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08/25/2006 01:17:52 PM · #1 |
Maybe there are some business people out there that can enlighten me.
For about the last 2-3 months or so I've been mulling over the idea of opening up a camera store. There isn't one where I live and the closet being about 60 miles. Although I think it might do alright, I'm concerned about being competitive with online retailers and chain stores in the area such as Bestbuy,Wal-Mart,etc. who can obviously sell things cheaper for many reasons.
Maybe people could list some pros and cons here for me. There might be some I haven't thought of yet.
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08/25/2006 01:43:50 PM · #2 |
It will be difficult to compete with the big guys. Most new hardware is sold at or near cost. Kind of a loss-leader to get the consumer to buy filters, bags, memory cards (film in the old days), tripods, etc.
You will have a lot of capital tied up in inventory and low profit margins on that inventory.
I know a few people that did quite well buying and selling used camera gear. But even that is waning in the digital age. A Nikon FM is still a viable film camera, but how much woud you pay for a D50? Lenses still hold value, but digital camera bodies are paperweights after a year or 2, from a resale perspctive. If the industry ever lands on a MP size that is seen as viable long term things might change, but as long as they keep increasing the MP by 25% or more every year, the older cameras will suffer.
I don't mean to discourage you. I admire the spirit. Just know what you are getting into before you decide.
Message edited by author 2006-08-25 14:04:20.
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08/25/2006 02:46:59 PM · #3 |
| Customer service is #1. People will buy with convenience too. People like to touch and feel things. If you have the other two things going folks will buy. |
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08/25/2006 03:03:11 PM · #4 |
Originally posted by faidoi:
Customer service is #1. People will buy with convenience too. People like to touch and feel things. If you have the other two things going folks will buy. |
The risk is that people will come to your store for the touch and feel then go home and order from B&H. Price beats service everytime in the US, just ask the airlines.
Message edited by author 2006-08-25 15:03:35.
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08/25/2006 03:14:40 PM · #5 |
What do you think about offering photography services out of the store also? Things like senior portraits and such. I would also like to provide printing services, not only with the "do it yourself" kiosks like the drug store has, but bigger stuff too.
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08/25/2006 03:17:41 PM · #6 |
That would probably help you as far as providing what the customer wants -- the more you offer, the more you appeal to. Don't spread yourself too thin, though.
Seems like a lot of start up investment and overhead though.
Good luck! |
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08/25/2006 04:29:48 PM · #7 |
Originally posted by NstiG8tr:
What do you think about offering photography services out of the store also? Things like senior portraits and such. I would also like to provide printing services, not only with the "do it yourself" kiosks like the drug store has, but bigger stuff too. |
This is how my local store, very competent people, support themselves; they have an in-store studio and they offer VERY good high-end AND low-end printing services. The capital investment would be very high, however. I'm sure if you did an analysis, you could make more money off the capital in other ways. If you really WANT to run a store, that would be what swings the deal, but it's very labor-intensive and requires a lot of commitment.
I used to own a fishing tackle store, so I have a clue what I'm talking about.
R.
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08/25/2006 05:24:42 PM · #8 |
I'm quite familiar with operating a retail store with a large chain as competition. I helped open a mid to high end audio store in the early 90's. One of our major competitors for the mid level gear was Best Buy. They could sell product at a lower price than we could buy for, due to the volume discounts they got from manufacturers. What we did was kick their butt on service and knowledge. That's what it takes for a small store to compete because there's no way you'll be buying at the same price point on most items. Offer services BB or other chains can't touch.
Another thing to ask yourself... How many people like you are there in your area that are into photography like you are? One of the store here (Christian Photography) offers classes on specific cameras or on how to best use their printers. Just a few ideas.
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08/25/2006 05:39:08 PM · #9 |
you will probably need to sell the human touch...
i would personally go to a local camera store to have a chat with the guy there, see whats new, hold a camera and test it out.. and it is true when you wanna buy something you will probably order it online, i bet everyone here when faced with the decision to buy a new camera was probably considering a nikon vs canon, canon 20D vs canon 30D which all vary slightly in price, so you end up reaching for the best bargain that would put an edge of one against the other.. i would say selling camera accessories is probably much more lucritive.. lenses, memory, tripods, filters... but profitable ?, thats another questoin...
Message edited by author 2006-08-25 17:40:17. |
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08/25/2006 06:05:04 PM · #10 |
I worked in a brick and mortar (home town style, small) camera store for seven years.. Two years before I left we resorted to selling cameras at or near cost. It was the only way we could compete with the on-line dealers. The corner stone of our buisness was the inhouse lab. We did the best printing around. At the time that I left the store was going great, processing was up- we had a nice new digital machine, camera sales were up- everyone was happy. Now, with so many digitals out there and so many people either printing at home or not printing at all the lab is waaaayy down and the store is struggling. Last year they added a large format printer (62 inch) and have greatly expanded their reach into the pro market. Camera sales are still going good, but they just don't generate any money. With the added services they're starting to bounce back, but it still isn't approaching what the lab would do (even in the slow months we averaged over 120 rolls a day)
What does this mean to you. Camera stores can be succesful, but they can't just be camera stores. We had a drive up window that was really great for our customers in a hurry. We used to joke that we needed to get a Pizza Oven and call it "prints and a slice" service. In all honesty it should've been diversified and expanded. You can't make money selling cameras, you need something else that you can make a profit on a use the cameras and accesories as a way to get people into the store. Adding a lab used to be the quickest way to turn around a struggling camera store.
Hope my rambling helps a little.
Message edited by author 2006-08-25 18:13:32.
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