My long time friend and I are avid home-brewers looking to enter into the brewing industry. After our initial exploration of possibilities we have decided that retailing home-brewing equipment is the best fit for our budget and constraints. As we continue this period of serious research and planning, we have realized the limitations of our knowledge in the retail sale of hobby equipment. It was the supportive home-brewing community that first ignited our passions, so we continue to reach out to various industry experts in order to compensate for our lack of experience.
1. What sorts of profit margins are there with this type of business?
1. What products sell better then others? Is it better to stock our inventory with lots of recipes, or is it better to have a tangible catalogue of a wide array of products (recipes, bottles, books, carboys, ale pales, mash tuns, emergent chillers, etc).
2. How big of a marketing budget is recommended? Is radio and newspaper advertising the best approach, or are posting flyers around town and other gorilla marketing tactics the better approach?
3. Within about a 10-mile radius of the store, the population is about 30,000 people. For a store with approximately 1,500 sq feet of space, what sorts of revenues can be expected?
4. Who are some of the suppliers of homebrew supplies? Who take care of the clients the best, and are the easiest to work with?
5. Are the sales of home brewing supplies fairly consistent from month to month, or is there a busy season.
6. Is there any other advice or heeds of caution that we should know about?