Initial Costs of Starting a Shoe Store
The cost of starting a shoe store depends on many factors, including the store’s size and the type and volume of inventory carried. Expect to spend about $60,000 and up to open a smaller store. Larger stores with significant inventory can cost upwards of $150,000 to start.
The biggest expense you’ll face when opening a sneaker store is the cost of inventory. You’ll need to have a wide selection of sneakers on hand to appeal to customers, and this can be costly. You’ll also need to invest in display cases, racks, and other fixtures to showcase your sneakers. Another major expense is the cost of renting or leasing a retail space.
To summarize, the initial costs for opening a designer sneaker resale store in the US can range from approximately $100,000 to $250,000. It is essential to carefully plan and allocate budget for these costs to ensure the success of the business.
Profitability of a Sneaker Store
Overall, a sneaker store can be a very profitable business. In order to be as profitable as possible, however, it is important to carefully consider the factors that affect profitability.
If you are looking towards starting a sneaker store business, you would have to start from the very scratch simply because you can hardly get a franchise of a sneaker store business to buy. Besides, starting a sneaker store business from the scratch is less stressful when compared to other small-scale businesses which usually require detailed groundwork before launching the business.
Achieving a Shoe Deal
How do you get a shoe deal? The best way to get noticed by Nike is by being a superb athlete. You do not necessarily have to be the best basketball or football player to land a contract with Nike. Rather, swimmers, runners, and any other athlete who represents a sport well can earn a contract.
Shoe Store Startup Costs and Revenue Projections
- Inventory expenses range from $5,000 to $50,000.
- First inventory may cost up to $50,000 for a small store since shoes are costly.
- Franchising charges: $10,000 (initial)
- Marketing expenses: $5,000 (initial)
Revenue potential hinges on costs, marketing, and sales volume. Shoe companies often have a 50 percent margin. With each $70 pair sold, you would make $35 profit. Selling 125 pairs monthly in your first years would generate $105,000 revenue and $52,000 profit. After a few years and selling 1,000 pairs monthly, revenue could be $840,000 with $250,000 profit, despite a 30 percent margin from a physical store.