lexismommy23 Posted November 23, 2006 Share Posted November 23, 2006 I was wondering how many gals on here had retail locations and if I could pick your brain? I have an existing successful internet based cosmetic company and was thinking of expanding into a retail location for the cosmetics, candles, and bath & body products. If you wouldn't mind answering some general questions like . . how long you've been in business? is it successful? did you build your name through craft shows, flea markets, etc before opening a retail store? would you do it all over again? Thank you! I appreciate any answers you can give me. Thanks!! Lisa Quote Link to comment Share on other sites More sharing options...
Twoscentsworth Posted November 23, 2006 Share Posted November 23, 2006 Have been in "real" business for six years, retail locations for five...first in the mall then free standing shops. It takes a LOT of product to meet your overhead...at the mall I had a partner and sold a variety of items along with candles and b&b. Would not have made overhead etc. if I wasn't splitting the costs and time at shop. Now I own my own building and my overhead is almost nothing...so I do make a profit. I built up a customer base from craft shows and setting up at the mall before moving into a shop. A lot of people don't stop to think that just because you open a store doesn't mean people will come in to it. You may find it takes quite some time to get people to shop with you. The only way I would do it again would be to start with my own building, and very low overhead...low enough that I could carry it without selling one thing....because there will be days you won't sell a thing. If you have been on any of the candle/soap boards you can see how many open their stores with high hopes only to close within months of opening them. Lack of capital and no idea of how long you may have to carry things usually do you in. I would love to tell everyone who wants a shop to go for it! If you really want it badly enough you will make it work! But the REALITY is you can work your booty off, have wonderful product, be determined etc. and still not make it.With rising gas prices and people unsure about the future buying has slowed...look and see how many stores have diversified their product line, you can get candles,gifts and Christmas galore in grocery stores, Lowe's carries candles, clothing stores are now offering candles and gifts. It can be done but you have to be very prepared financially and the wind has to be blowing in the right direction ... Quote Link to comment Share on other sites More sharing options...
David Fields Posted November 24, 2006 Share Posted November 24, 2006 I agree with everything 2centsworth said. That has been our experience as well. We've been making candles for 10 years. First sold at craft shows, online, etc. We built our base and opened a strip-center store; had it for a year then moved to a larger one in a larger town. Ran than one almost four years; about three years into it opened an in-line store in a mall. The mall store does great. Closed the first store after four years. Barely profitable. The mall store plus lots of wholesale customers gives us a very nice income. But lots and lots of work. My wife and I are both retired from regular business and now work 60-70 hours a week. smile. Retail is tough. Without lots of capital you cannot make it. Our warehouse and small factory are huge just to support the wholesale and retail sales. Employees are generally terrible. They don't have a love for and understanding of candles and how to sell them. Bottom line is - our business runs us, we don't run it. But we would not give it up. Still lots of fun. Oh, the intial outlay just to open the doors of a retail store are huge. Signage, display equipment.Everything must look pro. HTH Quote Link to comment Share on other sites More sharing options...
lexismommy23 Posted November 24, 2006 Author Share Posted November 24, 2006 Thank you so much for your helpful replies!! I would think it would be hard to make enough to cover the overhead. I get emails every day from my cosmetic customers pretty frequently asking if I have a storefront, but I just don't think I could make enough to make it worth my while. Thank you soooo much for confirming what I was already thinking!! Thanks, Lisa Quote Link to comment Share on other sites More sharing options...
KristinesShower Posted November 25, 2006 Share Posted November 25, 2006 I've had a store (two actually in the last 3 years) and there are days when I wish I would have stayed at home, but if no one even darkened my doorstep I wouldn't be out money. If you have online business that will keep you afloat, a store isn't such a bad idea at all. If I didn't have a website or any online business, I would be out of business for sure as I am in a small podunk community. I mostly got the store for production and since it was in a retail location, I figured why not have a retail part as well. Quote Link to comment Share on other sites More sharing options...
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