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Scotty
03-31-2010, 09:34 AM
My wife and I are just starting to investigate the possiblity of opening a brick and mortar cookware store. I have two questions I haven't yet seen answered in any business discussions.

Prior to getting a business license, how is the best way to approach manufacturers concerning wholesale costs and terms. There has to be some way to come up with these in order to find out what your margins might be.

Secondly, is there any way to determine average sales figures for a shop of this type?

Thanks,
Scotty

dynocat
03-31-2010, 10:33 AM
Scotty, there are several ways to do this--probably way more than I know about. We a kitchen related business so this may help a bit.

Search the web for kitchen related (in your case) trade magazines (e.g., Gourmet Retailer), associations, (e.g., Int'l Housewares, Nat'l Kitchen & Bath), or home and garden trade shows for information.

There may be a central place you can find kitchen related product manufacturers--even some USA only ones, if that is a concern. Start with Google Directory, where you can narrow your search to find those who wholesale, and go from there. Search for kitchen product manufacturers, visit their websites and contact a few. They will ask for your business info, so if you're already set up, most will send a catalog with pricing. Typically it's keystone pricing (50% of retail).

Good luck.

Spider
03-31-2010, 11:02 AM
As you are "just starting to investigate the possiblity," it sounds like you aren't yet in business. I would think you could get a great feel for the business by talking face-to-face with a few of the suppliers' reps.

Where to find them? Trade shows immediately spring to mind. Presumably you know the names of some of the manufacturers - find their head office or the office of their local representative - call them and ask if they are participating in any trade shows in the near future, and go and meet them. And while you are at the show, talk to anybody and everybody you can in the other trade show booths.

You may even be lucky enough to get to speak to competitors and get their ideas about the business.

mcfarldr1
03-31-2010, 11:03 PM
For typical sales figures you're going to have to know what kind of demand there is in your area.

What about have a brick and mortar shop and an online store where you can sell around the world?

Scotty
04-02-2010, 10:47 AM
Sorry it's taken me so long to get back.

Dynocat, you've already helped with the leads to Gourmet Retailer, and Google Directory. I wasn't familiar with either one, but will be very soon.

Spider, I know a little about the trade shows, but as luick would have it, they are a long way off. I had planned on contacting some of the exhibitors from these shows, but didn't think many would respond unless I was already set up.

Mcfarldr1, I'm starting out with the plan of first getting the B&M store going, but then following up with something net based or even catalog based.

Thanks for your suggestions, if anything else comes to mind please post it and I'll check back later today or tommorrow.

Scotty

Patrysha
04-02-2010, 02:10 PM
Spider, I know a little about the trade shows, but as luick would have it, they are a long way off. I had planned on contacting some of the exhibitors from these shows, but didn't think many would respond unless I was already set up.

Actually they would love to talk to you before they set up. They are salespeople and are usually very helpful in providing information to new prospects and business owners...before you're set up is perfect for them because they want their brand in your store when you open...the only way to do that is start convincing you before you open.

dynocat
04-02-2010, 09:03 PM
Searches to get you started:

wholesale kitchenware
wholesale kitchen supplies
wholesale kitchen gadgets
wholesale kitchen cookware

wholesale cooking pots
wholesale cooking utensils
wholesale cooking equipment

retail kitchen stores
retail kitchen supplies

National Kitchen and Bath Association
Housewares.org
TheGourmetShow.org

Free trade magazines
You could skip "free,") as most are free as far as I know

Not recommending this site, The #1 Dropship Wholesale Source Catalog Online! Wholesalers who Drop Ship direct. (http://www.wholesalerscatalog.com), but it's a paid membership site that will give you an idea of products and suppliers.
Have fun!

If you'd want to test the waters with internet sales first, you could also search for dropshippers, where you sell their products and they do the shipping.

huggytree
04-03-2010, 12:37 PM
i would get your LLC or INC first and then go to suppliers....why would they give someone a price who isnt a business? if your just thinking about it you will be last on their list. if your actually in business you will be first.

it takes alot of time to find the best supplier and get the best prices. i was in business for months before i discovered where everyone gets their rough parts from. it is a distributor who only sells rough parts and is 20% less. i looked in the phone book and called them all when i started. after a few years im still negotiating fixture prices with them. one competes to beat the other.back and forth...you switch to 1 distributor and the old one catches on after a few months w/o a sale, then they call up ask why? then they match or beat the prices...i just got 2 suppliers to drop their shipping charges on small orders...that took 3 years....

the longer your in business and the larger your orders the lower your prices will be on supplies....just like the products you choose to sell will also change w/ experience...you discover what works andf what doesnt....you may not necessary choose the lowest price products...i choose middle of the road products to install and sell my business as a quality, not price business.

the best way to know who to buy from is to actually work in the field and learn the business while working for someone else. if you pay close attention you can learn who they buy from and atleast youd be able to be as competitive as your competitors.

huggytree
04-03-2010, 12:40 PM
sales projections would only be a guess right now with this economy..i would plan for the worst and hope for the best