How to Open a Retail Scrapbook Store
Scrapbooking is the fastest-growing craft in the U.S., more popular than golf, according to PMA Marketing. Twenty-five percent of U.S. households tried it in 2005. Almost 14 million people have completed at least one project. Although the larger hobby stores offer many aisles of scrapbooking materials, creating a niche or specialized retail market provides plenty of opportunity for profit. Offering quality materials to scrapbook enthusiasts along with a knowledgeable staff allows your retail operation to stand out.
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Things You'll Need
- Start-up capital
- Inventory
- Retail space
- Shelving units
- Display counters
Instructions
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Raise necessary capital. The scrapbook industry sells an estimated $2.5 billion worth of scrapbooking supplies per year, according to frugalmom.net. To cash in on this profitable industry, you will need to invest $20,000 to $40,000 for a store of 1,500 square feet, estimates Scrapbook Retailer Magazine. Not only will you have to lease your space, but also furnish it with shelving units, cash registers, display cabinets, tables and supplies. Then you have to purchase inventory. You can use savings, ask friends to invest or seek a loan.
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Contact your local business licensing bureau and zoning office. Business.gov has a state-based information guide that briefly discusses different types of licensing or permits each state requires. However, each locality varies in the type of licensing required for different types of businesses. Zoning laws also vary. Contact your local offices to find out the zoning laws as well as the licensing required for a scrapbook retail outlet.
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Find out what scrapbookers want. If you not already well-versed in the industry, research to discover what's hot. Magazines like Scrapbook Business Magazine and Scrapbook Retailer provide well-researched statistics on buying trends. After researching and deciding on your specialty, create an eye-catching portfolio, leaving room for your customers to add their scrapbooking designs.
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Calculate your prices. This is the most important part of your business plan. Most retailers must have a 50 percent markup on all items sold just to survive, according to Entreprenuer.com. To figure out your markup, you have to account for all costs, including overhead, labor and merchandise costs plus freight.
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Seek cost-effective scrapbook suppliers. This takes time and detailed research. Make sure to seek out wholesalers who supply several items you need. This will save you shipping and handling costs; plus, wholesalers will sometimes offer a discount on bulk orders. Most wholesalers have a minimum ordering quantity from $25 to $150 each time you place an order. Trade magazines like Scrapbook Retailer have hundreds of ads from wholesalers. You can also conduct an online search for wholesale scrapbook suppliers. Create a spreadsheet with the wholesaler info, the items they carry and a list of their terms.
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Tips & Warnings
You can get an edge on the competition using a software business plan program like It's Scrappy! This software focuses on providing scrapbooking supplies at a competitive price. It also helps keep your staff knowledgeable about the products you carry. You can try it for free for a trial period at bplans.com.
References
Resources
- Photo Credit scrapbooking image by Philippe MICHAUD from Fotolia.com
