What is your biggest challenge right now, and how are you dealing with it?
Maybe some of our answers can help each other out or spur some ideas.
Here's my current big issue. Our garden center has been operating at our current location since 1992 and our neighbor 1,000' west on the same road also started retail a few years later there. We have both been growing and expanding and doing great business.
Now the crux of the matter. They are closing this location and moving 45 minutes east of our location. So now there will be no competition directly next door for the first time in over 30 years. How will that affect our business? I don't know their exact income but I can make a solid educated guess that they are in the 1 million retail range plus or minus maybe 100 grand. Now yes some of their customers will continue to go to them as it will now be closer to them, but 75% of the clients (estimated) come from directly in the area or 15-30 minutes from the west, so the likelihood of them now traveling over an hour seems unlikely. So trying to estimate how much of a bump we will see in sales. If we gain 30% of their sales, which seems a very low estimate as there already has been confusion for decades that we are the same place with 2 locations, I think people will come and drive past the place that is now a truck parking plot and drive 20 seconds more and stop here.
So the question is how do you prepare for that unknown? We already have an order deadline of the end of this month for next year's supplies. Plants are all ordered by August and start growing in January and February so it isn't like I can just ramp up production once I feel how it is playing out. We currently grow over 90% of what we sell right here on the property, but I have multiple locations of places that simply grow for other places. So that is kind of what I am anticipating the first year is to see how it plays out and buy in if needed and then we can see if we went up 0, 10, 30, or 50% and make plans for the next few years then if that requires expansion of facilities or just buying in more product.
Any ideas of how you would address this if you had a competitor go out of business right next door?
I just saw this, I apologize, and great question! Been there done it twice and now doing it 3 times. I dive into work and forget about life outside of work. These past 30 days plus. I could tell you the day, the hour, and the seconds it happened. My oldest son was killed while coming home from work and was hit head-on by a guy who committed a crime and was running from the police and blew right through the red light and killed him instantly. 3 tours in Afghanistan and straight out to the Sheriff's Department. The big kicker it was his department that was involved in this. So trying to balance life is not my area of expertise I found out. I did find out that the store and the new additional vendor section took off like a rocket! I had to choose between opening a second location and that was fine by me. The guys said Why? You have 5k sq ft of excessive amount of overflow. Let's blow it out and open it right here and just use the back loading dock area. Well, hell go for it. They did and helped everyone set up and get their paperwork in order. I did not think the store could survive without me. My dad always told me “You don't know if you don't try” What do you have to lose? I said money and time. You don't know if you try. You are trying it. Slower start than the others or expected maybe? But, how much time, energy, and long days and nights did it take to get there? You already put in the time and energy so I think with another year or two you might have another honey pot. You're not a quitter at all. I don't think I would like to have a huge order placed so soon either as people and plants change. I think that your option 2 sounds better. Yes, not as much in your pocket but a safe bet for year 2. Then you can gauge it. I really do hope it's a huge success and you can look back at it all. Best wishes to you!
