Need help -- Want to open my own brew shop

[SpahrBrewing]

Must've recently changed, because I know of someone who was doing this as little as 3 years ago. Don't know his supplier back then though.

 

[brewtasting]

After doing more research I am on the fence...I would still really like to do it...but I am a bit more concerned if it will make any money. I still think there is a great need and enough interest but real estate is just too insane. hell the cost of living out here is too insane...which makes it very difficult.

As you know, I'm looking into the also. I would be able to get a lease at $12/sq ft to start. So it's nowhere near what you are looking at lease cost wise. It seems you are looking at higher numbers from what you said. I hope you can find a good spot that is reasonable.

 

[rhys333]

The key to getting started in something like this is to go online and sell from home. If your region has a gap in the market, you stand a reasonable chance of success. If you fail, you're out a few thousand dollars.

 

[Littletimmy]

TDB,
I'm not sure where in the DFW metro you want to open your store, but I think there are areas where the rent/lease cost would not be prohibitive and still have a decent, visible storefront... While real estate costs in the metro area AND cost of living have skyrocketed in the past 5 years, you still can find lease space for as little as $1.85 a square foot, it just depends on the area. Conducting a quick search on loopnet.com for commercial properties, I found several options, with at least 1,100 square feet, in Plano, Little Elm, The Colony and Lewisville for under $30k a year...With the amount of travelling we all experience in this area trying to get to get from point A to point B, I'm SURE that I've driven past all of them...

 

[hunter_le five]

The key to getting started in something like this is to go online and sell from home. If your region has a gap in the market, you stand a reasonable chance of success. If you fail, you're out a few thousand dollars.

Nope.

 

[rhys333]

Nope.

Nope its not the key or nope there's no room for it in your neck of the woods?

 

[madscientist451]

I had my own business for 10+ years (not beer or homebrew products) and for now am glad I transitioned to a steady (government) job and nice benefits and vacations. The downside is I despise my job and so having your own business and one you consider fun has its rewards.
3 Things I would do to open a local homebrew shop:
1. Have a large selection of malts and yeast. Have in stock as many different kinds as you can get. You'll soon see what sells and what doesn't but when a customer knows he can fill almost any grain bill at your store, they'll keep coming back.
2 Set your prices somewhat lower than the big online retailers such as Morebeer and Northern Brewer and others. If customers know your prices are lightly less they'll come and be loyal. High prices are a big turn off for customers. If your prices are high, they'll shop you one time then go home and order what they want online.
3. Sell on line. My LHBS sells on Amazon and he's running $120k a month in volume in just that, he also has direct online sales and the store itself. Note it will take a while to find the right suppliers to be competitive on Amazon.
Other things I would do: Get a line of credit, maybe keep your day job and open on weekends/evenings to start. Also sell wine making items.
Have Brew club and wine club meetings once a month. Sponsor homebrew competitions. Don't use your capital to buy expensive equipment that is going to sit there and not sell. If your state allows it, have your home brew available for free samples. Perhaps combine the homebrew store concept with a Nano brewery ( a local business is doing it near here). I'd say go for it if you can stand to loose the $20,000.

 

[Dangeruss]

Doing "How To Classes" will benefit your clients and bring in sales to your store. From going classes from intro to brewing, going to All grain, to kegging, building a keezer/kegarator , Cider/Mead/Wine making. Especially in a new market

 

[hunter_le five]

Nope its not the key or nope there's no room for it in your neck of the woods?

Most suppliers require a brick-and-mortar before they'll deal with you.

 

[rhys333]

Most suppliers require a brick-and-mortar before they'll deal with you.

If you can sell it they will supply. They just want to see potential.

 

[hunter_le five]

If you can sell it they will supply. They just want to see potential.

Go tell that to LD Carlson, Fermentap, BSG Handcraft, Blichmann Engineering, etc who all have specific policies against this.

 

[Photopilot]

I think the problem with the garage based mail order business is it has already been done and done well. Within a 40 mile radius of me I have probably a dozen LHBS options. I found a new one that is pretty darn cool and has decent prices, or so I thought until I just looked online at one of the big boys.

If I am going to mail order I would look for a source with either really good prices on what I want or everything I could want and would add on other things while I am already online.

Plus packaging and shipping DME and hops in your garage is not nearly as cool as being the LHBS owner. I think the way to do it is to look at non retail space. If you could find an industrial location with the ability to run a retail operation out of with some parking ...If you build it they will come. Find the niche location between population centers with people 20 minutes drive away, market yourself to local brew clubs, tap houses and anything beer related. It is up to you to determine that if there are enough brewers nearby to make the blood sweat and tears of being your own boss worth the effort.

 

[Hoppy2bmerry]

When I began fermenting I became aware of a small homebrew shop right where I live. I bought a bung and airlock to make sour kraut. By the time I wanted to go back for brewing supplies they were going out of business. I called a shop that was in the town where my office is, and found they needed to move after loosing their lease. Got an out going message to check with the bartender next door if the door was locked! A business that is not run like a business will fail. Set your hours and keep them, have the shop reasonably stocked all the time. I did find a LHBS that is open when they say they are, and is well stocked with the items that move. For example, the hops she carries are the ones that move, so if I want one she doesn't have we look for a reasonable substitute. Unfortunately, she can't be competitively priced on all items and is often undersold by the online shops. So I split my purchases getting grains and yeast odds and ends or heavy things at the shop, and things I can really save cash on and certain hop varieties online. LHBS was in business long before I started brewing, so my shopping isn't going to make or break them, but since the people working there are knowledgable and willing to advise it is worth the trip and the minor extra expenditure. Make your shop worth the trip, and you'll do well.

 

[TexasDroughtBrewery]

TDB,
I'm not sure where in the DFW metro you want to open your store, but I think there are areas where the rent/lease cost would not be prohibitive and still have a decent, visible storefront... While real estate costs in the metro area AND cost of living have skyrocketed in the past 5 years, you still can find lease space for as little as $1.85 a square foot, it just depends on the area. Conducting a quick search on loopnet.com for commercial properties, I found several options, with at least 1,100 square feet, in Plano, Little Elm, The Colony and Lewisville for under $30k a year...With the amount of travelling we all experience in this area trying to get to get from point A to point B, I'm SURE that I've driven past all of them...

Let me take a look at loopnet...b/c this might change things for me. I didn't see anything in the 1.85 range. Thanks man