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.
2 comments:
I agree, with the space that we have I think that it can be used better towards products over services, but also we need to have that service based offer to draw in people to the store. Though with 40sq feet for a single barber chair might be too much room, I think that we can better fit 2 of them in that space (keeping in mind that our store in Chinook is only about 650 to 800 sq feet.
I like how the numbers are playing out though with that. We need to figure out exactly what % base we are allocating for each product and service, then we can refine this down. Any ideas as to the split? In my opinion a 85% product and 10% service is what I think would be optimal...leaving 5% for customer service (ie. checkout space)
We will definitely sell more products than services, but our services are still vital if we are wanting to sell an experience. Touching on what Lane mentioned, I think we could fit two or even three chairs within 40 sq feet and we may only need two chairs at max. This will give us more room for product and the cologne bar which will take up a bit of room. That sounds great Lane for %, but I may drop product down to 80% and increase customer service to 10% based again on the fact that we what this to be an experience for men. We want them to feel that they can ask for advice on products, how to use them, or what will work best for them, and that's where service will play a key part in what we are offering.
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