Bathroom Showroom...
Discussion
Im considering opening a bathroom showroom..looking for advice, potential pitfalls etc from anyone perhaps in the industry.
Background - Current electrical/multi-trade company growing fast, to the point I now desperately need premises. Getting by running things from home at the minute, but its really becoming an issue as we struggle with admin. Employ 10 staff including myself and wife. Over last while we have branched into doing bathroom installations. We complete 4 per month, and make good returns on them.
Current sales technique really only myself and a catalogue, photo's of previous work etc.
Opportunity arose because primary we rewire houses. We are usually the first trade through the door on all renovation projects, so usually each customer needs all other trades too. Very often Ill go into price electrical rewiring, having come away pricing a new bathroom, heating system, plastering and kitchen.
Solution - We rent a small cheap unit to form our office. Myself and wife work from there, allowing a space away from home. We continue with current setup.
Idea - Ive found an old building with real character, very good location with non stop traffic all day, and 5 mins from home. With our creative electrical touch, some design lighting etc..this place would look awesome and form a real focal point, that everyone would become familiar with.
Problem - With all good locations, its expensive. In fact probably a little too expensive for us too "gamble" on at the minute.
Solution - We recently completed 3 bathroom installs for an individual who was so impressed by us/me/the company he suggested he would be interested in investing in the company. Long story short, we have came to idea of the investor buying the place outright and renting it back to me at a reduced rate, in return for a small profit share. The whole deal is only at early stages and there is still a lot of number crunching too do and terms to discuss, however we are visiting the place this week and its very much moving forward if both parties are happy/agree on terms.
I've spent the last 2 years re-investing all our profits back into the company in a bid to "Fast track" our growth, and while a little risky, it has worked.
What this has meant though is we don't have a massive pile of cash at bank, ready to through into my new idea.
So Im weighing up my options, and trying to find as many pitfall/potential problems as possible. Not so much in the investment side but more so the physical showroom side, and whether anyone has experience there.
My thinking is increased sales, pushing to two installs per week, and hopefully more. Advertising created by building alone should bring more work, however there are many other positives. Ill have access to manufacturers direct, a place to physically show potential clients products, bring them in to design bathroom on CAD etc etc.
With a mixture of advertising/google ads/word of mouth/rewiring quotes etc, I have an excellent supply of bathroom leads , however the issue I face is converting leads to sales due to current set up. Its nothing to do with sales pitch etc thats all usually complemented, but with bathrooms I think actually seeing what is going to be installed is so important for the customer.
I could stretch to renting the place on my own, but it would really put the pressure on. The investor also brings more to the table in terms of contacts/business experience. He has been successful in a completely different industry, but has a keen interest in home improvement.
Showroom -
Our first experience of business premises, am I missing anything obvious ? Business rates etc ...
Set up costs ? We have the trades to fit the place out, but anything Im missing?
Manufacturer likely to give us products to display at reduced rate of free?
Location - We are around 3 miles from Porcelanosa, and around the same distance from another large bathroom showroom, but none offer a solid installation and supply service, at reasonable cost. We are also close to a large industrial park with around 20 Tile Showrooms....Id expect a lot of passing traffic to visit us off the back of this. The location really is perfect, sat on the corner of a crossroads with traffic lights 4 ways, and our orange branding would stand out.
The place won't just form our bathroom showroom, but a base for all our other business activities.
Any input at all related to this industry massively appreciated.
Assuming you're talking Hillington there must be 10 bathroom showrooms there already- it's the go to place. I'd want to be in there, not five minutes away.
People are lazy, and after the Mrs traipsing me round several showrooms in Hillington I'd want the decision made there and then, not to fanny about going somewhere else and then maybe having to come back if they can't help.
There's a good reason there are so many in one place. Likewise the top of GWR there are another 7 or so all huddled together.
People are lazy, and after the Mrs traipsing me round several showrooms in Hillington I'd want the decision made there and then, not to fanny about going somewhere else and then maybe having to come back if they can't help.
There's a good reason there are so many in one place. Likewise the top of GWR there are another 7 or so all huddled together.
Thanks guys...not far from Hillington.
We already do Installations...Maybe didn't word so well, but its not really a showroom for people to come in and just buy, its a place where our clients can come in and see a showcase of our work. Maybe a few displays with different ideas and options.
The place in question is a character property on a really really busy cross roads....on the way to the hillington area, which hosts a few other bathroom type places which sell only...Our bright branding and shop front would be far superior to anything down that way except maybe porcelanose, and the location would advertise SO well. It would also form a base for our company office.
We are aiming more high end, but not too pricey. Just thought this might be the answer to propel us to 2 installs a week rather than current 1.
Was curious about suppliers fitting out our showroom with products and costs.
Area in question would over time be recognised, and remembered by everyone as it would stand out so well.
Would require loads of parking, wouldn't really expect any more than 2 people in the shop at a time.
Like I said Im aiming to do 2 installs per week at maybe 8k+ each. Ideas is to bring customers whom we have already made contact with, into our store...and create some advertising while we are at it.
We already do Installations...Maybe didn't word so well, but its not really a showroom for people to come in and just buy, its a place where our clients can come in and see a showcase of our work. Maybe a few displays with different ideas and options.
The place in question is a character property on a really really busy cross roads....on the way to the hillington area, which hosts a few other bathroom type places which sell only...Our bright branding and shop front would be far superior to anything down that way except maybe porcelanose, and the location would advertise SO well. It would also form a base for our company office.
We are aiming more high end, but not too pricey. Just thought this might be the answer to propel us to 2 installs a week rather than current 1.
Was curious about suppliers fitting out our showroom with products and costs.
Area in question would over time be recognised, and remembered by everyone as it would stand out so well.
Would require loads of parking, wouldn't really expect any more than 2 people in the shop at a time.
Like I said Im aiming to do 2 installs per week at maybe 8k+ each. Ideas is to bring customers whom we have already made contact with, into our store...and create some advertising while we are at it.
Any mileage in buying a period style office building and turning that into a showroom, converting some of the offices into bathrooms, like a showhouse for bathrooms - so that customers get a feel for a room rather than an open plan space in a showroom? plus you get an office and hopefully plenty of parking.
Jamster123 said:
Thanks guys...not far from Hillington.
We already do Installations...Maybe didn't word so well, but its not really a showroom for people to come in and just buy, its a place where our clients can come in and see a showcase of our work. Maybe a few displays with different ideas and options.
Seems to me, OP, that what you are asking is 'should I buy/rent an expensive property, with all the added expenses such as security, fitting out, business rates, getting stuck into maintaining and repairing a property; as well as staffing it when I am out sourcing products and fitting bathrooms etc, just to act as an advert for how great we are at fitting bathrooms?'We already do Installations...Maybe didn't word so well, but its not really a showroom for people to come in and just buy, its a place where our clients can come in and see a showcase of our work. Maybe a few displays with different ideas and options.
Apologies for the sarcasm but it seems a no-brainer to me, as in, don't do it!
Use social media, local advertising, word of mouth etc to get the business going rather than getting into a seriously expensive property deal. If you need to rent an office on an industrial estate of even a local business centre then do that but don't buy or rent an expensive property just as an advert.
JM
I've got two shops at the moment and if I knew what I know now I'm pretty sure I wouldn't have gone down this route. Moving away from it over the next 12 months as the costs are high, and showrooms are a real weight round the neck in terms of staffing / always being open / all the million other costs.
Everything goes up a notch (footfall, enquiries, sales, turnover, stress, worry) but so do the costs.
What are the rates like on your place Jamie as I remember it being pretty massive when I went in when it was the car dealers.
Still waiting on the cost back on those drawings I emailed you a year ago
Everything goes up a notch (footfall, enquiries, sales, turnover, stress, worry) but so do the costs.
What are the rates like on your place Jamie as I remember it being pretty massive when I went in when it was the car dealers.
Still waiting on the cost back on those drawings I emailed you a year ago
I should have said, I run an electrical contracting business first and foremost, and kind of fell into bathrooms accidentally.
Before 3 weeks ago we were running 19 staff on the books, and a list of subbies....from my home and garage!
We had to get premises for the sake of the business.... the fact we have managed to open an little operations depo and twin it as a showroom is a bit of a bonus. So its not like we are all in for the bathrooms and the showroom is our main sales tool.
Bathrooms are a bloody nightmare, at times I wish I never got involved, but it seems very easy to get sales, and too much business to turn away!
Jkelly, we managed to get around the rates. I can recall email mate, been so hectic! You getting on ok ?
Before 3 weeks ago we were running 19 staff on the books, and a list of subbies....from my home and garage!
We had to get premises for the sake of the business.... the fact we have managed to open an little operations depo and twin it as a showroom is a bit of a bonus. So its not like we are all in for the bathrooms and the showroom is our main sales tool.
Bathrooms are a bloody nightmare, at times I wish I never got involved, but it seems very easy to get sales, and too much business to turn away!
Jkelly, we managed to get around the rates. I can recall email mate, been so hectic! You getting on ok ?
Yeah not bad, met your man (Ross I think?) on a job a few weeks back - just finished my bits, one of your subbies was there doing the bathroom today.
I was over seeing a mate earlier this evening who runs a 40odd man painting business from a fancy kitted out shed in his garden; so it's not that unusual, everyone these days just trying to keep costs as low as possible.
I was over seeing a mate earlier this evening who runs a 40odd man painting business from a fancy kitted out shed in his garden; so it's not that unusual, everyone these days just trying to keep costs as low as possible.
jke11y said:
Yeah not bad, met your man (Ross I think?) on a job a few weeks back - just finished my bits, one of your subbies was there doing the bathroom today.
I was over seeing a mate earlier this evening who runs a 40odd man painting business from a fancy kitted out shed in his garden; so it's not that unusual, everyone these days just trying to keep costs as low as possible.
Ping me your email again mate, Jamie@jrcpropertysolutions.comI was over seeing a mate earlier this evening who runs a 40odd man painting business from a fancy kitted out shed in his garden; so it's not that unusual, everyone these days just trying to keep costs as low as possible.
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