Starting a pen store

[Motcombe]

I have considered starting a retail pen store in my town, which has none. Any suggestions (beyond the basic business considerations) on how to proceed?

[The Write Pen]

I really don't know the answer to your question, but it is my understanding that you can begin by contacting the pen manufacturers and buying a large number of thier pens, possibly displays for them and you're off. They, or you, would want to do some market research to insure the viability of such venture.

 

With the number of internet based sales, a brick and mortar store might be a slow go.

 

Just my 2 cents.

 

danny

[Pippin60]

B&M is a hard way to go. Too much overhead and usually they can't compete with Internet prices. Did you create a business plan? A good place to start any business.

 

http://entrepreneurs.about.com/od/business...iness_Plans.htm

 

http://www.america.gov/st/econ-english/200...s0.2897608.html

 

Good luck but do your homework

[DRP]

Let me underscore Pippin 60's comments: "Good luck but do your homework."

 

Are you looking at a pen store or a more broadly based business with an excellent and well stocked pen department. Even the biggies such as Levenger have pens as only one part of their business.

 

Retail is very difficult in the best of times and even more so now with the economy slowing down. The cost of inventory combined with ordinary operating costs of any retail establishment: space, utilities, taxes, etc. are high and rising.

 

Rather than a free standing store, perhaps if you work with another, existing business where you could lease a few square feet of space might be a way of testing the market. I recall when even drugstores used to have a pen counter. Think about a place where you could work and share expenses.

 

One of the strangest though most successful combinations I ever saw was a store which dealt with restored antique furniture/designer furniture with a custom chocolate producer in the back. The furniture store set aside a few pieces of furniture they wanted to show (and which wouldn't be damaged by chocolate) and put those near the chocolate place so that customers could sit down. The chocolate place sold mostly wholesale to party organizers but built a small but thriving retail outlet. People came into the store to buy delicious, designer chocolate and spent a few minutes looking at the unique furniture. It was an odd combination but it worked until the chocolate producer outgrew the space and had to move to larger quarters.

 

Think about it. Just an idea.

[Titivillus]

Pen stores are closing look at Bertram's in Baltimore. You better make sure that the area can support one or it's going to be very hard going.

 

good luck.

 

Kurt

[Richard]

Pen stores are closing look at Bertram's in Baltimore.

That store was making money. There are other reasons for closing a store than unprofitability.

[Titivillus]

Pen stores are closing look at Bertram's in Baltimore.

That store was making money. There are other reasons for closing a store than unprofitability.

 

 

I never gave a reason for it closing just that it did. Like any business there are many reasons to start on as well as close one. But if you are going to start you'd better be ready to pull the plug when necessary.

 

K

[Motcombe]

Thanks. I know the business plan part of it, and will of course do the market research necessary. I suspect that a counter in a jewelry store or other store is going to be the way to go, and that might be available to me without cost of any sort (which is why I've even considered it).

 

I suppose my question was more to some of the other issues: are there wholesalers that provide customer catalogs and such, or does one deal only through the companies themselves directly? Do the companies have geographical limits on the number of dealers they bless, or has the Internet put an end to that?

 

Many thanks for the helpful responses.

[Titivillus]

I suppose my question was more to some of the other issues: are there wholesalers that provide customer catalogs and such, or does one deal only through the companies themselves directly? Do the companies have geographical limits on the number of dealers they bless, or has the Internet put an end to that?

 

Take a look at some of the sites that provide addresses for companies. Might be the best way to start.

 

Kurt

 

[jdboucher]

Create a website and offer good prices (maybe some discounts for FPN members hint hint). Best of luck my friend.

[offbase]

I agree, go the web route. Chicago used to be crawling with pen shops, especially the downtown area. All that's left that I know of are some kiosks in the trendy retail sites where the well-to-do might buy a pen, basically, as a piece of jewelry, and pretty much pay MSRP for the "privilege." If downtown Chicago can't support a traditional B&M, I don't know how a small town can. Bad economy, friend ... don't put yourself on the line like that now. If you go the internet route, all you're really out is the cost of your inventory, and maybe a website, if you don't go ebay like so many others have. Good luck whatever you decide.

[JJBlanche]

I would talk to people that have pen businesses currently under way. James at Pear Tree Pens might be a good place to start.

 

As someone that sells pens, I can tell you that it will take a lot (a lot) of time and effort to sell enough pens, with enough profitability, to provide a sole source of income. If you want to do this as a supplement to your day job (as I do), then it's really more of a hobby than anything else, but certainly with respectable returns if you do your part. However, if you want to make it your full time money earner, expect to be buying and selling not only new pens, but also hunting around for curios/vintage/antique (where the profit margin is much higher). Also expect to supplement your retail establishment with an online presence of some sort.

 

Really, this market is fairly saturated. Rather than become a dealer of new, main-line pens, you should try to develop a niche. For example, I deal almost exclusively with Reform 1745s, and occasionally stumble upon a vintage or antique pen that I offer for sale. Finding the type of pens I sell is not particularly easy, and the prices I offer are as good or better than any other source. By contrast, when selling new, modern pens, you have to compete with literally hundreds of other dealers who are selling the exact same pens, not to mention eBay.

 

EDIT: Also, a valuable skill to learn is pen tuning. People who know pens are willing to pay someone with experience to adjust their pen to write the way they want it. The only investment here is your time. It's particularly beneficial to sell your pens as tuned, inspected, or adjusted, because this way the customer knows they're getting a pen that writes properly.

Edited October 11, 2008 by JJBlanche

[DRP]

JJBlanche's idea about offering tuning and minor adjustments makes sense. It's the service AFTER the sale that only a few internet sellers can offer. Offering it in person, on the spot, while you wait is a big market advantage!

[lapis]

Congrats and good luck. I have a business (forcing me to neglect FPs a lot) which runs 100% over the net....

... BUT if I ever ran a FP store, I would in any case always allow everybody to do a wet run first.

I'm only saying this because I have heard that there do indeed exist stores where this is not possible. Well, it is ALWAYS possible but some owners evidently don't want to.

 

Mike

[Getsurin]

I guess it is difficult for a store to stock only fountain pens as customers have varied needs - unless there is something very unique about your store (hard to find items, exceptional service, buying and selling of used pens,etc).

 

However, a stationery store will be (in my opinion), a better choice. It will take many months to grow your customer base but so long as you can hang on, I think you will succeed.

 

Wishing you all the best!

 

[Ink Stained Wretch]

If I ever tried to start a fountain pen store I'd go out of business in nothing flat. I'd just want to keep all of the fountain pens!

 

I can see it now, I'm barricaded in the back of the shuttered store, sitting in the dark amid all of the fountain pens, grasping handfuls of them, I'd have pens all around me, meanwhile the creditors' marshalls are breaking down the front door and I'm whispering, "It's all right my precious, I'll never let them get you, my precious," to all of the fountain pens.

 

Yeah, I'm not going to be able to do well in a business like that. Maybe I should open up a business where I sell something I absolutely dislike.

[lapis]

"Maybe I should open up a business where I sell something I absolutely dislike"

 

Yeah, my opinion too. Just like an old German saying (altho it's probably worldwide, too): "So, these gotta go".

 

Mike

PS: honestly

Edited October 11, 2008 by lapis