Nin, during the setup of my .com, VCs always asked... what sets you apart from the other guy? Why should I buy from you? Simple questions but difficult answers.

Since we're all brain storming here I'd like to add that for me I rarely go the lengths to detail my car. I'll wash but wax and detail... nope... and to spend $$$ on products which I may never use up? I'd rather send the car out to have it detailed professionally for $150. I suggest mobile detailing for your customers around Denver... Imagine this... click for a detail appointment online and have some dude come to your work and detail while you're at work! You can have the guy intro some of the products he uses after he finishes... good luck!

 

zymol
i'll probably keep you in business myself!

 

Some good input from those in the know. So far you guys haven't brought up anything I haven't already investigated and/or considered. This means I have been asking myself the right questions and won't be going "DOH!" too many times after the doors open.

Thanks again everyone. This type of exercise if very important to building a foundation for a strong and profitable business.

Hopefully more members will bring their experience to this thread and chime in.

 

First of all, good luck. I'd like to ask you a few questions and make some suggestions.

You have said a few times within this thread that there are no stores in your region selling the kind of "luxury" car care products that you intend to sell. Have you considered the fact that this might be because there isn't a market big enough to support this type of store? This is something that you might want to consider. Generally if the market exists, the demand gets answered. It may be that you are the answer to the market, just make sure that the market exists.

How much inventory will you have to carry in order to satisfy your customers. It has been my experience (from 25 years spent in the high fashion clothing industry) that customers willing to pay luxury prices demand to find the product in stock. They "want what they want when they want it." Especially today, if they have to wait they can order on line and have it delivered to their door. How much (in dollars) inventory will this require? Will the inventory turn fast enough to justify the cost of the investment, or might your return be better elsewhere?

Can you price your merchandise high enough to make the profit necessary to sustain your business. There may indeed be a market for the items that you intend to carry, but will the customers be willing to pay the price that you will have to charge? Very few business' can follow the Amazon.com model. Sooner or later you have to make a profit.

Are there car care products that you can carry that are so special that people will come to you to get them? Surely you know that people will not come to you to get the products that they can get at Wal-mart. What products will make people come to you? Can you get them? Can you sell them competitively? Can you afford to keep them in stock?

Do you have the capital necessary to run this business? You have to pay your bills and your help even when you have a bad week.

Are you prepared to give your customers great service? Generally, buyers of "luxury" items can get the item elsewhere. It is the customer service, the help, the level of comfort that keeps this customer coming back. Are you prepared to provide this? This is very costly but very necessary. Can you get the proper help? Can you train them? Do you yourself know enough about the products to service the customer? It is not enough to know about the abstract "running a business." Do you know enough about the business that you will be in?

Finally, do you really believe in this concept? Do you have the enthusiasm, energy, and drive to make this happen? These might be the most important questions of all. If you can't answer yes without hesitation, don't open the store.

A side note. I spent a great many successful years in the clothing business. I too have an MBA and a CPA (I am no longer in the clothing industry, today I am a CPA in private practice.) The degrees are good to have, especially if they are from prestigious schools. The degrees are not, however, substitutes for a vision, sense, and the drive and desire to make the vision happen and the industry knowledge to make it work. Those of us who were successful were lucky and possessed by the need to succeed.

Once again, good luck. I hope you are a great success. I for one happen to think that small business and the small business person is the heart and soul of this country.

 

Rob,
All very good points and suggestions. Our biggest block right now in proofing numbers has been coming up with sales projections. There really isn't a business model for us to follow. We called Proper Auto Care for a bit of advice, since they do own a retail store. They were very open with their comments and concerns, but weren't able to share specific sales numbers. One thing they did mention was that over the past few years, business has improved more than 400%. They noted their biggest competitor was Griot's, who I guess has been doing very well.

Yeah, we know we can never compete with the discount stores, or even Pep Boys. That is why you won't find Meguires (sp) on our shelves. We will not directly compete with them. If they pick up something from our product line, we will likely drop it. I'm not too worried, however, since many of the manufactures/distributors we've contacted realize the implications of retailing through a major discount chain store.

I welcome any addition input you may have. Perhaps I could get you a draft copy of the business plan for your review and comments?

 

[QUOTE]Originally posted by Nin009
[B]Rob,
All very good points and suggestions.

 

It has been about 5 months since this originally started. Just thought I would bump it to the top to see if the business is up and running.

There is a perfect little retail office about 1 mile from my house that would be great for something (it is right along a super busy low mph 4 lane road)........ I would need to make about $400 per day in profit to make $75k a year net........ that is a pretty decent amount of "something".... the $400 turns into $1000 of sales per day at 40% margins..... I just cannot think of anything to sell there, that someone does not already sell.

Scot

 

To make $400 a day is pretty impressive if you ask me.

 

Ya, that is why I have not signed up for any retail stores..... I don't even know what I would sell to make that much profit per day....hell, I would be hard pressed to even sell that much stuff let along profit that much.

 

I concur with that statement. 2 years in retail biz, and it's VERY difficult in making that kind of net profit.