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  • #984830
    ad2405
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    Hi all,
    Its been a while since I have posted anything but I need some advice and thoughts if anyone can help.

    I bought the business 2 and a half years ago, it is a retail bricks and morter shop and I sell to trade customers where I deliver to them, retail over the counter and also I sell online. The business has been in its current premises for 28 years so it is well known amongst the locals and is on the main road. The building is very old and small, I feel I have outgrown it both in size and the “décor” if you like of the retail showroom. I am coming up to a lease renewal in the next 6 months. Also there have been a few problems such as water leaks and Ive lost some of my parking lot (long story).
    I don’t know weather I should stay and spend money doing a make-over of the showroom. Or should I look for a new showroom/warehouse that I can build up how I want and have more space for pallets etc.

    Thanks in advance for your advice.

    #1149823
    LucasArthur
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    Hi Ad,

    Sorry to hear the current dilemma you are facing.. not that i have any major input, although i am curious if you have asked your regular ‘tradies’ what they would think?

    Cheers
    Jason ;)

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1149824
    ad2405
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    • Total posts: 66
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    Thanks for the reply Jason,

    I had actually looked at this a few months ago how the trade guys would be affected and I spoke to a few and they were basically like as long as we weren’t too far away from where we are and we can still offer the same delivery service then they will support us. I guess its retail that is my main concern and the fact that we have been in the same location for close to 30 years. It is the sort of business where someone might not need anything from me for 1 or 2 years at a time so if we moved then next time they come here and we have moved they might not know how to find us.

    I also worry about someone coming into the same location and starting up another shop pretending to be us, if you know what I mean.

    #1149825
    Marc D
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    • Total posts: 78
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    Hi,
    Just my two bob’s worth. I think the possibility of someone taking over your shop is much more of a threat than you may have first thought. In my humble opinion, assuming you are to stay in business, you need to maintain control of the original premises whether through paying dead rent or controlling the occupancy by keeping the lease and subletting to a non competitor (if they will let you), no matter what you do. I wouldn’t move too far, location and reputation are probably key success factors for your business

    Here’s a thought…why not do both? have a retail and separate wholesale premises or get a warehouse around the corner and maintain the current premises as customer facing with non public facing operations at the other premises. It doesn’t have to be an either / or decision if you can justify and afford both.

    Personally, I would not be in a hurry to relinquish the current property. Look at the actual base causes of your problem and find a solution that addresses those. Lack of parking? Tired decor? Why not divert trades and online to another, very close premise and leave retail in the current (and spruced up) shop? Or even serve trades over the same counter but warehoused around the corner with minimum stock on hand (tradies in your business I think is always a good retail selling point). I guess its what can be afforded but there is usually more than one solution. You don’t have to think in absolutes and good on you for asking for input. Someones comment may just provide a seed of an idea for your own solution

    Cheers

    Marc

    #1149826
    Tony Manto
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    Quote:
    Personally, I would not be in a hurry to relinquish the current property. Look at the actual base causes of your problem and find a solution that addresses those. Lack of parking? Tired decor? Why not divert trades and online to another, very close premise and leave retail in the current (and spruced up) shop? Or even serve trades over the same counter but warehoused around the corner with minimum stock on hand (tradies in your business I think is always a good retail selling point). I guess its what can be afforded but there is usually more than one solution. You don’t have to think in absolutes and good on you for asking for input. Someones comment may just provide a seed of an idea for your own solution

    Cheers

    Marc

    Marc is absolutely right. Your trade customer can be serviced from nearly any location not to far away.

    Jut look at future trends in purchasing and that all points to online. Therefore a traditional bricks and mortar store is becoming less important.

    I agree whole with Marc. Do the numbers, they never lie. Break down your retail, and trade customer. What is the % in each market? How much could you loose and what would that do to your business?

    Having said all that, try and collect your retail customer details. Emails, phone numbers and so on. This way you can market to the regardless where you are.

    Regardless its a great thing to do anyhow. It gets those casual customer coming back more often.

    Tony
    Strategy Specialist
    [email protected]

    #1149827
    ad2405
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    • Total posts: 66
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    Hey guys, 8 months later and I’m still going with this topic.

    The latest, lease negotions have broken down. To the point where they have said basically “take it or leave it”, I can’t rent a place that is 3 times as big on the same Main Street down the road for the same price as I’m paying now and I’m actually looking at buying the premises that is down the road.

    I looked at the having 2 locations option but I do not have the staff to be able to maintain two operating shops and I do not at this stage want to put on any extra staff.

    I also looked at keeping the current location and paying dead stock, but I can not afford this. We tried to get the owners to enclose the back area where it is currently undercover but not secure, and they want an extra $200 a month to cover costs of having air conditioning installed and new carpet. The building is 60 years old and honestly… It’s a dump. It has done it’s job for the business over the last 30 years but the landlord does not want to spend money fixing it up. I was prepared to put money into new racking and skateboard but they won’t help with the premises. And as per above I can rent or buy another place 3 times the size and still on the same road for the same price. It’s a real shame but I have to look long term, and just staying where we are is not going to make the business move forward.

    We are currently putting together budgets for moving costs and so on and I hope to make a decision soon.

    Retail is my only concern but we would not be moving too far and I was thinking we might be able to pay 1 or 2 months worth of “dead rent” so that we can have signage up saying we have moved. And I will probably need to letter box drops in the local area so those people can know we have moved and I will advertise in the local paper.

    I don’t have a question I just needed express myself. Any feedback is always welcome.

    #1149828
    affgar
    Member
    • Total posts: 123
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    You have answered your own question ….

    As soon as landlord issues come up or you think they take you for granted .. it’s time to move. Let them have their vacant possession. Landlords often get addicted to the free money & think it grows on trees …. taking great tenants for granted.

    But do you have good alternatives?
    Often you may be able to negotiate a free period of rent to take possession & do some cosmetic renovations.
    Buying a place has many advantages obviously … but will it be where you want it?

    A fresh new look & change of building can be a good thing for customers .. embrace it. Just make sure you can improve your location for your market demographic (many things to consider with this term). Who are your main customers, where is the bulk of the revenue coming from?

    Just make sure you clearly advertise where & when you are moving … & make sure you keep same numbers etc ..

    I would not waste money paying two lots of rent just to be able to direct people to your new location…. could you put a sign up on the new building? Do you think the place will get rented immediately? Get friendly with the people who take over the new place so they can direct traffic to you. :)

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