Markverhyden
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Ahh..... Me thinks there is a subliminal message in there somewhere.
Store front or Home office?
- Thread starter Eanix
- Start date
Ahh..... Me thinks there is a subliminal message in there somewhere.
Krynn72
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I'm not the owner of the shop I work for, but I can give my perspective as I pretty much run the place and keep track of all sorts of info about it. Having a retail space tends to be dependent on volume. Our business is pretty much strictly residential, and we do only in-store services. As such, our prices are fairly low, and we are always trying to find new repairs that we can do. Right now we do everything from virus removals, hardware replacements, motherboard repairs (shorts, reflows etc). We do game console repairs, tablet repairs, phone repairs, and have just started doing tv repairs even. Turning away work like this is when you won't be able afford to keep the shop open, because virus removals and screen replacements won't be consistent enough to reliably pay the bills, let alone garner profit.
Location is also huge. The shop I work at gets a lot of foot traffic because we are in a spot with a Subway, Starbucks, a package store, and cellular providers. This is basically free advertising, and every day we get customers who come in with a subway sandwich, or a Starbucks cup, or a paper bag in their hand to inquire about our services. We have a T-Mobile and Verizon store across the street from us, and an AT&T shop in the same building as us, as well as a COX store, and a Battery + Bulbs store (sells laptop batteries, cellphone batteries, and misc other electronics accessories) who all refer people to us when they can't help someone. If you open a shop without a lot of guaranteed foot traffic coming by you will have a hard time getting started and will need to spend a lot more money advertising to let people know your store exists.
These are just the first few thoughts I have when considering this question.
Location is also huge. The shop I work at gets a lot of foot traffic because we are in a spot with a Subway, Starbucks, a package store, and cellular providers. This is basically free advertising, and every day we get customers who come in with a subway sandwich, or a Starbucks cup, or a paper bag in their hand to inquire about our services. We have a T-Mobile and Verizon store across the street from us, and an AT&T shop in the same building as us, as well as a COX store, and a Battery + Bulbs store (sells laptop batteries, cellphone batteries, and misc other electronics accessories) who all refer people to us when they can't help someone. If you open a shop without a lot of guaranteed foot traffic coming by you will have a hard time getting started and will need to spend a lot more money advertising to let people know your store exists.
These are just the first few thoughts I have when considering this question.
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Stop the Madness!
Just kidding ... maybe, but the title quote is from Shark Tank if you watch that.
You said you started the biz thinking of targeting residential business but it's actually the SMB that have embraced you and are responsible for 95% of your business. There's more to your story than you are telling. Is this a "Field of Dreams" thing ... "if you build it they will come!" for residential customers?
You mention a "crossroads" in your business. What is it? You don't have to answer publicly or even privately, I'm just having a hard time thinking of a crossroad to which the solution is sinking a ton of money and ball and chain into a storefront and risking reduced service to your SMB clients (95% of your business from your own admission and you sound like a one-man-band) for the one-off residential client that will go down the street to save 5 bucks.
You are correct in that there is a ton of useful information in these forums and from what I've read of the responders is that residential business is heavily dependent upon "location location location" and if you don't have that then you'd better have one hell of a marketing plan, or maybe you know that there are 1750 Grandma Tilley's on your block that will pay you $xxx/hr so they can Skype with their grandkids and pay for your storefront!
But in your post you mention "someone" that would be fixing Grandma Tilley's computer so if you have access to (good) techs then maybe the answer to your dilemma is expanding your SMB biz? ... I don't know I don't have all of the information you do, but you do the math and let us know if you want some other, albeit possibly pointed
advice.
--C
Just kidding ... maybe, but the title quote is from Shark Tank if you watch that.
You said you started the biz thinking of targeting residential business but it's actually the SMB that have embraced you and are responsible for 95% of your business. There's more to your story than you are telling. Is this a "Field of Dreams" thing ... "if you build it they will come!" for residential customers?
You mention a "crossroads" in your business. What is it? You don't have to answer publicly or even privately, I'm just having a hard time thinking of a crossroad to which the solution is sinking a ton of money and ball and chain into a storefront and risking reduced service to your SMB clients (95% of your business from your own admission and you sound like a one-man-band) for the one-off residential client that will go down the street to save 5 bucks.
You are correct in that there is a ton of useful information in these forums and from what I've read of the responders is that residential business is heavily dependent upon "location location location" and if you don't have that then you'd better have one hell of a marketing plan, or maybe you know that there are 1750 Grandma Tilley's on your block that will pay you $xxx/hr so they can Skype with their grandkids and pay for your storefront!
But in your post you mention "someone" that would be fixing Grandma Tilley's computer so if you have access to (good) techs then maybe the answer to your dilemma is expanding your SMB biz? ... I don't know I don't have all of the information you do, but you do the math and let us know if you want some other, albeit possibly pointed
advice.--C
glennd
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- South West Victoria Australia
That's my business plan
For the record, I have a large shed, part of which I've converted to a workshop/office. It's away from the house and close to the road. It gives me a definite "place of business" and customers are happy to drop in. Because I don't have a shop per se, I'm free to lock up and go on site as required. This is something the customers really appreciate and gives me the edge. I do appreciate I'm probably missing passing trade but that just means working harder in the marketing department, word of mouth, value, loyalty etc.
ProfessorCPU
Member
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- 5
It all depends on how much money you can bring in. If you get a storefront that is in a high traffic area and it will pull in enough money to pay for itself then it may not be a bad idea. Just remember there is more overhead than the shop itself. You also pay for business phone, internet, electricity, gas, and so on. And these are all overpriced... because now it is the business prices.
Location is crucial. If you decide to open a store front then think of an area where the store is advertising itself. If you get a store in the back of an industrial warehouse lot... then not many people will see you. If it's in a run down crappy building... people may avoid you. But... across the street from a best buy or close to a walmart... now you have a lot of traffic.
I'd love to be visible from a best buys. My store motto has always been "Don't Call A Geek... Call A Professional!" LOL! No offence to the Geeks on the board. ;-)
Location is crucial. If you decide to open a store front then think of an area where the store is advertising itself. If you get a store in the back of an industrial warehouse lot... then not many people will see you. If it's in a run down crappy building... people may avoid you. But... across the street from a best buy or close to a walmart... now you have a lot of traffic.
I'd love to be visible from a best buys. My store motto has always been "Don't Call A Geek... Call A Professional!" LOL! No offence to the Geeks on the board. ;-)
I havent read every post in this thread only the first few.
I work out of my house. My work space is my own. My wife is very understanding. My work space is 400 square feet perviously unused bare room with concrete floor. I have used the last few years fixing it up and making it my own. Its like a man cave / office all in one. Becuase it is were i raise my kids i do not permit client to come to the house. 99 percent of people are like wow you come to me, great. The few it is a problem for is fine. It few and far between.
I have seen dozens of store front repair shops open and close in the 5 years i have been in business. The few that remain open were around long before i opened. I used to think it would be a problem to not have an office but i like my setup. I have long hours for pickup and onsite but if nothing is going on i can hang out with my family. Something i could not do with a store front i would have to be there. I love my job and plan to stick with it. As the industry changes i will adapt as i have been.
I work out of my house. My work space is my own. My wife is very understanding. My work space is 400 square feet perviously unused bare room with concrete floor. I have used the last few years fixing it up and making it my own. Its like a man cave / office all in one. Becuase it is were i raise my kids i do not permit client to come to the house. 99 percent of people are like wow you come to me, great. The few it is a problem for is fine. It few and far between.
I have seen dozens of store front repair shops open and close in the 5 years i have been in business. The few that remain open were around long before i opened. I used to think it would be a problem to not have an office but i like my setup. I have long hours for pickup and onsite but if nothing is going on i can hang out with my family. Something i could not do with a store front i would have to be there. I love my job and plan to stick with it. As the industry changes i will adapt as i have been.
SprinterTech-WI
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- Central WI
What's your business plan? is it to "Fix computers for the next 10 years" or "Build a commercial IT company" or build "a chain"?
for me I am not interested in doing all the work myself, it's why I hire employees etc... I'm also a huge risk taker - it'll either make me rich or I'll go broke, aiming for the former! Out of the house = none to limited employees, and a very strict cap on how far you can go, offices are great if you're smb, not so much if your heavy in residential and / or are dealers in the cellular and electronics markets. store is great if your residential or maybe into cellular and other electronics - from the sounds of things I would look at an office in decent visibility, see how that goes and move on from there.
for me I am not interested in doing all the work myself, it's why I hire employees etc... I'm also a huge risk taker - it'll either make me rich or I'll go broke, aiming for the former!
Out of the house = none to limited employees, and a very strict cap on how far you can go, offices are great if you're smb, not so much if your heavy in residential and / or are dealers in the cellular and electronics markets. store is great if your residential or maybe into cellular and other electronics - from the sounds of things I would look at an office in decent visibility, see how that goes and move on from there.
K
Kaizen
Guest
What's your business plan? is it to "Fix computers for the next 10 years" or "Build a commercial IT company" or build "a chain"?
for me I am not interested in doing all the work myself, it's why I hire employees etc... I'm also a huge risk taker - it'll either make me rich or I'll go broke, aiming for the former!
Exactly! This question comes up all the time and it should be answered with a "what are your goals?" question.
Krynn72
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Do you tell people your address if they ask?
no never... this is where my kids live. Like i said isn't a problem very often.
Krynn72
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- Connecticut
It just seems very counter intuitive to think most people wont care. Its just hard to believe, at least for me, that people wouldn't drop out if you refuse tell them where their stuff is. Is most of your business from referrals? Business or Residential?
I only ask, because I might be starting to look into doing my own thing soon, and this kind of setup would be ideal, though I feel like it'd be hard to start if I don't have much of a reputation and will be taking people's stuff home with me.
wardoursecure
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- Grantham
The majority of my work is SMB on a monthly retainer, I make a point of visiting each client at least once a month , especially if they haven't called for anything.
I have a space just off our dining room and work from their, I have had a couple of residential customers drop off equipment for repair BUT only with prior arrangement. I think our pug barking at strangers would put most off. No one has decided to come in just drop off and collect.
As I have no desire for a storefront it works well for me. There are a couple of computer shops in town and they have been there for years but seem to be struggling, one sells stationary now as well as the computer stuff.
I have a space just off our dining room and work from their, I have had a couple of residential customers drop off equipment for repair BUT only with prior arrangement. I think our pug barking at strangers would put most off. No one has decided to come in just drop off and collect.
As I have no desire for a storefront it works well for me. There are a couple of computer shops in town and they have been there for years but seem to be struggling, one sells stationary now as well as the computer stuff.
Yea i guess it was harder when i was first starting out. When i didnt have a big following. Lots of my clients are word of month but certainly not all. I would say i am half business and half residential. I have a name for myself now. ALso i have a lot of positive reviews on a local newspaper website about 30.
I totally get what you are saying about some one not wanting to send it somewhere they dont know. It really hasn't been to big a problem. I guess i seem to know what i am talking about on the phone.
When/if they ask for my address i say i am totally mobile. If they push i say i work out of my house where i raise my kids. Most people actually say i totally understand.
