Opening a shop, good idea?

[Top Jimmy]

I live in Minneapolis and we have 3 stand-alone tennis shops that i know of, along with all the club shops.

The one in St Paul is fairly new, I have no idea how it will stay open. Tough location to park, not a huge selection of rackets. It is aiming for high end clothing and a more wealthy crowd i guess so maybe it survives on large margins.

One in south Minneapolis, been open at least 20+ years. Limited inventory but he knows he gear. I think he must survive on string jobs if that is possible.

One in western suburbs, the mack daddy of Minneapolis tennis shops. Not a large store but plenty of gear. Carries a fairly diverse racket inventory, but not many player frames. It's easily the busiest shop in the city. He usually has 2 stringers at all times string rackets non-stop. Then 2 girls helping out with everything else. Plus he hangs around too so he can assist customers.

Three examples, might help you figure out what you want to do.

Minneapolis/St Paul is something like 3.2 million people and it has a pretty healthy tennis community, lots of indoor courts and most public outdoor courts are full in the summer.

[LeeD]

I've co opened a tennis shop and have opened a windsurfing shop, besides working at bicycle, ski, snowboard, surf, tennis and windsurfing shops all my life. That would be for the past 40 years.
Clothing is the single biggest marked up item, so the most profitable.
Racket's the least.
Location, location, location. In view of a thoroughfare, plenty of parking, sunny side of the street, catchy front windows changed frequently, UPBEAT YOU, even if the "customer" is only chatty kathying and planning to buy online.
HE talks to dozens of friends.
OFFER mail order, to expand your area.
Be good and honest about ordering product you don't have in stock, offer loaners in the meantime.

[rafafan20]

I live in Pittsburgh and there are 2 tennis only stores in the city. Both seem to do quite well. I think both do a good business on clothes, stringing and shoes... not so well on racquets.

[Top Jimmy]

Originally Posted by rafafan20

I live in Pittsburgh and there are 2 tennis only stores in the city. Both seem to do quite well. I think both do a good business on clothes, stringing and shoes... not so well on racquets.

Yep, the main store in my city always has lots of rackets in the sale bin. Just too hard to sell all the different types and grips sizes.

Great deals on Yonex Vcore's right now, $89-99 brand new.

[Rjtennis]

Originally Posted by cluckcluck

A while back, I helped run my dad's furniture business, so I'm no stranger to the initial and ongoing costs of running a business (though this would be a one man operation).

Lucky for me, there are no tennis clubs that are relatively close to me (+/- 20 miles).

I would try contacting other shop owners in similar sized communities and see how they do. There are a couple stores in my area that make a fortune on just stringing rackets alone, but I live in a large metropolitan area. I'm sure people would be willing to speak with you and give advice.

[zapvor]

Originally Posted by Top Jimmy

I live in Minneapolis and we have 3 stand-alone tennis shops that i know of, along with all the club shops.

The one in St Paul is fairly new, I have no idea how it will stay open. Tough location to park, not a huge selection of rackets. It is aiming for high end clothing and a more wealthy crowd i guess so maybe it survives on large margins.

One in south Minneapolis, been open at least 20+ years. Limited inventory but he knows he gear. I think he must survive on string jobs if that is possible.

One in western suburbs, the mack daddy of Minneapolis tennis shops. Not a large store but plenty of gear. Carries a fairly diverse racket inventory, but not many player frames. It's easily the busiest shop in the city. He usually has 2 stringers at all times string rackets non-stop. Then 2 girls helping out with everything else. Plus he hangs around too so he can assist customers.

Three examples, might help you figure out what you want to do.

Minneapolis/St Paul is something like 3.2 million people and it has a pretty healthy tennis community, lots of indoor courts and most public outdoor courts are full in the summer.

thanks for the insight. i have a friend that moved there so when i visit i can bring my rackets!

[Chotobaka]

I am only half joking about this... but a tennis equivalent of a food truck would be interesting. Less overhead than a brick & mortar operation and you would be a moving billboard while roving from court to court. Do on-sight work and pick up/delivery at the same time. Use social media to connect with your customers and let everyone know where you are. Maybe offer grilled mac 'n cheese sandwiches too.

[Lakers4Life]

Actually that's how the owner of Racket Do ctor got started, 40 years ago.

[chaddles]

Very tough business to run a highly profitable business, especially in this economy. You will never earn a huge amount from a small shop, but I love running my business because my partner also has a very well paid job so I can still run it as a hobby (a turnover of 250,000+ hobby).

It's a lot of hard work and if you don't have a big all year tennis playing population, then it's going to be a struggle. Important to keep overheads such as rent as low as possible, yet still needs to be in an accessible location. Also make sure you know everything backwards and reward loyal customers.

[Squidward]

Originally Posted by AlfaAce

^^^Did you catch that nugget? Maybe to get started you might consider "servicing" all those prospective customers with... stringing. You can do this from your home (read: no overhead), advertise at all the local courts, high schools and colleges (offer discounts to students and educate them about the importance of fresh strings and new string technology - maybe even a "coffee card" where you "string 9 racquets get your 10th free" type deal).

If you do this (or any business for that matter), just remember one thing... "The customer is KING."... without them you don't get paid. Bend over backwards to deliver quality/professional/prompt/delivered with a smile/fix it with a smile S-E-R-V-I-C-E. Remember, word-of-mouth is the BEST form of advertising.

Customer service is a lost art .

Best advice yet (IMO)!

[beernutz]

Originally Posted by chaddles

Very tough business to run a highly profitable business, especially in this economy. You will never earn a huge amount from a small shop, but I love running my business because my partner also has a very well paid job so I can still run it as a hobby (a turnover of 250,000+ hobby).

It's a lot of hard work and if you don't have a big all year tennis playing population, then it's going to be a struggle. Important to keep overheads such as rent as low as possible, yet still needs to be in an accessible location. Also make sure you know everything backwards and reward loyal customers.

Do you own a tennis shop? If so, I'd really appreciate hearing about your experiences and history.

[zapvor]

i still say TW needs to open a branch on east coast!

[LttlElvis]

I guess if you have to ask if opening a shop is a good idea, then it probably isn't. It's a 24/7 job owning and running a store. Racquets have very little profit margin, given the amount of inventory you have to keep. Strings and stringing are a service that is probably break even at best. Tennis balls are pretty much sold as loss leaders. I know a manager at Academy Sports and he said tennis balls at their stores are the only items sold at actual cost. They are just there to bring in customers, hoping they will buy something else.

Clothing is were you make the profit. You have to have big inventory, and expect to keep on changing them for the next season's new styles.

The big tennis shop in Houston was actually started in the guy's apartment, and slowly built up to a great store very similar to TW but not as large. It probably took them 20 years in the making.

Best way to be profitable is to be big including selling online. I've actually considered investing in one, but I don't have the dedication for another 24/7 job.

[Lakers4Life]

Originally Posted by LttlElvis

I guess if you have to ask if opening a shop is a good idea, then it probably isn't. It's a 24/7 job owning and running a store. Racquets have very little profit margin, given the amount of inventory you have to keep. Strings and stringing are a service that is probably break even at best. Tennis balls are pretty much sold as loss leaders. I know a manager at Academy Sports and he said tennis balls at their stores are the only items sold at actual cost. They are just there to bring in customers, hoping they will buy something else.

Clothing is were you make the profit. You have to have big inventory, and expect to keep on changing them for the next season's new styles.

The big tennis shop in Houston was actually started in the guy's apartment, and slowly built up to a great store very similar to TW but not as large. It probably took them 20 years in the making.

Best way to be profitable is to be big including selling online. I've actually considered investing in one, but I don't have the dedication for another 24/7 job.

Yeah E, keep you day job!

I say if you can fill a niche market and make decent money, go for it. If you got lots of comepetition, then you will have problems. I'm surprised a couple of member have not already jumped in this discussion, but from what they've told me they are doing pretty good, not great, but just pretty good. Like the saying goes, "Find a job you love and you'll never work another day in your life." As long as you make enough money to not care about anything else.

[zapvor]

i think it gets tougher now. basically all your revenue is from re stringing. the margin for rackets are so low

[axel89]

kimugroo does it Good luck

[Woolybugger]

I would say start small - advertise on craigslist every week with your services, inventory, etc. Run it out of your garage first. Put up flyers (if allowed) at the public courts and high schools. Drive around the courts every week handing out flyers and getting the word out. See how it goes for a couple of months before putting down $$ on space.

[max]

Originally Posted by LeeD

I've co opened a tennis shop and have opened a windsurfing shop, besides working at bicycle, ski, snowboard, surf, tennis and windsurfing shops all my life. That would be for the past 40 years.
Clothing is the single biggest marked up item, so the most profitable.
Racket's the least.
Location, location, location. In view of a thoroughfare, plenty of parking, sunny side of the street, catchy front windows changed frequently, UPBEAT YOU, even if the "customer" is only chatty kathying and planning to buy online.
HE talks to dozens of friends.
OFFER mail order, to expand your area.
Be good and honest about ordering product you don't have in stock, offer loaners in the meantime.

Lee, what excellent advice! I have no retail experience, but my notion is that the margin on clothing is large and an emphasis should go there. Think of all these major sporting goods chains. . . you go in there and it's a sea of football jerseys and running clothes.

[tbuggle]

Even the Pros at my own club order their own gear from TW.

Just sayin'. You might do a stringing/customization biz, but beyond that, you can't compete.....except with the soccer moms looking for cute outfits (= large inventory of womens clothing, tuff deal).

Dudes, except for the Nike Metro cats, buy their clothes at target and such.

[zapvor]

Originally Posted by tbuggle

Even the Pros at my own club order their own gear from TW.

Just sayin'. You might do a stringing/customization biz, but beyond that, you can't compete.....except with the soccer moms looking for cute outfits (= large inventory of womens clothing, tuff deal).

Dudes, except for the Nike Metro cats, buy their clothes at target and such.

wow the club doesnt help them out?