3 replies
  • OFF TOPIC
  • |
I signed up for warriorforum a few months back to find ways to promote my website. My website is retail, I sell custom but official Reebok NHL hockey jerseys and clothes to people across the web. The problem is: there are more authoritative websites on the web that sell NHL hockey jerseys than Google can fit on page one. My site started ranking well, but there was no way I could touch page 1, and therefore organic traffic was next to nothing.

So I turned to eBay. Now, the problem with eBay: You're competing with knock offs, and people who sell at nearly next to nothing markup, which makes it nearly impossible to compete. So, while I sold a bunch of jerseys on eBay, there was no profit.

My (ex)business partner found a cheap place for us ($400 a month) on the busiest street in my city. It gets lots of walk-in traffic and sales, which is great.

Let's get right to the meat of my problem:

The building that I do business out of has other businesses as well. Between August and this month, EVERY business pulled out, leaving me to be the only business in the building. The landlord gave me a months notice (yesterday, exactly 1 month before XMAS) that I A) find other business to occupy the building, B) Pay $1300 per month to utilize the whole building or he will C) Convert the building into residential and therefore my hockey jerseys business will need to find another location (HIGHLY unlikely for under $1000 per month).

I took out about $40,000 in small business loans for the business in the past year to buy stock (jerseys, hats, shirts), so I have a ton of stock on hand that only maybe 1/4 will move by Christmas.

What I've learned so far:


1st lesson: Retail sucks. Long hours, minimal markup. This is NOT a get rich quick method. I don't know how mom and pop shops survive unless they are offering their own in-house products and services.

2nd lesson: Don't believe what everyone says. The whole reason why I got into selling NHL jerseys was because my (ex)business partner couldn't stop talking about how his old store was making so much money from hockey jerseys. His old store went bankrupt during the 2005 NHL lockout because of lack of sales (and he was in the middle of renovating his store). He promised to bring over his previous experience from his store over to our new business, and eventually bailed.

3rd lesson: RESEARCH RESEARCH RESEARCH. Sure, there is a HUGE demand for sport apparel, but if the supply (competition) is also HUGE, then getting a piece of that pie is going to take a fight.

So, as of January 1st, I won't have a place to operate out of anymore, I'll be stuck with lots of debt, but on the "upside", I'll have a huge collection of jerseys.

That's not really the thing I'm pissed about, it's the fact that I'll be obligated to get a 9-5 J.O.B. which I vowed to myself that I will never work another 9-5er again.

I'm an entrepreneur through and through. I love creating ideas and products that intrigue people, and finding ways to make profit from them. Though, as of right now I haven't been able to generate profit from ideas! I'm sure more opportunities will come along as time goes by.

I just wanted to share my store with you guys (I shared this with another SEO forum), because it's better to learn from other people's mistakes than to make the same mistakes yourself.
  • Profile picture of the author seasoned
    Jeepwrangler,

    I don't know about OTHER countries but a number of states in the US, and possibly ALL, have TOTALLY different requirements for residential and business. There are basically 3 types of regulations, in say california....

    1. Office, CHEAP and EASY!!!!!!!!
    2. Apartments, FAR more expensive, and harder!
    3. Condos/homes, even worse STILL!

    Just as an EXAMPLE, do you have a proper bathroom? An office can have a communal one that is basically a 1/2 bath! OBVIOUSLY, the others require at least one FULL bath!
    An OFFICE requires OPEN PARKING! A condo/home, in california, requires COVERED parking! And what of SMOKE DETECTORS!?!? STUDIOS may not sell well, and each break may require a smoke detector. What of a KITCHEN? Just the BASIC appliances for an apartment could cost over perhaps $4000 a unit! And what of the ELECTRICITY? A certain number of watts per circuit are required, and apartments/homes require different circuits, and indiana law, as an example, requires an outlet at least every 12 feet.

    And that is just the FIRST pass! In a number of areas, possibly all, in the US, it is ILLEGAL to make any change, such as adding a bathroom, unless you bring many things up to code! THAT can be VERY expensive!

    And don't forget things like phone lines, cable, sewage, etc.... Some offices can cut back on things homes can't.

    There is the requirement for a manager!

    And then there is ZONING! Some places won't allow residential.

    I have been in no less than TWO apartments that CLAIMED they were going condo, and they later decided that they couldn't, because it was too expensive!

    And NOW is probably the WORST time in history, at least in the US, to do that!

    You should offer to pay COSTS for YOU! YOUR water, sewage, electricity. If you play your cards right, that will be low.

    It sounds like YOU made some BASIC mistakes that are ALL too common, and HE is probably DREAMING!

    Steve
    {{ DiscussionBoard.errors[1430714].message }}
  • Profile picture of the author Kenster
    Family owns a real estate development company so I have a few things to share. Number 1, it is possible that yoru landlord is converting from commercial to residential. In some states the zoning and variances are pretty darn flexible. Is residential a good idea for him? Perhaps. Unlike most businesses, rela estate markets are extremely localized. Some markets are soaring right now, even real estate.

    He will likely have to bring everything up to code, but contractor prices are at near all time lows in many markets so if you have the capital, now can be an extremely great time to convert. Real estate is a long term investment. Yes, you may not be able to occupy the units right away, but eentually you will.



    As for your problem, I actually sold authentic nfl jerseys online and still do. I do the marketing and my cousin does everything else, so Im not that involved but I am familiar with the industy.

    Now Im not sure where you get your supply but I'm assuming through a registered, licensee. You also know that the mark up on these products is huge. As a tip, what helped us out is comparing our product to NFL.com prices. We have the same merchandise but you can get it for x dollars cheaper from us and then we have a decent story about how we are able to sell cheaper than nfl.com

    also, slashing prices doesnt do well with a lot of traffic. We saw better conversions as we increased price probbaly because of perceived quality.


    kenster
    {{ DiscussionBoard.errors[1431243].message }}
  • Profile picture of the author Michael Motley
    1. I'd tell the landlord to get bent. Its not your job to find his tenants.

    2. I wouldnt focus specifically on hockey, that was the first mistake. If you're in the states, hockey isnt as hot here in all places as say someplace like canada. Maybe general sports jerseys would have been a better way to go. Some sports or even some teams you can focus on if you are in the right place. For instance there are plenty of stores here that carry nothing but tampabay bucs/florida state seminole/university of florida gators/usf bulls apparel. They can do that because there are rabid fans and even graduates of all those schools/teams in this area. An all hockey store would last about a month here.

    3. I had a buddy that worked in a very lucrative collectibles store. I have seen how a $50 jersey can turn into a $150 jersey just by adding about $10 in wood and plexiglass in the form of a display case. So much so that he and I have been kicking around the idea of making display cases. The place he worked at used to make BIG money by sending stuff off to get signed (like jerseys) then taking that signed jersey and putting it in a display case and giving it on consignment to charities for auctions. If they sell it, you get a cut, if they dont, it goes back into stock and there are charities having expensive dinner/auctions every weekend. Even an unsigned jersey in a spiffy looking display case will bring a hell of a lot more money than just a jersey on a hanger and cases really aren't that expensive to buy and even less expensive to build yourself.

    If you dont build them, cases are suprisingly cheap in bulk from most builders. I passed up about 10 of them at $8 a piece this weekend at a flea market. I knew as soon as I walked away it was a mistake, and I was right, they were snatched up quick. But 8 bucks for a beautiful hand made wood case, nice brass fixtures, velvet lining. Now take something like that, put a jersey in it, and maybe spend like $5 at the local trophy store for an engraved name plate with the player's name/position and maybe years with the team and NOW its not just a jersey, its a collectible and the price just went up.
    {{ DiscussionBoard.errors[1432023].message }}

Trending Topics