Opening your own LHS

[li7039 0]

Im going into my JR year of HS and i gotta start thinking about college. One of the things i have though about is opening my own business. What i want to do im really not sure but the sporting goods theme has crossed my mind. I understand most of the basics on what you need. Location, insurance, employees, etc. Now im assuming that each company requires you to order a certain amount of gear each period or cycle. like nike bauer could have a minimum of $25,000 a order and the others could have another number. But what about Easton, could 1 order have say baseball, and hockey gear on it. For example the minimum is $20,000 could 10,000 be baseball and 10,000 hockey?

This is only a thought and i still have a lot of work ahead of me before im in the "real" world

[Wolfpack_1986 154]

nothing wrong with being ambitious and thinking ahead... but the rules on what you can buy will probably change by the time you're ready ;)

[li7039 0]

i under stand where your coming from, with inflation and the usd value. I like to have a little bit of knowledge before i go into something.

What i really do not want to do is have to take out like a $500,000 loan and than flop and than i would be in big big big trouble.

[Rustpot 1]

I would say you should probably work as a manager or something at a sports store during college to gain experience in the field. Get in close with the owner and who knows, maybe you can just buy his shop and not deal with most startup costs.

I don't see how making a mixed sports order to Easton will help you when you're still 6+ years from opening a shop (assuming you do so post-college).

[JR Boucicaut 3805]

Ironically enough, I've been shitting in people's Cheerios all day, but here goes...

First off, it's not about minimums and everything about profit margin and volume. The more you buy, the better discount you get, and the more you can be competitive with the big boys.

That being said, you need the proper location - a stagnant/cluttered market and/or a dying hockey environment will not help. I have a friend who I consider family who has a 3-store chain, in rinks. He's REALLY struggling right now - he's got a very good selection of product in his stores, and is the nicest guy you'll ever meet. He calls me today and tells me how bad the stores are doing and despite him being a great guy, due to how bad the economy is, his "customers" will come in, see product, then go up the road and buy it from the bigger store. And it's very unfortunate - he takes care of his "loyal customers" on the service end, and their decision to go elsewhere is strictly on price. And we're not even talking online - just local buys.

I can't begin to count how many times people tell me to open a store. I won't - unless I did a specialty store - repairs, custom skates (no stock), sharpenings. Joshy207 and I discussed doing it in MI, but the time isn't right. There's barely any money in hardgoods, and for you to make money in it, you have to go big or go home, and it's a huge risk to do given the state of the economy and the hockey equipment market.

[li7039 0]

alright thank you JR. My area seems to be more like a LAX and Baseball area so i would guess that hockey stuff would not sell. The only store around me that carries high end hockey stuff sells other stuff as well. Another shop rents out a rink on Saturdays to try and earn some extra cash as well.

[JR Boucicaut 3805]

I don't believe there's a strong enough presence on Long Island to sustain an all-hockey store. There are quite a few good players from the area, but they're going elsewhere to play.

[li7039 0]

your 100% correct on that. Most people do not even know that indoor roller hockey exists here. But baseball is huge here along with LAX.

your from here right JR?

[JR Boucicaut 3805]

Yes, I'm originally from Long Island.

[boganz45 0]

I have a buddy on Long Island who recently (within the last 2 years) opened up a hockey store / warehouse there that has an immaculate selection (has tons of top of the line stuff as well as lesser stuff) at prices I guarantee are cheaper (significantly so) than all of the etailers out there. He ONLY does hockey and is doing well. I buy all of my stuff from him because he is a fair, honest, and nice guy - and his prices are unbeatable. So to say LI cannot sustain a hockey only store would be an incorrect statement. Wait until his website is further developed...

[Goonsquad 209]

Yes, I'm originally from Long Island.

No kidding.. Where abouts? I grew up in Smithtown.. Suffolk county

[aliebe 0]

I will preface this by saying I have little experience in running a retail store and I'm probably talking out of my ass, but is it possible to "rent" warehouse space from a large retailer to take advantage of their purchasing power? I believe you can do this with amazon, where you setup your own store and set your own prices, but you buy from amazon and the product is shipped from amazon's warehouse.

I realize this takes away from the LHS experience (especially when it come to skates), but it could help reduce the risks associated with unsold inventory. Maybe he could keep a pair in each size to try on or something along those lines.

[JR Boucicaut 3805]

I have a buddy on Long Island who recently (within the last 2 years) opened up a hockey store / warehouse there that has an immaculate selection (has tons of top of the line stuff as well as lesser stuff) at prices I guarantee are cheaper (significantly so) than all of the etailers out there. He ONLY does hockey and is doing well. I buy all of my stuff from him because he is a fair, honest, and nice guy - and his prices are unbeatable. So to say LI cannot sustain a hockey only store would be an incorrect statement. Wait until his website is further developed...

It goes with my "go big or go home" argument - if he's doing good volume, he will make money. Hell, the most successful hockey store in the United States is in California.

As far as a small business, what the original poster was talking about, I still don't believe you can do well out on the Isle.

Yes, I'm originally from Long Island.

No kidding.. Where abouts? I grew up in Smithtown.. Suffolk county

Hempstead. Lived there for a couple of years then lived out in Islip for a couple of years back in the early 80s. Spent all of my summers in Hempstead when I lived in Dominican Republic. I still have family there.

[A2rhino 63]

JR is absolutly correct. It's far to hard to open a business such as the hockey industry with all the outside opsticals. First you need a great location and enough business to keep a retail store open. So profit margin will be your second if not tied for first opstical. Next comes the dreaded internet. Not only are you competeing with price but also free shipping, less overhead, fewer employees and NO SALES TAX. How fair is that? Then as JR said you have to compete with the likes of the other LHS thats been in town for god knows how long. The only thing I could see making a NEW retail store successful is somthing unique, someone like JR who REALLY knows their shit, a trusting staff that isnt stealing from you every chance they get. Enough inventory for your customer base and to be able to turn the inventory before the newest stuff comes out and your stuck having to cut price to blow out the old stuff which in turn kills your already low profit margin. Then you'll also need enough $$$ to keep you alive the first two years to gain a consistant customer base. Love the business but YIKES I'll pass.

DID I FORGET ANYTHIG? Oh ya, budget to advertise.

[li7039 0]

I have a buddy on Long Island who recently (within the last 2 years) opened up a hockey store / warehouse there that has an immaculate selection (has tons of top of the line stuff as well as lesser stuff) at prices I guarantee are cheaper (significantly so) than all of the etailers out there. He ONLY does hockey and is doing well. I buy all of my stuff from him because he is a fair, honest, and nice guy - and his prices are unbeatable. So to say LI cannot sustain a hockey only store would be an incorrect statement. Wait until his website is further developed...

where is this place? i need a pair of ice skates.

[aliebe 0]

JR is absolutly correct. It's far to hard to open a business such as the hockey industry with all the outside opsticals. First you need a great location and enough business to keep a retail store open. So profit margin will be your second if not tied for first opstical. Next comes the dreaded internet. Not only are you competeing with price but also free shipping, less overhead, fewer employees and NO SALES TAX. How fair is that? Then as JR said you have to compete with the likes of the other LHS thats been in town for god knows how long. The only thing I could see making a NEW retail store successful is somthing unique, someone like JR who REALLY knows their shit, a trusting staff that isnt stealing from you every chance they get. Enough inventory for your customer base and to be able to turn the inventory before the newest stuff comes out and your stuck having to cut price to blow out the old stuff which in turn kills your already low profit margin. Then you'll also need enough $$$ to keep you alive the first two years to gain a consistant customer base. Love the business but YIKES I'll pass.

DID I FORGET ANYTHIG? Oh ya, budget to advertise.

that's why ask about the renting/leasing warehouse space from a large retailer. You may lose out on some profit margin, but that is offset by not having to deal with unsold inventory. Remember, it's not your inventory but the large retailers.

[DarkStar50 679]

After 30 years in the hockey business, I would do it again but I would do it for more money! You can love the game, love the people you know in it(it's a small circle), love buying gear for your shop, but you better love long hours, love worrying about selling your inventory especially the stuff that you thought would sell but isn't, love the customers who give you a hard time over bs, love opening early and staying late, love working on your day off when the part-timer called in sick, love opening orders to see where the vendor shipped the wrong items, love the customer's messed up custom order that you are stuck with, love listening to people ask you for a discount, and love people complaining about a $6 skate sharpening. Like I said, I love it after 30 years! No kidding, you just never know what you are getting in to. That is life.

[strosedefence34 179]

I have a buddy on Long Island who recently (within the last 2 years) opened up a hockey store / warehouse there that has an immaculate selection (has tons of top of the line stuff as well as lesser stuff) at prices I guarantee are cheaper (significantly so) than all of the etailers out there. He ONLY does hockey and is doing well. I buy all of my stuff from him because he is a fair, honest, and nice guy - and his prices are unbeatable. So to say LI cannot sustain a hockey only store would be an incorrect statement. Wait until his website is further developed...

where is this place? i need a pair of ice skates.

i second this motion. If its against the rules send me a pm.

[JR Boucicaut 3805]

Aliebe -

No hockey retailer would do it through Amazon when they can sell it themselves. My old employer had an Amazon presence and it was their inventory.

You can use distributors (HockeyWest, Murray Sandler for example) for what you are talking about, but the pricing will not be good (the distributors are in it to make money)

[VakarLajos 5]

Yes, I'm originally from Long Island.

No kidding.. Where abouts? I grew up in Smithtown.. Suffolk county

Setauket here. Small cyber-world.

[aliebe 0]

Aliebe -

No hockey retailer would do it through Amazon when they can sell it themselves. My old employer had an Amazon presence and it was their inventory.

You can use distributors (HockeyWest, Murray Sandler for example) for what you are talking about, but the pricing will not be good (the distributors are in it to make money)

I see. I was just using amazon as an example because of their ability to act as the middleman for books, cd's, etc.

[boganz45 0]

Is it legit if I pass on the LI shop info to these guys or anyone else who may ask for it?

[JJ Thompson94 0]

Yeah add me to the list of people who want to know about this shop on LI. I love hockey shops and when I find a new one, I'll buy some tape or laces, just as a thank you for letting me look around.

[boganz45 0]

I will let you all know if it is good to go. Also, note that I get nothing out of this, so buy from him if you want or don't if you don't. I randomly met the owner earlier this year and he is a stand-up guy - someone who I would and do give my business. And while I can afford to pay higher prices found at most other shops I am always for the best deal / price and this place has the best hands down - another reason why my business goes here. It doesn't hurt that he treats all of his customers very well and will order you something if need be. The shop is more warehouse than traditional store, but it is still partially under development from what he has said. Check it out. Later,

[JR Boucicaut 3805]

If he's open, what's wrong with listing the store? Or is he not open yet, then how can he be successful? You're not Brooklynite, right? I'm tired of looking up IPs. LOL