Business Idea. Gauging interest

[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.