to expand...

    Thats not a real problem for a web site just poor design in that a website should inspire confidence in the buyer

    We are nothing special but often get orders over £1000 from people or companies we have never had contact with before ordering on the web and paying up front, proving it can be done without anything special
     
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