Should I open a Supply Shop?

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If you need someone to manufacture pre-made MLT's for cheap, let me know. Nebraska's not too far. :)
 
There are two things I think are sorely lacking in most LHBSs that I've been to: Professionalism and marketing.

Professionalism: Don't get me wrong, its a pretty niche market and there's no need to wear a suit & tie to work, but at the same time, its not a record store, either. Some people I've dealt with really don't seem to have much in terms of customer service skills and sales skills.
I used to work retail and I favored a "consultative" approach. My opinion was, if this person I'm talking to leaves happy and with the product that best suits their needs (and nothing more), then they'll come back. And they always did.

Marketing:
There are sooooooo many awesome ways an LHBS could market itself without needing a big budget to do it. It seems like most LHBS I've been to really do little than rely on word-of-mouth
 
schneemann said:
There are two things I think are sorely lacking in most LHBSs that I've been to: Professionalism and marketing.

Professionalism: Don't get me wrong, its a pretty niche market and there's no need to wear a suit & tie to work, but at the same time, its not a record store, either. Some people I've dealt with really don't seem to have much in terms of customer service skills and sales skills.
I used to work retail and I favored a "consultative" approach. My opinion was, if this person I'm talking to leaves happy and with the product that best suits their needs (and nothing more), then they'll come back. And they always did.
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+1 I went to a LHBS when I was just researching and the owner was into alternative forms of government! Or anti-gov. There were pamphlets and books left around about anarchism. Turned me off from that store completely!
 
I say start a local homebrew club in order to help determine and increase local interest in homebrewing before opening an LHBS. If there's only a handful of people interested locally then it doesn't seem like there would be much need for an supply store. As a club, you can enter contests and support local causes which will help get your name out there and make a good impression on the public. Something else to consider, check out your local chamber of commerce.
 
A) How is the parking? Seriously, it can make or break a new business.
B) Have you joined homebrew clubs to know for sure that there is a customer base in the area? THis has been pointed out before.
C) It was suggested that wine is important, I would agree. Do you know enough about that to carry those products?
D) What do you know about business? i worked for a very successful homebrew shop owner. but he had an MBA in addition to 30 years of homebrew experience. So he knew how to beat his competition.
E) A successful homebrew shop is more a hobby shop than it is a retail store. You need to give out advice an information all day long. Do you hve the knowledge base and more importantly, patience?
F) Have you also considered a BOP?
 
Soperbrew said:
Keep in mind with an Internet storefront you have access to customers worldwide & not just locally. Meaning don't let local population sway your decision too much.

I'd assume your highest margins will come from equipment as opposed to ingredients. Newer brewers tend to spend alot of money on upgrading their equipment (I do).

Being a "generic" homebrewing shop will put you in direct competition with all other online homebrew sites. Find a niche within the brewing community. Be the one store everyone goes to for XYZ be it service, specific equipment or otherwise.

There are alot of brilliant minds on HBT and several of them build their own brewing devices. One idea might be to tap into their expertise & labor by helping them sell their parts/services through your storefront.

I'd say building a niche among the brewing world would be the most beneficial for a new homebrew store. Example: I go to store A for most my ingredients & stuff, but Store B (your store) is the best place to get product or service XYZ. Hope that makes sense.
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I'll reiterate after the last few posts. If you plan on having a full blown Internet storefront you will have access to more brewers than just the local ones. If you DO have a substantial website set up I wouldn't let locality make or break your decision to open. In fact, since you are MO located you'll be somewhat centralized for shipping to many of your customer base.
 
I think you should. If you have the desire to be your own boss, have at it. I didn't read all these posts, but my LHBS owner researched for about 4 months prior to opening his shop (and I wish I could have beat him to it!). You mention that there isn't another HBS for 20-30 miles from your location. What would bring potential customers to your shop? I would provide a great selection (costs a lot of money) and freshness of ingredients. My original HBS was about 40 minutes away and really didn't carry quality ingredients. Now, my LHBS is 10 minutes away at most and carries the freshest grains, hops, etc. Maybe offer how-to shops to draw in other customers. Make your store an attractive establishment to enter. Maybe have hops growing on the side of the building and to top it off, have grain growing in the back! Ok, maybe that's stretching it a bit, but you get the idea. Anyways, if you are interested, drop me a line at [email protected]. I potentially can help you out with the website as I'm a software developer.

Good Luck!
 
Do you know the triple double of opening your own business? It takes twice as much money as you thought, twice as much time as you thought, and twice as long to make a profit as you thought. I work in commercial real estate in KC, if you send me a PM I can get you some demographic data and commercial real estate rents if you like.
 
I have only two things to contribute to this conversation - "bootstrap" and "don't invest money you can't afford to lose".

When you said "life savings" I shuddered. How about investing a PORTION of your "life savings" into an account and use the resulting proceeds to open a web store.

Just an idea.
 
My LHBS has a kitchen where they brew beer on premises (so you can taste the recipes), and you can rent the kitchen on certain nights to brew beer there. They also offer an on-site beginner brewing class I think. The more useful services you can offer your customer, the more loyal they will be when it comes to buying supplies and equipment. Free advice and a few perks now and then will get and keep customers, even though it seems like a waste of time at first - for instance, mine gives me a free beer glass with their logo every time I spend over $20-30 or so, and I think that's cool.
 
Jim bell said:
COGS, I suspect, is going to be a deal breaker.
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COGS. I had to look that one up.

COGS Cost Of Goods Sold
COGS Campaign to Organize Graduate Students
COGS Centre of Geographic Sciences (Annapolis Valley Campus, Lawrencetown, Nova Scotia)
COGS Chesterfield Open Gaming Society
COGS Clarke-Oconee Genealogical Society
COGS College of Geographic Sciences (Lawrencetown, Nova Scotia)
COGS Combat Oriented General Support
COGS Complete Online Gaming System
COGS Computer Oriented Geological Society
COGS Council of General Synod
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avidhomebrewer said:
I think you should. If you have the desire to be your own boss, have at it. I didn't read all these posts, but my LHBS owner researched for about 4 months prior to opening his shop (and I wish I could have beat him to it!). You mention that there isn't another HBS for 20-30 miles from your location. What would bring potential customers to your shop? I would provide a great selection (costs a lot of money) and freshness of ingredients. My original HBS was about 40 minutes away and really didn't carry quality ingredients. Now, my LHBS is 10 minutes away at most and carries the freshest grains, hops, etc. Maybe offer how-to shops to draw in other customers. Make your store an attractive establishment to enter. Maybe have hops growing on the side of the building and to top it off, have grain growing in the back! Ok, maybe that's stretching it a bit, but you get the idea. Anyways, if you are interested, drop me a line at [email protected]. I potentially can help you out with the website as I'm a software developer.

Good Luck!
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There is a very good point made here for us homebrewers that you could capitalize on. Freshness. Always a big point for me wondering if the grain and hops and yeast are fresh when I buy them. Maybe that's the niche....guaranteed freshness of ingredients.
 
ifishsum said:
My LHBS has a kitchen where they brew beer on premises (so you can taste the recipes), and you can rent the kitchen on certain nights to brew beer there. They also offer an on-site beginner brewing class I think. The more useful services you can offer your customer, the more loyal they will be when it comes to buying supplies and equipment. Free advice and a few perks now and then will get and keep customers, even though it seems like a waste of time at first - for instance, mine gives me a free beer glass with their logo every time I spend over $20-30 or so, and I think that's cool.
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I attended a brew class at a farm based LHBS earlier this year. The lesson, just like the store was somewhat unprofessional, but friendly. As it turned out I already knew all the basic extract stuff that was on display from reading this forum, and a couple of us even filled on on some knowledge that the "lecturer" was lacking. I'm not knocking the experience because it was free and casual. Even so, after the event all 15 of us were buying stuff from the store straight after, and half of those 15 were first time brewers.

A properly advertised and run brew class at different experience levels would be a great way to build up the local interest.....And fun too! We all had a good time at ours. :)
 
Austinhomebrew said:
At the very best, if you'd like to open a shop and have it produce meaningful income, you'll need a good quarter million people in your potential customer base, at least in your market area, free of competition.
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I've read this before and I agree with it. As an example we have two home brew shops here and we have approx 2.5mil people.

TheJadedDog said:
While I think it's a great idea, let me play Devil's Advocate and throw out a few things you need to consider:

1) your profit margin will be minimal, most local LHBS that I have seen are a part time operation with hours in the evenings and weekends.

2) with the continued hop shortage you may have a hard time getting a hops contract and the contract you do get may be extremely limiting in how far you can grow your business

3) with the current economic situation, people are looking for ways to cut down on their spending and hobbies are typically the first things to go.

I'm not saying don't do it, I'm just saying now might not be the most opportune time to start.
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+eleven bijillion to all of those points

How about drafting up a business plan, I for one would be interested to see what you come up with.
 
I worked for a home brew shop for a little while and I don't think they had a population base of more than 60k to tap from. What the owner did that was different than many of the shops I had been to is that he sold specialty beers and wine. He also tied this with tastings and special events to get the community involved. From my short stent of time working there I could tell that the shop made more money selling wine and beer than anything else but because of getting people in for the bottle shop end of things it got more people into homebrewing. If I was to have a homebrew shop I would definitely have a bottle shop attached as I don't think you could make enough money to support the operations on homebrew sales alone.
 
If the area has decent traffic after work hours, I would recommend opening a beer bar instead. 800 sq ft seems a bit small to me to have room for stocking a decent amount of grains, yeasts, hops, etc plus the big stuff like fermenters, pots, etc. We have this place in Tampa located in a nice residential area and they absolutely kill. On your average Friday or Saturday evening they are shoulder to shoulder selling quality beers on tap for $5 - 8 a pop. They are doing so well, in fact, that they will be building another 6 locations in the next 3 years. They have about 30 taps, 4 on nitrogen, serve all the beers in appropriate glassware, and have another 500 or so varieties available in bottles for immediate consumption or to take home. I know it's not exactly homebrew, but could allow to you make inroads with the local beer appreciating crowd, generate interest in homebrewing, and possibly even serve your own creations on tap (not sure of laws surrounding this). If I were going to get into the beer business, this is what I'd be looking to do. Check it out...Tampa Beer Bar - World of Beer - Westchase

Good luck,
Chris
 
my LHBS offers services for converting kegs into keggles. they will help people with their wines, even store them for a small amount of time for a fee, they have an amazing crusher (i'd definitely get a quality crusher) and they have the best service out there.

the owner works 16 hour days, easy. i heard he gets up at 3 AM to grab grapes during wine season. he has just-in-time ordering so all the stock is very fresh (it's amazing what they can fit in that little place anyway.)

i'd think it's a business where you have to work VERY hard and it will be a long time before you get any payback.

i would probably go with the tasting bar myself.
 
you better re-read Forest's post, you are trying to create a market that doesn't exist in your area. And another thing, with the economy the way it is, now isn't the time to invest in a risky business venture.
 
joejaz said:
you better re-read Forest's post, you are trying to create a market that doesn't exist in your area. And another thing, with the economy the way it is, now isn't the time to invest in a risky business venture.
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Likely you are correct. But a fella can dream can't he.
 
Don't mean to hijack, but it seems like this is going in the right direction already. A friend of mine already has a storefront and agreed to let me use his store to setup. I would mainly be pursuing the online store option as I have a background in web development so the cost would be minimal in terms of actual dollars. Can anyone point me to some good distributors/wholesalers?

Thanks.
 
Wolfgang I have no advice as to whether or not it is a good idea. I am one of the officers for the ZZHops homebrew club here on the Missouri side. To my knowledge we are the largest Kansas City area based club on the Missouri side. If you do decide to go through with this let me know and I will get you invited to one of our meetings so that you can meet the club and try to gain some customers.
 
So, I'm sort of in the same situation as Wolfgang . . . I was recently offered to buy my LHBS for what seems to be a rather low start up cost, which I would move from its current location. From talking to the shop owner, he's more wine-heavy (70-30) and currently has people driving in from 40-50 miles away to purchase supplies. Being in an area of little and scattered population, providing a service more than a "store front" would be imperative to my success, and I would say the same to you, wolf. Anyone can go online and will always be able to beat your prices, but if you sell the knowledge that you've gained in your homebrewing experiences in a (previously mentioned, and +1) professional way through classes, events, and homebrew club meetings, you have a chance to survive.

Some other thoughts:

+1 on part time. Unless you're in a HUGELY populated area and are the only show in town, you're going to be hard pressed to make a ton of money.

+1 on homebrew clubs. Join every one you can find locally. I helped start our local one, and have gained some serious insight into how big my market would be.

+1 on selling HB supplies in conjunction with something else

-1 on "this damned economy" posts. People will be looking to save money, yes, but what better way than making a product you love rather than purchasing it. In tough times, people stop going out to eat. . . they also stop going to bars, but still want their drink, and you can make it (wine and beer) for cheap. Just a marketing idea.

+1 on knowing wine - I don't - but I sure as hell will learn if I pull the trigger.

+1 on forming a LLC or incorporating. Protect yourself and family.

Oh, and good luck. There's no guarantees in life, so no matter what you're taking a risk. Just do your homework and make your own decisions. It takes a lot of moxie to go into business for yourself.

Cheers,
 
If you do decide to open it, ill sign up to be the first customer! I live only a few miles from Excelsior Springs. It would be nice to have a store closer than EC Kraus in Independence (Wine Making Supplies: E C Kraus), although they do most of their sales on the internet.

Where exactly in downtown are you looking to put it in?
 
you can always advertise online and if you purchase advertising on this site and offer good prices / good support i am sure there will be lots of people who will support you.

online business is your best bet and you can try to build up local customer base in the mean time.
 
Having spent many years in the Promotion/Advertising biz I have two suggestions for ANY new business.

1. Keep the place clean.
2. Do not lie to your customers.

It is too easy to just order online and wait for the brown truck to bring your goodies. If you have a clean, well organized storefront and a civil and helpful staff, you will keep that customer coming back.

As a customer I would add;

3. Do not over extend yourself. If you are busy, find a helper - don't try to run it all yourself. There is nothing more annoying or potentially deal breaking than someone running back and forth between the stock room, the shipping area and taking orders off the phone/online.

Think of the things that make you dislike the competition -- then never repeat their mistakes.

Consider combining advertising with other stores in the area...
maybe create common themes, open houses and sharing resources with your neighboring businesses. They may know brewers, or can loan you a couple of reams of paper when you run out of it printing receipts.

Consider side items, like bread mixes, sourdough starters etc.
Home brewers like to tinker with food... sell them stuff :)

Good Luck!
 
thataintchicken said:
3. Do not over extend yourself. If you are busy, find a helper - don't try to run it all yourself. There is nothing more annoying or potentially deal breaking than someone running back and forth between the stock room, the shipping area and taking orders off the phone/online.
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I will agree with that. I was on a job interview and there is a LHBS located pretty closed. I stopped in after the interview with my list and the owner said it would be like an hour if I needed the grain crushed because he was expecting a shipment and all he has is a hand powered mill. I told him that was fine, take your time, and I would just hang out at the Dogfish Head Pub/restaurant right :cross:. As I sat there at DFH I felt for the guy because it definitely seemed like he was doing a million things at once.
 
Skins_Brew said:
I will agree with that. I was on a job interview and there is a LHBS located pretty closed. I stopped in after the interview with my list and the owner said it would be like an hour if I needed the grain crushed because he was expecting a shipment and all he has is a hand powered mill. I told him that was fine, take your time, and I would just hang out at the Dogfish Head Pub/restaurant right :cross:. As I sat there at DFH I felt for the guy because it definitely seemed like he was doing a million things at once.
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I go to said LHBS quite often and I just gave in and got my own mill because of this issue of theirs. When he told me I'd have to call in my order at least a day ahead of time in order to get my grains milled (at $0.10/lb), I knew there was no more hope. He usually does have a couple of helpers, but I think they really only work weekends (well, Saturday since they are closed Sunday...which I think is a mistake as well).
It's amazing what he can fit in that broom closet of his. When I go during the week for odds and ends, I think can tell why he remains in the broom closet...it's a ghost town. Although, on second thought, there is always a pallette of random stuff on his front stoop... someone's buying the stuff besides me.
 
Here in Columbus we have a store that sells pizza, craft/domestic beer, and homebrew supplies. Now that's a good combo, IMHO! Everything you need for a successful brew-day :)
 
Hmmm...I'm not an expert on anything, but I would start out part-time, week-ends say, and only expand if/when forced into it by customer demand.

I would begin by ordering only minimal kits and basic pieces of gear, and listing it in the classifieds of the local newspaper, and PennySaver, BuffaloNickel, Shopper'sGuide, type of rags...while setting up display tables at flea markets, festivals, and craft-fair types of events, on week-ends.

Who knows?!!!

Pogo
 
PS If you want to start a new business, the only thing that sells is sex, pets and kids. If you can figure out how to combine all three you may have a gold mine.
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And probably illegal in most states.
 

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