Business Idea. Gauging interest

[Sparky]

My little company is brainstorming and throwing a few ideas around. One thing considering is opening a store front. In say a mall or busy shopping area. The idea is to sell lighting with more and better options than say Home Depot. Maybe higher end stuff. Like for instance.

Chandeliers
Ceiling fans
Landscape lighting
Newer LED technology

My question is what you would look for in a lighting store? What type of products? What type of service. We would also be able to order any specialty items with maybe computerized catalogs.

Lots to think of still. Like what types of manufacturers would we stock? Do we do internet sales? What size of store to start? Getting distributorships and many others. This is a long way off from becoming reality.

P.S. We have licensed electricians available to help install your new fixtures. [Coffee]

[SideShow Bob]

There are already several "High end Lighting & fixture" stores in the Metro area, you may want to see what your competition is first.........[Tooth]

[Sparky]

I will crush them

[SideShow Bob]

I will crush them

You may, by making it convenient in a mall, most of the places I have seen require a dedicated trip...

[argonstrom]

I might be interested in providing custom engraving.

[pickenup]

Billion dollar companies started with someone's.....idea.

That being said, renting store space costs a LOT. Are you clearing that kind of money? (rhetorical question)

Then there is advertising.
They CAN'T show, if they don't know. Good advertising can cost MORE than the rent.

You would have to carry items other than what Home Depot or Lowe's carries. Because they buy stock by the thousands, they can "retail" it out for less than YOU can buy it wholesale.

Supplying custom builders might be something you could to look into. I imagine that is a cut throat business.

Wouldn't even consider NOT selling on the internet.

Lighting isn't something people go shopping for every week, and in today's economy.........

[bogie]

I let my better half pick out the lighting. She likes Lamps Plus. You should check that place out as I think it does fairly well. At least it's been busy every time I've been there. They also have an online store.

[TriggerHappy]

I let my better half pick out the lighting. She likes Lamps Plus. You should check that place out as I think it does fairly well. At least it's been busy every time I've been there. They also have an online store.

Women, shoppings, malls--lighting, sparky I think you may be onto something here.

[Irving]

Make sure you offer consulting, or at least knowledgeable people who can help the clueless.

[BPTactical]

Billion dollar companies started with someone's.....idea.
.

But according to the Pres, "you didn't build that"...........[Bang]

I would gauge the need. Housing and disposable income is still depressed and nice lighting is usually an option rather than a need.

[JoeT]

mall rent will kick your ass.

[hollohas]

Good idea because there really isn't any mainstream lighting store. Yes, I know, there are a few big lighting showrooms in the area but they are far from mainstream. Ask anyone where to buy a light fixture and they will say Home Depot...not one of the showrooms.

So I think you could be successful, especially in a popular location.

However, being in the electrical industry, you know how many people are involved with getting lighting to the end user. You buy from distributors, they in turn buy from Lighting reps. And the reps buy from the manufacture. That is true for darn near all manufactures including the big four Cooper, Lithonia, Philips and Hubbell (and many of the more residential brands too).

So being a store you would serve as the distributor so you could cut that middleman out but you would still have to get support from and buy from the reps...a middleman most other types of products don't have to deal with.

So, all that said, I think it is a reasonable business idea just consider the complicated supply chain that the big lighting manufactures require. You could find manufactures to sell that don't use that supply chain but you might be limited.

[hollohas]

I'll also add that you will want to sell products that don't require an electrician so joe off the street would feel comfortable buying from you. That is of course in addition to the bigger stuff that could keep your electricians busy.

If you do chose to have a consultant/designer like someone previously mentioned, you are in a good place. Up until very recently CU was one of only a small handful of universities that one could get an engineering degree in LIGHTING.

[spqrzilla]

I don't think this is the best timing for a high end lighting store.

[Great-Kazoo]

I don't think this is the best timing for a high end lighting store.

The ones up in NOCO are doing ok, not great, but keeping the "lights" on. Easy way to tell if there is a need, see if the ones in the metro area are hiring. The reply will give you an idea if this is the right time to start a business. If O stays in, you will be closing within the year. if it's romney, maybe 1-2 good years.

[Irving]

I would personally consider catering to commercial stuff instead of JoeTBlow off the street.

Maybe it will be more gratifying to sell some soccer mom on track lighting in her kitchen; but selling 2,000 fixtures to a Marriott all at once will make you forget the soccer mom in short order.

[ChunkyMonkey]

I will crush them

How about online pricing? I hate retails ever since Al Gore invented the Internet [Rant2]

[Sparky]

Women, shoppings, malls--lighting, sparky I think you may be onto something here.

That's the basics of my idea. It will be on your honey-do list when she gets home.

[Sparky]

Make sure you offer consulting, or at least knowledgeable people who can help the clueless.

Like maybe a Master Electrician? [Coffee]

[Sparky]

mall rent will kick your ass.

This is true. Most of my work now is in the malls

[Sparky]

I would personally consider catering to commercial stuff instead of JoeTBlow off the street.

Maybe it will be more gratifying to sell some soccer mom on track lighting in her kitchen; but selling 2,000 fixtures to a Marriott all at once will make you forget the soccer mom in short order.

That will be a tough market to get into.

[SuperiorDG]

I would personally consider catering to commercial stuff instead of JoeTBlow off the street.

Maybe it will be more gratifying to sell some soccer mom on track lighting in her kitchen; but selling 2,000 fixtures to a Marriott all at once will make you forget the soccer mom in short order.

Commercial contracts are not what most think they are. Lot of risk on the subs part because the contracts are written to only protect the contractor and the margins suck. I know a few subs that are now out of business because of these contracts. Also, competing with Home Depot sucks if it is anything they stock. You have to sell custom stuff they have a hard time dealing with. They are so big that anything custom gives them a problem.

[DD977GM2]

Billion dollar companies started with someone's.....idea.

That being said, renting store space costs a LOT. Are you clearing that kind of money? (rhetorical question)

Then there is advertising.
They CAN'T show, if they don't know. Good advertising can cost MORE than the rent.

You would have to carry items other than what Home Depot or Lowe's carries. Because they buy stock by the thousands, they can "retail" it out for less than YOU can buy it wholesale.

Supplying custom builders might be something you could to look into. I imagine that is a cut throat business.

Wouldn't even consider NOT selling on the internet.

Lighting isn't something people go shopping for every week, and in today's economy.........


This right there will be the main hurdle to overcome. Also my Father In Law was in the lgihting business for the last 15-20 years until last year.
He barely made it even with his corporate accounts. He sold to major companies etc
and still could barely break even. IDK the ins and out of his advertising and business plan, but he was successful for himself up until the economy took a shit then he was doing crap just to get stuff sold abd barely make a profit if at all.

[ronaldrwl]

The problem with any business is it takes time for people to change their buying habits. And you need enough money to float the business until the sales get to break even. You'll have to change the buying habits of your prospective customers from 'home improvement' stores to your store. A mall gives you a lot of foot traffic and that's good but you'll pay for it.
I hope it works out well for you.

[BPTactical]

Before taking the big plunge with a store front you might try setting up a booth at a home and garden show. Might be a good way to gauge a market.

[Larry Ashcraft]

I just spent $4500 for new lighting for my showroom (I own a retail trophy and awards shop). Trophies need special lighting (lots of glare), and I've been trying stuff for years like incandescents, quartz-iodine etc.

One of my customers, a local wind and solar guy, drew up a plan using all LEDs. I went for it and couldn't be happier. My showroom is beautiful and only uses 380 watts.

I think the future is LEDs, and I know Lowe's is way too high on their LED products. I would shop a local place that specialized in lighting, provided they also included consulting and design.

I don't think you would need a mall, though. I would look for a light industrial area and go heavy on the advertising.

[Irving]

Before taking the big plunge with a store front you might try setting up a booth at a home and garden show. Might be a good way to gauge a market.

Excellent idea. If you can get a spot in an interior decorating or home improvement magazine, then you can cut out the mall.riff raff and go straight to your taget market. Heck, perhaps you could try and partner up with Depot since they are so big.