Mktg Locations

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Mktg Locations

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

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