New scooter shop?

[Keys]

Okay, so I've been offered the opportunity to open a small scooter shop here in small-town Arizona. No money outa me...I'd have a silent partner who would supply the bucks, I'd supply the enthusiasm and day-to-day work. Not a lot of money here, but I believe (as he does) that by the spring, gas will be approaching 4 bucks per gallon, an excellent incentive to ride a scooter. However, my income in this would depend exclusively on sales of scooters and accessories (until I come out with my own brand of t-shirts, stickers, etc.). That would be tough. He says I could maintain my 3 1/2 day job I have now (12 hrs. a day) and just run it on my days off.

Question for you; do you think it would be worth giving up my time off for? Enough of a future?

Question for you; What would YOU like to see in a shop that would bring you back time and again (and not just for scooter stuff)?

--Keys

[mattgordon]

That sounds like a great opportunity, and Ive toyed with the same idea.

For me, when I make a job outta my hobby, its a job. YMMV

[JHScoot]

i think it sounds great. sell good scooters even if chinese. by that i mean stand behind them for the customer

given you have the time and aren't sacrificing anything important, i say go for it. anything to lose but free time and some recreation and sleep? if so, think about it. but if not it sounds cool

and a lot of responsibility. but, the money could be halfway decent eventually. heck atm i'd do it for free if i had an opportunity. sounds like fun, and i have some flexible days coming up

i would just like being around scooters all day, talking about scooters to people, and selling scooters to people. scooters make people happy

and that makes me happy

i wonder if NoHo Scooters takes volunteers lol?

**WILL WORK FOR SERVICE AND A BEAT UP TRADE-IN **

[Kaos]

Sounds like an awesome opportunity. I don't know what the scooter scene is like in your area, but I REALLY wish there were more local performance parts available. There's one shop locally that has a ton of stuff for my vintage bikes, but the Buddy is always mail-order or nothing at all.

[Dibber]

Sounds like fun. But to be perfectly honest working a shop after 12hr shift at your other job could be very taxing, even if it would be running a scooter shop. Just so it doesn't prevent you from riding.
I would add collectibles. They hook women folks at least I know my wife likes them, but then I do too. Your own t-shirts "Scootergroven" are good too. Contact another scooter shop owner out of your sales area and ask them how they started. Try Bob Hedstrom from Scooterville Minnesota. He has done a great job. Good luck and I hope it works out and you enjoy it immensely. Dibber

[juice]

One problem I have experienced is when my scooter breaks I have no way to get it to the shop . If you could pick up and repair that might help drum up business . Once you have repaired them they should be able to pick up , pay and ride home . Good luck .

[TVB]

I don't have any specific insight or advice, just the recommendation to make sure that you and your partner have worked out a business plan with estimates of all your expenses and expected income for the first year at least. Keep in mind that even after they've been set up and open for business, most new ventures continue to lose money for some time before they become self-sustaining and (eventually) profitable. The partner needs to be able to keep putting money into it during that period of time... and he needs to know when he might need to pull the plug. I'm not trying to talk you out of it (heck, I wish I had the money or the enthusiasm to start a business), just hoping you're thinking through all of what it'll take.

[bosco]

its rough.

[skootergurl]

All of us small dealers of quality products are hoping for sales to turn around next year!!! My best advice to you is if you can't pay cash for the product don't do it!!!!!

[ericalm]

I hate to be a naysayer, but… If this guy is an actual friend, I'd strongly dissuade him from sinking any money into a scooter shop, especially in a small market.

Most shops are still struggling to stay afloat, many going under. All the major brands have lost a lot of dealers this year. The powersports market is still horribly depressed.

Don't count on future high gas prices igniting another scooter boom—or at least not one long enough to sustain a business. That's why so many shops opened then closed within a year. High gas prices aren't persistent and the economy is in a much different state than 2 years ago. Unemployment is much higher, consumer spending much lower, and people don't have the disposable income they did in 2008. Credit is much more difficult to get, both for buyers and for dealers.

Service and sales of parts and accessories are huge revenue sources for scooter shops. This will be hampered by the shop only being open half the week. You may not be able to do enough volume to keep things running.

[ericalm]

i wonder if NoHo Scooters takes volunteers lol?

Today I was in and Mike handed me the phone to talk to a guy about the scooter group. Then I wound up giving customers advice on taking the MSF and performance shocks for their Buddy. I spend an average of 90 minutes there when I stop by, ha.

[Kaos]

i wonder if NoHo Scooters takes volunteers lol?

Today I was in and Mike handed me the phone to talk to a guy about the scooter group. Then I wound up giving customers advice on taking the MSF and performance shocks for their Buddy. I spend an average of 90 minutes there when I stop by, ha.

Heh, thats funny. I do exactly the same thing at multiple local scooter shops. I couldn't tell you how many Buddy's I've sold while hanging around the shop

[BrooktownGeezer]

One word of advice: put all of your expectations (both of you) in writing, while there is no agenda.

I've had friends and relatives get started in business in this exact manner, and while things went well in the beginning, when unscripted expectations went unfulfilled it's always a recipe for disaster.

For example, you say you have an opportunity to open a new shop and he/she will supply the money....yet they seem to be "allowing" you to work part time in the beginning. This says to me that the money person sees the business as theirs, and you may see it as partially yours. Whose it it, and what percentage? Is the owner allowing you a buy-in with your labor? Do you expect to have ownership in the shop, and when?

It's common for friends not to want to talk about stuff like this in the beginning stages, because it feels like you are dissecting your friendship, but it's really critical to the long term success.

[jrsjr]

Question for you; do you think it would be worth giving up my time off for? Enough of a future?

Question for you; What would YOU like to see in a shop that would bring you back time and again (and not just for scooter stuff)?

Those are good questions. I think Eric has given you a fair overview of the US scooter biz which I will summarize in two words - it stinks.

The second question is more interesting. I have two thoughts, one for the long-term and one for the short-term.

LONG TERM
If you search the archives, you'll find that folks here (and on MV and on the BBS) have asked that before and gotten some pretty good (and some pretty lousy) answers. In retrospect, I think the one thing that a shop can do that really works is to spend their resources on community building, things like organizing and supporting rides, pushing your state and local MSF to provide a scooter-only MSF course, supporting the local scooter club(s) by giving them a place to meet up or other help with organized rides. These ideas are all oriented around grass-roots scooter-community building which is not going to turn a profit in the short term.

SHORT TERM
Buy bikes that are being sold off by failed dealerships. Know what you're doing and show up with cash and a truck. Also, troll for used, like-new scooters at rock bottom prices. Build a small inventory of bikes at rock bottom prices and make a profit off those when gas prices shoot up. That will at least establish you as a scooter shop, if not a licensed dealer of new bikes.

Good luck with this enterprise should you decide to go forward with it!

[ericalm]

SHORT TERM
Buy bikes that are being sold off by failed dealerships. Know what you're doing and show up with cash and a truck. Also, troll for used, like-new scooters at rock bottom prices. Build a small inventory of bikes at rock bottom prices and make a profit off those when gas prices shoot up. That will at least establish you as a scooter shop, if not a licensed dealer of new bikes.

This is right on. The used market is actually doing okay if you're buying low and selling reasonably. It will also mean no flooring costs and lower startup/operating expenses. Check out dealer auctions and repos. Yesterday, a Vespa GTS300ie with a few scratches went for $2400 at a local dealer auction. It will also help to know how to navigate the maze of paperwork to get used bikes titled and registered.

For a part-time shop, you could open doing nothing but used bikes at first.