[Location] The New Small Town?

strider3700 · Posted: Wed May 30, 2007 1:44 pm Post subject: Re: [Economics] Rural Retail

I'd assume the most important issue faced at this level of retail is the same as 90% of current retail. Location. If you're somewhere where people will be going by and you can set up shop for very little or no costs perfect. If you're slightly off the beaten track like I am I won't ever sell enough to make it worth while.

Walmart may be big enough to convince people to drive 2 miles out of their way to go there but most small shops rely on people deciding to stop on their way by.
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Pops · Posted: Wed May 30, 2007 2:02 pm Post subject: Re: [Economics] Rural Retail

RonMN · Posted: Wed May 30, 2007 2:08 pm Post subject: Re: [Economics] Rural Retail

If you really want to do this, I would say that getting the word out & increasing your customer base would be the most important thing.

How do you do that? Start supplying small things that people hate to go out of their way to buy. For instance i hate to go to the store just because i'm out of toilet papper (start offering it for sale). Or sugar, or pop (I'd stick with non-perishables to begin with).

Your customer base starts to grow & you start stocking more items.

Just be carefull you're not selling for cheaper than you paid for them Smile

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Pops · Posted: Wed May 30, 2007 2:22 pm Post subject: Re: [Economics] Rural Retail

Pops · Posted: Wed May 30, 2007 2:33 pm Post subject: Re: [Economics] Rural Retail

RonMN · Posted: Wed May 30, 2007 2:58 pm Post subject: Re: [Economics] New Retail

I once figured it all out on paper for opening a comic/news stand (shinders) and it surprised me to find that almost 50% of the profits were made by impulse items (pop & candy).

DON'T forget them impulse items Smile

<edit> I also think an added bonus for the OP seedings would be hand out free literature with the seedlings. Many don't know that the best way for saving seed corn is leave the corn standing for WAY LONGER than if you were going to eat it...leave it standing way past ripeness & let it dry on the stalk (providing it doesn't freeze).

Little pamphlettes like that may keep them comming back for more.
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TommyJefferson

Pops, I'm noticing a trend towards what I call "Micro Wal-Marts".

I ride my motorcycle into well-off-the-beaten-path rural areas a lot more than most people. I'm seeing small Dollar General stores sprouting up all over the place.

It's a facinating development. Like you, I remember the old mom-n-pop country stores that died out a long time ago. They never had much selection. Their prices were high. The cans were often dusty.

But, back when gasoline was expensive, the roads were bad, and most families had only one car, these stores were better than nothing.

I'm seeing the Dollar General stores begin to meet a new market segment formerly serviced by those old mom-n-pop stores (actually they were usually run by cranky old bastards).

That market segment is: people who live 30 miles from Wal-mart and don't want to/can't afford to make that trip.
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Pops

vision-master · Posted: Wed May 30, 2007 5:13 pm Post subject:

vision-master · Posted: Wed May 30, 2007 5:19 pm Post subject: Re: [Economics] New Retail

Was talking to a fellow today as I was out doing a ride about one of these. It could be a good erand vehicle.

horsestoaster · Heavy Crude Joined: Feb 07, 2006 Posts: 109

Pops,as always a timely and interesting post!We are fortunate enough to have one of those tiny country stores with the lone gas pump within a few minutes walk.They kind of keep their own odd hours but there is always a car or two there and folks hanging out on the bench provided outside the store.There is another"grocery" type store in our town(population 500) that has been in business around 40 years.Yes it is a little more for most things but I will go there instead of the giant stores and the 50 mile round trip that involves.We also have a hardware store which sells all sorts of interesting bits as well.We too also avail ourselves of the Dollar Store which is only about 15 minutes drive currently and is never congested and is locally owned as well.I would believe your idea to be very sound and very possible for someone with a little savy for what their customers need.You already have a good start and time is on your side.Smithing,horse trading,funeral services and possibly small engine repair are all services that would bring folks to you and generally in times past this has proven out.There are alot of possiblities.Thanks for the cerebral exercise!

kochevnik · Intermediate Crude Joined: Aug 20, 2004 Posts: 881

One of the pieces of advice around here has been to dig up an old map of your area/state circa 1890's or so and you'll have a good idea of how people will re-disperse (if that's a word). Pops I think your idea is a brilliant one - if a wee bit early in the game. I would look at it as an investment - maybe make some small profit but your real reward would be that people of your area would get to know you and depend on you and that could be immensely more valuable than any paper profits you might make - I would choose something you would do anyways.

Personally, I am hoping to set up some kind of repair/machineshop in a small town or just outside one. But for me I think it's too early yet - many people will naturally do this as things fall apart.

I rode a trike just like the one above in 2001 from Vancouver to almost Toronto - 3000 miles in about 35 days before I almost died of heat exhaustion. 45 degrees C in Canada that summer - think of like tanning 8 hours a day while burning 5000+ calories a day.

Kick ass bike tho - this is the one I rode across Canada :

Vroom

That's not me - I was 41 when I did my trip - and I trained by riding an hour and half each day in China for six weeks on a one speed bike Smile

Am I tough enough ?
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IslandCrow · Posted: Thu May 31, 2007 12:31 am Post subject: Re: [Economics] New Retail

One rural service that shops here offer is to buy goods for you in town. A few weeks back the local flower shop bought apple trees and berry bushes for me, saving me a 150 km (about 100 mile) round trip to town. Today when 'in town' they are buying a watering can for me. OK I am on their route home, but they also deliver it to my house.

Our small village can afford a flower shop as there are so many summer guests who buy summer flowers for their cottages. The shop is open 3 days a week, allowing them to make the long trip to the nearest city once or twice a week. When the shop is closed there are always flowers outside with an honour box system of payment.

Pops - consider whether you want to commit to regular trips to the larger stores where you buy your supplies and will spend some time shopping around for others.
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Pops · Posted: Thu May 31, 2007 7:01 pm Post subject: Re: [Economics] New Retail

Thanks everyone for your thoughtful replies and experience.

Yes, I too agree it may be a bit early in the game to go full bore into a plan such as this – especially as the US doesn’t seem too worried as yet with the cost of driving.

In fact I am not sure shopkeeper is be something that would fit with my personality – though as you all can tell I do like to gab and have been accused by some of possessing a salesman’s tongue.

The preconception around here that buying things is the root of all evil. Basically I wanted to throw out the idea we will always need to trade for what we don’t have and can’t make and someone will need to fill that niche.

I guess one of the things to keep in mind while thinking about this plan; is the small communities we all will eventually inhabit (whether urban neighborhoods, subdivisions or rural townships) pretty well know what we are each up to, unless we are very secretive…
of course that is probably the most interesting gossip bait of all!

But hanging out a shingle that says you have stuff - and even more, you have a cashbox, is pretty tempting today, let alone in some tougher, future day.

As some of our friends here at PO continually remind us, there are those, even in our current easy situation, that would rather take the chance with what you have under the counter than take the chance at filling out a job application.

Of course that didn’t deter the shopkeepers of the past…
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Pops · Posted: Fri Jan 11, 2008 4:02 pm Post subject: Re: Local Economies

I was wandering through the wayback file and came across this thread from late 04, seems kind of appropriate considering the recent discussions. It kinda started me on my revival of small towns kick.

A new wrinkle in the situation is the boom in ethanol plants, which will bring a few new jobs to some rural areas.
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