I'm planning opening a pasty shop - what are the profit expectations?

Conrad

Well, it turns out someone that lives in the next village is an area coordinator for a large bakery chain! She said the average profit per branch was £50,000pa, which for me personaly would be too low a sum compared to the potential risk.
So the question is whether a more distinctive outlet specialising in premium mpasties, augmented with other products such as baps, would likely generate more profit.

Clearly an impossible thing to predict.

Other ideas I've had are;

An old fashioned style toy shop. In our area the only option is toys 'r' us, but we've come to dislike thier plasticy disney / TV centric range.
Would need a lot of space though, so again a huge risk in terms of rent commitment.

A farm shop - the one here is truly booming, but finding the right plot will be v hard. This type of business I would find particularly stimulating.

A hifi / TV shop. I have my own recording studio and know a lot about audio. I'd like the idea of a high end hifi and tv/ home cinema outlet. Value to be added by virtue of the fact fewer and fewer people have the time and skill to actualy set up a complex system in thier home. Plus I can advise them in a way no Curries person could on the audio side, and the TV side I will research fully prior to opening.
Someone we know of has such a business in Surrey and does very well indeed.

DOPESTER - I've had some experience with online offerings - it's very hard indeed. One of my brothers runs a company specialising in setting up online business. He says it's getting harder by the week as everyone is at it and driving traffic to your site is extremely difficult. Forgive me if I've the wrong end of the stick - I skimmed the thread and my impression is you are looking at an online offering.

FC123 - hope you are well!

PasturesNew

dopester wrote: »

GL Pastures, if you decide to go for it. The near £zero investment surprises me a bit but I know you're good with web-tech and websites.

£0 investment
Zero tech
Pretty much zero website required (if any).
Anybody can do it ... although some may have barriers to entry (e.g. kids, partners, a life).

dopester wrote: »

I'm not sure it's as simple as people with "too much money". There are already lots of luxury retailers and service providers targeting wealth, and the rich don't always buy premium priced stuff just for the sake of it.

It's not stuff.

dopester wrote: »

That doesn't mean there isn't opportunity. I was thinking more of a trying to find and offer an exclusive product or service, at higher margin aimed towards those with high levels of disposable wealth, which maybe targets their ego or eases any number of their insecurities. A product or service they'd be eager to spend premium money on buying.

Easier said than done though. Although the highlighted part of your post... if you can really come up with a genuinely good new idea where no one else is offering the premium product/service (having to ask yourself for reasons why it may not exist already.. is there a real market there for it or not?), entering the market as the sole supplier with little competition has to be an advantage doesn't it.

Maybe I am not googling the right word for it yet, which presents a niche in itself.

Thinking about it, it's a "start immediately" thing, just need the confidence to go out there and say "Hey - this is what I do, I know you want some .... you're special. Buy it now!"

It's probably more the thing for the more outgoing types here though, like LIR/fc123 than little me, who doesn't know a designer from primark, doesn't know a posh wine from a Lidl lambrini and wouldn't recognise our own prime minister -v- a random bloke in a pub.

I'm sure there's a niche for "quiet, subservient, will follow" rather than "knows all about chic and hot and leads loudly from the front" though... and that's where the confidence thing comes in. Ability to "chit chat" with wealthy folks.

Really2

dopester wrote: »

Actually I'm thinking of the market of people, worldwide, down to say £150K to £1/4 million, or on very good incomes.. £80K+ for example. Not just the narrow super super rich.

No one doubts you are very good at what you do, Mr Chartered Accountant, and that you and people you mix with through work enjoy financial success for the way they do things, and for their knowledge, abilities, or perhaps taking intelligent risks which have paid off well.

I am not an accountant mate ;)I could't, but it's there if I need it.( I am not rich, just making some one else richer.:()

I got the wrong end of the stick on rich. (serves me right half way through, I think rich as perhaps mega rich)

OK up to speed now upper middles, Agree there you have quiet a wide niche so easily supported on a wide range of occupations, industry's and incomes and still fairly easy to contact and approach.
also perhaps a bit more "nouveau riche" and enjoying a lifestyle they never had before (hello footballers:))
I agree with anyone that hard work and good thinking make a business. It takes one good idea ,but usually 9 bad ones first:)
But must admit I don't think I would make the leap unless pushed as I find it hard not to relate things to what I do at the moment, thus making my current outlook narrow (because that is what the current line of business dictates to me).

lostinrates

Really2 wrote: »

Well without working for someone worth over £1/2bn I would never know that person or be able to contact them.

I now act as one of their first line of defence, you would never get to approach that person from me.
Also if it was a product in my category you would have to supply me to supply them. You would never get to them direct (but more than likely they would request me to get them a said product) unless you knew them.

I class rich has top 1000, I presume these are the type of people Dopester is talking about. The rich which are still rich no matter what the world is doing.

Its not always through work you meet/approach other people, rich or otherwise.

It was a ''rich'' person who saved my life through access to doctors, not because I'd worked for them.

lostinrates

PasturesNew wrote: »

It's a band?

To me lemonjelly is something yellow and wobbly.

Yes, its a band.

lostinrates

PasturesNew wrote: »

I'm sure there's a niche for "quiet, subservient, will follow" rather than "knows all about chic and hot and leads loudly from the front" though... and that's where the confidence thing comes in. Ability to "chit chat" with wealthy folks.

If you want some outgoing input feel free to PM me. I may be able to offer a teeny bit of insight, if I am thinking along he right lines...which as we can all guess is probably pretty unlikely. And no, Mr B, its not that.

PasturesNew

Really2 wrote: »

I class rich has top 1000, I presume these are the type of people Dopester is talking about. The rich which are still rich no matter what the world is doing.

To me rich is anybody on over £75k, or a couple with over £100k.

You see, it's all relative.

Thrugelmir

Conrad wrote: »

Well, it turns out someone that lives in the next village is an area coordinator for a large bakery chain! She said the average profit per branch was £50,000pa, which for me personaly would be too low a sum compared to the potential risk.
So the question is whether a more distinctive outlet specialising in premium mpasties, augmented with other products such as baps, would likely generate more profit.

Clearly an impossible thing to predict.

Other ideas I've had are;

An old fashioned style toy shop. In our area the only option is toys 'r' us, but we've come to dislike thier plasticy disney / TV centric range.
Would need a lot of space though, so again a huge risk in terms of rent commitment.

A farm shop - the one here is truly booming, but finding the right plot will be v hard. This type of business I would find particularly stimulating.

A hifi / TV shop. I have my own recording studio and know a lot about audio. I'd like the idea of a high end hifi and tv/ home cinema outlet. Value to be added by virtue of the fact fewer and fewer people have the time and skill to actualy set up a complex system in thier home. Plus I can advise them in a way no Curries person could on the audio side, and the TV side I will research fully prior to opening.
Someone we know of has such a business in Surrey and does very well indeed.

DOPESTER - I've had some experience with online offerings - it's very hard indeed. One of my brothers runs a company specialising in setting up online business. He says it's getting harder by the week as everyone is at it and driving traffic to your site is extremely difficult. Forgive me if I've the wrong end of the stick - I skimmed the thread and my impression is you are looking at an online offering.

FC123 - hope you are well!

Turning the question around. What do you have a passion for? Hobby or interest wise? Find a niche.

It may not make you a fortune. ( I can relate to my own experience here). But if you are knowledgable, passionate, etc for the services/ product you provide. Its the best way to build a loyal customer base. Takes time to build a reputation and become known.

The internet has opened up the world. I started off by using well known auction sites and specialist forums to establish myself. Eventually traffic moves off line.I trade around 40% internationally. Thats Europe, USA, Japan, Australia, Hong Kong and even an occasional sale to South America.

There are plenty of storage facilities available where product can be stored (Big Yellow Box, Lok n Store etc). Saving the expense of a physical shop.

Really2

PasturesNew wrote: »

To me rich is anybody on over £75k, or a couple with over £100k.

You see, it's all relative.

It is all relative, I would of thought to be rich in the SE you would need more than that.

I would say £100K was a good wage but not rich. Perhaps I see net asset wealth of £1M and say wages of £100K+ as rich.
My one mate earns over £100K and I would not say he was rich (mainly because of net asset wealth), It is all very relative as you have stated.

PasturesNew

Really2 wrote: »

It is all relative, I would of thought to be rich in the SE you would need more than that.

I would say £100K was a good wage but not rich. Perhaps I see net asset wealth of £1M and say wages of £100K+ as rich.
My one mate earns over £100K and I would not say he was rich (mainly because of net asset wealth), It is all very relative as you have stated.

Mostly people o nly see/know those in their own income brackets.

Whereas I never meet millionaires, you probably haven't been out for a beer with a bloke on the dole as recently as I have And when I say "on the dole", I don't mean somebody temporarily down on their luck after a lifetime of achievement and success, I mean the stereotypical bloke on the dole....