Thinking of opening my own LSS - need your input

[party of 3]

good for you bobcat! i think it's a great idea. i would my lss. i don't get to go there that often, but when i do, i love to wander around and see all the great things she has.

good luck with your new adventure.

 

[GoofyforDisney3]

What ever you do, make sure you actually help the customers. I have a Walmart about 2 minutes away in one direction and a LSS about 2 minutes away in another direction and I will say that the few times I have been into my LSS, I have bought next to nothing. Why? Because if I am going to put up with absolutely no help (service) I sure as heck am not going to pay a premium price to do it. I get as much help at Walmart as I do at the LSS. And everyone nows exactly how much that is....NONE!! It just really burns me that they don't even really speak to you when you walk in the door and they are standing at the cash counter (without a customer) doing nothing. (okay, I'll get off my soup box now! )

Seriously, I like the idea of a LSS that carries different things than the big box stores. Mine doesn't carry many different things and it really seems like it mostly paper and stickers. They have very little as far as embellishments and very few albums or tools. Just not a very exciting store.

The one cool thing I have seen them do is about 2 times a year they have a "yard sale." People bring in stuff to sell that they no longer want, and earn money to spend in the store. If I remember correctly, the customer actually sets the price for the item and the store gives them a number that everything is marked with to track how much they sell and earn. One of the few times I have bought stuff at the store it was during one of these yard sales.

 

[bobcat]

What ever you do, make sure you actually help the customers.

Ohh bad customer service is such a pet peve of mine! That won't be a problem as I love to talk!


Faerie I sent you a pm. I am a real planner so all the info I can gather will be a big help. The more research I do the more excited I get.

My one concern right now is display shelves. There is a lss store going out of business and she has been selling off her displays so I can get some from her but I know that there are items I will need and I want to try and keep this cost down. I have some furniture that I can use for displays but my paper racks are my bigest concern.

 

[micki7337]

I recently went to a crop at my LSS and the best part of it was the chairs. They were high-back leather-like chairs that you could adjust and work tables that were easily 5' by 4'. Having all that space was just heaven!

The crop ran from 10:00 a.m. to 10:00 p.m. with breakfast, lunch, dinner and a snack. Breakfast was coffee and donuts/bagels, lunch was small sandwiches with chips/soda and dinner was pizza with salad. Dessert was different types of brownies. Drinks and snacks were available all day long.

The other nice thing they did was gift cards. The crop was the day before Mother's Day and my DH called ahead and purchased a GC for me that covered everything I bought that day and I still have a balance.

They carry a variety of paper and tools but not so many kits, which was a little disappointing. I was also looking for a new scrapbook and she only had a handful to choose from - so off to ACMoores. I would say that my LSS opted for more crop space rather than supply space. I'm just hoping she can make it with the limited products.

Good luck with your LSS. Have you named it yet?

 

[bobcat]

I agree about the chairs. I have started researching what would be comfortable but not too expensive. I may have to start out with regular chairs at first but good chairs will be added as soon as I can

For a name I was thinking of "Scrap It!" I want something that imediately lets you know this is a scrapbook store. The store is on a pretty well traveled road so this would help bring in customers that may just be passing through. I hate it when I find out I have driven right by a scrapbook store but didn't know it because the name didn't give you a clue.

 

[Camicar]

From what I've read elsewhere, one of the key issues is to discover what your customer base will actually BUY as opposed to what is cool or trendy or what people say they want.

I think that in a small retail business your keys also include knowing what niche you fill and providing customer service to encourage loyalty.

For example, I am five minutes away from a major shopping area which includes a Michaels and a HUUUGE LSS. I now shop at that big LSS all the time, but until it changed hands about a year ago, I drove past it every time to go to Michaels. And there was a small LSS about 1 minute away that I would have been happy to patronize, but I never shopped there unless I needed an adhesive right now.

Why? The stores didn't have what I wanted and never tempted me into buying what they did have. The small store didn't stock the basics of packs of black paper or white paper or multi-colored card stock stacks and their patterned paper never changed. I mean, seriously, once I went in there a year later to buy a second sheet of PP and it was indeed still there! I mostly buy patterned paper and embellishments. I seldom buy tools or stamps or ink or anything else that is technique-oriented bec I don't have the time (or so I think to learn it). If they would have occasionally had demos on techniques, I might have been tempted. Their crops were just for their 'in' crowd and no one else was ever encouraged to attend. And finally... in one store the restroom was often filthy.

FWIW: A good place to look for advice is on the website www.twopeasinabucket.com/mb.asp and do a search for "LSS" in the general scrapping thread. There have been many threads about why LSS close and what people look for in an LSS.

Good luck!

 

[AlexWyattMommy]

In regards to offering classes, I love the ideas that Cord Scrapbook Studio has (you can check them out on-line) but I that at Archivers you bring nothing. I mean nothing. They have all the tools and adhesives right there for you to use. They also have a little display set up by the class area that has all the products they used for the class, so you can pick up some new items on your way to the cash register. For the Cord classes, you need a basic tool kit and all your glues and chalks if they are used. But the upside to the Cord classes, besides how cool they are, is that you get 10% all your purchases on that day.

I really like your name. There is no mistaking what "Scrap It" will have inside. Will you make up t-shirts & magnets with "Got 'Scrap It' " on them and your address/phone number (on the back of the shirts)? I'd be happy to purchase some for the cause.

 

[Yzerbear19]

Here are the sites for two of the LSS in my area:

http://www.scrapbookpeddler.com/

This one has a kid's area, and there are pictures of it:
http://www.memorylanebc.com/

I like when the sections of the store are clearly marked with the items grouped by theme.

I also like the little diecuts for specific locations in the area. For example: Mackinac Bridge, state of Michigan, Detroit, etc. In Gettysburg they had Civil War die cuts. Though our LSS have other ones as well like Washington, DC, Orlando, New York, etc. Some are words and some are shapes. I think these are pretty neat. I think most of them get them from other places, though. I will have to look at some of the packages of them when I get home.

Both of the ones I go to the most have "punch" programs where if you spend $150 or $175 you get $10 off a future purchase. I'm $15 away from filling up one of mine.

I agree with others who have said that a wide selection of cardstock is awsome. Sure Joanns and Hobby Lobby have cardstock and its cheaper, but they don't have nearly the same variety of texture, color, and size as the LSSs do. The one LSS will usually have it on sale at least once a month, which is a good time to replenish my supply.

I also like that they are always changing their inventory, getting new products in, etc. I usually go in once a week to the one by work and there is always something new and different. And it is a good rule of thumb that if you see something you like there you better buy it because it probably won't be there again.

And one of the best parts of the one LSS I go to is that they have lots of pages on display that people have done. I love to look at them and see how they did something and get ideas. I think they make these pages at the classes, but I'm not sure. I think the employees also make some of them. But I love to just walk around and look at the pages to get ideas.

And be sure to carry LOTS of Disney items! The LSSs near me don't have that great of selection of Disney items anymore, which makes me sad. The store we went to in Grand Rapids on Friday was awesome and had a lot of stuff I hadn't seen before.

I like the name. If you do open it, I might have to make a trip down to Ohio. Good Luck!

 

[Yzerbear19]

I would not do the loaner tools, just because $80 for a cricut cart is a lot of money.

The LSS near me that rents out the Carts makes you sign an agreement that states that if the cartridge is not returned by the designated day your credit card will be charged the full price of the cart. When you rent the cart you have to give them a valid credit card number. Also a fee is assigned if you return the cart with either the overlay or booklet missing. This type of agreement helps to protect the store because even if the cart is lost or never returned the store will get their money. I love being able to rent the carts because there are some that I like, but only for one or two things on it and I rather not pay $60 for the whole cart.

 

[catalexander]

I own a LSS and am online.

While I don't want to necessarily DISCOURAGE you, I want you to be absolutely AWARE of the requirements.

1. Do you have a businees plan..a WRITTEN business plan?

2. Do you have 40+ hours a week to dedicate to an online store or 80+ for a retail store?

3. Are you prepared to pretty much STOP all your personal projects/crafting? There really is very little "fun" time when working a retail business. There is ALWAYS something that "HAS TO" be done. And it's not the fun stuff!

4. Can you name to 25 most popular manufacturers-right now-off the top of your head? Do you know what their product lines are called? The product qualities? Are you aware of their order qty minimums PLUS the $ minimums? *Note: you mentioned the PC minimums would not work for a small LSS.. I totally disagree. If you want to carry their immense line of products, and can NOT meet the $10k year minimum, then IMHO, you are probably too "small" to be profitable to begin with. Their minimums are right in line with the bare minimum of any open, functioning small retail store. I easily meet them in the first quarter.

5. For online stores: are you ready to drop a couple thousand on website development, shopping cart features, encryption, security? Plus, there is an IMMENSE amount of time required to maintain just the product database, let alone continued site updates/revisions. Do you have adequate space to store inventory? Have you determine shipping costs to you vs. what is acceptable to online shoppers? Which service will you use? Do you have AT MINIMUM $10k to place your initial inventory orders?

6. For a retail store.. you have the space. Great. What about fixtures/displays they are very very expensive. What about employees? Are you prepared to be at the store open to close every day... no free weekends, vacations, etc... at least for the first 6 months? Do you have AT LEAST $50k to invenst in INITIAL inventory purchases?

7. THis is THE MOST IMPORTANT thing to consider! Are you prepared to invest the minimums as suggested above, and NOT TURN A PROFIT for at leat 12-24 MONTHS? Are you prepared to NOT have this as a source of income for that period of time? Most LSS's close in the first 3-5 years, because they are simply NOT profitable. With overhead, inventory, taxes, labor, INSURANCE, etc.. you've gotta sell A LOT of paper and brads. A LOT.

Again, I don't want to dampen your dream, but I think that most people get into this thinking about all the "fun, cool, neat" things that it's going to be only to be devastated (financially and emotionally) to learn it's really NOT the fun job they thought it was going to be. Think LONG and HARD. Not just about how "cool" you can make it, but how you can make it PROFITABLE.

Moving inventory is KEY. Everyone wants NEW. Latest. Greatest. Manufacturers have MINIMUMS. You've got to project and MEET your inventory turns. Otherwise, you'll have no reason to keep customers coming back.. regardless of how many cool "gimmicks" you offer... they want NEW PRODUCT. That new product costs YOU $$ .... and if it is a total FLOP.. then it's YOUR $$ sitting on the shelves.

So... just wanted to toss in a bit of my reality to you. For what it's worth.

(and yes, my store is profitable... barely... not enough to earn any real income from...and I've been in business over 3 years now...)

 

[AlexWyattMommy]

That is exactly the kind of help I think bobcat was looking for, a voice from someone who is there, right now.

I have to say about the fun being gone, that is what the employees over at Cord say. They pick their classes so that they can at least get some scrapping of their own photos done. They have no other time really. And they are just the workers, not the owner/operator.

 

[LindaBabe]

It's a tough business in which to make a living. Our local LSS just closed after 8 years and the next closest one just closed after 5 years. Our shop keeper said her sales were down 75% . . . she did a roaring business in crops and classes, but it wasn't enough to compete against the internet and the big box stores carrying the same items.

My advice would be to have clear, tough and Posted policies about everything from returns to refunds, class sign ups, no shows, breakage, etc. Some of the nicest people will do the shabbiest tricks where money is involved.

MAny of the items are small and portable, so unfortunately "shrinkage" is an issue too.

I wish you were opening in my town. I miss my LSS terribly.

 

[bobcat]

catalexander thanks for your info. AWM was right that is just the type of advice I was looking for. Trust me I am not going to go into this with rose colored glasses. As I said before my parents have owned their own retail business for many years and I know the toll it can take. The questions you have posted are things that I am in the planning and research stage right now. I'm a planner and I can't jump until I know how cold and deep the water is. We have a group of retired executives that advise small business in our area and I plan on going to see them as soon as we return from vacation. It's easy to get into the excitement phase but harder to be realistic.

I plan on this being more of a "Mom and Pop" type store, or to be more trendy a boutique, rather than a scrapbook superstore. I feel more comfortable with this type of investment and the feel of this type of store. This is also the type of store that the community supports.

I am very grateful for everyone's suggestions and advice.

 

[pretty in tink]

Just wanted to put my 2cents in about the customer service issue-The LSS down by my mom's house is really great about that. She really knows her stuff so if you have questions she knows the answer. She knows her prices and inventory and where everything is located in the store. And she knows a lot about even the stuff she doesn't carry. So she's great for information. When I needed vacation charms for that scavenger hunt swap she didn't have any at the time but she researched for me and said this is who makes them, this is how much they cost, etc. She's very friendly and willing to go the extra mile-so now if I need something I go to her, because she'll be able to help me better than the big box stores will.

She carries a lot of stuff you can't get at Michael's or JoAnns; she also carries some of the same stuff as the other stores do, but it costs a little more, so it becomes an issue of budgets for customers. But a lot of people will support local businesses, just like you said.

And OH! I wish you were opening here! My LSS isn't very cozy-feels very clinical and I don't tend to like a lot of there stuff so I don't go very often-it is probably the "trendier" stuff, it's expensive, and mostly not practical.

 

[TPCShauna]

We just had an LSS relocate about 2 miles from my house in February. Here is their website: www.imascrapbookaddict.com. If you send me your email, I can forward your their latest newsletter which they send weekly through Constant Contact.

The owners, Sarah and Helen, are GREAT about really getting to know their customers. They knew me by name by my third trip there. They started carrying Cricut carts because people asked and they are constantly updating their stock.

Likes:
- They have a nice selection of patterned paper - not huge but serviceable.
- All the basic supplies you need.
- They carry a limited selection of Bazzill.
- They have something called "The Addicts Wall" that is literally a wall FILLED with embellishments -

. These are sold by bulk with something small like eyelets being 25 for a $1 or 7 slide mounts for a $1, etc. There is ribbon, charms, tassels, chipboard letters, all for xx for a $1 or mix and match by row. It is so nice to be able to buy 5 eyelets of a certain color if that is all you need.
- They have TONS of classes. Some of them are swaps where you bring your card creation and supplies to make 10 more, everyone else does the same and you leave with 10 cards (this one is no charge because everyone provides their own supplies.) Almost all of the classes have additional kits that you can buy and make later.
- They have twice weekly crops with a $5 commitment fee that is waived with a purchase.
- They have a pretty good sized Disney section.
- If you are taking a class, you do need to bring your paper trimmer, scissors, adhesive and a black journaling pen but they provide everything else - ink, paint, etc.
- They have a punch card. When you reach $100 in sales, you get $10 off any item over $20.
- They support their community be helping out with school projects, donating baskets, etc.
- They will special order almost anything.
- They give you 10% off your purchase if you are attending a class or crop.

Reasons why I stopped going to the LSS I used to shop at exclusively
- The staff was rude AND snotty. They acted like they were doing me a favor for helping me.
- I didn't buy my Cricut there but I had spent over $2,500 there in 2 years. They offered a class to help people learn more about their Cricut. Cost was $5 if you bought your Cricut there or $25 if you didn't. I asked if all of my other purchases didn't make a difference and they said they weren't out to give away their services for free (see snotty remark above.)
- They used to mail out monthly coupons but discontinued it out of the blue, raised their prices and then came out with a once monthly punch card that can't be used on 2/3 of the items in the store.
- They are always out of most of their embellishments.
- If you attend a class that requires paint, ink, etc., you have to bring your own or can buy it there for 10%. Half the time, they are were out of the stuff you needed!

Yes, Scrapbook Addict has less paper than the other store I used to go to but you can't beat the amazing customer service I get from Sarah, Helen and their staff. I always go to them when I'm looking for something because I want to support them as much as I can to show them that I think they are doing a GREAT job!

Good luck!

 

[bobcat]

I love that Addicts Wall! What a neat idea! I'll Pm you my info, I'm loving all this feedback.

 

[bobcat]

Well I'm in full swing setting up shop! Got back from vacation on Sunday and hit the ground running this week. Right now I am getting distributors lined up and will be placing orders next week. I think Provo Craft (Cricut) has been my biggest pain so far. Everyone else was easy to deal with and get paperwork done.

My biggest challenge is going to be fixures. I need to be creative to start out and will have to repurpose alot of items. I think I'm going to call a buddy of mine to see if he can build me a couple of items and I am scavenging through what my parents aren't using in their store.

 

[Faerie]

Bobcat, do you have Ragshop up there? They're going out of business here and everything, including fixtures are for sale right now.

 

[bobcat]

I checked and there are no Ragshops in Ohio or anywhere close. Thanks for the info though.

 

[BernardandMissBianca]

congrats on the store!!! I can't wait to see pics.


Shauna, OMG!!! I have embellishment envy. That is a junkie's......I mean......scrappers dream!!!!!