About to stop growing and open a hydro shop, can't see why not ?

[Bud Spleefman]

Did you guys know Hydrofarm just did a National Deal with K-mart and Sears to carry all the products it distributes? That could seriously effect the success of the small hydro store owner.

Just food for thought... I've always thought owning a hydro store seemed like a good idea. I would want a Hydrofarm Distributorship, as opposed to a National Garden, or other.....

 

[Stoner4Life]

it's been no secret for many years that the people making the most money during the gold rush were the ones selling the picks 'n shovels.......

 

[MickeyBlue42]

If you go into this venture make sure you get a good POS (with stock control and barcoding). A good POS is invaluable as a management tool and will help you with many important decisions. Work on your 'systems' and things will run smoothly, then you can focus on your service and marketing!

All the best

 

[supermanlives]

open it . but have an open mind you should sell whatever customers demand other wise your limiting yourself and prone to failure

 

[herewego]

open it . but have an open mind you should sell whatever customers demand other wise your limiting yourself and prone to failure

Yea i would make sure to have it all, always an open mind. This stuff we do on here has given me so much knowledge.

Mostlikely would run with quickbooks and all that good stuff, worked out break even point last night to $100 a day in retail sales. I shouldnt have a problem doing that, the other stores ive been to have to do a grand a day or better. Anyone have input on that ?

stoner4life - i hear ya man, my brother actually just met a guy who goes prospecting in VT on the weekends and comes back with an oz or two of gold from the rivers up there lol

Bud spleefman - i'll check that out, but i doubt it up here, just spoke to rep the other day, and trust me they dont want that shit in the kmart thats still standing over here, place is a ghost town.

Talktosamson - i hear ya buddy, ive been the same way even trying to go find a T5 bulb and neither store had it in stock, wanted me to come back in 3 days lol except i just drove 45 min to get there ! Fuck them now im raiding their pockets for a change.

Vote is back to 18/10 in favor of...looking good. Figure its tough to lose too bad when daily cost to open the doors are $65, so even if i take a crack at it, but i think i will be there to stay once i open.
Plus ive got a 1200sqft basement there to start playing with the fish and the plants. gonna be a big deal, i just know if im there i'll work on it. Would be neat to see that side of it.

Anyone have a clue to volume done in terms of $$ at any of their local shops ?

 

[mdk ktm]

sears carries hydro farm equipment also.... I have not been in a sears store lately, so I dont know how much they stock, but their website has a lot of stuff.

 

[bendoslendo]

....

 

[Bud Spleefman]

Here's that article about the Sears/K-mart Hydrofarm deal.......

http://www.rosebudmag.com/growers/hydroponic-gardening/item/3408-kill-hydroponics-retail.html

 

[junior_grower]

hey If you have the room I know of a small but lucrative market I personally dabble in. Koi breeding and sale. I have now stopped any breeding and have them shipped to me for 1-2$ a fish an sell at 25-50$ per fish. If your doing and aquaponic garden they may be a good fit.

 

[mean mr.mustard]

Because you would have to quit growing.

Damn....

 

[herewego]

hey If you have the room I know of a small but lucrative market I personally dabble in. Koi breeding and sale. I have now stopped any breeding and have them shipped to me for 1-2$ a fish an sell at 25-50$ per fish. If your doing and aquaponic garden they may be a good fit.

yea looked at some last weekend, either going to start with them and add tilapia 2 weeks later when they come in the mail, or just wait and start with the tilapia. I want to start growing in large scale 5kft setups within the next year.

yea hydrofarm in kmart and sears would blow, i just saw a couple things on their website before when i chedk actually

 

[RussCargill]

Hey man, you got the money to do it alone, pull the trigger. Just don't ever get mixed up with a partner. They generally will only be looking out for their own interest, not the partnership.

 

[ben ttech]

fuck man!

to even have the choice shows youve reached the top of the ladder.
why not kill yourself and spare you and everyone the invariable tumble from this tier of market grace?

 

[Cheeb]

herewego,

But yes, thanks for the answer that you would if you could, it is appreciated. I don't know in what retail store you would even fit 100-200k of hydro equip. Anything i dont have in stock i'll tell them to come back in 2 days, fuck em. Keep a couple of each light, and everything else i need, and create my own new products to sell there and introduce into the market.

Are you kidding me? You can easily fit 100k-200k of equipment into a small store. Hell - just stocking a few cases of each of the hortilux lamps is going to run you a pretty penny...and thats just one brand.

Everything needs to be ordered in case quantity
Order minimums need to be met to get better prices and free shipping otherwise your margins are minimal.

"fuck em" - thats a great start to a loyal customer base. Good luck with that.

Say, Monday - customer comes in and wants something you dont have. You dont want to lose the sale so you say you'll have it in 2 days. You work up a 4000 - 5000 dollar order (min) to get his stuff and get it in for him. Thursday rolls around and you have another customer wanting something you dont have.. you gotta place another 4k-5k order.

Its all about cash flow and you better have one hell of a bank roll to keep it moving and preventing your customer from going to the other hydro shop who's been at it for a while and has the inventory on hand - as well as the ability to place orders at will regardless of how the previous days/weeks/months have been going.

I think growing (while very dangerous) is actually what fuels most shop start-ups. Not having that extra income when you need it will be very hard.

- -

Dont even get me started on drop ship business for online sales. Your at the mercy of your distributor - their speed at getting orders out as well as handling returns, shortages, backorders, mistakes, etc. - it'll be a nightmare. You just dont have enough control and things WILL get messed up. Customers will know its a drop ship and prefer to deal with someone who has the inventory on hand.

I'm sure a hydro shop can be a very profitable venture if done right, but seems like it puts a lot of stress in an otherwise very enjoyable thing.

- -

I'd stick with growing some plants and living a simpler life. In a retail enviroment your customers mean everything to your success, but are RARELY always right as the old sayin' goes.

Just sayin'
Think about what you really want to be doing with your day to day.

I've work in another hobby style retail shop where you'd think the mood would be great fiddling with the very toys that you love when playing in that hobby, but the day to day people with their problems will eat at you and make you HATE people. It'll become monotonous and life will suck.

I can almost guarantee you you'll get more enjoyment and fulfillment out of kicking around the house tending plants and bullshit. Do something that you really enjoy.

BUT,


If you find customers and same day workplace enjoyable and have the money then go for it.

 

[johnny54]

good post^...owning a business is a full-time job...but i do understand that burning desire that entrepreneurs have...gl with whatever you decide to do

 

[herewego]

herewego,
Are you kidding me? You can easily fit 100k-200k of equipment into a small store. Hell - just stocking a few cases of each of the hortilux lamps is going to run you a pretty penny...and thats just one brand.

Everything needs to be ordered in case quantity
Order minimums need to be met to get better prices and free shipping otherwise your margins are minimal.

"fuck em" - thats a great start to a loyal customer base. Good luck with that.

Say, Monday - customer comes in and wants something you dont have. You dont want to lose the sale so you say you'll have it in 2 days. You work up a 4000 - 5000 dollar order (min) to get his stuff and get it in for him. Thursday rolls around and you have another customer wanting something you dont have.. you gotta place another 4k-5k order.

Its all about cash flow and you better have one hell of a bank roll to keep it moving and preventing your customer from going to the other hydro shop who's been at it for a while and has the inventory on hand - as well as the ability to place orders at will regardless of how the previous days/weeks/months have been going.

I think growing (while very dangerous) is actually what fuels most shop start-ups. Not having that extra income when you need it will be very hard.

- -

Dont even get me started on drop ship business for online sales. Your at the mercy of your distributor - their speed at getting orders out as well as handling returns, shortages, backorders, mistakes, etc. - it'll be a nightmare. You just dont have enough control and things WILL get messed up. Customers will know its a drop ship and prefer to deal with someone who has the inventory on hand.

I'm sure a hydro shop can be a very profitable venture if done right, but seems like it puts a lot of stress in an otherwise very enjoyable thing.

- -

I'd stick with growing some plants and living a simpler life. In a retail enviroment your customers mean everything to your success, but are RARELY always right as the old sayin' goes.

Just sayin'
Think about what you really want to be doing with your day to day.

I've work in another hobby style retail shop where you'd think the mood would be great fiddling with the very toys that you love when playing in that hobby, but the day to day people with their problems will eat at you and make you HATE people. It'll become monotonous and life will suck.

I can almost guarantee you you'll get more enjoyment and fulfillment out of kicking around the house tending plants and bullshit. Do something that you really enjoy.

BUT,


If you find customers and same day workplace enjoyable and have the money then go for it.

Ok....im not gonna attack this post too bad since you have the criticisms, but then give it a go ahead. If people are placing 5k orders ive already made it to where i would need to go at 60% markups lol. I wouldnt care if i did one of them a week. And yea 'fuck em'. If they are not essential to my life progress then i dont need them (not a blanket statement).

You can also spend all you want on inventory but that is not going to make customers appear. What good is 200k of inventory when you only need 20-30k a month in sales ? I don't need order minimums either by the way, i make shit happen.

Problem is however, is that ive made so much shit happen its taken up most of my hours. Now im stuck on this thing, i want it as a progression to aquaponics on a large scale, but i may just have to jump to the aqua ponics. I just wanted to find someone who had a vested interest in the store so i don't stop paying attention to it when i move on, rather then hiring someone who doesnt care.

It looks like this may be where it gets paused for now, have until this weekend to pull the trigger with the landlord (other people so he says), but people are non believers, even related people who are members of this board as well don't think the money is there, but ive been opening businesses for 10 years and know it is. For fucks sake it would only cost about $68 per day in fixed expenses to be open !

You telling me you cant sell $100 a day out of a hydro shop lol they sting you for a hundred bucks for 3 bags of atami coco over here.

All in all i appreciate all the input guys, im even gonna get some pics up of the place so you know what is out there for anyone else thinking along these lines, and if anyone wants any specifics as far as min order, markups, other costs, please feel free to pm me, ive got a full workup done on this place. I guess we shall see if the holidays change anyones mind over here haha.

 

[herewego]

fuck man!

to even have the choice shows youve reached the top of the ladder.
why not kill yourself and spare you and everyone the invariable tumble from this tier of market grace?

lol appreciated and ive seen the tumble before. Nice sig by the way.


Pics now attached since my chances are diminishing with time in a matter of days, 20x65 shop, picture from almost rear, facing road with 15k cars a day traffic count as per d.o.t. Ok sized strip mall, end unit.

Also picture of the FULL 20x60 basement underneath the store. Would be perfect for a thousand square foot setup of displays for actual demonstration of vegtables/plants and or fish to customers. I know it looks like a torture chamber down there lol.

Big part of the reason i want this place. $1 psft a month. basements free. If a shop was going to open anywhere within 20 miles of here, this would be the ideal place. At least i am now sure this idea would work, just need someone to take some of the hours and i dont see it happening by the cutoff....gonna be a bummer if thats the case, and the cause of it not happening.

 

[zenoonez]

I have a friend who works as a manager at a local shop of a national tire/auto care chain and therefore his prices are fixed by those at corporate. There is a mom and pop shop down the street that does oil changes for 16 bucks a pop to get people in the door and then tell them what else is wrong with their car. My boy on the other hand is stuck with 34 on an oil change. Long story short he doesn't get a customer because they go over to the mom and pop shop. So keep the prices low and everyone will come or advertise something super cheap to get the people in the door. Might be something you already had planned but in my experience, hydro stores gouge people like nobody's business. Oh and you might want to take trade ins on equipment and sell them on ebay, I have heard of good money in that... Good luck man. Oh and you should offer a discount for ICMAGers.

 

[herewego]

I have a friend who works as a manager at a local shop of a national tire/auto care chain and therefore his prices are fixed by those at corporate. There is a mom and pop shop down the street that does oil changes for 16 bucks a pop to get people in the door and then tell them what else is wrong with their car. My boy on the other hand is stuck with 34 on an oil change. Long story short he doesn't get a customer because they go over to the mom and pop shop. So keep the prices low and everyone will come or advertise something super cheap to get the people in the door. Might be something you already had planned but in my experience, hydro stores gouge people like nobody's business. Oh and you might want to take trade ins on equipment and sell them on ebay, I have heard of good money in that... Good luck man. Oh and you should offer a discount for ICMAGers.

Agreed, Agreed, and def agreed. trade ins would be sold in store as well.

 

[medmaker420]

My suggestion

stop growing for now and setup the shop. Train a couple people to run the place and then go back to growing. You would be able to run the business as well as grow BUT stop for now until the shop is running and busy enough to need help around the spot.

Its amazing how cheap you can pay someone to work at a grow shop. Most are simply stoked to be working there and able to tell their buddies LOL. Just find people who actually grow and know what they are talking about because that bugs the shit out of me when someone at the shop just starts talking out their ass about stuff they apparently have ZERO knowledge of.