I have been thinking about Grant's opportunity cost comment. He mentioned that if we are going to offer grooming services, we should be careful how much floor space it will take up because it will bring in less revenue than our product sales. We talked about it, and we decided that we would like to have some space dedicated to service so that our customers are able to see/experience some of our products first hand. We have to work out the highest earning ratio of service:product sq ft. 90% product sales, 10% service? 75% product, 25% service?
Example:
If we had 40sq ft to work with, lets see how much service could bring in, and how much product could bring in:
I estimate that we could fit one barber chair in 40sq ft, which could make $25/hr. In a 12hr day at the mall, that's $300. $300/40sq ft = $7.50/sq ft.
On the other hand, if we had 40sq ft of product, we could carry thousands of dollars of product on multiple shelves. I estimate that we could sell $1000/day. That's $25/sq ft daily!
Therefore, if we had a 400sq ft store, and did 90% product and 10% service, we could bring in $9000 in product sales and $300 in service, daily. That's $9300 total.
If we split it 75% and 10%, we could bring in $7500 in product sales, and $750 in service sales, daily. That's $8250 total.
With that said, I believe it is necessary to offer our services, but we should keep it small so that we can capitalize on the high $/sq ft of product sales.