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Location, Location, Location!

 
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Old 06-26-2018, 07:27 PM   #1
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Location, Location, Location!


So I operate a replacement window/siding/doors business. Im about 2 years in and we are on pace to gross about 450k this year. Not too bad but I did think we would be doing better by now. I am doing the usual internet advertising, google SEO, Adwords, Facebook Advertising and some print advertising in local coupon books. I want to step it up.

My question is there is a small building that is for sale on a very high traffic intersection near my current office. The traffic count is 10K cars per day. I can afford to buy the building but it is a sizeable chunk of money down and monthly. Would this increase my business substantially? I would put up large signs and have the whole side of the building painted with our logo and slogans.

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Old 06-26-2018, 07:42 PM   #2
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Re: Location, Location, Location!


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Originally Posted by cnycomp View Post
I would put up large signs and have the whole side of the building painted with our logo and slogans.

Opinions?
Check with the city regulations on signage.

Having a location will always make you more legit. Being able to say to a customer that you own the building vs leasing it would be a confidence builder for a long term commitment.

Is parking an issue?

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Old 06-26-2018, 08:45 PM   #3
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Re: Location, Location, Location!


what kind of roi you think you will achieve after feeding that chunk of real estate....

volume ain't the answer to everything....

how about ultra high quality and be selective of your clients...
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Old 06-26-2018, 08:59 PM   #4
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Re: Location, Location, Location!


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Originally Posted by griz View Post
what kind of roi you think you will achieve after feeding that chunk of real estate....

volume ain't the answer to everything....

how about ultra high quality and be selective of your clients...
Not how I would focus on growing. If the shop space is equal in every other way but costs 10% more than maybe. If it's less convenient and or a lot more expensive, its not worth it. If you get to many locked in monthly payments, you are one down turn away from disaster. 2008 proved that. Many didn't make it. Keep it lean and grow organically. You will have that spot when and if it fits your business and you can afford it.
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Old 06-26-2018, 09:15 PM   #5
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Re: Location, Location, Location!


If it's strictly a showroom I can't see it paying for itself unless you need the space for office staff anyway. I think the concept of a brick and mortar showroom is going the way of the dodo.

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Old 06-27-2018, 06:36 AM   #6
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Re: Location, Location, Location!


Appreciate all the feedback. It would definitely cost a lot more than what Im paying now for my office/storage space.
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Old 06-27-2018, 12:50 PM   #7
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Re: Location, Location, Location!


Quote:
Originally Posted by cnycomp View Post
So I operate a replacement window/siding/doors business. Im about 2 years in and we are on pace to gross about 450k this year. Not too bad but I did think we would be doing better by now. I am doing the usual internet advertising, google SEO, Adwords, Facebook Advertising and some print advertising in local coupon books. I want to step it up.

My question is there is a small building that is for sale on a very high traffic intersection near my current office. The traffic count is 10K cars per day. I can afford to buy the building but it is a sizeable chunk of money down and monthly. Would this increase my business substantially? I would put up large signs and have the whole side of the building painted with our logo and slogans.

Opinions?
Depends...

1. If you're not going to "man the store" as it were, and all you're concerned about is the signage and painted logo on the building, that's what you're in essence paying for... if you are going to man it, then that ongoing cost has to be considered as well... you might want to just look into striking up a monthly advertising deal with the owner to paint the logo on the side of the building... be cheaper and still gain you the benefit of the traffic...

2. If you currently rent a place for your business, you'd have to look at the difference between what you're giving away every month in rent and what you'd be paying in mortgage on the new place to gain an asset that you can sell/rent at the end of the your business career. Keeping in mind, that you'd also want to consider in the mix if you did set up a monthly advertising deal with the current owner... if you owned it, the only expense would be setting up the advertising on the building, not the monthly advertising fee... you can also do the same in the future, as an additional source of income if you decided to rent, instead of sell when you retire...

3. You could also combine them, buy the place to rent, still advertise your business on the side and generate additional income that way that can potentially offset your current rental if you have one... very common in cities...

These are just a couple of scenarios... But a key factor is what you can get it for... the numbers will tell the story...
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Old 06-28-2018, 11:52 PM   #8
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Re: Location, Location, Location!


You mention you've got some advertising dollars in SEO. Would this new building be closer to the center of your core service area?

If so, it could help with your local SEO campaign but only if the building is closer to the "center" of your service area. The reason being is Google now looks at the user searching as the "centroid" in a search, ideally they are trying to show the closest services to that specific user no matter where they are. If your new address is closer to a densely populated area where lots of your potential customers are it could help out with your inbound traffic because there are more searchers. Just another angle to think about.
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Old 06-29-2018, 12:41 PM   #9
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Re: Location, Location, Location!


I started with the Window and Siding Contractor client when he was starting out in his home. Since then he moved to two larger facilities. And even this last move was just replaced with him moving to a main intersection in town that is the prime real estate to be seen by all in his town. Glance at his business and perhaps even give him a call. He tends to be pretty receptive to working with others, especially if you mention seeing this here. Sometimes a little 1 on 1 with a like minded business may clarify whether it is good for you or not. Good luck.
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Old 07-30-2018, 05:58 AM   #10
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Re: Location, Location, Location!


i worked for a client who did demographics for large hotel firms.
he did allot of research for a fee , on what exactly is in that area- homes ,types of people,average income , businesses ,
i`ll bet there is someone who can help you with that

but of course thats all projection, and theory
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Old 07-30-2018, 10:40 AM   #11
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Re: Location, Location, Location!


I'd go with KAP's advice on this one. Analyze it as a real estate investment first, and see what benefits you can get.

Last edited by hdavis; 07-30-2018 at 10:55 AM.
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Old 07-31-2018, 07:43 PM   #12
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Re: Location, Location, Location!


Quote:
Originally Posted by griz View Post
what kind of roi you think you will achieve after feeding that chunk of real estate....

volume ain't the answer to everything....

how about ultra high quality and be selective of your clients...
Thatís what Iím doing now Iím tired of doing it all! lol
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Old 08-03-2018, 05:15 PM   #13
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Re: Location, Location, Location!


I don't know how it's done in your area, but, at least with doors, if I had a showroom, I could buy doors at dealer prices directly from the wholesaler for 20-30% cheaper than what I'm paying for them now.
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Old 08-13-2018, 12:16 PM   #14
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Re: Location, Location, Location!


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I don't know how it's done in your area, but, at least with doors, if I had a showroom, I could buy doors at dealer prices directly from the wholesaler for 20-30% cheaper than what I'm paying for them now.
No kidding. So you are telling us 'if you had a show-room' your door dealer would give you 20-30% off (just because you have a show-room)?

Makes no sense. Normally, volume is king when it comes to price reduction.
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Old 08-13-2018, 01:13 PM   #15
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Re: Location, Location, Location!


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No kidding. So you are telling us 'if you had a show-room' your door dealer would give you 20-30% off (just because you have a show-room)?

Makes no sense. Normally, volume is king when it comes to price reduction.
Showroom usually equals dealer pricing to sell their product... you don't house someones product for free...

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