Would you open a novelty store/"head shop"?

[beefybull]

Novelty store/"head shop" a good biz idea?

Other than the fact that some places have law enforcement and/or citizens that dont appreciate such a business, I dont really see any big drawbacks. (My city is known for drugz, no problem here... i'll sell hundreds of "love roses")

There is always a demand for tobacco/other drugs and thus, related things that can be used to smoke them. Posters, shirts, and other novelty items can be had for cheap and marked up at high percentages.

Throw enough variety in to attract all of the social groups of todays youth and you will do good business. Marketing will be no problem either, its my specialty. I'd expect $70000-125000/yr gross for as long as I want to keep the business (which would likely be a term of 2-10 years).

Anyone here have any comments/criticism?

 

[Crox]

Any competition? Here some of the big weekend markets have these kind of shops. They would have lower operating costs than a proper retail outlet.

 

[plrpower]

There was one of them shops in my area. It had lizards and snakes too, dont know if it made much money but it was there for years. good luck with you idea

 

[beefybull]

There was one of them shops in my area. It had lizards and snakes too, dont know if it made much money but it was there for years. good luck with you idea

If it was there for years, it was making at least decent money. The owner probably chose to get out of the business

 

[beefybull]

Market info:
The city & the surrounding 45 miles (in a circle) has roughly 300k potential customers. The city has around 150k

Competition:
Competition is Arabians selling small amounts of pipes & stuff at gas stations (3-5 locations across town) and 2 other "head" shops. One of them (we'll call "Location #1") is a well-established location (10-15yrs, owner is an old hippie). He has a large variety of products but some of them cost quite a bit in overhead, space, etc. He doesnt know how to market right. The other location is a super-small place. The place is surely being hurt by the Arabians. I spoke with the owner, he probably does $40-75k/yr gross (but surely falling now).

Other:
Bottom line, the competition doesnt know how to market. I think I could grab a large share of the market SUPER quickly. Find a way to discourage or factor out the Arabians and things might go even more smoothly.

Law in the city doesnt bother head shop owners, they know its good business and the owners pay taxes. I could sell 350 $1 "Love roses" a month in this hellhole.

If I were to open, all of the following items would likely be stocked:
Smoking supplies, Incense, Candles, Shirts, posters, blacklight stuff, lava lamps/deco, lighters, fountain drinks (huge markup)

 

[Crox]

Sounds like a plan. Especially if you can get a good site up and running, promoting both at the same time.

 

[Razorguns]

Market info:
The city & the surrounding 45 miles (in a circle) has roughly 300k potential customers. The city has around 150k

Competition:
Competition is Arabians selling small amounts of pipes & stuff at gas stations (3-5 locations across town) and 2 other "head" shops. One of them (we'll call "Location #1") is a well-established location (10-15yrs, owner is an old hippie). He has a large variety of products but some of them cost quite a bit in overhead, space, etc. He doesnt know how to market right. The other location is a super-small place. The place is surely being hurt by the Arabians. I spoke with the owner, he probably does $40-75k/yr gross (but surely falling now).

Other:
Bottom line, the competition doesnt know how to market. I think I could grab a large share of the market SUPER quickly. Find a way to discourage or factor out the Arabians and things might go even more smoothly.

Law in the city doesnt bother head shop owners, they know its good business and the owners pay taxes. I could sell 350 $1 "Love roses" a month in this hellhole.

If I were to open, all of the following items would likely be stocked:
Smoking supplies, Incense, Candles, Shirts, posters, blacklight stuff, lava lamps/deco, lighters, fountain drinks (huge markup)

$40-$75k gross is a pretty wide range. Ask to see his books. How much did he pull in? How much were the expenses? What was his profit?

You're making too many assumptions here. Assuming you can pull a 180 on the marketing, draw in increased paying customers, demand for products you think will sell, start selling quickly, etc. etc.

If those assumptions don't come to fruition -- you're stuck. As an astute businessman -- look into all scenarios. Including the bad-ones. This is you're money you're talking about.

Sit down with a pen and paper and using his numbers, come up with "worst, best and probable" financial scenarios. Don't put yourself in a tough situation by purchasing it, going all gung-ho, things not panning out quickly like you figured it would -- and now you're all depressed and don't have a Plan B.

Your best bet is to find a business somewhere similar to what you have in mind -- and seeing if they're successful or not (assuming they're selling the same types of itmes you're envisioning, and have same type of marketing philosophy). Approach them with a veil of wanting to purchase their business to see how eager or non-eager they are. That should give you a zist of how successful they're doing.

And while you're doing your biz plan -- do'nt underestimate the need to find CHEAPER sources for your products. Purchasing high and selling high winds up being the deathbell for many a businesses.

 

[SC4EVA]

Do people really still shop at these places?

 

[Fajitas]

The "Head Shop" here also has a tattoo and piercing service. They do a brisk business and have been around 20 + years. I think it's a great idea....

 

[Crox]

Tattoo shops went upmarket here a couple of years ago, most are now legitimate small businesses doing tattoo/piercing in a more beauty salon type setting. There making good money too.