decisions on where to sock your goods. Basement, Wharehouse or B/M?

[AffiliateDreamer]

I have been thinking over the past few days on the decision to stock your products in:

1. basement of house (if they are small items)
2. warehouse with no public face to it.
3. brick mortar but not really focused on service, just give me the part number and cash and get lost! :)

So my idea is, if you require a physical location to stock your products, why not have a front desk for walk-in customers? You are already paying rent so take advantage of that and setup a little shop in the front?

Good idea?

Things to consider I guess:

1. rent is cheaper in non-commercial areas.
2. customers ask lots of questions, waste time. eCommerce customers ask via email and you can answer whenever you want.
3. if you want to stock in basement, shipping 30-50+ items per day will be hard running up the stairs to ship and working in a closed environment hehe.

Thoughts?

[Essex_boy]

warehouse with no public face to it.- At one of those renta store places.

[AffiliateDreamer]

wouldn't it be a wise move to start off in the house and grow on a need-be basis?

My products are not large so I can do that if need be.

[shri]

Start small if you're not funded for the long haul and have not structured your finances.

Fixed and recurring costs should be kept at a bare minimum if you're self financed. Spend the rental money on PPC and other aspects of your business and grow to a warehouse if and when required.

[AffiliateDreamer]

Shri,

Yeah that is what I was thinking, although getting a storefront allows for some local sales pickup etc. but I get what your saying.

[lorax]

Too many folks go whole hog and invest in the infrastructure only to find their marketing efforts fall far short of bringing in enough customers. It is possible to go the other way too - to have a wildly successful sales strategy and find the demands on your infrastructure at or over demand capacity. Given the 2 scenario's I'd take the latter. You can always spend a bit more money and time to grow out a section of your business. It's much harder to recoup money you've already spent on a poorly planned action without spending more.

[Essex_boy]

wildly successful sales strategy and find the demands on your infrastructure at or over demand capacity0 I have had that happen its easy to remedmy and cheaper than having it go the other way around.

[Rugles]

>>>eCommerce customers ask via email and you can answer whenever you want.

That is not true. Your website will generate lots of phone calls, no matter how complete your website.

[minnapple]

I have seen an 800 number with a knowlegeable person on the end, increase sales 30% to 200%.