Thread: Retailers (brick & mortar) stores

For businesses that are your traditional store fronts or even online retailers that have stock on hand, do they buy razors in volume direct from the razor company and get a price break or wholesale so to speak?

I often wondered how that works because I would assume so in order to make a living.

Every business has a markup or they wouldn't make any money. Usually if manufacturers sell direct, they sell at full retail so they don't undercut their customers.

Originally Posted by Moonshae

Every business has a markup or they wouldn't make any money. Usually if manufacturers sell direct, they sell at full retail so they don't undercut their customers.

That is what I was wondering with storefronts in this line of product. If they contact Dovo; Boker; Revisor; Thiers; and the others and say I will buy "x" amount of these models if you give me a price break so when they re-sell the item they can mark it up and make a living and still be competitive with the likes of those who buy direct if able from the manufacturer. But I am not sure you can buy direct from the likes of Boker; Dovo; and Thiers like I know you can Revisor.

I retire in 7 years with my full pension and would love to open a brick and mortar straight razor shop with some of the other items that you naturally need and wondered how storefront owners do it. Even if you pay anywhere from $20-$30 more in person it beats waiting for something to be delivered at times. Plus when you want it now, well, you want it now. But onlilne stores and retailers that operate solely online have put a real hurt on storefront business!

Originally Posted by Michael70

I retire in 7 years with my full pension and would love to open a brick and mortar straight razor shop with some of the other items that you naturally need and wondered how storefront owners do it. Even if you pay anywhere from $20-$30 more in person it beats waiting for something to be delivered at times. Plus when you want it now, well, you want it now. But onlilne stores and retailers that operate solely online have put a real hurt on storefront business!

I think part of the trick to a brick and mortar business is to also have an online store, as well. It expands the available client base, and a local could order ahead of time and just drop by for an in-store pick up.

That said, this is a niche market, and rent can be expensive, not to mention tied up capital for the cost of your products. You've got some time to think about it, but what will you offer that will bring customers to you rather than one of the online shops? Most people are willing to wait a few days to receive items like razors and related supplies.

I'm not trying to talk you out of it, of course; pursue your dream. But I made jewelry some years ago as a hobby, and thought I might like to turn it into a business. Then I went to work for an artist in her jewelry studio, and I haven't made a single thing since...that was 2003.

Originally Posted by Moonshae

I think part of the trick to a brick and mortar business is to also have an online store, as well. It expands the available client base, and a local could order ahead of time and just drop by for an in-store pick up.

That said, this is a niche market, and rent can be expensive, not to mention tied up capital for the cost of your products. You've got some time to think about it, but what will you offer that will bring customers to you rather than one of the online shops? Most people are willing to wait a few days to receive items like razors and related supplies.

I'm not trying to talk you out of it, of course; pursue your dream. But I made jewelry some years ago as a hobby, and thought I might like to turn it into a business. Then I went to work for an artist in her jewelry studio, and I haven't made a single thing since...that was 2003.

True that! It may be just one of those things you just say no to. Yes factoring in rent; electricity; insurance to cover stock and loss due to whatever; and capital to run you until up and running steady is a no guarantee.

Like you stated...........still have time to think this one through for sure. Not looking to make a real living other than something to keep busy at and maybe make several hundred a month in my pocket after expenses. Afterall, will have a pension to live on!

Most manufacturers have a set price they sell to their retailers and if some are really good agents for them they may make available special pieces or give them priority or authorize them special sales depending on how tightly they control the inventory. Razors are really low volume items so I wouldn't expect much discounting. In some industries the retailers get breaks for really high volume however often times retailers must accept inventory they may not want and find it hard to sell.

It depends on the product.

Originally Posted by Michael70

I retire in 7 years with my full pension and would love to open a brick and mortar straight razor shop with some of the other items that you naturally need and wondered how storefront owners do it. Even if you pay anywhere from $20-$30 more in person it beats waiting for something to be delivered at times. Plus when you want it now, well, you want it now. But onlilne stores and retailers that operate solely online have put a real hurt on storefront business!

7 years is a long time for things to change. But the fundamentals are like any other retail business - you buy the goods from the manufacturers/distributers at low price and sell to your customers at higher price with the difference paying the operating costs like rent, utilities, insurance, salaries, benefits, losses, interest on loans, etc. and possibly something extra for profit just for owning the business.

Your main question is can you get enough customers so that the sales volume times the retail margins can be at least the cost of running the business (even if you don't have profit as an owner, having a job as an employee sounds like something that you want). If you've never worked retail before you're not in a very good position as just the expertise in the goods is probably not enough. If you're in a large area you very likely already have competition from other establishments which have gotten earlier in the game, have more capital, customer base, and general experience.

The reason this is a niche market with number of online retailers is that in most locales there is not enough local customers to sustain a brick and mortar only business.

In my town there's a relatively new 'manly' store - some grooming products, clothing, accessories, and one barber chair. I expect it will be closed within a year because there isn't enough demand for the $200 jeans, $35 shave, $20 face lotion, etc. and so it's empty every time I pass by it.

Having visited Maggards Razors in Michigan, from what he said, his store is more of a warehouse for his online business. he still has his day job,has his wife and some other students working for him though. Last spring i was there for a wet shavers gathering and he was quite busy. a lot of DE shavers from what i gathered. Very nice store by the way!

Originally Posted by tintin

Having visited Maggards Razors in Michigan, from what he said, his store is more of a warehouse for his online business. he still has his day job,has his wife and some other students working for him though. Last spring i was there for a wet shavers gathering and he was quite busy. a lot of DE shavers from what i gathered. Very nice store by the way!

The smart retailer in a business like this has weekly gatherings at his establishment with free coffee and donuts and the wet shavers gather and socialize and spend quite a bit of money at these things.

Originally Posted by thebigspendur

The smart retailer in a business like this has weekly gatherings at his establishment with free coffee and donuts and the wet shavers gather and socialize and spend quite a bit of money at these things.

This would be my focus to have a end of week or even every other week special like a well established honer to teach others the fundamentals; maybe a scale maker to come in and speak to the folks of making scales or just replacing worn or damaged scales; maybe have a local soap maker who makes shave specific soaps come in to speak soaps and ingredients. And yes, free coffee and pastries a must.

I would love to have a area of a shop set up like my home shop that the motif is barber shop themed with barber chairs to sit in and sit back and relax.

Most retail space goes for $1 per sq. foot to rent with the local owners usually upfitting the space if dilapidated for a potential renter. I would estimate rent alone for the space needed to be no more than 700 sq. feet. I am thinking just a small area to sell and have enough room for a small gathering.

There is no such business in this area. Not sure how many just in the town I live that are DE or straight shavers but I would assume from the gatherings I have been to several.

Just a thought in the back of my head for sure. And the fact one has never been in business for themselves I don't think should be a deterrent because how would any business have started otherwise!

Like I stated.................just over 7 years a full government pension to live on and this would be a retirement gig to have a enjoyable hopefully time and just turn maybe several hundred a month in pocket for the time after expenses.

I will ponder more of course as time goes on. We have a old historical district that is trying to be revitalized and hopefully that could be a great option. Has plenty of small shop options that fit the bill on what I am contemplating.