j, a while back you posted “how low can you go?” asking how cheaply you could open a store, and i was just curious, since you’ve opened your new store, how you made out.
GT,
I haven’t opened the new store yet. I’m right in the middle of all the preliminary crap that goes along with it.
Since the post in question I’ve decided to go a different way. While posting the question “how low can you go” I was considering opening a store in a smaller town with 3,000 addresses and I wanted to make sure my break-even was at it’s lowest possible point.
Now, I’ve decided to go into a town with 22,000 addresses (Salina, KS). Unfortunately, the lowballing on the preconstruction costs is going to be a little out of the question because this location must have a better “presentation” than the former. If done right, opening sales projections are in the $12k-$14k range before settling in at around $8k. I can’t do this kind of volume with small, cheap equipment so I’m also going to have to open up the wallet a little more to get what I need.
I’ve negotiated a 5 year lease and two 5 year options with the landlord of a free standing building (former Subway and KFC). He’s paying for all exterior work (Roof, Fascia, A/C unit). All build out expenses are to be put into the lease and paid off when the 5 year term expires. By doing this, my start up costs are decreased considerably. As of this moment, it looks like I’m getting into this place for $84,300.
I’ll keep you posted as the project continues. -J_r0kk
still sounds pretty reasonable for what you’re getting in to. i am in the process of gathering equipment now for another store to be open in sept. i hope to get as much as possible from auctions and such by july, then pick up remaining needs from a used equipment dealer. i’m only doing a delco though so hope to get in pretty inexpensively. i’ll let all know how low we could go as the time nears. in the mean time, good luck with your new store, and you do reallize you may have to cut back to 4 hours of sleep from the 6 you’ve been getting. lol.
LOL, That’s okay… I’ll manage the sleep thing. I swear most nights I try to get at least 8, it’s just that my mind goes 1,000 miles an hour and I just can’t seem to sleep all the way through.
Good luck with that delco. I love 'em. -J_r0kk