Should we open a physical store? Well, tomorrow we are going to be taking a look at one. It's on Harrowside which is the southern most point of Blackpool where it joins St Anne's and just a few minutes walk from the seafront. One day before we view it, and if we are honest, we are interested but split down the middle as to whether this is something that can work for us. Writing this, we are going to go through some things in favour of having one, and then against having one, and see how that leaves us feeling before we go and see the store itself, which from our online viewing, it's a very nice tidy modern store.
In favour, we have of course potential new customers that may walk in. And it would be great to get our items stored under one roof for our Parcelforce collections. We currently have stock spread across more than one location. It would also open up click and collect as an option for everyone who visits our website as opposed to how we do it just now, which is just for those with a local postcode to us. It may give us the opportunity to have a gaming space where we could entertain in the evenings. Something which is lacking around our local area. A store gives us a more real presence overall as it is something tangible for you all to see and visit rather than just web pages to browse. For those visiting the store it could also be possible to take advantage of the Bits n Mortar scheme where you get a free PDF with selected book purchases. This wouldn't benefit online though, as the scheme is to drive traffic to physical stores and not meant as a competitive edge for online businesses. I'm not sure the scheme would work for us as it does require our books to be sold at RRP also. That would mean a price rise of around 10 - 25% across our items. That's a lot. Is a complimentary PDF worth paying full RRP? We feel doubtful about that and it could have a real negative impact on those of you who do not have an interest in the PDF.
What's not in favour? Well, it needs to be manned first. As team of two that is pretty maxed out already that is challenging for us. Employing staff is the biggest expense a business usually has and so we'd likely run it ourselves, at least at first, and that means longer days or less time to work on the website which is likely not viable given it would be the profitable part of the business. Something to consider. The real issue to consider though is likely cost. We aren't just talking rent. We'll have new energy bills, water bills, business rates, business insurance, alarm monitoring, and the list goes on, not to mention the set up of the store itself like shelving, security, and new signage, the latter alone itself could cost a grand just to have our name above the door. We've weighed these up and we know that as long as the website maintains its current course it can cover all these expenses. The website would pay for the physical store. And it would probably have to for the first year or two while it gets going, picks up some traction, and we learn what is working and what is not. The question is, do we want to change Dungeonland from being a profitable business to something that may end up breaking even to support a start up physical store? Food for thought. It also opens us up to other things, like crime and maintenance. Stores get shoplifted, broken into, and sometimes things just in general go wrong, like a shutter gets stuck and needs an engineer call out. We would have to assume we are going to incur some unexpected losses along the way financially and in stock. And that leads on to our inventory. It is around six thousand products at present and those would need to continue to tie up accurately in both our online and physical sales. That likely means more money to be invested too in software and equipment that will allow the store and website to work together.
So where do we stand? Well, if we are ever, ever going to open a physical store it is now. We won't go back to look at this ever again, especially as we are all getting older around here. For it to work, I think we are going to need some negotiation and a good deal from the landlord of that store. If that can be done, and we can secure the store as we feel we need it. It feels possible if everything lands just as it needs to for us to make this happen. We're cool with the investment if it is right. If it's not right though, and we have any doubts or believe that the store may just drag down the website, then this week may be the end of Dungeonland ever looking to have a physical presence. Tomorrow, we will see what the Estage Agent has to say and how the landlord reacts to us. And the rest I guess is down to fate!
It's very much an online world these days. And once again, we thank you for supporting Dungeonland in that world.
Mark.
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Dungeonland
Unit 3A Trident Business Park
Amy Johnson Way
Blackpool
FY4 2RP
Monday to Friday: 9.30am - 1.30pm
Weekends: Closed
Website Design 2020 - 2024 © Dungeonland
Dungeonland
Unit 3A Trident Business Park
Amy Johnson Way
Blackpool
FY4 2RP
Monday to Friday: 9.30am - 1.30pm
Weekends: Closed
Website Design 2020 - 2024 © Dungeonland