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Post by freeatlast on Nov 5, 2018 23:13:19 GMT
I think it would be a mistake to open a scrapbooking store without knowing your monthly break even (including your salary if you intend to take one) and a plan/timetable for getting there.
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Post by scrappyem on Nov 6, 2018 1:30:00 GMT
I think it's possible to be successful, if you cater to a bigger market than just scrapbooking & use sound retail strategies like Scrapping in the City does. Look at other related markets. The art journaling market is a lot bigger than scrapbooking, so having a mix of supplies & classes would be something to consider. You could also carry some gift type items like jewelry and home decor. Lots of the scrapping lines are getting into home decor because the market is so much bigger. Brands like One Canoe Two started as home products and then added a scrapbooking line after partnering with American Crafts, so I think there's some opportunity for cross-over. Wholesale cost on scrapbooking supplies (when you are a small buyer) are 50% of retail. So if your pack of puffy stickers sells for $5, you paid $2.50. You then made $2.50 on that pack of stickers but you have to back out rent, your salary, shipping, electricity, your employees, taxes, book keepers, etc...That's why it's so hard to make any money. The big box stores can negotiate much lower costs, which is also why they can do things like 40% off sales and/or coupons.
Your location will make or break you. If you need foot traffic, then you need to have a location with good foot traffic, which is usually more expensive. Sign the shortest lease possible and make sure you sign as an LLC (so if your LSS fails, you have a better shot of getting out of the lease). I think the advice given to start online first, build an audience, maybe doing some pop-up shops, would be a lower risk strategy to see how you like it. Anything you do, you need to make sure that you put aside resources/money for advertising. This is where tons and tons of business fail to put resources and then wonder why no one has ever heard of them. Marketing has to be a big part of your strategy and it takes money to do solid marketing. Facebook Ads and the like are pretty low cost these days, so you can do some research to see what your spend would need to be realistically. Good luck & let us know what you decide.
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Post by artisticscrapper on Nov 6, 2018 2:03:51 GMT
Interesting thread. I always liked going to my LSSs to see products IRL. Even with internet options I preferred the B&M stores. They also hosted crops and offered classes which made it fun. I really do hope you can make a go of it. Please keep us posted on how it’s going .
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kelly8875
Pearl Clutcher
Posts: 4,391
Location: Lost in my supplies...
Oct 26, 2014 17:02:56 GMT
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Post by kelly8875 on Nov 6, 2018 13:05:36 GMT
Not knowing your market area, it’s too hard to say. Our area seems to be supporting a LSS well.
You would have to have a strong clientele base. Don’t sell what the big box stores do. You’ll have to have classes, lots of classes. And more classes. You have to constantly stay on top of what’s currently trending, and have the ability to special order for customers.
Our LSS has orders coming in nearly daily. She posts Facebook videos all the time showing what came in. There are classes of all kinds almost nightly. She opens her crop space to anyone who wants to use it. She special orders. She has specialty lines of papers, embellishments for nearly every local school within 50 miles. She will special order anything she can. She has a punch card, double punch days, so many specials. She does garage sales several times a year, keeping a percentage for the store.
The owner works hard. It’s not just a hobby job, and that’s the only way to make it successful. She’s located right next to our Hobby Lobby, Michael’s and Jo Ann’s. Her rent cannot be cheap. But it’s how she gets the traffic.
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Post by artgirl1 on Nov 6, 2018 22:13:18 GMT
Former manager and buyer for a LSS. Lot of good information here from previous posters.
But nothing about dealing with vendors.
Most companies require that you make a minimum order with them. Minimum was usually at least $500, more likely $1000 at wholesale cost. You pay shipping, (shipping is outrageous). You would probably need to invest at least $50,000 in opening stock. Could you justify or afford reordering a popular line if you needed to reorder a minimum $500 order? That could easily be just one line from a vendor.
Also most vendors when you order from new releases put you in line for delivery based upon how large your order is. If an online store orders $10 k, and you only order $500, if places you lower on the delivery schedule. As scrapbookers, we want it now. Do you think your customer base would wait to buy from you 2-3 months after it was available online? (Online stores can order larger volume and therefore pay a proportionately lower shipping rate, which can be absorbed in sales.
Scrapbookers also want a bargain. Would your customer base buy from you if you priced products at MSRP, versus a discounted price. (look at all the threads here about "find this on sale, such and such is only $ at so and so store). You woulld have a hard time competing. I see this all the time at M and J's. Everyone wants to buy with a coupon or at a discount only.
Also, you should consider the increased price of products due to trade wars. I just noticed that Joann's increased the price of their thin paper from 79 cents to 99 cents. I was told by their management it was due to trade wars.
Your location would need to include close convenient parking (particularly if you have crops), and if you have crops, a large area of the space would need to be allocated for crops. That's a lot of square footage to dedicate to non-income producing.
You have to sell a lot of paper to cover your rent, lights, insurance, employees, taxes, fixtures (you could expect to pay minimum of $10 grand for paper racks, slat wall, etc.).
I researched this heavily about 10 years ago when my LSS decided to close. Even though I had watched weeks when sales averaged less than $500 per week, and crops for 40 people generated less than $10 per person retail in sales. I had lots of contacts in CHA, ad based upon the business consultants I spoke to, it was recommended that I have $250,000 to invest in the business start-up, and to expect no profit for 3-5 years. And that was when scrapbooking was the #1 hobby.
Think very carefully about the idea.
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Post by freeatlast on Nov 6, 2018 23:21:56 GMT
Thanks for the insight, artgirl1. Based on calculations off the top of my head, I came up with an investment of $350K to $500K.
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Post by papersilly on Nov 6, 2018 23:29:25 GMT
NO WAY. i think many SBers have hit the wall with their stash. many of have too much stuff , many have left the hobby, or others are being hyper selective with their buying. the "gotta have it all" days are over. i know they are for me.
also, it may seem fun to own a store but, like every other venture, it's still a business that needs to be run like a business in order to succeed. there is rent, long hours, the constant need for inventory (not because you sell out but because buyers crave the latest and greatest), the lost money in inventory you can't get rid off. there is a reason why many SB companies are consolidating or going out of business. the hobby is not as viable as it used to be. save yourself the headache and ditch this idea.
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Post by don on Nov 7, 2018 1:20:06 GMT
When did crops become free? There are other options than buying from a vendor, and vendors are just as hungry as other suppliers.
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Post by goldenblind221 on Nov 7, 2018 5:59:27 GMT
Omg, I would live there if you did.
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Post by crazy4scraps on Nov 7, 2018 16:30:28 GMT
NO WAY. i think many SBers have hit the wall with their stash. many of have too much stuff , many have left the hobby, or others are being hyper selective with their buying. the "gotta have it all" days are over. i know they are for me. also, it may seem fun to own a store but, like every other venture, it's still a business that needs to be run like a business in order to succeed. there is rent, long hours, the constant need for inventory (not because you sell out but because buyers crave the latest and greatest), the lost money in inventory you can't get rid off. there is a reason why many SB companies are consolidating or going out of business. the hobby is not as viable as it used to be. save yourself the headache and ditch this idea. I think this is particularly true in my area. At one time we had over a dozen specialty stores that sold paper crafting supplies (stamping, scrapping or both) and now virtually all of them are gone. We still have Michael’s, JoAnn’s and now Hobby Lobby, but even those stores have scaled WAY back with their selections. The only reason that happens is because it’s *not selling*. A lot of people went really crazy with all the store closing sales years ago and stocked up. I used to know a ton of people who scrapped and now there are very few who still scrap with paper. Some switched to digital but most just quit. I still buy scrapping stuff from time to time, but if I’m being honest I haven’t scrapped a single page in probably two years. I still love it and still WANT to do it, but life and other obstacles have really gotten in the way. If a new store opened in my area, I think it would have a tough time generating enough sales on a regular basis to be viable for the long haul and back in the day we had TONS of scrapbook supply consumers. Now, not so much.
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Post by missmcd on Nov 7, 2018 17:46:18 GMT
I live in Houston and miss the days when we had so many scrapbook stores!
I don't know if today is the time to open one up but dang I would be excited to shop in an actual scrappy store again!
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Post by papersilly on Nov 7, 2018 20:52:57 GMT
I think this is particularly true in my area. At one time we had over a dozen specialty stores that sold paper crafting supplies (stamping, scrapping or both) and now virtually all of them are gone. We still have Michael’s, JoAnn’s and now Hobby Lobby, but even those stores have scaled WAY back with their selections. The only reason that happens is because it’s *not selling*. A lot of people went really crazy with all the store closing sales years ago and stocked up. I used to know a ton of people who scrapped and now there are very few who still scrap with paper. Some switched to digital but most just quit. I still buy scrapping stuff from time to time, but if I’m being honest I haven’t scrapped a single page in probably two years. I still love it and still WANT to do it, but life and other obstacles have really gotten in the way. If a new store opened in my area, I think it would have a tough time generating enough sales on a regular basis to be viable for the long haul and back in the day we had TONS of scrapbook supply consumers. Now, not so much. i am the first to admit to being one of those SBers with an entire room filled with SB supplies. in the beginning, i bought stuff like there was no tomorrow. then, like you said, stores and SB companies started closing and i stocked up because there was going to be no tomorrow for those shops and companies. i'm actually glad i hoarded some discontinued stuff because they just don't make embellishments and paper like they used to. today, the only thing i will ever need is adhesive. and yes, where there was once SB stores around every corner, there are now none. it's just the big box stores and stores like Tuesday Morning that carry the closeout stuff. there was a time i used to go SB shopping just about everyday. now i can go weeks, if not months, without even stepping foot inside a craft store. sad but i don't think i'm the only one and that's why indie SB stores can't sustain themselves. seeing me once every few months is not going to pay their rent.
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Post by katlady on Nov 8, 2018 3:09:41 GMT
When did crops become free? There are other options than buying from a vendor, and vendors are just as hungry as other suppliers. MY LSS used to charge $10 for the crop and then you get $10 in store credit for that night. So, essentially, a free crop. They wanted to move their merchandise.
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cbscrapper
Pearl Clutcher
Posts: 3,418
Sept 5, 2015 18:24:10 GMT
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Post by cbscrapper on Nov 8, 2018 3:37:25 GMT
When did crops become free? There are other options than buying from a vendor, and vendors are just as hungry as other suppliers. MY LSS used to charge $10 for the crop and then you get $10 in store credit for that night. So, essentially, a free crop. They wanted to move their merchandise. Yep - I think that is the way to go. It moves product and makes it worth it to pay someone to be at the crop. At the LSS I went to, SB class teachers got paid in store credit too.
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Post by scrapbookwriter on Nov 10, 2018 19:07:06 GMT
I think you would need a cross-market store: wood crafts and paper crafts, for instance. Or quilting and papercrafting.
You would need classes that combine your two product lines so your customers would cross the aisle. Wood craft covered with scrapbook paper, for instance. Stitching on Scrapbook layouts. Silhouette classes for crafty projects, cutting Quilt pieces, and designing layouts.
I would also plan to use my unsold paper to create pre-made page kits. This way you are getting full value for bits and pieces of a line rather than selling it off at bargain prices.
As others have said, you would need to host crops and/or retreats. I regularly attend a retreat hosted by a lss in a local hotel. I plan my annual calendar around these retreats because I love them that much. Retreats and in-store events help create a loyal community of crafters.
It would be a LOT of work. As a customer, I would love it. Whenever I travel I look for scrapbook stores to visit. But I personally would not be willing to put forth that much work. I guess I'm not an entrepreneur at heart.
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Post by scraplette on Nov 10, 2018 21:00:14 GMT
A store near me recently closed and moved into a nice Vintage / Antique mall. I'm hoping this is a successful venture for them and not just a way to reduce their stock. It seems like it will increase foot traffic.
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Post by tinksmommy on Nov 11, 2018 17:02:01 GMT
I live in San Diego and as far as I know, our last independently owned scrap stores closed earlier this year. What has become very popular are scrapbook retreat houses (there are 5 just in north San Diego county and others in neighboring counties) as well as scrapbooking retreats held at hotels. You can often find "pop up" scrapbook stores at these. The owner of one of the "pop up" scrap stores bought a used food truck and converted it into a mobile scrap store that she drives to weekend retreats that she hosts or is a vendor at. She seems to be doing quite well in her business! If I was going to open a scrap store, I would go for that kind of model instead. Have a 3-4 day retreat weekend either at a hotel, airbnb or actual craft retreat house (if they exist in Houston?) and have a pop-up scrap shop there. You would have no overhead and don't necessarily need employees if you able and willing to do any physical labor/selling by yourself. ——————- I have a favorite retreat house in North County that I go to for day crops. The pop up scrap truck is genius and I usually spend a decent amount shopping there. I much prefer that instant gratification and seeing supplies in person. I miss the glory days of Ever After and Pink Pineapple. The stores were awesome and we had the community of fellow scrapbookers. Thank goodness for the retreat houses!
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Post by katiekaty on Nov 11, 2018 23:11:45 GMT
I live in Katy/West Houston. Archivers came in and was very successful but closed-not because of business but because the chain closed nationally. It did take business away from another local store which was doing pretty well before their arrival. Yes, I think you could make a success of a store in this area or even in the Sugarland area. But it would take a lot of work and time and commitment. Scrappers and crafters want quality classes and products with an edge and newness at reasonable prices that will has an exclusiveness not available to them at the chain stores. That being said, you would have to have a unique eye for saleable products and a knack for picking what would appeal that could be turned into classes, kits, retreats, crops, etc plus supplying the crafters with products they want but cant get anywhere else except online but don't want to wait or drive the distance for. If you are that person and have marketing and business skills go for it. If not, DON'T do it!
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Post by lisacharlotte on Nov 12, 2018 0:38:19 GMT
And even you had all the skills that katiekaty listed, it's still a crapshoot because you will not be able to run a successful business offering all those things by yourself. Archivers was the most successful of the bunch back in the day. The amount of product available and the professionalism of their classes was beyond anything I've experienced at an LSS. They were a nationwide business and tons of employees to provide all those services. And they couldn't make it either in this new era of retail. On top of that you are going to need capital to get started and business will probably be slow until you establish yourself. How will you support yourself?
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Post by wordfish on Nov 12, 2018 17:41:03 GMT
Scrappin in the City is in Knoxville, which I think someone already pointed out. If I walk out my front door and make a right, I could be there (walking) in 15 minutes or so. It's just a hair under a mile from my front door. I actually was in there the first time Tracie Claiborne visited and remember what a positive impression the store made on her. I have to sort of pace myself with visits because it would be so easy go every day or two; I try to limit it to no more than once a month.
The store is located in an old house not far from one of the city's historic districts, but it is on a commercial type of road that takes motorists from the interstate to downtown Knoxville. The (very lovely and nice) owner told me all about the house one day. Since I live in one of the city's historic districts, old houses are an interest of mine and she was more than happy to explain how it came to be that SITC is located there. The house has been in her family for a long time. Maybe since it was built (I don't remember). So she definitely had that going for her. It's a BEAUTIFUL house and the store is laid out in several of its rooms. The "front room" serves as the entrance and cash register space, and then there are stairs that go up. That is where they hold many, many classes and crops. They also hold a semi-annual scrapbook "yard sale," where you can price your stuff for other people to buy. I think you are paid in store credit (I have never done it). They also have lots of big-name instructors and then in addition to all that, they host several retreats throughout the year plus online sales. Then they have a "City Chicks" VIP program where they keep track of your purchases and you get a little GC after so many purchases.
It didn't always used to be as robust a business as it is; they used to have limited hours where they were open, and the store used to have MUCH less stock than they do now, and it was not as well-rounded as it is now. If Sara (the owner) got some professional advice along the way, that makes a lot of sense, or else maybe she mostly just worked it out on her own; she is a smart cookie. They definitely do a LOT of orders for customers. I don't normally order much, but my sister, who has to be one of their best customers, has ordered hundreds and hundreds (if not thousands) of dollars worth of stuff from them.
Anyway, all that to say that I imagine already owning the house where the store is located is a definite advantage. I don't know if Sara herself owns it or if her parent does, or whether there is a rent situation (and it's obviously nobody's business), but just having the stability of having your physical location be owned by you or a family member must help a lot. On top of that, the store has gone from a much smaller operation to what it is now, and I think it had its growing pains.
They seem to have found a really good groove now; they often get new products in before I see them online and they have a good, savvy social media program going. I am not a person who likes to crop elsewhere because why would I leave my carefully curated stash, but if I were, they would have many opportunities for me to do so. I think you can just crop there anytime the store is open for maybe $5 or so, or maybe it's free/free if you make a purchase. I know people are often up there doing their thing while I am down roaming through the rooms of really very well chosen products. It seems that it is a full time job and then some for the owner, though, so I would think long and hard before making your fun hobby into your stressful business. I think it's possible to do it, though. Good luck if you decide to move forward!
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