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Author Topic: Financial Commitment for opening a Pro Shop  (Read 8645 times)

Bowl_Freak

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Financial Commitment for opening a Pro Shop
« on: July 07, 2013, 09:46:06 AM »
I know many on here run or own shops. I've been wanting to start my own shop for the longest time, only part time to start and if the money is good to move to full time, I'll go that route. What I'm wondering, whats a good starting amount that yall started with when yall started, 20k, 25k, 50k etc. Thanks for info.

 

itsallaboutme

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Re: Financial Commitment for opening a Pro Shop
« Reply #16 on: July 09, 2013, 11:02:29 AM »
What is the difference between you using a 12 year old Tri Oval and opening a shop with a 12 year old Tri Oval? 

Getting started is the easy part compared to dealing with employees in 6 different shops.  I get a headache just thinking about that.

Gizmo823

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Re: Financial Commitment for opening a Pro Shop
« Reply #17 on: July 09, 2013, 11:10:23 AM »
What is the difference between you using a 12 year old Tri Oval and opening a shop with a 12 year old Tri Oval? 

Getting started is the easy part compared to dealing with employees in 6 different shops.  I get a headache just thinking about that.

We have some pretty good guys working for us, most of us have known each other for a while and the managers are all pretty good guys, but yeah it's a lot of paperwork at least. 

The only difference I'd see is that our Tri-Oval is a lot closer to needing to be replaced than a new one would be, plus you never know when a big part is going to go out.  Really no different than buying a new car vs a used car.  I've had both, and though I hated the monthly payment on my new car, all I ever had to do was put gas in it and change the oil, so it's peace of mind and not having to worry about expensive fixes, because it will be covered under warranty for a while.  Plus with a new one, you don't have to wonder how it was treated, and if the proper maintenance was done on it.  But yeah, with a part time shop, getting a used one and just upgrading the parts when you can would probably be the best way to go, so long as you don't get unlucky and have a major fix to pay for after a couple months. 
What would you be if you were attached to another object by an inclined plane, wrapped helically around an axis?

Armourboy

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Re: Financial Commitment for opening a Pro Shop
« Reply #18 on: July 10, 2013, 03:06:06 AM »
I know they guy I've bought from for years has been fairly lucky. The lanes his shops are in don't really charge him anything to be in there and he has almost no overhead. This allows him to drop the prices on balls and still make money, which helps with sticker shock. I'm always shocked to hear about people paying over 200 bucks for a ball, I think the highest I've seen him get is 185 or so on the top end balls.

His place is very small, but he's smart with what he keeps in house, and he can get most everything in a day ( maybe even same day if you get a hold of him early). Anything that an average bowler wouldn't use on a normal basis, or if its not something someone new to the game wouldn't buy you will need to order it.

Every once and while he will take a gamble on something and get stuck with it and be forced to offer it at crazy prices just to move it,  but overall he's pretty smart with it.

itsallaboutme

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Re: Financial Commitment for opening a Pro Shop
« Reply #19 on: July 10, 2013, 06:45:07 AM »
Why is it shocking for someone to pay $200 for a new high end ball?  Just because your overhead is low doesn't mean you should devalue your services.  Even if you buy the ball online your looking at least $190 drilled with no inserts.  So dealing with a customer face to face is worth giving THEM $5. 

This is why I say it is crazy to want to get into the pro shop business.

Gizmo823

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Re: Financial Commitment for opening a Pro Shop
« Reply #20 on: July 10, 2013, 07:47:56 AM »
I think the only reason it's shocking is that prices have gone up so much so fast, and the fact that 200 bucks is a lot of money, and to spend it on a single bowling ball drives people nuts.  I don't know, people still act like it's 1990.  Don't know why people can keep up with other sports, but can't with bowling.  They'll drop 400 on a driver without batting an eye, but 250 for a top of the line ball is insane. 
What would you be if you were attached to another object by an inclined plane, wrapped helically around an axis?

Armourboy

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Re: Financial Commitment for opening a Pro Shop
« Reply #21 on: July 10, 2013, 08:27:06 AM »
Why is it shocking for someone to pay $200 for a new high end ball?  Just because your overhead is low doesn't mean you should devalue your services.  Even if you buy the ball online your looking at least $190 drilled with no inserts.  So dealing with a customer face to face is worth giving THEM $5. 

This is why I say it is crazy to want to get into the pro shop business.

There is a reason I've never bought a ball online, its cheaper to buy it from him and I can get the exact weight and specs I want. Now we aren't talking a ton cheaper ( usually the 5 dollar range or so), but when you have almost zero overhead you can make the same profit margin as other shops do with higher prices. People come from around the area to buy from him, so those slightly lower prices are netting him more sales.

Basically his deal is if you buy a ball from him, you get a bit of a break on the drilling cost. However if you buy it online and bring it, his services come at a premium. I honestly think its a pretty smart setup.

I know he once told me though, that once a ball breaks that $160 dollar mark the sales drop off pretty drastically. It drops to almost non-existant once it breaks that $200 mark.

Your average bowler just has a hard time fitting $200 balls into their budget. While $185 may not be that much cheaper, in a buyers mind it sounds a whole hell of a lot better and it might be just right to get them to buy it.

Companies spend billions a year just studying that very thing.

Armourboy

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Re: Financial Commitment for opening a Pro Shop
« Reply #22 on: July 10, 2013, 08:32:52 AM »
I think the only reason it's shocking is that prices have gone up so much so fast, and the fact that 200 bucks is a lot of money, and to spend it on a single bowling ball drives people nuts.  I don't know, people still act like it's 1990.  Don't know why people can keep up with other sports, but can't with bowling.  They'll drop 400 on a driver without batting an eye, but 250 for a top of the line ball is insane.

As someone that used to golf as well, I wouldn't pay 400 bucks for a driver either :P

Probably a lot of that as well has to do with the type of people in the sport. Bowling is kind of regarded as a blue collar sport where Golf is more of a white collar sport.

Most of the bowlers I have been around at least make from 40k to 80k a year. Those people are generally buying $130 dollar balls, and buying $175 discounted drivers if they play golf. I can probably count on one hand the number that are buying $200 balls and $400 drivers  :)

itsallaboutme

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Re: Financial Commitment for opening a Pro Shop
« Reply #23 on: July 10, 2013, 08:54:50 AM »
I guess it depends where you live and where you are in life if $200 is a lot of money.  But that's a whole other discussion.

It doesn't take billion dollar studies to know that as price goes up demand goes down. 

I still don't understand why anyone would deal with a customer and then sell them a product for less than they can buy it anywhere.  When I ran the shop there was no chance somebody that I dealt with face to face was getting the same price as we sold it online, never mind less.

Obviously as a consumer you want to buy something as cheap as you can.  But the point I'm arguing is from the other side.  There is no way a new high end bowling ball should go out of a pro shop for $185. 

Russell

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Re: Financial Commitment for opening a Pro Shop
« Reply #24 on: July 10, 2013, 09:22:51 AM »
Anyone want to compare ball prices 20 years ago to now....and then adjust them for inflation....

Then explain why $200 is shocking....

itsallaboutme

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Re: Financial Commitment for opening a Pro Shop
« Reply #25 on: July 10, 2013, 09:36:23 AM »
I can't remember prices at the beginning of the reactive era because I wasn't in a shop, but I remember getting $120 for U-Dots and Hammers and 10 years ago I was getting $200 for high end.

Gizmo823

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Re: Financial Commitment for opening a Pro Shop
« Reply #26 on: July 10, 2013, 09:38:34 AM »
Anyone want to compare ball prices 20 years ago to now....and then adjust them for inflation....

Then explain why $200 is shocking....

Shocking why they don't cost more?  Yeah, I get your point.  Like ArmourBoy said, we kind of have the same set up on prices.  We charge 30 to drill if the ball is bought from us, and 45 if it's an outside drill, meaning bought somewhere else.  Yeah, everybody always looks for discounts, and they want it as cheap as they can get it, but getting your stuff from a good shop is worth it.  Had a buddy get a Misfit from Dick's for like 100 bucks out the door.  Drilling was so bad he couldn't throw it, it looked like a bad house ball drill, the bridge was almost an inch wide . . so you get what you pay for.  We do our pricing a la carte for the people that like price shopping, plus it breaks it down better. 
What would you be if you were attached to another object by an inclined plane, wrapped helically around an axis?

itsallaboutme

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Re: Financial Commitment for opening a Pro Shop
« Reply #27 on: July 10, 2013, 11:36:41 AM »
You can't compare a real pro shop and Dick's.  That would be the equivalent of me expecting the same steak at Sizzler as I get at Morton's. 

Is there any less skill and knowledge or any less risk in drilling a ball purchased from you and not?  If a person comes into your shop and you fit, drill and finish a ball for them it is going to be around an hour.  And you do this for $30? 

The internet guys get that much (plus inserts) and all they do is pull up specs, lay it out, holes, back in the box.  10 minutes.  The truck on tour gets more than $30 and they charge additional to drill slugs, and they charge per oval.  No layout and no finish work.

There is no other trade that will do anything for you for $30 an hour.  I can't even get somebody to cut my lawn for those rates.  Why charge so little?  You have to believe that you knowledge and skill are worth something and be able to sell yourself.  A pro shop should not feel guilty about charging an honest rate.

Gizmo823

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Re: Financial Commitment for opening a Pro Shop
« Reply #28 on: July 10, 2013, 12:11:44 PM »
You can't compare a real pro shop and Dick's.  That would be the equivalent of me expecting the same steak at Sizzler as I get at Morton's. 

Is there any less skill and knowledge or any less risk in drilling a ball purchased from you and not?  If a person comes into your shop and you fit, drill and finish a ball for them it is going to be around an hour.  And you do this for $30? 

The internet guys get that much (plus inserts) and all they do is pull up specs, lay it out, holes, back in the box.  10 minutes.  The truck on tour gets more than $30 and they charge additional to drill slugs, and they charge per oval.  No layout and no finish work.

There is no other trade that will do anything for you for $30 an hour.  I can't even get somebody to cut my lawn for those rates.  Why charge so little?  You have to believe that you knowledge and skill are worth something and be able to sell yourself.  A pro shop should not feel guilty about charging an honest rate.

30 for the drill, 5.50 apiece for grips, 14 for slug . .  And I wasn't comparing Dick's to a real pro shop, just an illustration about people going for cheap and getting what they paid for.  Our owner does the different pricing on drilling to encourage people to buy from us, kind of like a frequent customer discount, a lot of shops do this actually.  And I think there's actually less risk in doing an outside drill, it's just an incentive deal.  We also are in a low cost of living market too, you can get a newer 2000 sq ft house with 3 bedrooms and 2 full baths in a nice part of town for less than 150k. 
What would you be if you were attached to another object by an inclined plane, wrapped helically around an axis?

itsallaboutme

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Re: Financial Commitment for opening a Pro Shop
« Reply #29 on: July 10, 2013, 12:33:58 PM »
$75 sf housing and cheap gas are a couple of advantages of living in one of the "fly over" states. 

But, the ball doesn't cost you any less just because your house does.  I'm pretty sure they don't discount an iPhone for you and Toto.

Gizmo823

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Re: Financial Commitment for opening a Pro Shop
« Reply #30 on: July 10, 2013, 12:42:42 PM »
$75 sf housing and cheap gas are a couple of advantages of living in one of the "fly over" states. 

But, the ball doesn't cost you any less just because your house does.  I'm pretty sure they don't discount an iPhone for you and Toto.

Lmao, true, it just means we can't sell the balls for as much as the bigger markets can.  Some prices are across the board constants, but just like our gas here right now is only 3.15 a gallon, and the house I described is cheaper than it would be somewhere else, bowling is one of those fluctuating things.  Our costs are cheaper here than they are elsewhere, and our margins are still in a good range, and we still have to stay competitive with the other shops in the area. 
What would you be if you were attached to another object by an inclined plane, wrapped helically around an axis?