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Co-operative Store? (Read 1,066 times)
 
Don Stephan
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Co-operative Store?
Jan 24th, 2019 at 7:35pm
 
A huge advantage of turning in one's basement or garage is the elimination of SIGNIFICANT overhead, but a disadvantage is not being before the public.

And of course galleries will sell for the maker, but the commission rate is SIGNIFICANT.

A middle ground might be a co-operative retail storefront with 4 or 5 other artisans.  Might be most effective if each participant worked in a different area - woodturning, pottery, fiber arts, water colors, oils, et cetera.  The insurance would be lower than having a woodturning studio in a commercial space, and there would be a number of people sharing the cost of utilities, internet, advertising, et cetera.  Each person could spend one day a week in the store handling sales for everyone, and the remainder of the week making more items for sale.

That's the theory at least.

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Ralph Fahringer
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Re: Co-operative Store?
Reply #1 - Jan 25th, 2019 at 9:48am
 
That's always good in "theory", but in reality, the biggest reason co-ops fail is that people don't hold up their end of the deal.

All too often, someone has as "excuse"  why they can't come in that day and could you please cover for me?

After more than a few times of this the others start to realize they are being snookered and want a day off as well and down the drain it goes.

In a more perfect world, it is a really good idea.

Creating a co-op is like herding cats. Everyone wants to be in it but no one wants any responsibility to run it.

I guess a gallery is like a co-op where you agree to  give one person half of your money to run it. Shocked
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Ed Weber
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Re: Co-operative Store?
Reply #2 - Jan 25th, 2019 at 10:27am
 
Ralph Fahringer wrote on Jan 25th, 2019 at 9:48am:
That's always good in "theory", but in reality, the biggest reason co-ops fail is that people don't hold up their end of the deal.

In a nutshell, it's usually called the human factor, very hard to quantify.

Don Stephan wrote on Jan 24th, 2019 at 7:35pm:
A huge advantage of turning in one's basement or garage is the elimination of SIGNIFICANT overhead, but a disadvantage is not being before the public.

This is true and this is also why I always stress taking quality photos of your work.
If your only exposure to the public is the internet, you need clear concise descriptions  of your work and good quality images.
IMNSHO, If someone or some vendor can't be bothered to describe and/or photograph their product, so as the average consumer can see and understand what they're potentially purchasing, I move on.
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chris lawrence
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Re: Co-operative Store?
Reply #3 - Jan 25th, 2019 at 1:51pm
 
There is one about an hour from me that I am going to make a visit to at some point to check it out.  Not sure how they operate but they have atleast 30 vendors there.  Another possibility if you have enough people in the Co op might be to hire a person or 2 to man it and pay them an hourly rate + a small commission.
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Ralph Fahringer
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Re: Co-operative Store?
Reply #4 - Jan 25th, 2019 at 1:57pm
 
There's a food co-op in Belfast, Maine that was here when I moved up over 25 yrs ago and is still going strong.

That is the system they have... there are some who are paid to oversee and run the place so it stays healthy  and then there are the volunteers.

Seriously one of the best health food co-ops I've ever been in.


Your mention of about 30 people in that co-op is most likely why it is working.  Sort of a critical mass. Too few and it just peters out.
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« Last Edit: Jan 25th, 2019 at 1:58pm by Ralph Fahringer »  

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David Fritz
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Re: Co-operative Store?
Reply #5 - Jan 26th, 2019 at 8:30am
 
I've been hearing about "pop up shops". I believe it's a shop open for only a short time, like around the holidays.  Might be a good compromise as far as getting folks to work since it's only a short time.
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chris lawrence
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Re: Co-operative Store?
Reply #6 - Jan 26th, 2019 at 2:00pm
 
I have seen a couple pop up shops around here.  They all have been in shore towns.  They work out a deal with the the owner of the rental properties that are vacant during the off season months for cheap short term leases.  One in a high income shore town has turned from a pop up shop to a permanent one.  It works out good for both parties as the property owner gets some sort of rental income instead of sitting on a vacant shop until beach season and the pop up shop gets cheap rent.
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Grant Wilkinson
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Re: Co-operative Store?
Reply #7 - Jan 28th, 2019 at 6:58am
 
Around Hallowe'en, we get pop up shops in empty mall stores selling costumes and stuff. I don't know how they do, but some of the permanent stores in the same malls xxxx because the pop ups take away business and are paying much lower rent. You just can't win, I guess.
My wife was a part of a co-op gallery, but dropped out when the membership dwindled and she was called upon to "sit" more and more often. The City owned the space and the deal was that it had to be open to the public for a set number of hours every month, so when one member didn't show, someone had to fill in.
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chris lawrence
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Re: Co-operative Store?
Reply #8 - Mar 9th, 2019 at 11:38pm
 
So i am be being offered an opportunity to join something similar to a co-op of sorts but they describe it as a micro shoppe.  They supply the employees to run it, take care of all the transactions and supply the bags for customer purchases.  They also will have a portal to keep track of inventory and sales.  I would pay a 6 month lease for space and 10% of sales to cover credit card transactions and packaging.  They are still in the construction stage but i am thinking about leasing a book shelf space that is 24"x16"x72" to see how it goes.  They want $75 a month / $450 for the 6 months.  Figuring i pay that in entry fees for 3 one day shows it might be worth it.
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Don Stephan
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Re: Co-operative Store?
Reply #9 - Mar 10th, 2019 at 11:17am
 
Chris

A couple questions you could ask:  Is there a working example of the shop that you would walk through, even if a couple hours drive?  Are they guaranteeing a minimum number of people that will visit the shop each month, and how will the shop be marketed to the public?  What will be the guaranteed open hours for the shop?  Will there be a maximum number of direct competitors to you?  (Okay, that was 4 questions.)

What total dollar value of items will you have on the shelf, and your gross sales if you sell one average item a week?

Remember, guaranteed shelf space does not guarantee sales.
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chris lawrence
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Re: Co-operative Store?
Reply #10 - Mar 10th, 2019 at 11:44am
 
I already asked most of those questions.  They are renovating A house on the main street of the town so i cant walk through it yet but i have seen the floor plans.  They cant give me any numbers but the road is part of a secondary route from NYC to  Atlantic city.  It is a shore town not on the ocean its on the bay but multiple marinas directly on the main street within walking distance.  The hours of operation are set in stone Tuesday - Saturday 10 - 6.  I am going to go for it i already looked over the lease agreement and am ok with it.  I think i can fit enough variaty of product on the shelving unit to make money if they can get customers in the door.  If things go good i have the option of moving from the shelf to a larger space.  They have 4x4 and 5x10 rooms throughout the building as well.
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Re: Co-operative Store?
Reply #11 - Mar 10th, 2019 at 12:11pm
 
How are the 6 month leases worked?
Being a northern water oriented town, May to September will be the busy months. Many beach towns are dead with just a few locals around during the winter.
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chris lawrence
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Re: Co-operative Store?
Reply #12 - Mar 10th, 2019 at 12:27pm
 
Its a straight 6 month lease.  I forgot to mention towns like this double as commuter towns.  More and more people that work in nyc and north jersey are moving south to these towns where property and taxes are cheaper.  Its directly on the parkway which is the main highway to the northern part of the state.
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Re: Co-operative Store?
Reply #13 - Mar 11th, 2019 at 6:22am
 
You may want to check how they will handle losses through theft and breakage. Are you out? In my wife's situation, the gallery took no responsibility for any losses, as the operation was a co-op type. Artists lost pieces and a couple were broken, but no compensation was available.
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Ralph Fahringer
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Re: Co-operative Store?
Reply #14 - Mar 11th, 2019 at 9:41am
 
Chris, where is this place?

I grew up in Toms River so I'd like to know where this is located. Thanks.
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