no fixed premisis - comments

Hudson1984

Ok, so i've started a webshop selling model supplies and games.

I've done this before with some success and now returning to it with renewed vigor. The trouble is, some of the games systems I used to stock, I can no longer because of new terms that mean they will only supply to sellers with bricks and mortar stores.

I don't want to go down the shop route any time soon really as I do still work full time and the increased overheads would not be balanced at this point in time with the increased revenues. Unfortunately the games that I now can't stock are the bread and butter games, the most popular on the market and as such I am missing out on many many customers.

Just wondered if anyone had any usuful suggestions really, i'm not looking to get round rules, just have some outside thinking of how best to proceed. I can of course grow my customer base with the suppliers I already have but it would be so much simpler if I had these others on board too.

For the record, giving up the day job to pursue this full-time is not possible at the minute, low capital and other financial commitments that I just can't forget about to get this going. Ideally I will grow the store online before having to make the decision to go full time at a later date once income is a little more stable

CKhalvashi

I don't know how to tell you to go down this one.

My company until last year was registered at my home address, as I haven't always had fixed business premises (for first 2 years, my living room was a recording studio), but if they're demanding a full shop, then you may be left with little option but to not deal with them.

CK

Hudson1984

yeah that's what I'm thinking which is a shame as there really isn't a store in the area for this type of product - yes I understand this would put me in a good position if I did setup but at the same time, many other retailers are pulling out of shops, these all being much more established than me and i'm not wanting to run before I can walk.

There are however units for rent on the local industrial estate which I could possibly afford and stay working full time, use the site as my storage hub and then as a shop at weekends. Not sure of the implications of this one but would also allow me to host gaming nights which would also increase revenue and customer base.

CKhalvashi

I'm in possibly the most expensive area of the UK, outside of London.

As a rough guide, what kind of margin (as %age) are you running on? This will give me the best place to advise.

If its more than 20%, and you feel that you could raise your sales to get your profit up by £250 a week, something like this would be good (in many areas, it's cheaper), as you've got no rates to worry about (subject to certain factors), and whilst it's a little tucked out the way, it's still cheaper than many shops.

You don't want anything big, and this is something to take into consideration. Down here, we have a large number of gamers, who are mainly children of those working in London. Look at the lease terms on this, which is specifically why I've chosen it.

CK

Hudson1984

I would be operating at lower than 20% unfortunately due to the large amount of competition in the market (although these new terms could see that margin increase as from november many internet only retailers for this genre will lose their contracts)

I was thinking about something like http://www.rightmove.co.uk/commercial-property-to-let/property-41854202.html.

I could afford that on my day job salary providing the associated costs aren't too high.

CKhalvashi

You're lucky to be in a much cheaper area, and something I've just thought (assuming you're in gaming), is possibly sunset to sunrise challenges, with entry fee, of course, to try and make it work.

Speak with the Landlord, and also the council regarding the rates reduction, and you could be onto something.

Business electricity, it's good to budget 50% more.

CK

Hudson1984

yeah it is a pretty cheap area round here but shops are much more (double as a rough estimate) but with the demise of the high street, foot traffic is heavily reduced and for this type of product people don't often come in on a whim, they know what they are shopping for and know where to find it.

there's lots of extras I can do to up the revenue, like you say, sunrise to sunset challenges, or run games nights (local club currently runs from a theatre) all with entrance fees and of course leave the stock on the shelves to be sold when i'm at the games nights.

Brassedoff

Why don't you see if you can just rent an office address for a month or two? That will run you past the period of opening the account.

Might work?

Hudson1984

ah well, had a chat with the account manager for the product and they are REALLY strict with this it seems.

I have to have 12 month lease (at least) this has to be signed and witnessed and sent to them, I then have to be open at the average hours of my location and be located in a high street location! I think i'll just bide my time I can't see them sticking to those terms and if they do then the products I already sell will increase in desirability purely down to the fact people won't be able to afford the other ones at full RRP

so yup sticking to my home based plan

paddyrg

Any competitors with something similar you can stock in the meantime, so you can build a decent list then badger the supplier with so many hundred guaranteed sale if they let you supply to your customers?

Alternatively, is there a nearby shop that would stock the item on your behalf, they get the walk-in sales and you get the online sales under the shops branding?

Hudson1984

to put it into context, games systems I can stock bring into their bank around £1,000,000 per annum, last yeah the main product I want (and can't stock) had a yield of £133,000,000 so no unfortunately there will be nothing I can do to sway their head.

With regards to walk in sales, they would be better to deal with the company direct and as such have a better deal than I can offer.

Think i've lost this battle but luckily there are plenty of games I can stock and many people are moving away from the £133,000,000 company so I think there are good times ahead for the competition which puts me in a good position to establish myself now whilst it's quieter