While working on my marketing
project I have thought about how much easier it is to produce a line and sell
it in already existing stores than to open your own store. When opening a store
you have to find a convenient location where people will see the store and be intrigued
to come in, pay the rent, renovate anything that needs to be fixed or changed
to suit your business, and pay salaries for those working in the store. If you
create a line you take out all of those costs. What you need to worry about is
keeping the price low enough because what I learned from the store in downtown
Keene they markup prices 50% from what you sold the products to them, and what
they sell them as on the shelves.
I think more people should try to
start out with lines and work their way up to a store. By doing this I feel there
is less risk, fewer businesses will close, and the entrepreneur will have less
debt. I think people take on too much when they believe in their idea, which is
not always a bad thing, but in a tough economy it is better to play it safe
with finances. But with only having a line and going through another person
there is less chance of gaining higher profit. This is an option the
entrepreneur will have to decide for themselves to see which is better for
them.
Do you think it is better to take the risk and open up a
business right away? What would be other problems with only creating a line or opening a store?
There is an issue that one option isn't always feasible over another. If you can't get a preexisting store to adopt your product line, you might have no choice but to open your own store to get your product out into the world. I do agree that it is less risky to start with the product line method if feasible, though I don't know if there would be any legal implications for opening your own store after another store has specifically adopted your product line. What other options could be utilized to achieve market penetration?
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