Mktg Locations
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Mktg Locations

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Mktg Locations Mktg Locations Presentation Transcript

  • Business Locations: Accessibility, Visibility, and Traffic Marketing I – Mr. Yates
  •  
  • What does that matter?
    • Don't confuse a lot of traffic for a lot of customers.
      • Retailers want to be located where there are many shoppers but only if that shopper meets the definition of their target market .
    • Small retail stores may benefit from the traffic of nearby larger stores.
  • Items of concern for success
    • How many people walk or drive past the location.
    • Is the area served by public transportation?
    • Can customers and delivery trucks easily get in and out of the parking lot?
    • Is there adequate parking?
  • The Retail “Rule of Parking”
    • Depending on the type of business, it would be wise to have somewhere between 5 to 8 parking spaces per 1,000 square feet of retail space.
  • From the Customer’s Viewpoint
    • Can the store be seen from the main flow of traffic?
    • Will your sign be easily seen?
    • In many cases, the better visibility your retail store has, the less advertising needed.
    • A specialty retail store located six miles out of town in a free standing building will need more marketing than a shopping store located in a mall.
  • Signage and Zoning
    • Before signing a lease, be sure you understand all the rules, policies and procedures related to your retail store location.
    • Contact the local city hall and zoning commission for information on regulations regarding signage.
    • Ask about any restrictions that may affect your retail operation and any future planning that could change traffic, such as highway construction.
  • Malls…
  • Malls…
  • Competition and Neighbors
    • Other area businesses in your prospective location can actually help or hurt your retail shop.
    • Determine if the types of businesses nearby are compatible you're your store.
      • (For example, a high-end fashion boutique may not be successful next door to a discount variety store.)
      • Place it next to a nail or hair salon and it may do much more business.
  • Sales Volume Determines Size
    • In retail, sales per unit area is a standard and usually the primary measurement of store success.
    • As of 2005 annual store sales averages are in the range of $300 per square foot
    • In the United States the national average for regional malls is $341 per square foot
    • The average for specialty apparel retailers, for instance, is $400 per square foot
    • Hot Topic - $619, Jewelers $600+
  • How Big do I Need to Be?
    • Sales Volume ÷ Sales per Square Foot = Selling Space
    • Let's say you believe your proposed book store will do $250,000 per year in sales and market data says the average sales-per-square-foot in a book store is $150.
    • By plugging those numbers into our formula, the amount of selling space you will need is approximately 1,666 square feet.
  • Size (continued)
    • Besides selling space, remember to factor in extra square feet for:
      • an office area, stockroom, storage, and/or bathrooms.
    • Although you may want room to grow, keep the size of the building close to your store's needs.
    • A big store takes more inventory to fill and an empty looking store may not attract customers.
  •  
  • Location Costs
    • Besides the base rent, consider all costs involved when choosing a retail store location.
    • Who pays for lawn care, building maintenance, utilities and security?
    • Who pays for the upkeep and repair of the heating/air units?
    • If the location is remote, how much additional marketing will it take for customers to find you?
    • How much is the average utility bill?
    • Will you need to make any repairs, do any painting or remodeling to have the location fit your needs?
    • Will the retailer be responsible for property taxes?
  • Location continued
    • The location you can afford now and what you can afford in the future should vary.
    • It is difficult to create sales projects on a new business –
      • one way to get help in determining how much rent you can pay is to find out what sales similar retail businesses are making and how much rent they're paying.
  • Personal Factors
    • If you plan to work in your store, think about your personality, the distance from the shop to home and other personal considerations.
    • If you spend much of your time traveling to and from work, the commute may overshadow the exhilaration of being your own boss.
    • Also, many restrictions placed on a tenant by a landlord, management company or community can hamper a retailer's independence.
  • Special Considerations
    • Your retail shop may require special considerations. Make a list of any unique characteristic of your business that may need to be addressed.
    • Will the store require special lighting, fixtures or other hardware installed?
    • Are restrooms for staff and customers available?
    • Is there adequate fire and police protection for the area?
    • Is there sanitation service available?
    • Does the parking lot and building exterior have adequate lighting?
    • Does the building have a canopy that provides shelter if raining?
    • What is the crime rate in the area?
  • Don’t rush!
    • Don't feel rushed into making a decision on where to put your retail store.
    • Take your time, research the area and have patience.
    • If you have to change your schedule and push back the date of the store's opening, than do so.
    • Waiting to find the perfect store location is better than just settling for the first place that comes along.
    • The wrong location choice could be devastating to your retail business.