Fly Shop poll!!!!

[zimrx17]

So there have been a few threads about fly shops, customer service, and other things related to fly shops, but here is my question:

If given the opportunity would you start a fly shop business, with two options?
1. Option 1 - you inherit the business from a family member who has run the shop for 20+ years, has a good customer base, but usually only broke even because of his "friendliness" and "customer service". (would you change the angle and try to make a profit, or contiue as is?)
2. Option 2 - you have some money from investments, enough to open the shop and not be in the red from the begining, but at baseline, there is another fly shop in town, and you have a very good/large customer base because there is ample fishing near. (would you look to build relationships at the cost of making a profit, or would you be profit driven?)

I would like to see the answers for both, I now they are very general, and we will assume that there is a large "box" company near, and J.C. has said that you can be a sponser.

Drew

[zimrx17]

Here are my answers:

1. Yes, I think that I would, because I enjoy being nice to people and I would like to continue on the "friendliness" that was started. There seems to be less risk because of the already stable customer base.

2. No, I don't think I am a very good business person and would probably make very poor decisions, also the customer base that you may get may not be the ones you "want?" or that you could make lasting relationships with.

Drew

[NderdaFilm]

I would love to run a regression on the data that is collected during the drawings here on FAOL. I bet there are some pretty neat correlations in the data.

[mdram]

1 yep, moeny is not everything.

2 it depends on the other flyshop. if it was one that was customer friendly i dont think i could, id take the money ad go fish more. if it was one of the ones that people always complain about, id open up right next door to them

[Grizzly Wulff]

When I was getting ready to retire I looked into the possibilities of purchasing an established shop and at opening a new shop. In both cases I decided not to become involved as an owner of a fly shop. There were several reasons. 1) There would be very little time off to fish, 2) Fly shops have a very high failure rate, 3) Expenses keep going up, rent, electricity, etc. 4) The shops that do make a reasonable profit tend to be in "destination" areas rather than just a town near a trout fishery.

Someone once said, "The way to make a million dollars with a fly shop is to start with 2 million." My experience and observations tend to support the statement.

[Ray]

Option 2) The key to opening/running a business is to MAKE money. If your not making money, you'll soon be out of business and of no use to anybody. When running a business do everything in your powers to get and keep as much of the business in your area as you can. Offer as many related services as possible (tying lessons, rod building lessons, casting lessons, guide services). The more inventory you can carry the better, pack the place to the ceiling, offer lots of choices in many price ranges.

[NderdaFilm]

Before my Father passed on, we lost our farm when I was 16, my step mother asked what he would do if he actually won the lottery he was playing. His reply was, "Farm until it is gone." Sometimes, we must just do what we love.

[Avalon]

Dear zimrx,

Grizzly Wulff pretty much summed things up with his quote, "If you want to make a million dollars in the fly fishing business start with two million dollars."

A good friend of mine bought a fly shop from another good friend of mine. He bought at the height of the fly fishing run in the late 1990's. He is a great guy and a personable man but sometimes he still struggles during times of bad weather and fishing conditions. A 6 month drought or 6 months of high water is tough to overcome.

Still, he offers tying lessons, and fishing lessons, and guiding services and he makes due. One thing he has become really strong at is internet sales and marketing. Another thing he does is that he is a very shrewd buyer and seller. He stocks up on close-outs and is the last to discount them. That is common business sense that is sadly lacking in many fly shop owners. You can't just hang out a shingle and say, "Let's talk feeshin'."

As far as your second circumstance, if I had sufficient money to be retired I'd stay retired. Working cuts into the whole reason people retire.

I realize some people are just highly competitive and just have to keep going, but starting from scratch and competing in a business that is highly dependent on discretionary income is a sure-fire way to reduce your nest egg unless your nest-egg is so large that winning and losing makes no difference.

Best Wishes,
Avalon

[Marco]

This/my post below was in the making in response to another post when Zim's post came to light. It has a connection, although loose . If I were to open a fly shop, it would have to be as suggested earlier, a "destination" shop. Such a shop has a MUCH greater chance of success . Part of my reasoning is framed in the post below.

The "Customer service" post and subsequent replies got me to thinking. Just how much time and money do you invest for this/your hobby called fly fishing? Some of y'all sound like you're at the shops as often as you are at the grocery stores. Just how often are you in these shops to know the owner(s) on a first name basis? Just what are your expectations as far as service? Are those expectations realistic? WHAT IS SERVICE??.
Fly shop ownership. I propose that the VAST majority of fly fishermen buy their initial outfits, upgrade once or twice MODESTLY and then it's just supplemental purchases like flies, three of four new lines and THAT's ALL. Total lifetime fly fishing related expenditure of $1500 or less. These fly fishermen also do not participate in fly fishing web sites or chat rooms etc.To them it's a passive hobby/interest and deserving only of the expenditure of time and monies that a hobby normally requires. Hardly the "ideal" profile for a fly shop "regular customer". AND if you are a "regular", perhaps it's more than just a "hobby" for you. Perhaps a passion. Would I open a fly shop to cater to this "vast" majority unlike those who are passionate ? I think not.
I suppose that participation in this site ,FAOL, implies that your interest in fly fishing is above average. You own 10 or more rods. You fly fish more than 60 days a year. You're in a fly shop, live or on line, 2 to 3 times a month and your total lifetime fly fishing related expenditure is in excess of $10,000. BUT, there are not enough of you to warrant opening a shop in Peoria. Perhaps in Denver, but NOT in Peoria.

Mark

[l1ranger]

yes, and yes - assuming I wanted to run a shop - I don't btw.

I'm not totally in the know on this stuff, but I believe/have heard that for a small business, a minimal profit, more or less breaking even is ideal.

somebody was once talking about opening a shop - and it got "shot down" in several different ways - but it boils down to a time commitment for most. Its gonna take away from my time on the water.