Thinking of opening electronics store in Chicago...

[8086]

Someone mentioned Maplin.

Maplin is a good example of what happens on the high street to niche stores. they ended up filling their stores with all sorts of multicolour LED strips and various usb powered novelties. Their components are almost an afterthought, and though I have three stores within driving distance, there is rarely stock of the part I need in any of them.

In short, if you are going to do this, you should definitely NOT try and have a store with a slight hacker vibe. You should have a hackerspace with tools that most people can't have at home (cnc, milling, etching, etc) and classes on how to use them. And you can sell parts for projects that you can 'hold peoples hand' and let people complete using your equipment.

An electronics store is sure to fail (I'm sorry, but it's just the truth) - but make it something different, and you might have a winner. But even then, I wouldn't be so sure. Electronics just isn't a mainstream high street thing. Stores have closed, and the ones that remain aren't really electronics stores anymore.

[grumpydoc]

I don't think I'm going to say anything much different to the previous comments. I don't think a shop selling purely components has a chance.  I do occasionally pop into the local Maplins but to be honest I try not to and when I do go there isn't usually a queue at the components counter.

It might have been useful once for the odd item left off a Farnell order but these days I find ebay more useful, especially if I need NOS stuff, for small orders. It's (as others have observed) impossible to have the range to be useful and margins are going to be razor thin.

I think Maplin's survives on the gadgets, and possibly cheap computer hardware, though to be honest they mostly sell overpriced tat so I avoid them for computer stuff unless I'm really in a bind.

[tom66]

I've bought a few things from Maplins. If they sold decent low ESR capacitors, like Panasonic FC/FM/FR, then I would be down there probably every second week. Add some other SMPS components and I'd make it every week. But, at the moment, I combine everything into one Farnell order, and pick it up at the Leeds trade counter. 5 mile bus ride from uni vs 1 mile walk to Maplins.

[mamalala]

I think another problem today is the sheer amount of parts available. 20 or 30 years ago there wasn't such a wide range. Some E series for resistors, standard transistors, a bunch of 74XX or 40XX logic, plus some specials like small CPU's, SRAM, etc. There has been a lot of electronic stores "back in the time", because it was rather simple to set one up with a range of parts that most hobbyists use.

Then they slowly degraded. Rarely did they extend their product range. And why should they, they had limited space after all. We also had  lots of surplus shops around, pretty much all gone nowdays. Electronics was quite a hobby, but with the advent of more and more SMD stuff, it became harder for people to get started. I mean, lets face it. The interesting parts are pretty much all SMD today.

And now we have such a big range of parts, it's simply impossible for a shop to keep up with all that. Plus, the internet. 20 or 30 years back there was little available in terms of online shopping. Today you can buy pretty much everything online. That in turn has led to a vast number of small resellers online. Each competing with others, leading to really low prices. China has opened up as well, making stuff even cheaper.

As much as i would like to see more brick&mortar electronic shops, i simply can't imagine how they should manage to stay alive. It makes little sense to drive to a shop, only to find out that they don't have most of the parts i need. Sure, they could order them. But what would be the benefit for me as a customer then? I mean, in that case i can order the stuff myself.

Instead of focusing on a shop for parts, i think it would be much more worthwhile to set up some shop for workspace, courses, etc., and having the possibility to buy parts and kits as a secondary thing to that. A place were people can come and use tools for a small fee. Where they can get help of a/a few professionals. Exchange ideas, work together on projects, maybe get some lectures, etc. Because that is something the internet can not do that good.

Set up a place with a bunch of tables, soldering irons, measurement gear. A small CNC, a good drill press, stuff to tap threads into metal, etc. Maybe a small reflow oven as well. Provide a place were people can do stuff that they can't do at home, due to lack of tools and/or skills. Were they can meet and work together, etc. That would be really useful, i think.

Greetings,

Chris

[nukie]

I got a battery powered device it didn't come with an ac adapter, I went to major electronics store to look for one. Guess what? It was too expensive, I hop online and had one shipped to me, I could have bought 3 at the price the shops was selling. And no it isn't cheap dangerous smps adapter.

It's quite sad when I could spend my time looking around for parts in small baskets physically but now I am resort to clicking and online carts.

I like real stores I could visit and the owner actually greet me by my name. There's one Rockby I would drive an hour roundtrip to pickup my components, but this is customer loyalty and support. Which takes years to gain, to be able to survive you gonna have a huge warehouse, forget about having a shop. You only need an counter for parts pickup, most of your sales will be online and stock the right stuff and you might survive the internet age.

[Mechatrommer]

I went to major electronics store to look for one. Guess what? It was too expensive, I hop online...

this is mostly the part where customers do not understand. 1/3 or 2/3 of the products price will go to you guess what? paying the bills, workers and that "brick and mortar" place, its not free. razor thin margin is fine! what if you cant pay your workers and the rent? where will you get the money to cover that? your (the business owner) own expense! (or debt).

so if you want to help out brick and mortar shop, prepare yourself psychologically to pay higher (you are doing social work to help pay the workers, the owner and the rent and the business generally). as much like all of you, i wish i can buy local, i dont mind if its a little bit expensive, i can save much more time, time is gold, but i live in small town at most 15 minutes drive, for bigger city 1-2 hour drive rant time can be an issue so YMMV. buying locally, i can get it right away, i can test and feel it on the spot, i can return it back if its faulty with little hassle compared to online shop. but in reality, thats not happening, everybody too much concern with how much money going out their pocket. everybody going cheap cheap, go china. as much as we hate suicidal products, but we are buying from them, thats the reality the dragon is waking up.

[GK]

Aztronics here in SA seems to be staying alive somehow with two store fronts (one in the city and another not very far out) and have been around for ages. Pretty much just an electronics parts and "kitset" supplier. I seldom go there though as I live down south and they aren't open either Saturday or Sunday. Bit less of a population here in Adelaide than in Chicago............................

http://www.aztronics.com.au/

[JuKu]

You should have a hackerspace with tools that most people can't have at home (cnc, milling, etching, etc) and classes on how to use them.

Now, that is something I would spend money on. A place with machines, and a membership fee, an hourly fee and paid classes, and I would be a member, if fees are reasonably at all. Actually, there are such places in US (can't find a link anymore).

[MikeK]

Also, see if you can work something out with Chi-Bots.  Get the kids building the bots that they can then compete with.  Maybe have a competition day once a month that they can pay you a small fee to participate in.  It sucks to wait all year to lose at a competition.

[JonnyBoats]

Not exactly traditional brick and mortar but something that you might consider is selling parts at shows and conventions along with website.

An example of this kind of business in the USA is Wireman (http://www.thewireman.com/ ) who sells everything a radio amateur needs to make an antenna. For years he has been traveling around the country bringing his wares to hamfests and conventions. He is extremely knowledgeable about everything he sells and is a great guy to deal with. When you see his booth or table at a hamfest you can handle the parts, compare them and have him explain the advantages and disadvantages of each item.

Even if you don't buy something at the show you can always call him up later and he will ship the items to you. Since his operation is not in the high rent district he is better able to keep his prices reasonable.

In your case perhaps you could operate from your home (to keep costs down initially) and take stock to hackerspaces in your car and sell at the hackerspace meetings. You could work a deal with the hackerspace whereby you share the profits with them on items sold at the meeting. You would build a loyal customer base who would most likely want to do business with you on your website.

[G7PSK]

This is the shop I used to frequent when I was a youngster still go on rare occasions but as I have now moved 50 miles away it is not often. They still carry a vast array of stuff but as Cambridge is a university town there is a lot af trade from students etc.


https://plus.google.com/104233592963336646831/photos?hl=en

[FJV]

You might want to consider combining several ways to generate income in one business.

Lots of electronic shops also do internet trading on the side.
Or for instance this EEVblog which also sells the µcurrent.

It would hedge your bets, when one source of income is slow, others might do well.

Also making a good business plan beforehand could never hurt.
http://www.sba.gov/category/navigation-structure/starting-managing-business/starting-business/how-write-business-plan

[SLJ]

+1 on selling at shows and on line.
I went full time two years ago and attend several HAM Fests and antique radio shows every summer around the North East U.S.  Finding storage, buying a small trailer and camper van, surplus inventory and estate buyouts, along with building a easy to use web site is still cheaper than being tied to the overhead of a brick and mortar storefront.  You can't compete with the large corporations so I recommend you find a niche to specialize in like capacitors, ICs, tubes (remember tubes?), etc. and branch out from there.

[Simon]

I've not read the whole thread but my flat answers is (if things are the same in chicago as the UK) it won't work unless it's a sideline for a shop selling crap, that is what craplins in the UK is now and I very very rarely go there because they are overpriced and the workers don't know jack shit but always "want to help", and I just brush them aside and head for what I want, naturally they are not keen to hang around when they see me heading for the real electronics section (well as real as maplins gets).

I trade myself, I do ebay and am starting my own online shop, I'd never drem of a physical shop and even then I can't make a massive start because it costs money to buy stock in sufficient quantity to be able to resell it.

You niche is people who don't have a massive order and need something quike without paying high postage prices or making big orders, I can afford to charge just the stamp and some working from home.

[AndyC_772]

This is the shop I used to frequent when I was a youngster still go on rare occasions but as I have now moved 50 miles away it is not often. They still carry a vast array of stuff but as Cambridge is a university town there is a lot af trade from students etc.


https://plus.google.com/104233592963336646831/photos?hl=en

Blimey, are they still around? I used to go there all the time when I was a student, they had an enormous range of stuff. I still have the soldering iron I bought there for £5...

[larry42]

Doubt it would work as a business. Margins are tight (how many 10 cent resistors are you going to sell - very few because by the time ppl are serious enough to buy resistors, they might as well buy a resistor kit anyway). Inventory will kill you - if a project requires a LT3741 I would have to order one from the big 3 anyway as unlikely you have it in stock, hence would need to wait, so might as well order the rest of the BOM via a website.

So selling arduinos to a tech savvy audience (who would want to buy other stuff, exotic interfaces that you will not be able to stock all of) doesn't sound like a good plan.


Sorry, but I don't see it as realistic (spoken as a hobbyist, R&D business owner and 15 year industry veteran)



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[larry42]

Completly forgot: my uncle used to have two electronics parts stores in Den Haag (netherlands). From the 70s til the late 90s. Business dwindled, he had to start selling kits, radio scanners, tv aerial boosters... no-one buys parts in stores anymore. Not a nice business to be in.

He's retired and has a sideline in mechanical clock repair - a skill he picked up later in life, and is now and excellent machinst.



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[poorchava]

In my city (not the smallest one, like 650k people) there are I think 3 or 4 retail stores, and I think they will go bankrupt in next years.

First one is stuck in the early 90's, selling pots, transistors, passives. I guess the most sophisticated stuff you will ever get is Atmega8 (actually Atmel more or less dominates Polish MCU hobby scene). And the spin off of that shop flings mainly various audio/video cables, connectors, adapters, speakers and parts to make those, car audio components, that kind of stuff. I guess they will last as long as people do DIY audio, when they stop it they will go out of business. They also sell some 'consumer stuff' like fuses, adapters, lightbulbs, leds, battery chargers, etc.

Second one is located like 500m from Technical University campus, which kind of determines the range of stuff you can buy there. You can find a lot of stuff, but mainly basic parts, and mostly THT because students in beginner courses are afraid of smd and u cannot use those with breadboard. So yeah, they can get you pots, connectors, transistors, most of the popular 7400 and 4000 chips, AVRs, some range of 0805 smd, also basic (read:chinese) soldering stations, power suppliers, multimeters.

Third one is a little obscure business located in 2 small rooms in a basement of apartment block in rather bad neighborhood. They actually sell bulk quantities of passives (i mean u can actually get good price for a reel of caps or resistors). They are actually my favourite store, because while they often don;t have really generic popular stuff, they have an amazing selection of rare components and sub-assemblies. i assume those are mostly some surplus supplies, but that's the place to buy stuff which often even Farnell won't have (Digikey and Mouser are virtually non-existent in poland because of shipping costs and RS Poland does business only with companies, not private people). They also can get you some more "arcane" parts as long as you are willing to buy some minimum quantity (small, e.g. 5pcs of IC, 10pcs of some particular electrolytic cap value etc)

Fourth one actually deals in development tools. They distribute Chinese brand stuff, but give a warranty for them which is nice. Thy sell Rigol, UNI-T, Atten, Korad, Zhaoxin, PT, and accessories for all of those. They also sell universal programmers, development boards and breakout boards of their own design. Recently they started selling smd 0805 and 0603 passives aat amazing (for a hobbyist) prices per 100pcs, but so far they only have resistors.

What I'm trying to show is that you need to find your niche like audio, old-school stuff, students, cheap development supplies, industrial automation, audio/video replacement parts, embedded system stuffs (i mean more like Raspberry or BeagleBoard than simple PIC or AVR) or whatever.

[Codemonkey]

Here in South Yorkshire, we do have a great little independant shop called Bardwell's, which has been around for donkeys years, and there prices are probably better than Maplin, but again, unless I'm going past, its not worth the bus fare, when I can get stuff shipped for the cost of a postage stamp or even less.

Wow, small world, I spent most of the money I earned from doing a milk round whilst a teenager in Bardwells. Used to cycle down there from home in Dronfield, stand in there wondering what they had in the thousands of little drawers in the racks behind the counter and leave with a little bag of goodies before the long cycle home (uphill!). Not been in there for years despite working in Sheffield (I'm probably about a mile away from them as I type this). I live in Chesterfield now, and we also have JPG Electronics, but not been in there for a while either. Maplins are completely useless, I only use them if really desperate for personal stuff and very occasionally for work stuff since they're about a 10 minute walk from the office. They've become like a bricks and mortar version of DealExtreme but with much higher prices and annoying staff.

[grumpydoc]

Here in South Yorkshire.....

Doncaster alone used to have three - Modern Electronics (Sunny Bar, then Market St, then Nether Hall Road), Tandy and one the name of which I forget (corner of Wood Street) so I never needed to actually venture as far out as Bardwells in Sheffield.

They are all gone now, sadly.

[Simon]

what happened to Tandy ? sadly I went to live in Italy just as i was getting into electronics and by the time I came back our local was gone. My dad bought me a 200 in 1 electronics projects thing in there.

[grumpydoc]

My dad bought me a 200 in 1 electronics projects thing in there.

I had one of those!!

There's a Wikipedia page which gives the history - the name lives on as tandyonline.co.uk

[Simon]

blimy, they have become a mere shadow, I'm guessing someone is keeping up the name an running a home based shop, a search for 78l05 yields nothing and they have limited parts but their prices are not bad.