Ok, Step 2

[Neo5370 132]

I got a LOT of great feedback when I asked for sharpening advice, now the second part of my rough business plan is to start figuring out some costs. So a few questions.....

A ) First, I was told by LHS near me that the big manufacturers won't give accounts to any ol' rinky dink operation. Do I have to convince Easton (for example) that my shop is worthy of selling their sticks or can I simply contact them, ID myself as a retailer and place an order for what I want?

B ) Second, I'm obviously going to need a loan so I'll need to know how much I need. I'm not a retailer yet so is there a way for me to view wholesale prices and min. quantities? I am going to try contacting customer service numbers but I doubt they'll divulge.

B2 ) On that note, what should I carry? I think things like services (sharpenings) and tape will contribute most to the bottom line (I think) but should I bother carrying a ton of protective, socks, jerseys, etc.?

C ) Third, what sort of location do you guys think is advisable? I mentioned in the past "heavy hockey areas", but w/in those places do you think I should go somewhere like a strip mall, maybe closer to residential areas, or find the busiest rink and park myself nearby?

D ) Costs. Off the top of my head I am thinking...

- Rent

- Utilities

- Insurance (But what should I look into? Fire/Hazard/Theft/Liability for anything?)

- Equipment (Anything associated w/ skate sharpening and maintenance)

- Merchandise

- Advertisement

- Payroll

- Cash (to cover the above in the event of no income for X period of time)

Comments on Part D are extremely welcome but any advice is good advice to me :)

Thanks to the brave who took the time to read this ass long post!

[prenny207 1]

first off... with regards to companies opening you up as an acct... depends on location. if you open in the heavy hockey areas, and there are already a fair number of dealers, they will most likely not open you up with an acct. in a small market, they may look at the posibilities of your business potential and make a decision from there.

the other issue you are going to be faced with is, right now this industry is facing some of the roughest times it has seen in the past 30 years. making it very tough for retailers to remain in business. some manufacturers are strongly looking at focusing on stronger retail locations, and what it will take to grow their business, and decrease the amount of shops that they continue to sell to.

sorry to say this... but if you are looking to make some money to put away for later in life... i would advise looking to another industry then the hockey industry. don't mean to disappoint you, but this is coming from someone that relies on this industry to make a living. it is very tough, but if you do continue to proceed, i wish you the best of luck.

[Chadd 916]

I got a LOT of great feedback when I asked for sharpening advice, now the second part of my rough business plan is to start figuring out some costs. So a few questions.....

A ) First, I was told by LHS near me that the big manufacturers won't give accounts to any ol' rinky dink operation. Do I have to convince Easton (for example) that my shop is worthy of selling their sticks or can I simply contact them, ID myself as a retailer and place an order for what I want?

B ) Second, I'm obviously going to need a loan so I'll need to know how much I need. I'm not a retailer yet so is there a way for me to view wholesale prices and min. quantities? I am going to try contacting customer service numbers but I doubt they'll divulge.

B2 ) On that note, what should I carry? I think things like services (sharpenings) and tape will contribute most to the bottom line (I think) but should I bother carrying a ton of protective, socks, jerseys, etc.?

C ) Third, what sort of location do you guys think is advisable? I mentioned in the past "heavy hockey areas", but w/in those places do you think I should go somewhere like a strip mall, maybe closer to residential areas, or find the busiest rink and park myself nearby?

D ) Costs. Off the top of my head I am thinking...

- Rent

- Utilities

- Insurance (But what should I look into? Fire/Hazard/Theft/Liability for anything?)

- Equipment (Anything associated w/ skate sharpening and maintenance)

- Merchandise

- Advertisement

- Payroll

- Cash (to cover the above in the event of no income for X period of time)

Comments on Part D are extremely welcome but any advice is good advice to me :)

Thanks to the brave who took the time to read this ass long post!

A. Your local rep will decide who gets an account in his territory. Some retailers may tell a manufacturer that they will not buy their product if they open you as a dealer. In all honesty you will make a larger margin off of the small brands than you will the big guys. You will likely have to spend some time with smaller brands before you get a chance with the big boys.

B. You need to do this before contacting any manufacturers as you will have to fill out credit applications as part of opening an account.

B2. A top end sharpener will cost you $10k+. It's better to have to re-order product than to have a ton of it in the storage room, so don't order a ton. Make sure you talk to manufacturers and see if they have the ability to get you product mid-year

C. Having a small location is nice because it doesn't cost as much to make it look full. Making it as easy and convenient to find is probably the most important thing. If you're too close to a rink you may have a problem getting an account with anyone that deals with the rink's pro shop.

D. I'll email you some info on that

[Neo5370 132]

first off... with regards to companies opening you up as an acct... depends on location. if you open in the heavy hockey areas, and there are already a fair number of dealers, they will most likely not open you up with an acct. in a small market, they may look at the posibilities of your business potential and make a decision from there.

the other issue you are going to be faced with is, right now this industry is facing some of the roughest times it has seen in the past 30 years. making it very tough for retailers to remain in business. some manufacturers are strongly looking at focusing on stronger retail locations, and what it will take to grow their business, and decrease the amount of shops that they continue to sell to.

sorry to say this... but if you are looking to make some money to put away for later in life... i would advise looking to another industry then the hockey industry. don't mean to disappoint you, but this is coming from someone that relies on this industry to make a living. it is very tough, but if you do continue to proceed, i wish you the best of luck.

Yes, I definitely see where you are coming from. I am hoping to be more of service oriented shop than just a straight sporting goods/retail shop.

I think I remember reading a long time ago someone saying most of their shops revenue came from services i.e. sharpenings and I guess you could call them "commodities" like tape, wax, laces, blah blah blah.

As a consumer, I often wonder how LHS's can compete with competition such as big E-tailers that have tons of surplus on super slashed, closeout prices.

[Roach 0]

Neo, I missed your Step 1 post, but I am glad that I caught this one. You and I are in similar situations with the exception that I am putting up both a shop and a rink to boot. I don't know where you're thinking of setting up shop, but mine will be all the way down in the Philippines which has currently a very small hockey market. I hope you don't mind sharing information on setting up accounts as I am also in need of information regarding this.

I am sorry that I cannot add any useful information as of now, but will be in touch should I have anything that I can pass on to you.

I don't mean to jack this thread so I'll start up a new one with my own situation in a few.

The best of luck to you!

[Jim A 4]

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