# Having an office/showroom



## JamesJack (Jul 7, 2011)

*Opening a Home Services Center*

I am a retailer that sells high end patio furniture, aboveground pools, portable spas, and the chemicals and equipment that go along with the all pools and spas. I am a retailer, not a contractor. I have a 34,000 sq ft free-standing retail building that includes retail and warehouse space. About 15,000 is showroom, 15,000 is warehouse, and the other 4,000 is office.

I am considering turning the warehouse space into more showroom space (which is relatively easily done because we considered this when we built the facility a few years ago). We could move our warehouse operation about 6 miles away and pay about 75% less for the same amount of space. My idea was to have an outdoor living center that functioned much like a permanent, smaller-scale home show (focusing on outdoor services since my current company would remain a "tenant" in the building.

I know most of you guys aren't necessarily in outdoor-related industries, but I assume your business model is similar no matter what your craft is, indoor or out. So my question is: would there be an interest to rent space in our showroom with some built-in amenities? We are in a great, high-traffic location with tons of other home-related businesses from Best Buy to Garden Ridge to Bassett Furniture and are right next to a Sam's Club and BJ's Warehouse Club. I'm not asking in you are interested in mine, of course, but rather if you are interested in the idea. 

I was thinking the lease would include some advertising for the center as well as an informational page for each contractor on our website (with a link to each contractor's website so they could retain control over their sales messages). We would also provide phone lines, internet, power, & cable as needed.

One of the toughest things for me to wrap my head around is how each contractor's space would be manned. Would I need a hostess or staff of hostesses that could greet clients and point them in the right direction? As well as answer the phone and transfer to the appropriate company within the building?

I'm just getting started thinking about this and any input would be greatly appreciated. Hope you guys are having a prosperous 2011!


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## thomasjmarino (May 1, 2011)

mcabbage said:


> Been there done that, closed mine about 12 years ago. Unbelievable drain on resources, for me I would never go back. Wish I had the money I spent on displays/rent/time. A good presentation book and brochures will go far, Run lean!
> Mike


Had an office for 7 years.
Was great when times were good and money was flowing.
It made a difference then.
Now it don't mean sh*t!
People could care less.
All they are interested in is the bottom line.
Going back to working out of my house like I did prior.


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## BRAVI (Jun 3, 2010)

I have spoken with all my vendors and subcontractors and they will be donating 90% of the products and labor for our showroom that we will be opening later this year. Between the improvement allowance and all the donations, we are really only out the lease rate. Every time I tell someone about the showroom location, they are always so impressed by it. Can't wait for it to be put to use!


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## BrandConst (May 9, 2011)

LoneStarSA said:


> I have spoken with all my vendors and subcontractors and they will be donating 90% of the products and labor for our showroom that we will be opening later this year. Between the improvement allowance and all the donations, we are really only out the lease rate. Every time I tell someone about the showroom location, they are always so impressed by it. Can't wait for it to be put to use!


There are pros and cons to a showroom. If a potential client asks you if you have one and you do, say yes, come make your selections or you can sell them on the fact that we have an office but a showroom has it's overhead and theres a reason i'm 10% lower than the guy who has one. An example of someone like Lonestar having a signifigant amount of buying power that can influence a vendor into offsetting the cost of new tenant improvements is the only type of GC who can really benefit from this IMO.


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## GregS (Oct 1, 2006)

After contemplating it for the last 2 years, I am now 2 weeks into my first leased space.

Warehouse in the back, offices in the middle and showroom up front. It's small, but it's nice to have.


No longer do I have to work at home with my wife, son and pets bothering me throughout the day. I can concentrate.

Now my employees can come and go as needed without having to enter my house or need me to be there. This has saved me money since they can start when needed, and grab what is needed to get started.

No longer do I have inventory/product distributed between my house, my garage, my shed and my trucks. It's all in one place.

No longer do I have to guess at what I have sitting between all of those places since I can see it all stacked up on the racks. This has saved my money already since I am eliminating all the duplicate ordering.

No longer do I have to tell clients to 'picture how this is going to look in your house..' when I can bring them to the showroom and show them how it works.

BUT..

Now I have to pay rent every month on the first of the month for the next 2 years.. even if I didn't have any revenue for that month.

Now I have to pay for hydro and gas every month, even if I haven't walked been in there for a month.

Now I have extra insurance to pay for.

Now I am somewhat paranoid of someone breaking in there and stealing my stuff.


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## BrandConst (May 9, 2011)

HAHA...sounds like you've found a double edged sword.


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## CompleteW&D (May 28, 2011)

*For an exterior remodeling company like us....*

I think it depends on how you approach it. If you staff it with a blond bombshell just there to file her nails, keep up with her cronies on facebook, answer the phone when it rings and hopefully set an appointment or two when someone walks in and interrupts her game of solitare, you're sunk. If on the other hand, you staff it with a true professional fully versed in their craft, it can be worth its weight and then some.

Especially for things you can't cart into the home for your potential customers to look at. For example, entry doors and large specialty windows like bays, bows and garden windows. Along with full sized samples of your specialty options on your regular windows like different wood grain interiors, available color options on the exterior, decorative glass options and things like cut glass grids.

With high end entry door systems for example, normally you just have a cut sample showing construction, a case full of parts and pieces, key rings with stain and paint color chips and a catalogue showing different glass, slab and lockset options. 

I had a couple who walked into our showroom one Saturday afternoon (I was the showroom manager in my last position before starting my own company) who had obviously been "getting estimates." They had their measurements and a really good idea of the style and glass packages they wanted. With full sized samples to show them, along with my excellent abilities of course :whistling.... they wrote me a $4,675 check for half down on a $9,350 entry door system before they left. They had never met me before, nor had I been to their home. The sales folks who had already been to their home, possibly even quoting the exact same entry door system that I did.... were left in the cold. Not necessarily because they weren't as good as I am, but because on such a large purchase like this, the customer just felt better seeing it (or something close) in person first.

I also ran leads during hours that the showroom wasn't open. My closing percentage for company supplied non showroom leads was 50%. But, leads who walked into my showroom first, I closed at *84%*. Whether I closed them in the showroom (which I did right at 50% of the time) or in their home after they walked in to "look" first.

So bottom line, IMHO.... it all depends on how you execute your showroom. Fill it with a few samples and staff it with a phone bimbo and it's doomed to fail. Spend the money however, fill it with full sized samples stuffed to the gills with glamorous, glitzy (expensive) options and staff it with a professional who knows their stuff.... and it can easily pay for itself and more.


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## Jaws (Dec 20, 2010)

We have a small office in an office building, almost through with building our new office at the shop. Locations not as good but it will bigger, nicer and paid for. Running lean is very important to us in this economy, that's why no new truck. JAW


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## JHC (Jun 4, 2010)

If the added overhead makes sense I say do it. Having a showroom adds legitimacy, and I could see it helping you close deals. Who know you may grow enough to staff it full time.


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## Vision Custom (Jan 13, 2009)

would it be advisable to have a separate company for the showroom/product sales, or does it matter? 
I ask because some product distributors will only sell to companies with a showroom. This would provide a sales opportunity to other contractors, and I am wondering if it would lessen the hesitancy to buy from the competition. I personally hate to buy anything from other GC's. 

Also, would it affect the bottom line other than additional bookkeeping? I've never had a showroom or office, but am seriously considering it, and have many thoughts and questions concerning it.


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