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The Realities of Retail

By Sue DiFranco
Copyright © 2001 Sue DiFranco/Fun Facts Publishing
 

Lately I have found myself in a curious dilemma: though I'm in the business of helping people achieve their dreams, I also need to give warning when I feel they should be careful. The reality is, opening a retail scrapbook store at this time is, at the very least, a risky move.

[2004 Editor's Note: It's much, much riskier now! We will be adding additional content here and in our Platinum Editions about this subject.]

That's not to say that it can't, or shouldn't, be done. But obsessed scrappers who want to turn their passion into profit by opening a store need to make sure they are as informed and knowledgeable as they can be. And this knowledge isn't just knowing what fixtures to buy, or what products sell best, or even how much money you need to invest.

It's knowing that, generally speaking (because there are exceptions), by saying "hello" to becoming a store owner, you are saying "goodbye" to time and money.

I recently received an email from a retailer who would prefer to remain anonymous.  She wanted to share her experience with others. Here is some of what she said:

"I had a couple of weeks that really were horrible, starting on 9/11. Since then business has picked up, but it's truly a scary time for retail owners, in general.  Yes, there are a lot of scrapbook lovers to purchase from you, but, there are all the 'what if's' right now....which makes it very scary to move forward.  I have been purchasing the same as normal, actually a bit more, hoping to help boost the economy myself.

"I believe a lot of people think that opening a store means scrapping all day, or at least more than what they are able to do right now, when in fact it's just the exact opposite.  I work 70 to 80 hours per week, minimum....and sometimes when I have a workshop at my store, I have actually had to be doing bookkeeping, just to keep up, or try to catch up.

"It's an extremely high maintenance business, the overhead is HUGE, and you are also in constant competition with the online stores, as well as the other brick and mortar stores.

"We have our home and our two vehicles mortgaged five times over, to open this store.  I even have 2 very low interest loans, one through the TSBP, and one through a local agency.

"I don't want to ever tell someone to NOT go for their dream, but they should also realize that their dream is going to cost a lot of money, and a lot of time.  In your books, in more than one place, I remember reading that if you want to do this, you have to be ready to spend many hours at it.......soooooooooo true!  I read it, I believed it, but I really did not realize how true that was!

"Also, in one of your books, I remember reading this passage from a woman that said that when she decided to open her own store, she knew she could do it....because she knew she could order the products, price them, stock them, help the customers, run the register, teach classes and workshops, do advertising, clean the toilets, pay the bills, etc, etc., - but what she had not realized was that she could NOT do it ALONE!

"I read that passage at a point where I thought I had really screwed up, here I had put everything we own on the line, and I was failing. I cried when I read that passage, knowing EXACTLY what she meant.

"My problem is, I have a part-timer, but I can only pay her minimum wage, even though she is worth so much more. Hey, I don't even get minimum wage, and I own the store! I just can't afford to have someone here as much as I need to, to keep up with all the maintenance of the store. I keep thinking I will catch up, but I am coming up on a year soon, and still have never 'caught up.'

"I guess people need to know, that unless they can afford to spend A LOT of money, and have a HUGE store, (mine is 1800 square feet, and most of my customers have told me that they really love my store, and many have told me that it's the best store they have been to....of course that makes me feel great!), they really need to know that this is not a business that can normally support more than one person, and it actually doesn't 'support' me. My husband is the bigger bread winner in the family. My business definitely contributes to our income, but at a very high cost to our family time, which is what I regret the most. 

"I definitely don't want to sound 'down,' because I LOVE going to work pretty much every day. I do wish I could afford more help. And I really wish I could be spending about 30 hours more a week with my 2 year old and my 7 year old, that really makes me sad, and I know they miss me also, as well as my husband. These are things people really need to realize and seriously be told."

If you are still in the deciding stages of figuring out what area of scrapbook business you'd like to get in to, remember that opening a retail store isn't the only option.  In fact, one of the most lucrative areas of the industry (which also has the smallest investment) is making scrapbooks for others. You can read more about that career option  here.

And if you already own a store, remember that inexpensive marketing techniques are one of your best bets for keeping your head above water. Hopefully we've been able to provide you with many of these on this web site, as well as in the books and reports we sell. Best of luck to all of you!

 

ABOUT THE AUTHOR

Sue DiFranco is the founder of Fun Facts Publishing and the author of more than a dozen books on building and marketing scrapbooking businesses and services. To learn more about how to turn your scrapbooking passion into profit, visit http://www.funfactspublishing.com to read a library of FREE information and get started today! 

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