Thinking about moving my bookstore - Location, Location, Location!

[XenithBS]

Background: I have a small brick & mortor store in Milwaukee, 750 sq feet, of general used books. I have about 12,000 books on the shelves but about an additional 15 or 20k books in storage. I am a bricks & Clicks model, and all 12,000 books are online thru Alibris and Amazon and B&N and Half-com. I have an addition 2000 kids books in the back room and maybe 3 or 4k more in storage. I was originally working out of my basement, and due to divorce and house sale I had to move quickly, and I picked a storefront close by because it was cheap and available. My monthly rent is $375 plus utilities. I'm coming up on 9 months in this location.

My hours are 6-9pm on weekdays and noon-5 on weekends. (I have a day job with good pay and benefits) A new restaurant on the block opened a couple of months after I did, and the walk-in business was really good. Then they dropped their lunch hours and now my weekends are dead. I've advertised a bit and it helps a little. But the bar/restaurant next door was supposed to open and never did. So I am on a sidestreet, with an empty bar on one side, and a busy tavern on the other, with no parking except on the street. My online business is enough to keep the doors open for now, and any in-store is a bonus. But not what I'd like it to be.

So to the present.  I found an available store in a very busy location. It is twice the size of my current store (same width, twice the depth), about 1600 sq ft, with a storage room. There is signage on the front with a large front window. There is ample parking in a lot out back. It is adjacent to a successful coffee house and a bagel restaurant. There are walk thrus into both stores. It is on a 4-lane busy street, near a college, a high school, a large medical complex, and in a nice residential neighborhood in an upper middle class suburb. It is also 2 minutes from a highway ramp.

The space would allow me to get more books in the store, maybe add new books in niche areas, or remainder tables, sidelines, seating, open mic nites, readings, a larger childrens area, book clubs maybe, and more. But if I take the plunge, I will need to expand my hours to take advantage of the location, and hire an employee or two or take on a partner to work days.

The landlord is asking 2000 a month, plus annual taxes (3000 last year) and common area maintenace fees, plus utilities. Would like to negotiate a better lease, maybe a lower first year and a higher third year, a few months free up front to get going, plus upgrades to carpeting, paint and lighting.

Anyone have ideas, suggestions, advice? The idea of moving up and really taking the chance is scary and exciting all at once...

The worst that can happen, i tell myself, is I go out of business and have a kick-butt book collection.

Paul @ Xenith Booksellers

[valuesoftware]

Paul,
I have no experience with a bookstore, but have owned a computer store for the last 7 years.  So let me comment on your proposed move as a shop owner, not a book dealer.

Our store is on a very busy 4 lane road…a main artery from the suburbs towards town. (Cleveland, OH) Our store hours are 11-6 M-F & 10-4 Sat. closed Sun. We also have our own parking lot & entire front of store is display window. It is a stand alone store, not part of a strip mall or shopping area. We share the parking lot with an attorney’s office.  So our store is a destination, not part of shopping at a retail center.  This location is 2 minutes from a freeway as well

We have found that the traffic the street has doesn’t indicate how much traffic one can expect. Yes, it has given us exposure, but people are in a hurry to & from their jobs, not stopping by the store.  (Having earlier & later hours never seemed to help) And since we are not part of a shopping complex, the ‘browsers’ are planned…no wandering in after stopping at the bagel shop. So, the fact that we are an isolated store somewhat limits our traffic.

However, the store you are interested in seems to have potential for quite a bit of traffic from your neighbors…Doesn’t every major bookseller have a coffee shop right there in the store? (what an opportunity to do cross promotions with your neighbors…Coupons, discounts, who knows?)  Now the fact that there’s a high school nearby may only draw in kids looking for someplace to ‘hang out’…not big spenders, & possibly irritants. The college set COULD be a more profitable group …if you were to garner their attention, again with promotion & advertisement. (College kids don’t have a LOT of discretionary income, but perhaps inexpensive books  would be cheap entertainment?) As far as upper middle class suburb, it really depends on THAT community.  Some neighborhoods are just more erudite than others…some just couldn’t care less about a new bookstore, why isn’t it a Pottery Barn?

A second reading of your message …your hours popped up at me. I realize that what you’re doing now it all by yourself, ergo the limited hours. But to bite off that financial nut of the new location, you would necessarily have longer hours of operation, therefore employees.  It would seem to me that the hired help would be able to assist you with other facets of your business during slow periods, making your payroll more cost effective.  (one side note, our local chain bookseller has hours of operation ‘til 10pm weekdays & 11pm Fri & Sat. We enjoy taking advantage of the late hours, as do many other patrons)

Another point that I read somewhere, expanding your offerings to include other things can boost your sales & give customers reason to stop in more often. Book accessories & gift items (book related), jewelry, other items I just can’t remember were things mentioned in the article.

I think the new location would be a good choice, with the understanding that it could take your endeavor to a whole level….responsibilities, headaches, as well as profit. 
Good luck with your ‘new life’!

PJ

[benjclark]

Paul,
    It sounds like a fantastic opportunity.  I think you're headed in the right direction.  PJ covered it a lot very well.  Of course, I have no business experience or sense (I'm a museum curator) and just have a passion for books.  I've always found moving an opportunity to ditch the dreck.  Before the move, maybe have a $1 shelf/ zone.  The busiest indie used store in Oklahoma City is the $1 store.  I wouldn't do it as a business model (the $1 store is the outlet for stuff they don't sell online), but James Lackington was on to something!

[Bruce Hollingdrake]

Paul,
My two cents would be to go for it (easy to say from a distance). We are also in a 750ft place and plan on moving into something in the 2000ft range in a year or so.
You might want to read this posting on the blog.
http://bookshopblog.com/2007/08/24/universal-truths-%e2%80%93-isn%e2%80%99t-it-possible-they-apply-to-the-book-business/

Bruce

[Kathy Roy]

Remember all leases are negotiable.  If they won't come down on the rent they will usually work with you in other areas.  My landlord would not negotiate rent but I did get him to be responsble for all maintenance for the first 3 years.  Not paying utilities or maintenance and filter changes on the furnace and air conditioning has been a huge help.
My store is about 1600 sq ft and I feel it is a comfortable size.  I could always use more room but without the higher rent.
Good luck.
Kathy

[valuesoftware]

We've been real fortunate..never had a lease in all the years we've been there, strictly month to month, and no raise in the rent EVER.  This is cuz our landlord is really quite lazy & only wants to have a long term, non problematic tenant & collect enough rent to cover his mortgage payment on it. We don't pay water (big whoop), that's the only utility we don't pay.  However, if we ever need to repair something (bad light fixture, furnace/AC, etc) we deduct it from our rent.

Depending on how the landlord is, there's lots of things POSSIBLE to negotiate. It don't hurt to ask, anyway!!

[XenithBS]

Depending on how the landlord is, there's lots of things POSSIBLE to negotiate. It don't hurt to ask, anyway!!

I have a commercial broker negotiating for me.  I think we'll get a sweet deal as the place has been empty for quite a while and he's worked with this landlord in the past several times and placed tenants with him successfully for all parties.

Paul

[XenithBS]

Paul,
My two cents would be to go for it (easy to say from a distance). We are also in a 750ft place and plan on moving into something in the 2000ft range in a year or so.
You might want to read this posting on the blog.
http://bookshopblog.com/2007/08/24/universal-truths-%e2%80%93-isn%e2%80%99t-it-possible-they-apply-to-the-book-business/

Bruce

That article is what got me thinking about location instead of cheap rent. 

thanks!

Paul @ Xenith

[XenithBS]

Remember all leases are negotiable.  If they won't come down on the rent they will usually work with you in other areas.  My landlord would not negotiate rent but I did get him to be responsble for all maintenance for the first 3 years.  Not paying utilities or maintenance and filter changes on the furnace and air conditioning has been a huge help.
My store is about 1600 sq ft and I feel it is a comfortable size.  I could always use more room but without the higher rent.
Good luck.
Kathy

Yes, I have several areas with wiggle room in the lease. I have a broker negotiating for me now.

thanks

Paul @ Xenith

[prying1]

Step 1: MAKE SURE THE ROOF DOESN'T LEAK!

 A simple check of the ceiling might not work if they have painted very recently. Can you ask the previous tenant?

Step 2: KEEP US INFORMED!

I think this board has folks on it that, even in the short period of time it has been here, consider you a friend. Were are on your side in this buddy!

[dana]

Also check plumbing, AC and drains.  I swear water will do you more damage than fire.  Not all areas are good prospects for a bookstore. For example: there are some lovely historical buildings for rent in the Fells Point area of Baltimore; the area has high foot traffic both tourist and local, but the whole area ends up under 4-6 feet of water any time there is a major storm.

Good luck, the world needs more bookstores!

[XenithBS]

Step 1: MAKE SURE THE ROOF DOESN'T LEAK!

 A simple check of the ceiling might not work if they have painted very recently. Can you ask the previous tenant?

Step 2: KEEP US INFORMED!

I think this board has folks on it that, even in the short period of time it has been here, consider you a friend. Were are on your side in this buddy!

1) It's the 1st floor of a 2 story building.

2) Most definitely!

Paul @ Xenith

[XenithBS]

Also check plumbing, AC and drains.  I swear water will do you more damage than fire.  Not all areas are good prospects for a bookstore. For example: there are some lovely historical buildings for rent in the Fells Point area of Baltimore; the area has high foot traffic both tourist and local, but the whole area ends up under 4-6 feet of water any time there is a major storm.

Good luck, the world needs more bookstores!

Good advice.  Plumbing will get inspected, along with the rest.

More bookstores the better!

Paul @ Xenith

[prying1]

Any Updates?

[XenithBS]

Any Updates?

The owner wanted to wait to discuss this until after the new years.  I'll know more in a week or so...

Paul @ Xenith