Considering Retail

[Frostfly]

I'm considering Opening a Retail store that will stock some Hand Forged Items, I'm curious in you folks Imput in regards to how Possible it would be to keep this kind of store stocked. I"m guessing I need to sell something like 600+ peices a month to stay profitable and a great deal more then that around christmas time. I'd like to keep them all hand made and american(canadian would be acceptable) made. I know just enough about blacksmithing to have burned myself several times and taken the hair off my arms, but I'm a bit better versed in retail. Questions:

Would a single shop(assuming an average small shop) be able to put out this kind of quantity, or would I be best off looking for several shops to provide diffrent items?

I know many of the people who make the kinds of items I'm interested in already sell them retail themselves, would these type of people be willing to sell to a retail outlet for a discounted price for bulk orders? (i hope so, but I'm not sure what kind of profit margins they might have)

Anyone out there that would have some intrest in being a supplier for me?

Sorry for any vagueness, this idea is on the extream early edge of consideration. I'm looking for ideas to put a plan together, not quite to the plan stage yet

Thanks all for your help!

[Dave Shepard]

First, you need to decide what you are going to stock. Beam hooks? I could make you 600 a week. Something more complicated? Well that depends on how complicated. Are you looking to basically buy wholesale and then mark up?


Dave

[mike-hr]

There's a shop in north CA who sells just hand smithed items. He buys them outright from the smith, at 50% of retail, doubles what he paid, and everybody does good. He has, for example, hooks from $5 to $150, having product from different smiths with different personalities adds to the diversity of the shop. I think its a fine idea, as I tend to go crazy sitting at an art fair or street fair sifting through the one or two folks out of a hundred who are really interested in what I do. You should decide if you want to buy outright, or commission stuff. A few of my buddies tried commissions in galleries, and were always whining at the owners that their pieces weren't displayed correctly, or promenently enough. I'm glad I don't work in a gallery or sell retail. I applaud you for being interested in this, the more folks that see what we're doing, the better the whole public awareness is of non-Walmartian craftwork.

[johnny99]

Frostfly, to answer your questions in order.

Would a single shop(assuming an average small shop) be able to put out this kind of quantity, or would I be best off looking for several shops to provide diffrent items?

It's going to depend on the products you want, as stated before. However Personally, I would work with several shops to begin with. To see what styles suite your venue, Who is easy to work with and dependable etc.

I know many of the people who make the kinds of items I'm interested in already sell them retail themselves, would these type of people be willing to sell to a retail outlet for a discounted price for bulk orders? (i hope so, but I'm not sure what kind of profit margins they might have)

Certainly They would. As Mike said above, 50% mark up seems to be about standard around here.

Anyone out there that would have some intrest in being a supplier for me?

I would certainly be interested, if you are talking about wholesale. If you were thinking consignment, I would have to know a lot more about your venue, product list, clientel , etc... To make an informed decision. In general, I am not a big fan of consigning smaller work. Because you tend to pay twice. Once for the material, and again for the time to produce. to then have the vendor use your work as filler for his shelves in a location unsuited to the work, Or a million other problems. Not to say it can't work, I just haven't found it to be the best way to market.

Please feel free to PM me if you wish to discuss it.

Thanks
John

[Frostfly]

to cover a few of the questions that have been asked of me,

Yes I'm thinking wholesale, Consignment is not what I have in mind.

as for what I'm interested in, at first I'd want a wind range, From coat hooks and inexpensive items up to fairly ornate and large items(fireplace sets,candelabras). The location I have picked out is in a very affluent area, but I'm not exactly sure what will be most popular. I'm thinking items in the 25-100 doller range will be the winners. of course I plan on covering as many price points as I can deceide are reasonable.

Again, this is something VERY early in the planning stages (next step:funding!). Thank you all for your input so far.

[IronPuppet]

I'm not sure if affluence is the only criteria you should be thinking of. You should also give thought to the tourist trade. Affluent tourists are looking for something unusual for a souvenir.

Remember the 3 secrets to success, "Location, Location, Location"

Just the same, a bad location can kill an otherwise good idea.

Here's an idea for you.

Go partners with a restauranteur. Someone who wants to open a lunch counter or a coffee shop. Call the place "The Old Forge" and decorate the place with rustic old iron plows, tools and wagon wheels and forge made accents. The other side of the room is your hand forged items for sale area. If you ran the whole thing then you might find that the two angles of business would bail each other out from slow times.