Opening a retail store ??

[sflasealcoating 14]

Hello,

I own south florida eal coating and cleaning in south florida... Been in buisness for over 2 years now, but ive been strongly looking into opening a retail and service shop for pressure cleaning equipment sales and service and cleaning suplies... there are TONS of pressure cleaning companies in the south florida area and about 3 known pressure cleaning equipment stores in a 50 mile area.. I was trying to get some info from anyone who has opened such a place....as far as distribution, sales, ect.. any advice would be gladly taken.

Thank you

Cody

[sflasealcoating 14]

lol ok 46 views and no one...guess most people havnt ventured into the retail portion of the buisness.

[Russ Johnson 141]

Check this thread...

http://www.thegrimescene.com/forums/showthread.php?t=5289

[JFife 14]

sealcoat:

Regarding why such few responses: Keep in mind, there are distributors that visit this board regularly, many whom supply contractors on this board. So people don't advise you, because they don't want to step on their suppliers' toes.

Would this be complementary to your existing biz, or a transition?? My INITIAL thought is that the two biz' wouldn't necessarily complement each other that well, but don't have anything but gut instinct to go with. To me, especially since you've only been in biz two years, the way to make more $$ would be growth, not a new biz venture.

I would say, if this IS the direction you want to go in, I think you'd create a more "valuable" biz doing retail than a service biz. I think it would be an easier sell, should you choose to vacate.

What are your brainstorms??? Like you, anytime I see a need I want a piece of the $$. You obviously have sniffed out that your area is screaming for distributors, but do you have other reasons for wanting to do it, other than it is needed??

[Ron Musgraves 240]

Regarding why such few responses: Keep in mind, there are distributors that visit this board regularly, many whom supply contractors on this board. So people don't advise you, because they don't want to step on their suppliers' toes.

Thats a true statment.

If your going to open a retail store any where i would research demographics and see what was needed. certainly and smart organized person can make money at this or there wouldnt be so many doing it.

*** has had many people who have failed and many that are very successfull.

You can learn from both, often those who have failed know why. they can keep you from making these same mistakes.

I know that having a plan and being able to change the plan if needed is a big thing.

I had a friend of mine that laid the plan out. he made a mistake and was affraid to make the change. the fear in the end is what got him. to this day he knows that you cannot have fear and you must be able to make small changes or large ones if you see you have made a mistake.

I feel the reason i have done well is that we have found a successful way thru trial and error and we just keep doing it over and over.

mistakes will cost you money and the you will make them, the one who make the least will win.

[sflasealcoating 14]

Thank you for the responses,

But in regards to distributers and and so few responses, my question was on a broader scale not (what, or who's) products to use. My question was more about how one went about speaking to wholesalers and the actual start up of a retail store and facility. As far a growth of my company, that would not be a smart choice in this situation. We grossed 250,000.00 in sales last year according to my taxes, with myself and one worker. 250k, which is MUCH more then i expected for a 2nd year business. That is all without advertising. I subcontract through 5 very large installation companies whom use myself to subcontract out their sealing. So i have no need to try to expand , and too many buisnesses do this and fold in on themselves. My sealing business would abviousely co-exist with the opening of a sales facility. I'm still young, but will only be able to do manual labor for so long before i just plain get tired lol. Retail i feel is a much more safe venture as far as solid income. If done right , that is.

NOw to the topic. To open a pressure cleaning and chemical retail location, from what i have come up with would need these key things :

Location

materials for resale.... pressure cleaning equipment/chems/sealers ect.

advertising

Staff ie: mechanic

insurance/licensing

if theres anythign i missed feel free to add.??... now the question i would have, and to not step on toes, someone can pm me as to how to and who to contact for wholesale of said products to resale.

[PLD 14]

Would this be complementary to your existing biz, or a transition?? My INITIAL thought is that the two biz' wouldn't necessarily complement each other that well, but don't have anything but gut instinct to go with. To me, especially since you've only been in biz two years, the way to make more $$ would be growth, not a new biz venture.

Amen! I have two diverse ventures (3 if you count the rental house), and I can tell you that the overhead more than doubles the effort required. Two sets of books, two sets of inventory, two sets of employees, THREE tax returns...

Went down this road because business #1 was significant, but insufficient to support my income, and the growth curve had reached the point where ROI (time/effort) was becoming negatively exponential.

[JFife 14]

As far a growth of my company, that would not be a smart choice in this situation. We grossed 250,000.00 in sales last year according to my taxes, with myself and one worker. 250k, which is MUCH more then i expected for a 2nd year business. (quote by sealcoater)

...I am curious why you say this?? Seems to me it would be a far cheaper, smarter, and definitely SAFER move. You are an expert, you can sell, know the equipment, have network/contacts, etc..........seems much smarter to me than opening something you are not an expert in (retail/repairs(assume)). I am in a city of about 250K and there is a sealing/striping Co. here that probably has close to 100 trucks on the road, so there is obviously a market for what you are doing.

As to my response as to why people aren't responding, like I said, they aren't trying to help create competition for their suppliers (whether it be chems OR product/machine sales---there are plenty of both here) so they are mum. .....Or people may just not be interested in the topic. I for one am, but I'd say most don't have interest in going to this side of the biz, so they'd rather just argue about Xjets or something:)

The thing I'd add to your list of "needs", would be a real hefty pocket book. I'd think if you want to be a successful LOCAL guy, you'd need massive inventory. Why buy hose from your for $100 and have to wait a week for shipping if I can have it at my door from an online vendor in a week for $70?? You can't challenge the online guys on price, so you have to beat them on convenience, satisfaction, and efficiency. .....And my guess is that in order to be a showroom distributor for say, Hydrotek, you have to purchase a small amount of their equipment to have on the floor (if you want any clout with them). All the "big" items would be easy to find---call Landa, Hydrotek, Xjet, Goodyear hose, Suttner, but I wouldn't know where to go to get supplied with, say, fittings. Chems would be another easy one. People be beating your door down wanting you to carry their stuff. And if you can get your name out, salespeople have a way of finding you, the kind of people that sell fittings, etc.

I'd think advertising would be cheap for this mock-biz, basically Yellow Pages, book, etc. and that's it. The rest would be word of mouth and cold calling by you. I've never been cold-called by a supplier, so that would probably kick butt if you called the millions of Florida washers:)

[Russ Johnson 141]

Why buy hose from your for $100 and have to wait a week for shipping if I can have it at my door from an online vendor in a week for $70?? You can't challenge the online guys on price,

That's exactly why a supply business can't do extremely well concentrating sales to mobile washers. The guys in manufacturing plants, farms, auto and truck repair garages, etc. aren't as interested in saving so much as getting it NOW. That's why there's about $80,000 worth of inventory (pressure washers, parts, chemicals) in my shop. On line sellers, myself included, rely more on drop shipments from our suppliers. Cold water washers are another story altogether with Home Depot, Lowe's, Sam's Club, etc. working on narrow margins because of volume purchasing. A homeowner who calls looking for a price on one of them must be convinced that you have more to offer than the "big box".

The first thing a retailer must do is get a distributorship for a pressure washer manufacturer. The parts suppliers won't even talk to you unless you can prove you're a distributor.

Call me if you like, I could write here all day and not answer every question you have...502-231-6506...5:00-5:30 PM eastern time would be the best time to catch me for a sit down talk, otherwise I'll be holding the phone with my shoulder while I'm working.