Advice on New Store

[Lingo999]

Hi there,
I have been lurking in this forum for about 2 years, and had the pleasure of owning a hot tub for the past 4 years.

I am thinking about opening a hot tub store  and was wondering if the other owners or informed people out here had any words of wisdom.  I have extensive sales experience as well as retail buying and management for a major dept store for many years.

How much help can the mfg's offer on store design, signage etc. I'm sure certain mfg's are better to deal with than others, any advice on that end?

While i'm sure more is better as far as number of tubs displayed on a retail floor, is there a good number for a startup that has worked for you in the past?

Anyway, could ask a million questions, but will see what you folks have to say first, and will ask more later.

Thanks in advance.

[stuart]

First advice is.....RUN! DON'T DO IT!... whew, now that I got that out of my system it might help to know what area your in as it might skew how accurately we advise...   I certainly don't care to "arm the competition" anymore than necessary.

Mendocino is currently out of town but he just went through this in CA and can probably offer a lot of info.

Steve as a factory rep can also be a great resource (and it will keep him busy so he can't talk about me while I'm gone.)  

Feel free to PM me and I will help where I can.

[Steve]

First advice is.....RUN! DON'T DO IT!... whew, now that I got that out of my system it might help to know what area your in as it might skew how accurately we advise...   I certainly don't care to "arm the competition" anymore than necessary.

Mendocino is currently out of town but he just went through this in CA and can probably offer a lot of info.

Steve as a factory rep can also be a great resource (and it will keep him busy so he can't talk about me while I'm gone.)  

Feel free to PM me and I will help where I can.

LOL...oh I'll still have time! Since it looks like you're never leaving!  

I help new dealers in my position become established and give them the tools to succeed. It's an extensive process to say the least! Hydropool Spas, amoung many others, offer a very strong business guide to help their new dealers. A strategic sales and marketing plan is often laid out for you by the manufacturer to help prevent the trial and error ways of unsuccessful dealers in the past. A great deal of effort goes into this part of our business.

There's a great deal to know but my suggestion would be a couple things initially. Determine if the area you are considering has the ability to sustain additional competition. Come up with a solid business plan. Nothing should happen prior to that! If you've never done one, my suggestion would be to sit down with someone who could help you with that.  You also need to have a service department, tools and staff to look after that end of your business.

Picking a manufacturer is the easy part once you've considered location, staffing, your business details, overhead, profit and loss and so on. There's some good comp programs available that can allow input of figures and spit out a balance sheet giving some real insight into your plan.

Also you need to have the capitol resources to sustain your business for at least 3 years as this is generally how long it takes to become established as a new company.

Huh...sounds pretty easy now that I've written it down like this!

Mendo has just gone through all of this as Stu mentioned. Mendo did an outstanding job of it too and he's the new poster boy for new spas stores. His success is the exception and not the rule though!

Let us know if you require more specific info on a given area as I've just skimmed the surface here in real general terms.

Steve

[JPKeirstead]

My partners and I have opened four stores in the past four years in Ontario.  Steve is correct when he says that location, capital, and a good plan are paramount.  The best way to get clear on that is research the  market you want to open in.  Know your competition inside-out.  Know where the best retail locations for your budget are.  Be very clear on what you have to offer that is unique.  Competition is strong in the whole retail sector, it is the companies with something unique that survive and thrive.

Once you have done that research, build it into a good business plan.  I would suggest that this exercise is that most important.  Through building your plan you will see pitfalls you may not have considered.  Ones that could be fatal to your business.

I have seen many great people get into business in the hot tub game struggle and not succeed because they were not prepared.

If you would like more information feel free to message me.  

[Pooldevil]

Hi
Hard work , but when it all goes well I really enjoy it !
Having been in the pool service industry for over 30 years most of my jobs are repair related ....
Installing a new hot tub brings smiles to everyone  !
Just thought I would add my bit  
You won't get rich .... at least not in England !

[Steve]

I dunno about England (other than I was born there ) but I do know some very wealthy store owners!

These are generally the people that follow the sales and marketing guidelines set out by the manufacturer to a T. I'm a firm believer in you get out what you put into it!

Steve

[AmICrazy]

Nice to know someone else is going through this. I am currently doing the same thing. I have almost secured my dealer and I have almost secured my lease ( just waiting for lawyers papers) I would say that so far everyone has been very helpful. I think that if you go with one of the major brands and make your store the way corporate wants you to do it you'll have a far higher chance of success than if you think you know what is best. So far of each of the major players I've spoken with all have been very good. I can only have a limited choice of dealers since most have protected territories. I still have a great line and am extremley happy that I got it. Can't say which one yet since all the paperwork is not signed all I can say that it is not Arctic and it is on this board a lot ... mostly on the positive side. i'm not sure where you are but I can only say that here in Ontario, Canada....LOCATION, LOCATION, LOCATION!! I haven't got far enough into the whole process yet but if I can help you I will... unless of course you are going to set up in my town

[MellowBeerMan]

i just dabble in this as well, since there are no tub dealers even close to me and my county is the second fastest growing county in the USA.  (henry county GA)

What kind of start up cost you think I would need formy own store?

[Lingo999]

Hi
and thanks for all of the reply's so quickly.

I am still in the very preliminary stages of this, the store will be in central NJ, exactly where I am not sure yet. I am currently mapping all of the existing stores and lines they carry to help find a good location.  I have also been visiting the stores , as a shopper, to see what is offered, services, type of sales pitch etc.

Thanks again.

[Lori]

Where is bunka???

Ndabunka, a guy who frequents this board and others was researching this last year.  He may be able to help you!

He eventually decided not to open a dealer, but I think he was out voted by his wife.  (Of course, bunka, if I am wrong, please accept my apology!  )

[MellowBeerMan]

lingo what part of Central NJ? I grew up in woodbridge/metuchen then lived in Edison spotswood area....So I know the area very well.

as for location and some idea's check out pelican pool/ski shop in East Brunswick, they have a nice set up for Tubs, big room several tubs laid out so you can wet test.

In central NJ I do not think you can go wrong, just so many people there. You will have to find the right tech's though and have terrific customer service.

as a old NJ consumer, having so many choices made it easy to cross off a store that was rude or not up to snuff with their product (when I knew more it was time to go)

any advice, maybe Monroe towards Jackson...Nice area, being built up, big wealthy houses with money to spend. Also interesting many retirement "villages" being built in NJ, if thre was a way I would target the community, many of them are wealthy retires from NYC.

miss nj, but love Georgia, I wish you all the best. Good Customer service in that area, you will have no problem, lousy service you are doomed. A good rep is everything there.

[hottubber]

I beleive that needs to be part of your negotiation with whichever manufacturer you select. Before you go there, any chance to move to NJ. I am looking for some talent in that end, sales, retail store manegment.

Seriously, each manufacturer should frothe with the opportunity to get a NEW store for their product line. A nice selection, not neccessarily the entire line is needed to display an array of features available throughout their line. Select the best brand suitable for YOUR clientele and demographics.

Remember, the biggest brands in the industry are not always the most proffitable for you. We are in this for one reason, right???