Jump to content
Sign in to follow this  
Cali Craft and Gems

Advice needed re shop premises

Recommended Posts

Cali Craft and Gems

Hi all my forum family...

 

Need some advice on an issue and am going around in circles trying to come up with the right answer.

 

As most of you may know, we have a physical store in Oudtshoorn. The size is around 49 sq metres (of which about 36 sq m is being used for display due to the layout / design of the shop) and although it is classified to be part of the "mall" (ie. two blocks of shops / offices), it is basically hidden from view. Even today still we get locals that pop in asking when we opened as they've never seen us before - and we've been there almost a year already! (@ Miss Jewels - you should remember the store - I value your opinion on this matter!)

 

Now, a 104 sq metre premises is available on Baron van Reede Street at the Queens' Hotel. This is the main street running through town from south to north, and is "where" the KKNK basically is at festival time. All the tour buses stop right outside the door as well!

 

The owner / lessor says that he does not mind "opening up" the premises by removing the one dry wall, but the rooms are still segregated - if I could call it that - wide passage, large archways, but solid walls between rooms (if you know what I mean). There are four double doors opening to the front and back of the building (the back two directly to the hotels' courtyard which is beautiful) and most of the natural light hits these two rooms directly all day (great for the crystals / gems). It is large enough for me to move the entire office lock, stock and barrel into one of the rooms so that our entire operation is based at one premises - incoming stock, online control, distribution, direct sales, shipping, etc. (this will force me to set working hours and abide by them too - no more working till midnight!)

 

I am really struggling to make a decision as my overheads will increase by R3000 per month, but I am assuming that our income should increase too - in store and online as I won't be pulled between two premises all day (shop and office currently separate).

 

If you were in my position, what would you do?

 

I have to give my decision by Wednesday morning. This is also my chance to get loads of more stock as we are going to be at the suppliers on Monday regardless... just the new premises need lots and lots of stock to fill the space! (to at least double of what we already have - and we are already the largest privately owned specialist crystal / gemstone store in the entire Cape besides the factory in CT!)

 

Oh wise ones out there... give me your advice... please!

 

Pic below showing current and new premises:

[ATTACH=CONFIG]4401[/ATTACH]

Share this post


Link to post
Share on other sites
Miss Jewels

Jan, your place is very hidden away at the moment (even we had problems trying to find it) and really could do with more exposure. Granted your overheads will be more, but with the new exposure you will easily be able to recoup it.

With the additional space on hand, you might even consider a mini coffee bar for the tourists stopping off? If I recall correctly, we could not find a place to sit and have coffee, except for Steers and the Lemon something.

With the selection of gems and other items, you cannot rush through the shop, so ideally you want to offer you clients comfort and space. This you dont have currently and I think that running everything under one roof, with the additional space, you will be more hands on and also be able to offer an even better service.

Personally, I would make the move! And so can you!

Share this post


Link to post
Share on other sites
MiemsJewels

You already know the answer yourself Calli. You just need a 2nd oppinion :smile: I'll make a move too if I were you! Always better to rent a prime spot, where you have a lot more feet as well as exposure. Good luck!

Share this post


Link to post
Share on other sites
lilythepink

I agree with Miems and Miss Jewels. And if you have space to open a little coffee shop with nice cakes inside - that will bring you in even more customers who need a cup of tea and suddenly decide, wow, they have to have some of your gems or beads!

Share this post


Link to post
Share on other sites
MrAerospace

Good luck, Janet. We think you've already made your decision and it's the right one!

Share this post


Link to post
Share on other sites
RAG Auctioneers

New premises look cool.

Share this post


Link to post
Share on other sites
retailrush

I say, go for it!! The new premises will open up a whole new range of possibilities - I also think you have already made your decision... Good luck!

Share this post


Link to post
Share on other sites
alloway65

Work out the following:

 

How many walk through customers as an average do you have a month?

How many paying customers as an average do you have a month?

What is the average sale value per paying customer?

What is your average profit margin per paying customer?

How many more paying/walk through customers would you need to achieve as a minimum to cover the new additional rent & running costs.....is this achievable in you opinion? If so go for it!

 

Share this post


Link to post
Share on other sites
Cali Craft and Gems

Thank you everyone!

 

This has been plaguing my mind so much that I barely slept last night... tossing and turning constantly trying to picture where I would place everything, etc.

 

Re the coffee shop idea - I would love that, but there is a coffee shop / cafe about two doors down. I could possibly offer refreshments to current customers who are browsing, but not as a "calling card" to get them in the door initially.

 

The only additional "problem" (if you could call it that) is that I would need to employ someone - and someone trustworthy! If in the current shop we struggle to handle 9+ customers at one time just between the two of us, then a bigger store could pose other issues or concerns - especially with regards to security.

 

But the more I think about it, the more I want the larger store. I think the biggest downfall would be that I would not be able to be with the pets during the day. The youngest cat (Phoebe) has become accustomed to having me at home most of the time and is like my little shadow. She gets depressed if we go away for a few days and it takes me up to a week to be forgiven again!

 

Re Alloway's questions - some good points. As Miss Jewels stated we are currently rather "hidden" so our foot traffic is extremely low. We had a nice increase in trade over December for which I was grateful! Most customers popped in thanks to the brochures we have distributed and from internet searches - very few walk-ins are from passing trade alone.

 

The new premises has a high foot traffic rate as it is in the main street as you enter town area, plus it is the main walkway to the Pick 'n Pay centre from town, Also keeping in mind that the tourist buses park right at the door!

 

I'll hopefully be able to drag hubby there this morning (if I could get his bones out of bed!) and will discuss "alterations" with the owner to see how far I could push my luck in "opening up" the rooms with archways - which would help a lot!

 

Anyway, let me get moving. So much to do...

Share this post


Link to post
Share on other sites
alloway65

Staff is the problem, finding suitable staff and if the necessity arises getting rid of them...very difficult and expensive. One of the reasons I closed down my engineering business and retired again.....getting rid of staff nearly gave me ulcers....and very time consuming.

 

That is why with our current business Rose and I run everything and only use a courier service....and an accountant once a year.

Share this post


Link to post
Share on other sites
Cali Craft and Gems

We viewed the premises again this morning and said "yes"!

 

Now the real work begins...

 

Occupation at new premises is from 1 March!

Share this post


Link to post
Share on other sites
Miss Jewels

Congrats Janet and Gavin. You've made the right decision. Now you will be going from strength to strength. Hope to see you in CT for a coffee!

Share this post


Link to post
Share on other sites
svw
We viewed the premises again this morning and said "yes"!

 

Now the real work begins...

 

Occupation at new premises is from 1 March!

 

Think you have made the right decision and love 'Miss Jewels' idea of serving coffee BUT that could be a nightmare in itself [another business all on it's own] and remove your focus from your existing business - I would look at supplying tables etc and some coffee vending machines or find out if you could sub let the area designated for coffee etc to someone else on the condition that they operate according to certain standards / times etc otherwise you can ask them to leave or don't charge them rent but a percentage of their sales - a lot of the bigger shopping centers do this with small satellite shops they charge a basic rent and then a percentage of sales. If you have bare walls I would also look at asking some 'local' artists if they would like to hang their paintings on your walls and if one sells you take 5% of the selling price.

 

Something else you can also do is chat to the 'bus drivers' if you are serving coffee and offer them a free cuppa with a slice of cake whenever they stop right outside your shop with a bus full of tourists - we did that a couple of years back and it is certainly worth it!

 

Good Luck!

Share this post


Link to post
Share on other sites
lilythepink

Congrats to Cali Craft & Gems, Janet and Gavin on making this tremendous decision. If one never took any risks one would never gain anything.

 

Sending you tons of blessings for great success!

Share this post


Link to post
Share on other sites
Cali Craft and Gems

@ Miss Jewels - we might just take you up on the coffee offer... arriving Sat lunch time, leaving Wed morning early. Taking "time off" on Sat afternoon and Sunday to do non-business things... then full steam ahead on Mon & Tues at suppliers. Staying at Amalfi in Sea Point Sat & Sun nights, and at a boutique hotel in Rosebank Mon & Tues nights.

 

Re the subletting - that is not allowed, but we are allowed to sell other items on commission so that is not a bad idea.

 

We need to fill the space with elegant tables and display units, etc and would like two couches at least - one in the gem section as many customers like to take their time. I also have many books and magazines on the various items we retail so to offer a place to sit and read might also be nice.

 

From entering the store, there is a dry wall on the left which is going to be removed to open this area into the next room - I was considering putting the beads at the far end of this room along with other "local" products (ie. ostrich goodies for the tourists). Directly opposite the entrance will be the jewellery room, and the two large areas on the right will be the crystal / mineral / gemstone area with a large scratch patch zone. The room at the far left at the back end will be the office / BoB zone.

 

Six weeks to go...

Share this post


Link to post
Share on other sites
DIY PRODUCTS

Good Luck! I think that whether you have realised it or not, your biggest benefit from this move is going to be the seperation of BoB from your personal life ie. Home Space.

Share this post


Link to post
Share on other sites
Just Beachin
Hi all my forum family...

 

Need some advice on an issue and am going around in circles trying to come up with the right answer.

 

As most of you may know, we have a physical store in Oudtshoorn. The size is around 49 sq metres (of which about 36 sq m is being used for display due to the layout / design of the shop) and although it is classified to be part of the "mall" (ie. two blocks of shops / offices), it is basically hidden from view. Even today still we get locals that pop in asking when we opened as they've never seen us before - and we've been there almost a year already! (@ Miss Jewels - you should remember the store - I value your opinion on this matter!)

 

Now, a 104 sq metre premises is available on Baron van Reede Street at the Queens' Hotel. This is the main street running through town from south to north, and is "where" the KKNK basically is at festival time. All the tour buses stop right outside the door as well!

 

The owner / lessor says that he does not mind "opening up" the premises by removing the one dry wall, but the rooms are still segregated - if I could call it that - wide passage, large archways, but solid walls between rooms (if you know what I mean). There are four double doors opening to the front and back of the building (the back two directly to the hotels' courtyard which is beautiful) and most of the natural light hits these two rooms directly all day (great for the crystals / gems). It is large enough for me to move the entire office lock, stock and barrel into one of the rooms so that our entire operation is based at one premises - incoming stock, online control, distribution, direct sales, shipping, etc. (this will force me to set working hours and abide by them too - no more working till midnight!)

 

I am really struggling to make a decision as my overheads will increase by R3000 per month, but I am assuming that our income should increase too - in store and online as I won't be pulled between two premises all day (shop and office currently separate).

 

If you were in my position, what would you do?

 

I have to give my decision by Wednesday morning. This is also my chance to get loads of more stock as we are going to be at the suppliers on Monday regardless... just the new premises need lots and lots of stock to fill the space! (to at least double of what we already have - and we are already the largest privately owned specialist crystal / gemstone store in the entire Cape besides the factory in CT!)

 

Oh wise ones out there... give me your advice... please!

 

Pic below showing current and new premises:

[ATTACH=CONFIG]4401[/ATTACH]

 

You sold me too, now do what your heart desires!

Share this post


Link to post
Share on other sites

Please sign in to comment

You will be able to leave a comment after signing in



Sign In Now
Sign in to follow this  

×