so you want to start a successful skate shop? stolen from my blog..

[skategeezer]

Would love some feedback here...



This blog is dedicated to Rick Tetz, webmaster extraordinaire over at calstreets. (calstreets.com) Rick and I finally crossed paths a few weeks ago after he sent an email inquiring about ad space. We talked and I was amazed to discover his unreal website. After you've finished this, head on over there. Your jaw will drop!

Rick's shop, Cal Streets has quite a legacy in Vancouver (and beyond!). His shop wasn't just a skate shop, it was a meca. It was perhaps one of the greatest, most successful skateshops on the planet.

Rick promoted CalStreets with a huge amount of marketing and through an extraordinary amount of hard work and perseverance it became the number 1 skate shop in Canada - but I am getting ahead of myself.

On Thursday I received a phone call from a skate shop that wanted to "talk shop." I could sense his mixed emotion about the state of retail. It's not pretty out there. I guess, since I am one of the few individuals crazy enough to stick my out there and tell it like it is, I am on a few people's radar. That makes me feel good. The lines are always open.

So, where are we, this third month in the year of our lord, 2008? Most indy skate shops face the following:

1. immense competition from big box chains (zumiez, w49th, pac sun etc) who have taken a huge amount of the wind out the indy shops sails along with grabbing a whackload of shoe and clothing business. (file under: the pie is only so big)

2. immense competition from online retailers (with enormous product depth and pricing that frankly, scares the crap out of bricks and mortar shops who have to deal with things like rent, shoplifting, staff and oh yeah, putting stock in their damn shop!)

3. immense competition from big brands shelling out dollars to start their own retail outlets (hello Billabong, Quiksilver and Burton! Glad we bought all this product only to see you have it on your discount table a few miles away!)

4. immense pressure from reps to order certain items or face retribution....or loss of lines - or god knows what. Hey, 800 lbs gorillas gotta eat too! Cue Gordon Gecko -"greed is good" but there comes a point where some retailers wonder "wouldn't it be easier to sell something easier?"

5. a desire to promote other lines/brands but facing the cold reality of "the kids only want the gear they see in the mags ...which is the gear marketed by the 800lb gorillas...which leads to much stress over what the hell to do...which leads to questioning the whole damn thing.

I could go on and on, but the truth is that you'd have to be absolutely nuts to start up a skate shop in today's economy...which is why, I believe only the very craziest of people will not only accept the challenge but excel at the task of creating the next generation of successful skateshop.

I am not here to give advice on starting up a skateshop. I am interested in focusing on providing advice that I believe will create a successful indy skate shop. While nothing is fool-proof, I see the following as being absolutely crucial to ensuring some kind of success. Success to me is defined by:

1. being your own boss - making the decisions is scary sometimes, but hugely satisfying

2. being able to do everything you say at least 99.9% of the time - hey, stuff happens) because the buck stops (and starts!) with YOU

3. being well compensated for your work and the risk. Not making oodles of cash...but enough so you live well.

4. having an army of customers who are so delighted about your service that they do most of your marketing for you. Yep, your success is based on incredibly good word of mouth...people talk about your shop, because it is so incredible!

So, how to get there? What will the next generation of successful skate shops be like?

1. it will not be like the mall shops but it will convenient to get to - it will be a conduit for customers to link up and skate...and communicate and share knowledge.

2. it will be exceedingly small but big on service and knowledge - it will be piled high with all kinds of products for you to try. The folks behind the counter will know about all types of skateboarding and they will make ALL types of skaters feel welcomed. When a customer walks in, the discussion will be about what the customer wants and needs.

3. it will be truly interactive - it won't just sell skate product, it will conduct daily demo's, weekly events, monthly contests and numerous blow outs that raise the roof and cause a sensation.

4. the shop will give you best of what a retail shop should offer - it should leave you feeling that you've encountered not just a shop, but an experience. That's very hard to cultivate...but the more you try, the better you will succeed at delivering something that is truly remarkable.

5. Will the shop sell softgoods? Absolutely! What type? The kind that give you the highest margin for the least amount of space with the least amount of resistance. There's a reason why big department shops put the perfume counters front and center -their profit per square foot is extremely high. The successful retailer will need to figure out what softgood (read: high margin) product they can sell boatloads of in their specific environment. For some it might be sandals...for others it might be watches or eyewear.

6. 50% of skaters are under 11. The successful skate shop of the future will do everything in their power to cultivate these skaters, treat them with a huge amount of respect and provide them with more knowledge and care than any other shop in the entire planet. And they will do the same for their parents.

7. I sense the successful skateshop of the future will capitalize on the expression "if the mountain can't go to Mohammed, then Mohammed will go to the mountain." Yep, if you're in a college town, your skate shop needs to be on the campus. Likewise, if you're in a town that prohibits skating and has no skatepark, you will not be opening up shop. Open shops in towns big enough to support your vision.

That's a start for now...there's tons more buzzing in my head...but this should give any wannabe shop owners something to think about.

[hexagon5un]

Sounds about right. Your 2,3,4 are where the local is going to beat out the internet or mall shops. Regular rides, demos, good service, trick tips, etc. All the kind of stuff that you can't get except in-person from someone who skates. Running a skate shop is probably a bit like running a bar -- your success depends on the regulars, and that depends on the community you can build (and strong drinks). The (weekly?) group ride that introduces a bunch of skaters to each other and keeps them stoked is some money in the bank.

7: You got that thing about Mohammad backwards, but let's admit that skate-shop owners aren't supernatural beings.

That all said, I'm not entirely sure how much margin you can get if the internet shops are selling a whole bunch cheaper. You can do the setups for them on the spot and not have to charge or wait for shipping, but those are about the only advantages you've got. Tough biz.

[cincykeys]

This was a great thread that seems to have never taken off. I'd love to get your take on things now that we are a year older and deeper in to the econmony woes.

I'm in the process of putting together a business plan for an independent skate shop in my community. It would be the only shop in town and within walking distance to the park.

You have outlined some extremely helpful points in your "skateshop of the future" vision. Please keep the tips coming.

[Mile_High_Mark]

Internet-only pariah's FTW!

[SoCalBiz]

community involvement, as boring as it sounds will generate that "socially acceptable" part in those towns where skateboarding is a "crime"

do something for a cause, perks the ears of those who don't even skate but will get involved.

[skategeezer]

this is why I LOVE the internet and HATE it!

there are so many great ideas out there...just waiting to be discovered...and so many threads that spin out nowhere...just waiting to be resurrected.

no one is calling anyone a pariah...it's business...and the web changes the game...and will continue to do so.

i like the idea of focus on the web...the longboard stores decision to ONLY do longboard stuff was a wise one...the next level?

SPEEDBOARD only
or cruising only
or slalom only

deeply specialized...offering excellent service and an ENORMOUS number of products...

as for retail, well this original post is over 1 year old...and so much has happened since then that it's hard to get my head around things....sadly many skate shops are throwing in the towel...or drowning in debt...but there are some who are thriving...because they offer the right mix of product, right kind of service and have a spirit and energy in their shop that is second to none.

[Mile_High_Mark]

Internet-only pariah's FTW!

I was referring to myself, actually. There was--and still is--a real stigma around online-only skate "shops."

[endzone_bob]

Perhaps I'm short-sighted, but a slalom-only or speedboard-only store seems far too specialized and destined for failure.

Someone prove me wrong, please..

[BigDaddy@TactisSkates]

Our formula for success is simple... Full pro shop with:

All disciplines...

great wrenching and tuning skills...

stick to the core products that lead the scene...

stay away from the cheesy products and mass produced junk...

Build a team.. they don't have to be world champs just good guy's and gals that represent you well.

Go to the events and promote any way you can, services, swagg, ...

Make a product in house ,under your name, quality, and at a fair price...

don't be a bikini store or cram the place full of wake boards and snowboards and everything else under the sun, leave that to the strip mall guy's.

Choose a good cheep, but cool location, that minimizes overhead and has a little character, NOT a strip mall.

A core shop should spend time with each customer, tune their setup, ask them questions about their riding style and expectations for advancing their skills.

A skate shop should have enough room out front to kick back listen to tunes and talk smack while the counter space is large enough to do all builds and tunes right in front of the buyer.

And finally, have an online store that describes your inventory and keeps customers up to date on stock and prices. Link to the technical pages of the products that you sell so your customers can research before they come in and are aware of events and scene reports.

We are now opening our second shop under this strategy and have built the shop on retained earnings. Skate Mom and I started our shops with this simple plan and we have never been happier nor had so much fun hanging out with our kids and friends and making new friends every day. Good luck8)

Big Daddy
Tactis Sk8s
MidTown Sk8s
Team Tactis

[cincykeys]

More great info! It's awesome hearing from those who are running successful, independant shops.

In my research I have found that most new store owners complain about not being able to stock the inventory that is in demand. Meaning they will want to place an order for product but the distributor refuses due to relationships with other local, skate retailers. I've been told stories of competitors literally calling in death threats to new independant shops over these distributor relationships. Sounds crazy to me. I find it hard to believe that in this economy you would have distributors refusing a $3000 check for product simply because he is already working with another shop 20 miles away. Can any store owners out there offer any insight on this? I feel like sometimes shop owners say how bad it is simply to scare away new competition in the works.

Shred!

[sk8norcal]

Albert Lea Tribune | Son’s hobby becomes a store

[skategeezer]

now that ASR is cancelled, I am resurrecting this thread!

[buy anabol tablets]