new buisness venture am i mad

funkylady

hi i am looking into opening a shoe shop for children maybe a few funky teenage pairs aswell
i was in england and found some great wholesalers and really good shoes at great prices i could easily have 60% profit if not more.
my rent per week would be between 250/300€ a week includes rates am i mad or should i just go for .
the shoes will be no more than 20/25 euro to buy i think there is amarket as i am sick of going into shops and paying 50€ for shoes that my child is only in for 4 weeks
what do you think any advice greatly appreciated
from funky lady

redman

The idea of selling childrens shoes at that price point is valid.
They are crazy prices, key will be value i.e. the quality of course.

SoupyNorman

Gotta look at where you are setting up shop i.e. population density, foot traffic passing the shop, Are there other clothes shops nearby (people dont go out of thier way to shop in unestabilshed stores).

Cheap isnt always a good thing, (perception of inferior quality). Irish people are more affluent nowadays.

The rent seems cheap, whats the specs of the unit? Where is it located (street level, shopping centre, industrial estate)

If you could give some more specifics it might be easier giving advice.

Do-more

Hi Funky

When it comes to opening a shoe shop, I would thread very carefully (sorry dreadful pun!)

There is a lot of "guilt pressure" on parents of young children to buy premium quality shoes so as not to harm the development of their feet. I spend much more on my 3 year olds shoes than I do on my own.

All the better brands seem to be priced at €40-€50 a pair so if you price lower, the perception you are creating is that your shoes are of inferior quality. That is unless you are purchasing big name brands at discount prices from your wholesalers, in which case you could market yourself as an "Outlet" store.

Fitting shoes for kids is an art in itself, are you experianced?

The shoe seasons are incredibly short, you will really have to be on the ball to ensure your timing is right.

Having run a wholesale business myself for a few years, what killed me was the build up of "dead stock" IMO it is just as, or more important, to track what isn't selling as what is. And once you identify what isn't moving discount it quickly (below cost if you have to) and turn that stock back to cash that can be used for stock that will sell.

If you don't already have experiance in the shoe trade then get it. Your wholesalers will still be there in a years time. But if you jump in without experiance you may well not. You need at least a years experiance, with detailed notes as to when to buy new season stock, when to stop buying current season stock etc.

That's my 2 cents, hope it helps.

D-M.

kluivert

Hey there,

I agree with the above, some great advice.

Few questions to get a better understanding of where you are along in the process.

What is the size of the shop. Is there enough space.
Is the location good. Can you get a better location.
How well do you know your market. Experience or background
Who are your main competitors.
What alternatives are there available eg Mothercare etc.
Who will be your suppliers, will you have a dependencies on one particular supplier (try to avoid this)
Who will be your customers.

These are just some ideas. I personal think that the shoe business is a good business to get into so long as your not setting up next door to Clarks.

If you want I can help point you in the right direction for you to do some research in this area, as I would know people who are shoe distributors and other people who have nationwide chain of shoe shops and are very successful to date. They might to able to help you answer some queries that you may have.

Sponge Bob

Theres always selling them online and offering a 10% discount through discount codes allocated to creches (and 5% for the creche themselves if their code is used ) .

The creches can carry brochures and you can demo the shoes there so that they know the shoes are kosher and will recommend them, + they get 5% .

funkylady

hi there i have been doing the markets with shoes for the last 6 months.what is making me wanting to go into a shop is i spend about 70 € a week on diesel and about 60 € on market fees and for two hundred i can get a shop i know i have insuranses to pay but i have such a good feeling .there is nobody in my town doing childrens shoes only one shop that stocks clarkes which are so over priced i know they are good quality.
i am hoping not to go into alot of debt maybe 15,000 if that.
still trying to do my figures not sure about the floor space but its plenty big enough for what i wany and there is an upstairs to store my goods'
the lady who i am renting will let me take a month at a time no big lease commited to.
i will have to give her adeffinate answer if i want the shop by next monday,it does not need alot of work just a lick of paint and shelving which i have looked into which will cost me 950.00 €
any other advice
bye from cathy

funkylady

i have found a few suppliers i was wondering is there any in ireland or any others in the uk i have not used
thanks

kluivert

Whelans Footwear Distubutors - Cootehill, Cavan
Essential Footwear - Castleblayney, Monaghan

Two main suppliers in North East region I think.

newman10

Hi funkylady

The idea may work because if you offer a service fittings and styles etc. But remember to have the money for 2nd season stock available and that you are not depending on cash flow to buy them.

Mistakes will be made wrong colours and styles and may have to be sold in Sales.

Margins in Footwear not a good as people think. I am in Fashion

vesp

Do not forget to factor in expenses like a basic cash register ( maybe € 500 to € 1000 ), hire of credit card machine ( not sur but € 15 to 20 a month, plus the banks take a percentage based on turnover etc ....often between 2 and 3% ), as well as usual business overheads like accountancy fees, heat, light, stationary, basic advertising, insurance etc. Your would not see 4 or 5 grand a year going between those. A lot may depend on how much advertising you need to do. A grand or two would not buy very much nowadays but if your shop is in a good location with lots of people past your window you may not need much.
Best of luck anyway, really hope you make it.