Thinking of opening motorcycle clothing/accessory store

[Robbo_]

Afternoon all,

I've been thinking of starting my own business over the past year or so. One think that I have considered is opening a small retail store selling motorcycle gear/accessories/clothing etc etc.

Now, I am at the beginning, so am doing a little research and would like to get some opinions of feasability. I have not yet put together a business plan, made any cash forecasts or stock markup/research.

A little background about the area:
The catchment area has a population of 130,000. Withing this area, there are 3 motorcycle retailers. 2 of which have a small range of clothing. The other sells mainly FM/cheapo style helmets. They are quite 'shoddy' looking stores, with your typical biker dudes working behind the counter. When I first started riding, I almost felt 'looked down on' when asking them for advice. I hate this attitude, and would like to bring some decent customer service to bikers new or old.

When I have been buying gear myself, to find the brands I wanted I find myself having to look online. None of these stores stock Alpinestars, Dainese, Arai, Shoei etc etc. In the area that I live, there are a very large number of bikers. I feel that there is a good business opportunity.

Things that I need to know are the following:
If an Alpinestars Jacket is sold at £279.99, what would the markup on this be. Same with an Arai lid? How much is the markup on exhausts etc?

Like I said, its just an Idea at the moment. I know lots about retail, but in the mobile communication industry, not motorcycle clothing! I have been running a successful retail store for 2 years now on a busy high street so have pretty good business sense and a good idea for customer care. The time has come when I've had enough of making money for other people. Even though I'm earning a decent salary, theres always the thought there of being my own boss.

Any thoughts on this?

[northwind]

Suggestion for you... Hein Gericke are a franchise operation, speak to them. They'll have tons of info for prospective franshisees for one thing

[Biker Biggles]

Advise great caution.
There are plenty of other outlets selling this stuff to a fairly small market.How often do we actually buy new clothing ,helmets and boots?
There are also plenty of bike busnesses that have gone under in the last couple of years and that has been seen as a boom time.I would suggest there are much harder times in the offing.
That all sounds really downbeat,Sorry about that. :lol:

[Robbo_]

Advise great caution.
There are plenty of other outlets selling this stuff to a fairly small market.How often do we actually buy new clothing ,helmets and boots?
There are also plenty of bike busnesses that have gone under in the last couple of years and that has been seen as a boom time.I would suggest there are much harder times in the offing.
That all sounds really downbeat,Sorry about that. :lol:

Don't be sorry, its all good advice! I hear what you are saying with regards to frequency of purchasing. But then we have retailers that are still here and have been for a long time.

Any comments/thoughts are appreciated!!

[FreshAL]

I could really use a shop like that near me!

Where are you? Location makes a huge difference.

Can you hook up with a local training school? or garage? or bikers hang out cafe? The more reasons people have to be coming near your shop the better.

Retail margins are, on average about 30% - but I know nothing about the motorcycle industry so it might be different

[Jelster]

Suggestion for you... Hein Gericke are a franchise operation, speak to them. They'll have tons of info for prospective franshisees for one thing

That's actually not quite the case. HG own the store, the stock and employ the staff, however the Manager is "Self Employed", although he/she has the last say on staff and any additional stocking.

It's an intersting concept, and I spoke to the Manager at the Slough store about it at some length, I have even considered applying for a position as a Manager, but don't fancy all the problems that go with being self employed.

.

[copper kettle]

I personally think that the biggest threat to reatailers of this kind is the internet. I have purchased almost all my gear over the net, due to the massive savings that can be had. That said it is often necessary to "try before you buy". If you were to do something my suggestion would be to firstly make sure you have an excellent and competitive web site, also offer a service that others don't, be more than a shop (rideouts etc).

Good luck

Dan

[Itching 2 go]

on the majority of things you get 50% for accessories, generally for new business you get discount off retail which slowly increases as you negotiate better terms over time rather than a set maark up, expect 20-30% discount accross the board.
I have often considered doing a similar thing but would not want to be tied into a franchise like Gerric as you dont get to cherry pick the stock you have to have what gerric sell. as in no dainese, ft, richa, and any other make.

[Cronos]

On the face of it, it sounds like the catchment area isn't that big if you're considering adding another retailer to an already pretty full market.

One observation I would have is that the range and quality of stock is paramount, particularly if your location is not near other motorcycle outlets.

I'll give you an example. I will happily browse motorcycle accessories at the main dealerships in Edinburgh / Glasgow because I'm also there to drool over some of the bikes they have on show. I'll also visit Hein Gericke because they have a good store in a convienent location with a wide range of decent quality stock. But there have been / are other accessory only shops in Edinburgh / Glasgow that I just won't visit because their location is akward and / or they don't carry an extensive enough range of quality stock.

[Peter Henry]

Personally I would also go the internet route.Minimise your overheads. Let people try things on and find what they want by going to the established stores and then you beat them on price,simple!

You could have your own web site as well as advertising an item on ebay which would lead people to your "store". You may be able to do all of this without having to hold any sytock yourself also. By setting up a network of suppliers who will provide what you need when you have a buyer.

I know my idea needs some meat putting on the bones but Internet is the way forward I believe. :wink:

[Ed]

Unlike Peter I think that personal service and seeing what you get is never going to go out of date. He has an excellent point on stock though. Carrying stock is very expensive. If you can find a new way to do things that isn't gimmicky then I think you have every chance of success.

I'm a solicitor, so in a completely different business. But I have a good few clients who have investigated internet based lawyers and rejected it on the basis that they like to meet the people who do the work, don't trust sending money over the net, don't want the hassle of returns through the post etc. Also not everyone can use the net or wants to. In particular you will find that some older (and a surprising number of younger)customers aren't IT aware, people who don't speak English as a first language are generally also net-adverse. Those are all niche areas where you can cash in.

Try to keep your cost base as low as possible. I'd go for brands which you know you can sell without being too flashy/expensive, so you get constant cashflow. Try to avoid employing staff - it's damned expensive - the 18% employer's NI charge is a horrid stealth tax - and as you have seen, there are so many people who just aren't interested in the business they work in. Sometimes perhaps you can't blame them, but it's a hassle to have to keep motivating people when you'd be better doing the job yourself.

Personally I find being self-employed the most liberating work I have ever done and I would not want to go back to being employed.

I think you'll find there's a market as long as you position the business correctly. There's always a market, it's finding it that's the skillful bit.

Good luck!!

Ed

[northwind]

That's actually not quite the case. HG own the store, the stock and employ the staff, however the Manager is "Self Employed", although he/she has the last say on staff and any additional stocking.


Ah. That's weird :)

The trouble with internet shops is you have to compete with the entire world. Lets asy you're Busters trying to sell Sidi boots- sods like me can go and buy them from FC-MOTO.DE in Germany for 2/3 the price. And you'd find it hard to compete due to your smaller size.

[Cronos]

...Internet is the way forward I believe. :wink:

You would do.... you spent most of your time on it! :lol: :P :wink:

[FreshAL]

I hate buying bike clothing over the 'net. I'm a fairly average size & shape but finding stuff that fits right usually means trying on two or three items. The only place you can do this is in shops.


People who try stuff on in shops then by on the net **** me off - How long do you think the shops will be there for if you do that? The shops are providing a service of letting you try stuff on and providing advice - if you want to use that service you should pay for it.


The posters above are right - you've got to be more than just a clothing/accessories shop. Make the shop a social hub for rideouts, or have a coffee shop, or show the MotoGP on a big telly, something to make it different.

Best of luck to you with the idea - if you're not a million miles away we should havea rideout to come and see you when you open!

[pingu]

People who try stuff on in shops then by on the net p*ss me off - How long do you think the shops will be there for if you do that? The shops are providing a service of letting you try stuff on and providing advice - if you want to use that service you should pay for it.

Then they need to actually give some additional service that warrants the extra cash.

Example

Went to a rather large store looking for new leather jacket, seen the perfect jacket and would have purchased it had I not been too busy trying to pick myself up off the floor. Jacket price £350. Couldn't find anything else in the shop that I liked and could afford so went home and out of interest surfed for the exact jacket and eventually purchased for £150!!!!

Please don't tell me £200 extra was warranted just because I tried it on.

Like with all business's the internet it here too stay and if they want to stay in business they either get in on the act or become more competitive themselves.

I have bought items from that shop as I like and get along with the sales people but a smile and advice only goes so far.

Pingu

[Quiff Wichard]

Turnover is vanity- profit is sanity ..!!

look at your overheads first !! before your mark up and yer gross profit..

your overheads ..especially your controllable costs are what will do you in if you aint got the cash flow ..................

most new business go out of business in the first year not because of profit but because of cash flow..!!

its hard work , dam hard work..it wont result in a ferarri and a fireblade within a year but it would be a great challenge...and from experience theres nothing liek standing back and lookina t asuccessful busienss and thinkin "hey - thats my baby ".....

and give the customers what they want not what you think they want....

get hold of a profit and loss sheet - I might have an old one omehwere and look at income , outgoings staff as a % cost of turnover- peaks and troughs in trade.. forward plan... budget ayear ... 13 periods of 4 weeks or a 4/4/5 rotation.... look at quarterly budgets and...... !!!!!!.......... best advice........ever - measure twice cut once !!..... applies to anything..!!!
think , think and think again..andafter that- have a coffe and think..then you can plan...

I have a theory that those with the business brain dont often do!- as they can see the pitfalls.... quite often successful folk are entrepeneurs who seem to bumble through and learn from mistakes... !! and somehow seem to get by.......... so i suppose i am saying- if you have the brain- you will realise it aint worth it..if u don;t- then go fer it..
I jest.. ............. but deffo look at whats going out first...controllable and none controllable costs... staff, heat, light, rent, waste/refuse disposal, council tax/rates..build in some costs for incrementals like damage/shrinkage/glaziers/plumbers/engineers etc... then - you wil have a net figure you need to achieve to just break even without paying yerself a wage ! and remember- the first year you probably will not draw a wage- just survive.... then from your capital expenditure per annum ...you can work backwards !!.... to your required income stream annually then via yer P&L break it down to period, month and week............ just as a pound a day over a year profit is £365 a requirement income of £365 a year is a pound a day !

costs costs costs- thats wotl kill ya !.... a pound saved is a pound on the bottom line ..100% !!! £3 in the till is a £1 on the bottom line net ... get yer p and L right and the rest wil follow........................withthe retail skills yu already have.. go to your bank and ask for the small business advisor.... no a little guy will not pop up..!! but they are helpful...

arm yourself with all the info you can and make an informed decision....
and make it a limited company .....save yer personal assetts....

good luck.

[Quiff Wichard]

ps- i just got in from the pub..so al the above may be b*&***&S

[Carsick]

Dude, despite the rambling style of your post, that's possibly the most coherant thing I've heard or read from you, ever. :wink:

[Quiff Wichard]

LOL
and I have curry all over me chin...


chinS



I have got a scan of a P and L from one of my pubs somwhere I will find it tomoz...and sow it to as an illustration......of what NOT to do..hee hee

crikey heres the milkman................. is it that early/late?... see mR Milkman wil have a break even figure...(if he dont supply say 40 dozen pints..he is a charity !!!) thats yer goal..not a million profit..stay viable.. owt else is a bonus.

[Peter Henry]

I wonder what time that drunken fool will get up today? Chances of a hang over you reckon? :lol: Knowledgeable chappie on this subject though is our Quiff. :wink:

[Anonymous]

The reason why the three local retailers have only small clothing and accessory departments is almost certainly because they have found there is relatively little demand - otherwise they would for sure have BIG departments! 130,000 catchment area is nothing - you might see 1% of that - and it'll be shared with three others.

In my experience, relatively few people go into business with a proper business plan - most use it just to convince themselves that they are doing the right thing. They rarely are.....and that is compounded if you have neither a unique idea, or are launching into a very mature and well-served market (which you would be). Then you can only compete on one thing: price.

And before you do ANYTHING, thoroughly research the supply side....ask about size coverage, range coverage, MOQ, lead time, payment terms, warranty, and trading area security.

[Cloggsy]

The reason why the three local retailers have only small clothing and accessory departments is almost certainly because they have found there is relatively little demand - otherwise they would for sure have BIG departments! 130,000 catchment area is nothing - you might see 1% of that - and it'll be shared with three others.

In my experience, relatively few people go into business with a proper business plan - most use it just to convince themselves that they are doing the right thing. They rarely are.....and that is compounded if you have neither a unique idea, or are launching into a very mature and well-served market (which you would be). Then you can only compete on one thing: price.

And before you do ANYTHING, thoroughly research the supply side....ask about size coverage, range coverage, MOQ, lead time, payment terms, warranty, and trading area security.

He knows you know :winner:

[Peter Henry]

Cloggsy wrote:

He knows you know


Naaargh...he googled it mate! :wink: :D