JA Trader 58 Posted June 28, 2019 (edited) I think we will be taking the next step in the coming months and getting a unit. We have a few options both the same size and both presentable inside but one is in a poor area compared to a much better area in the other unit. The one in the poor area is nearly half the price of the one in the nice area. Both are around 3000 sqft Is it worth the extra overhead for a nice location or shouldn't it matter as long as the cars speak for themselves. Just curios of other peoples thoughts. Edited June 28, 2019 by JA Trader Share this post Link to post Share on other sites
tradegirl 112 Posted June 28, 2019 I'm in a similar predicament myself. Curious to see everyone's response. 1 Share this post Link to post Share on other sites
JA Trader 58 Posted June 28, 2019 1 minute ago, tradegirl said: I'm in a similar predicament myself. Curious to see everyone's response. Its something we have been pondering over for a few months i don't want a crap unit. Inside will be presentable and i don't mind doing the work to make it presentable but i cant move a unit once i am in. I do often wonder if it has absolutely nothing to do with the surrounding area but its more about transport links and how easy it is for people to get there. Wait and see everyone elses opinion. Share this post Link to post Share on other sites
It's me 615 Posted June 28, 2019 depends what you are selling if specialising then location isnt as important because choice makes people travel especially if what you specialise in is something that few do location for everything else is and always was important irrespective that everyone has sat navs these days,many still do their homework if travelling far also remember that security is an important issue as just one random attack could put you out of business the police arent interested these days so you have to make sure you are happy with the surroundings just like your customers would need to feel comfortable parking up to visit you 2 Share this post Link to post Share on other sites
Blenheim Car Sales 111 Posted June 28, 2019 I have an option on a 3000 sq ft unit can you disclose or message me the price you are being quoted, Different area but its a benchmark for that sort of size Share this post Link to post Share on other sites
MattR 177 Posted June 28, 2019 Bad Area normally equals higher insurance - so bear that in mind re overall costs, also business rates etc. Its more than just the unit price that matters. Also consider location of bodyshops, workshops etc. A customer will look around as they travel to you - If they dont feel safe as they get near you, it can have an impact on how the sale is likely to go. Share this post Link to post Share on other sites
David Horgan 564 Posted June 28, 2019 People buy with their eyes . Imagine driving into a scruffy area yourself , its sets the scene doesn't it BUT it does depend on the perception of scruffy too , and the price difference , plus what your selling , how long the lease is , your expectations of how many sales and profits you need or want . 5k to 12k and above, in my opinion the better site will pay off in that price region . Look at potential passing trade too , its a cash cow when they start to know where you are situated . just me thinking out loud 1 Share this post Link to post Share on other sites
JA Trader 58 Posted June 28, 2019 34 minutes ago, MattR said: Bad Area normally equals higher insurance - so bear that in mind re overall costs, also business rates etc. Its more than just the unit price that matters. Also consider location of bodyshops, workshops etc. A customer will look around as they travel to you - If they don't feel safe as they get near you, it can have an impact on how the sale is likely to go. This is something i completely get if someone is on the way to see me and every corner has dodgy dealers or smashed up cars it really dosent look good and i think can impact on there mood no matter how good my stock. We have a good base of contacts for paint shop and mot garage but non of them are close to each other at the moment so we are used to traveling here there and everywhere. Insurance is something i hadn't consider will speak to my broker 48 minutes ago, Blenheim Car Sales said: I have an option on a 3000 sq ft unit can you disclose or message me the price you are being quoted, Different area but its a benchmark for that sort of size Yeah i dont mind saying. One unit is 21000 per annum plus fees this unit is right of the motor way junction and in a really nice trading estate. The other unit is around 14000 per annum again plus fees and is a lot closer the center of town but in a questionable area and a bit hard to find if you don't know where you are looking. Fees isnt the correct word but i cant for the life of me think of the word i mean. 14 minutes ago, David Horgan said: People buy with their eyes . Imagine driving into a scruffy area yourself , its sets the scene doesn't it BUT it does depend on the perception of scruffy too , and the price difference , plus what your selling , how long the lease is , your expectations of how many sales and profits you need or want . 5k to 12k and above, in my opinion the better site will pay off in that price region . Look at potential passing trade too , its a cash cow when they start to know where you are situated . just me thinking out loud Our current stock is mostly sub 4k cars with the odd one or two classics we normally have in. I want to expand over the next 12 months maybe take 10% of the total stock amount and have a couple more expensive cars. Its getting harder to find good stock on the lower price range so thinking of trying more expensive cars to test the water. Share this post Link to post Share on other sites
It's me 615 Posted June 28, 2019 34 minutes ago, JA Trader said: . Its getting harder to find good stock on the lower price range so thinking of trying more expensive cars to test the water. this sounds a recipe to disaster if you have say 4 cars with a lot of your money in them and they dont sell you end up renting very expensive parking bays i would keep to what i knew sold for you and maybe go further afield to fill the demand for your new unit trader down the road from me thinks nothing of spending all day travelling to scotland as an example just to collect one car because he knows it has profit written on the windscreen most important thing is DO NOT fill your unit if you get it with stock because you feel you have to,you dont its your business not anyone else's always remember this because every tom at the block will give you regretful advice 1 Share this post Link to post Share on other sites
MattR 177 Posted June 28, 2019 How many cars would it hold? Sounds like a big jump in overheads if you're paying very little at the moment Share this post Link to post Share on other sites
JA Trader 58 Posted June 28, 2019 8 minutes ago, MattR said: How many cars would it hold? Sounds like a big jump in overheads if you're paying very little at the moment We are currently a doorstep trader but are very lucky we have the capability of storing around 12 cars soon to be around 16. Try to have around 6-8 cars up for sale at once. I am trying to move away from selling from home as there is some people i simply dont want coming to my house and would much prefer a place of business. I agree its a massive jump in overheads and not something we are thinking about lightly and have been pondering for a while. Share this post Link to post Share on other sites
tradegirl 112 Posted June 28, 2019 I might be heading out on my own in a few months, and I wonder how the move will affect me. Currently our customers are Bromsgrove, Gloucester, Hereford, Malvern, Bristol, Solihull etc. All affluent areas. Meanwhile I live in Walsall, and I wonder how easy I'm going to find it, as the only affluent areas by me are Sutton Coldfield and Solihull. I'm only half an hour down the road, but I think even that half an hour/15 miles will make a massive different in the customer base. I hope I'm wrong. Share this post Link to post Share on other sites
Contracts 68 Posted June 28, 2019 8 hours ago, MattR said: A customer will look around as they travel to you - If they dont feel safe as they get near you, it can have an impact on how the sale is likely to go. I always think this when I see our office on Google maps, the first picture we had loads of old vans and pick ups that had come in PX and were being collected by an exporter, the second the company next door were having a major strip out and had piled crap outside the office rather than waiting for a skip. Share this post Link to post Share on other sites
JA Trader 58 Posted July 1, 2019 On 6/28/2019 at 4:36 PM, tradegirl said: I might be heading out on my own in a few months, and I wonder how the move will affect me. Currently our customers are Bromsgrove, Gloucester, Hereford, Malvern, Bristol, Solihull etc. All affluent areas. Meanwhile I live in Walsall, and I wonder how easy I'm going to find it, as the only affluent areas by me are Sutton Coldfield and Solihull. I'm only half an hour down the road, but I think even that half an hour/15 miles will make a massive different in the customer base. I hope I'm wrong. Im a little confused. You say your current customer base spreads over about 80 miles but you worried about your new location only reaching the local 10 miles and local customers. What is going to change if you go out on your own that will make it that people are no longer willing to travel. I sold a fiesta over the weekend to someone who came over 2 and half hours solely because of the colour of the car. I am a firm believer you have the right stock people will come. However i also agree some people want to buy off there doorstep. Share this post Link to post Share on other sites
