The Costs Of Opening Up A Physical Store: 3 Things To Keep In Mind
A physical store isn’t necessary in the modern world of commerce. When you have a website you can sell to people in the comfort of their own homes, and that means you can save on all the traditional overheads of running your own store.
But seeing as we love heading out to go shopping, a physical location is still a great marketing device. People love to nip into shops to browse what’s for sale, and you get to develop a closer relationship thanks to that in-person element of customer service.
But the cost of opening up a physical store can be great. If you’re going to do so, we highly recommend keeping these three things in mind. They’re not the most obvious costs to account for, but before your first week of business gets underway, you’ll need to see about them.
There’s Many Costs in Gaining Footfall
Footfall is the number of people who pass by, as well as in and out, every day. The rent of such a location, however, will be monumental. You can get around this by renting outside of prime real estate, but this also has its downfalls.
Namely, you’ll need to up your marketing budget to make sure people can still find you. Customers don’t tend to go out of their way to check out what’s behind the big, glitzy stores on the back streets!
You’ll Want to Measure Wholesale Suppliers Against Each Other
Buying from wholesalers is the best way to get the stock you need at a price you can afford, especially if you want to be in business for more than a year! Most businesses can find a wholesaler to rely on, from clothing boutique owners who need a regular supply of dresses to a brand new cafe who needs coffee beans more times a week than they ever expected. The only issue, however, is finding the right supplier.
To do this, measure wholesale suppliers against each other before you choose one. You need to know you’re getting the best deal out of the market, and the more you directly compare price points, supply times, and seller behavior, the more confident you can be that you’re not wasting any pennies here.
However, your work doesn’t end once you’ve signed. Keep an eye on the suppliers in the area and who is best to work with on an ongoing basis - you could even negotiate a lower price without needing to chop and change!
Prices Shouldn’t Be Static
It might be tempting to try and guarantee the same price to your customers, but this is a big mistake. Ultimately, your profit line won’t have the chance to thrive.
Indeed, you can’t let your prices stay the same way forever. You need to run sales to generate custom from time to time, but you also need to raise prices in line with inflation to ensure you’re covering your expenses.
Want to open a physical store? Don’t trip up on these costs.
