In this digital world, it’s necessary to play some sports to keep fit and stay healthy. Due to the growing demand for sports equipment, you may think about how to start a sports shop.
Opening a shop in this niche isn’t easy, as you need to have clear knowledge about the goods and their maintenance. For example, you should know how to satisfy your consumers, namely by hiring associates who know thoroughly about sports for customers to ask questions. Given that this is a very specific field, what exactly are the steps required to open a sports shop?
Just about everyone who engages in athletics requires sports equipment of some sort. From little league baseball to street hockey, junior varsity teams, and the weekend golfer, there is ample demand for sports equipment. Sporting goods stores stock the necessities for sports participants, whether it is baseball bats, hockey sticks, basketballs, golf clubs, ice skates, footballs, or hockey pucks.
Plan your business
- What are the startup and ongoing costs?
- Who is your target market?
- How much can you charge customers?
- What will you name your business?
- Luckily we have done a lot of this research for you.
What are the costs involved in opening a sporting goods store?
The entrepreneur must rent retail space for his sporting goods store. Alternatively, he could purchase a website for his store. Additional costs include purchasing the initial inventory, paying employees to man the registers and stock the shelves, obtaining a business license and insurance, and connecting/running the utilities. A computer and high-speed Internet connection will also be necessary for inventory research purposes.
What are the ongoing expenses for a sporting goods store?
Ongoing expenses include the cost of employee wages, workers’ compensation insurance, utilities, rent, and inventory. The typical sporting goods store clerk makes around $8 to $10 per hour. If you do not want to manage the business, a sporting goods store manager will require a salary in the range of $25,000 to $35,000 per year. The monthly Internet connection will likely run between $40 and $60. If you do not want to clean the store yourself, a cleaning service will be necessary. Such a service typically costs about $120 for 1,000 square feet and upwards of $175 for a 3,000-foot space. Monthly utilities will likely run between $100 and $200 per month depending on the time of year. If you decide to rent your retail space instead of purchasing, monthly rent will likely cost between $700 and $2,000 per month depending on the size of the space and the specific location.
Who is the target market?
Sporting goods store business owners typically prefer selling to coaches of youth sports teams, junior high school teams, and high school teams. These coaches buy sports equipment in bulk so each player on the team has enough gear to make it through the year. Customers who prefer high-end sports equipment are also coveted as they are willing to pay a premium for high-quality items. Such items usually carry a larger profit margin for the business owner.
How does a sporting goods store make money?
Sporting goods stores make money by selling sports equipment at a profit. Once inventory is ordered, the price of these goods is then marked up so the business can make enough profit to cover overhead expenses and continue operations.
How much can you charge customers?
Sporting goods have a wide price range. As an example, shock absorbers for tennis rackets will sell at $5 for a pack of two. A baseball mitt can sell for upwards of $150 or more. A set of golf clubs will retail for several hundred dollars. Sports drinks will sell for $1 to $3. Keep your prices in line with the competition and your customers will remain loyal.
How much profit can a sporting goods store make?
The profit ceiling hinges on the size of your sporting goods store as well as the size of your market. If your business is operating like a well-oiled machine, it is possible to make a profit of several thousand dollars per month. If you grow at a rapid pace and reach the level of success achieved by sporting goods chains like Dick’s Sporting Goods, it is possible to make several hundred million or more in profit each year.
How can you make your business more profitable?
One of the best ways to make money as a sporting goods store owner is to purchase used sports equipment from customers and re-sell it for a profit. Accept items in decent shape, clean them up and you will eventually sell them for more than you paid. If you are particularly knowledgeable or skilled as an athlete, you can pitch your services as a sports instructor to clients. Another idea for a related side business is to set up batting cages, an electronic golf simulator or sports-related arcade games in or near your sporting goods store.
What will you name your business?
Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Sporting Goods Store Name Generator
If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more. When registering a business name, we recommend researching your business name by checking:
Your state’s business records
Federal and state trademark records
Social media platforms
Web domain availability.
It’s very important to secure your domain name before someone else does.
You should find ways to contact a good supplier for items with good deals, and simultaneously monitor the cost-efficacy over time. To choose a good supplier, ask queries and make sure to evaluate their bids. You might need products like sock shoes, sportswear, all kinds of balls to play different sports, etc.
Divide The Budget
In the search for how to start a sports shop, you need to keep expenditure in mind. The amount of capital depends on the store size and the quality of items you want to sell. You may have to spend more money to buy better quality materials and equipment. The key areas where you will spend money are permits and licenses, marketing promotions, salaries for associates, rent, store interiors, gadgets, launching a website, etc.
Create Potential Sales Channels
This is very important for the future of any business. Once you have established a store, you need to make a sales strategy to attract customers. There are certain ways that could be effective for sports stores, such as launching parties, sending emails or brochures to schools/ organizations/ sales managers, or engaging with the neighborhood to create awareness.
Build Suitable Marketing Strategy
Marketing strategy is not only to win the customers but also to effectively communicate with your affiliated brands. You can start marketing through print advertising, setting up an event, or through social media platforms with banners and billboards. Handing flyers and handbills can also be another option. In addition, you can try advertising your sports goods on the official website, as sports fans often spend time on the Internet to find their needed items.
Once you have set foot in the right direction with a positive attitude, you should start to create awareness and bring targeted customers closer to your sports store as soon as possible. We hope that this guide on how to start a sports shop can help your retail store reach incredible heights, in terms of growth and profit.
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