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    1 Reply Latest reply on Nov 7, 2008 3:16 PM by Lighthouse24

    Business Transition/ current situation.

    klaiminism Newbie
      I started my business as a sister company to an overseas company. we manufacture a product that is in high demand. our business model allows us to have a significant edge over competitors. Since we started the business we decided to have strong online presence and invest in online marketing instead of retail stores. things went well and now we are at a crossroad. we believe that it is time to grow our presence in the U.S market by opening a showroom. this will change our business model and has allot of unknowns. on one hand we need to have actual stores to strengthen the brand name, and on the other hand we have a good thing going and why ruin it?
      the other factor is the current economic situation. as we know the situation allows for deals that you will not get in a better economy. the thought is to lock in low rates now considering things will turn around mid to end of 2009.

      I am looking for advice from individuals who have been thru transition from online to retail stores.
        • Re: Business Transition/ current situation.
          Lighthouse24 Ranger

          If the products shown on the website in your profile are the ones you would place in your own retail showroom, I also see a lot of unknowns -- and more potential risk than reward.

          What does your dealer network look like? Obviously, I don't know the details of your operation, but it seems like it might be more cost-effective to incentivize existing or new dealers to create a "showroom" within their showrooms -- in other words, they provide the space and you provide the planogram, signage, product samples, etc. for a dedicated display of your products. I have a client in a similar business that employs a three-person "set crew" -- they travel to dealers (flooring retailers) to set-up and maintain the in-store displays, change out products, deliver literature, and even conduct sales and installation training for the dealer's employees. The overhead to support this is much less than operating their own brick-and-mortar store, the resulting sales from multiple dealers are much greater than having their own single store.

          On the surface, that seems like something to consider in your case. Best wishes.