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New farm store

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rrlund

01-25-2008 11:32:18




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Just came from the coffee shop. Word is the the owner of the feed store has the go ahead to turn the place in to a bar and restaurant. The neighbor and I got to talking. I've got an 80 that butts up to the village limits and he lives right next to it. He used to have a gas station in town that did more mechanic work than pumping gas. It was quite a hang out as well. He had a table and chairs,always had the coffee on,sold snacks. He works for a big cash cropper here now,does all the mechanic work,is the manager of the other employees,etc. He's 62 and was talking a while back about retiring but still working a little part time. Well...I told him I was going to put up a new building right next to his house. Told him he was going to work for me. We'd sell feed,baler twine and more important,we'd be a dealer for A&I Products or Tisco and sell parts. Maybe do a little mechanic work in the back room,sell equipment out front on consignment. We'd have a place to sit down,free coffee,a barrel of peanuts,Coke in glass bottles. He said if I'd build it and stock it,he's in and he meant it.Even said we could put a buzzer on the door that would ring in to his house for after hour sales. I am SO close to going to the bank and pulling the trigger on this thing. Something that we're gonna have to talk to our wives about. Everybody in the coffee shop said they'd be there to drink the free coffee. They all agreed there was a definate need for it and thought it'd be a huge success. Don't know...still thinking...

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wkfarmall

01-27-2008 06:39:22




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 Re: New farm store in reply to rrlund, 01-25-2008 11:32:18  
I know what you mean by 24/7. People run out of feed on friday afternoon at 4:30 want you to stay over so they can come get some. They stop by the bank, go pick the kids up, get some supper, all while you wait. When they do get there you don't have exactly what they want so they want a discount and then want to charge. If you tell them they can't charge they go somewhere else no matter how accomadating you've been in the past. Sucks dont it.

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cornfarmer

01-26-2008 17:58:43




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 Re: New farm store in reply to rrlund, 01-25-2008 11:32:18  
Some advice from someone who has been doing pretty much just what you described for about the last 10 years-Keep yor day job, and don't borrow any money, cause you won't make much. It can be fun, but also a lot of headaches. First, people expect regular, consistent hours. Then they expect you to be available 24/7 365 when they need something "because they know you so well". Then they will want credit-bill at the end of the month, with 30 days to pay. Suppliers want paid net 30, or for small retailers COD if they will sell to you at all. Initial orders with any supplier willing to discount to you will be fairly large, and you will invariably order what people don't want. Anything people want will need will have to be ordered, but they won't wait. Big farmers won't buy from you because your parts are not OEM, the restorers won't buy from you because your parts are not "historically correct", and the rest won't buy because they can get it cheaper 40 miles down the road or you rented a farm they wanted 20 years ago. Your feed will always be short dated and need discounted, and god forbid you should be out of any feed at any time. If the 45 year old horse dies after eating your feed, you will be sued. Insurance is expensive. Mechanics aren't cheap, good ones are taken, and nobody anywhere wants to work. The seed you sell will be wrong for the weather that year, and the one your competitor sells will be right, and your forklift won't start when the seed truck arrives. People suck up free stuff and will freely point out everything wrong with your operation. Your store must be handicapped accessible, employees need workmans comp insurance, your posters have to be correct, and OSHA will show up after someone gets hurt, and the EPA wants to see proof of how you disposed of your used motor oil. But just think-you will be your own boss. (BTW-I used to manage for TSC about 20 years ago)

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36 coupe

01-26-2008 05:43:06




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 Re: New farm store in reply to rrlund, 01-25-2008 11:32:18  
Ive had a small shop on a country cross road for 40 years.Sold tv and appliances ,wood burning stoves during the 72 fake oil shortages.Did tool sharpening since 73.Made money planing lumber and running door and window trim.Business has dropped to zero.General store across the intersection closed last october.Store was opened in 1898.Many small towns have lost their general stores here.I sure would not depend on someone else in a business right now.Talked with a fellow who opened a sports shop with a partner.Business went very well for a while then things got very lean.Partner quit when they couldnt make small wages.The shop is empty now.I would not want a bunch of loafers around drinking free coffee.Every thing is running down here , the small one man shops are gone.I worked for a small tv appliance shop for 2 years.This shop added furniture and grew like Topsy for many years.I stopped there with a friend last week and saw that they are turning much of the store and warehouse space into apartments .they quit selling Tv 10 years ago and quit tv repair.The big malls came in around 1978 and have killed small country business.Only 2 farm equipment dealers within 30 miles of me now.

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Jim/IN

01-26-2008 04:03:26




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 Re: New farm store in reply to rrlund, 01-25-2008 11:32:18  
We've got a place like you're describing. Everything was fine till the town blow hard decided to start roosting there. The kind that owes everybody money, knows more about coaching high school sports than all the coaches combined, and leers at every girl who comes in. Now none of the locals go there for coffee or to spend money.



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02

01-25-2008 19:23:19




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 Re: New farm store in reply to rrlund, 01-25-2008 11:32:18  
The way the financial news is heading,I would keep my powder dry.Don't stick your nsck out!



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James22

01-25-2008 19:05:09




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 Re: New farm store in reply to rrlund, 01-25-2008 11:32:18  
A potential problem is what happens if your working "partner" has medical problems and is unable to continue running the place? Is there a chance of training and retaining someone younger (particularly doing mechanical work)to gradually assume some/most of the duties as you both age. or are the young fleeing the area? It looks great short term for the current crop of "oldsters" but what will it be in 10-20 years; another vacant building?

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135 Fan

01-25-2008 17:57:55




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 Re: New farm store in reply to rrlund, 01-25-2008 11:32:18  
The bank will want a very detailed business plan and it's good for you to have one. Free coffee isn't free for you. Anybody will show up for free coffee. You need repeat paying customers to show up. Most farmers don't have a lot of time to be sitting in the coffee shop drinking unknown amounts of free coffee. If another feed store closed and a dealer, you need to really consider if you'll have enough customers to make a go of it. You also might have to work for free for quite a while until you get established. Good employees will want good wages. I'm not trying to discourage you. Just trying to advice you to really do your homework before jumping in with both feet. I belonged to an off road motorcycle club for over a decade and did most of the track work for them. I charged about a 1/4 of what the work was worth. I bought land to set up a track because a lot of places are being shut down. I am very dissapointed that the club I belonged to for years and worked very hard for, has done very little to try to support my track and help me get established. This is despite myself helping them out when they lost a track and had to have a meeting with the county in order to get it back. When they got it back, I even volunteered my skid steer for a day at the work party to fix up the track. The reason I tell you to do your homework is from experience. In my case, there is a huge demand for places to ride but when the biggest club doesn't really want to acknowledge you, it makes it all the more work to get established. Dave

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TomTex

01-25-2008 18:20:00




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 Re: New farm store in reply to 135 Fan, 01-25-2008 17:57:55  
Dave, you are right on about the business plan. Folks who just start up a business and "see where it goes" are usually out of business within 2 years. Too bad about your track/club, but they always say "you teach people how to treat you". You did all that work dirt cheap, and they got used to taking advantage of you. Better luck next time. Tom



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135 Fan

01-25-2008 18:43:23




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 Re: New farm store in reply to TomTex, 01-25-2008 18:20:00  
I should add that the pres. of the club is the one that lost the track in the first place and after spending $3000 on a consultant is the only reason the county meeting was set up. There are some people in the club who figured I charged too much and shouldn't actually have charged the club, even though they always made money when I did the track prep. Many riders would ask if I did the track and show up because I did. Loyalty means nothing to some people. Dave

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135 Fan

01-25-2008 18:34:24




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 Re: New farm store in reply to TomTex, 01-25-2008 18:20:00  
I've got a few supporters of my track. The biggest problem with the club is the president. He's a dictator and is fairly new and wasn't around when I was doing all the work. He figures nothing ever happened until he came along. He's very slick. The biggest advantage I have over other tracks and riding areas is that my land is specifically zoned for a track. Everywhere else, the land could be lost for riding for any reason. A bunch of people have told me I have a gold mine and it's just a matter of time. I'd love for the club to call me up and say they need a place to ride because somewhere else got closed and I could say sure, track rental is a minimum $2000 a day and you supply the insurance. It could happen. Dave

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Paul from MI

01-25-2008 17:26:44




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 Re: New farm store in reply to rrlund, 01-25-2008 11:32:18  
if you were about 100 miles south I'd be there. TSC & Rural King are fine, until you ask for a plow point or a shin. No clue. Good luck,
Paul



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Spook

01-25-2008 16:49:13




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 Re: New farm store in reply to rrlund, 01-25-2008 11:32:18  
Btw, what is the name of the village?



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rrlund

01-26-2008 07:44:44




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 Re: New farm store in reply to Spook, 01-25-2008 16:49:13  
Sheridan. Been thinking about just taking over his inventory of feed when he closes the door,getting his list of suppliers,put the stuff in the old milkhouse to see if I can sell it,maybe try to get in to parts and build from there right here at the house. We'll see what happens. Shoot,he might not even be able to get financed to change the place in to a bar like he wants to.



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hayray

01-25-2008 16:35:24




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 Re: New farm store in reply to rrlund, 01-25-2008 11:32:18  
There is a young guy, while not actually too young but probably a little older than me and alot younger then most of you old farts, but anyways, over here in Williamston Geyer Farm Service has a store like you are describing except feed and hay sales and some other supplies, no equipment but I do buy all my twine there. He definitely tries to sell anything he thinks he can sells, thinks outside the box. Has feed reps and nutritionist there all the time and he seems to be doing really well. I would think if you keep things small with low over-head you can do it, just don't try to be like a dealer, they have tremendous over-head and alot of them don't make it. Carry stuff that TSC does not, which is about everything, can't believe I even go there anymore. But of course, there will be pleanty of stuff you won't be able to compete with them on so don't. TSC don't carry 7200 sisal, so carry it, they don't mount tires and press hydraulic hoses, so do it. Could work.

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TomTex

01-25-2008 15:37:19




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 Re: New farm store in reply to rrlund, 01-25-2008 11:32:18  
Wish you great sucess, if you go at it. However, it is never a good idea to plan a business around one individual. You say he is 62. One day he may wake up with a medical problem, or just quit on you. What is your back up plan? Have you hammered out EXACT financial arrangements with him? Don't leave any room for a misunderstanding after you sink the money to open it up. Will he be hourly paid? How about pay for each after hours call? Can you run 2 - 3 years at below break even? That is about what it takes to build a business. A bunch of oldfarts sitting around the stove talking about the good ole days may have little return. Tom

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rrlund

01-25-2008 16:34:37




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 Re: New farm store in reply to TomTex, 01-25-2008 15:37:19  
My oldest son works in an engine machine shop. Drives 60 miles one way to work. He just got his foot in the door farming with me,this would be a great opportunity to bring him in more,keep him home. His girl friend is already charged up,wants to work for me. Younger son works construction,worked at TSC for a while,two years in an auto repair shop.My older brother was service manager at an Oldsmobile garage,has worked for NAPA every since. My sister works for NAPA in another town. No lack of talent or experience if we go ahead with this. I told the 62 year old guy today,we might just need his name, experience and reputation to get people in the door to get things off the ground.

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James22

01-25-2008 19:14:28




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 Re: New farm store in reply to rrlund, 01-25-2008 16:34:37  
Posted before reading this additional information. Appears you have the employee situation covered, which I consider a big positive.



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135 Fan

01-25-2008 18:48:11




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 Re: New farm store in reply to rrlund, 01-25-2008 16:34:37  
Hiring and working with relatives and close friends is usually a recipe for disaster. Look what happens when a will of a wealthy relative comes up. Total chaos! A business isn't much different. Dave



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Animal

01-25-2008 15:09:48




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 Re: New farm store in reply to rrlund, 01-25-2008 11:32:18  
I would say it would be a go, we are faced in our small community here in Mo. like you are,15 miles from tsc if you can call that a store.



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Billy NY

01-25-2008 15:04:01




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 Re: New farm store in reply to rrlund, 01-25-2008 11:32:18  
There is a place similar to what you describe, he sells A&I, repairs tractors and Ag equipment, southern end of the next county north where farming still has a foothold, not sure for how long, but I ventured up there for some parts last year.

They looked busy, even sell hay, we got to laughing at some of the more discerning hay buyers requests, small squares/horses, but it was good meeting them, they still do about 16,000 small squares, good to find another source close, hay was getting scarce when we had all the rain '04,'05 '06, so I try to keep track of anyone baling in the area.

We had a ford dealership late 60's - mid to late 70's and also sold a myriad of other things, people used to also stop by and visit after work hours and so forth, kept 4 mechanics, a bookeeper, and 2 parts people busy, until ag really went in the drink, then tried to sell the construction line, did well on that but ford hq wanted the other dealer in our area to sell const/industrial, was a shame I always thought it could have diversified into something else with equipment lines and so on, was kind of a neat place, huge shop and parts dept. I often envisioned what could have been after ford was told to take a hike after we sold 29 backhoes to the power company, they became a little stubborn, were told to get there junk off the property after they tried to impose some unacceptable finance terms on the deal.

There used to be a fair amount of BS and hanging around on occasion, just have to keep work seperated, some people don't know when to leave or when you're busy, you're busy. Overall though it was a great place to have experienced growing up, lot of history, and those 3 brothers we had for mechanics were examples of a lost generation, remember finding a payroll book once and they sure did not make much back then.


I hope it works out, do crunch some numbers and see how things are going to work, be prepared for the worst and have a back up plan or exit strategy. I was up in the Sebewaing area in Nov '05, came in north of Detroit from Canada, through Lapeer etc. saw one JD dealer closing down, amazing to see that with all the land in crops around there.

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wkfarmall

01-25-2008 13:30:55




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 Re: New farm store in reply to rrlund, 01-25-2008 11:32:18  
I worked in a feed mill for 4 years, seen a lot of people go broke trying to sell the feed we produced. Not much markup, and everyone thought they were paying to much. The coffee and snacks were a big hit for the old timers, sitting around talking about the weather and such. Didn't buy much though. Mill shut down in 2001, reopened with new owner 1 year later shut down again in 6 months. City now uses the large building and shop for their equipment. Good luck

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supera3

01-25-2008 13:13:07




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 Re: New farm store in reply to rrlund, 01-25-2008 11:32:18  
Old guy down the road had a "country store" slot machine in the back, did good till, well some old buddies take him cigars about one more year I guess.



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M Nut

01-25-2008 12:38:31




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 Re: New farm store in reply to rrlund, 01-25-2008 11:32:18  
rrlund,
I think she's a go! Boy, I know around here that would be just the ticket for a lot of the small hobby type farmers still plugging away. As a matter of fact, the neighbor opened up a feed and farm supply store about a year ago. 5 miles from the closest town, and that is a population of less than 500, and I just visited with him on Monday for a long time. He said it was going way better than he had ever hoped. If you are selling basic parts, providing basic service at an affordable rate, and coffee for a good BS chat, I firmly believe you will make a go of it. I have this exact idea in the back of my mind, but I need a few more years to pull it all together. I have the mechanic lined up, have my building built (but not finished inside), and am confident I'd have the customer base. I just need to get more money tucked away for the slower times and also get to the point where I want to change my career plans. Right now I'm not there.
Good luck, and keep us posted!

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Superhank

01-25-2008 12:36:40




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 Re: New farm store in reply to rrlund, 01-25-2008 11:32:18  
I would use your business but I probably only spend and average of $500 to $750 a year on feed parts etc. Every now and again I buy a $1000 mower etc but you'll need 1000 like me to make any money at all. You should not have a big overhead so you have achance to make it.



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Dave from MN

01-25-2008 11:41:10




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 Re: New farm store in reply to rrlund, 01-25-2008 11:32:18  
First question I would have is there a consumer base that would have enough demand for what you would like to have? I am kind a person that says follow your heart, but follow it with dollars and sense. Also dont put all your eggs in one basket!!



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rrlund

01-25-2008 12:25:17




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 Re: New farm store in reply to Dave from MN, 01-25-2008 11:41:10  
Definately is. In Michigans economy,all there is left is ag. We lost our last dealership in the county last fall,now the feed store.All there is is TSC 10 miles away and you know how they are anymore. They have nothing for the farmer. The free coffee gets 'em in the door hanging out,watching the weather on the DTN. We're fixing something in the backroom. The discussion of needing the parts to fix something comes up,we sell it to them. God knows we're a couple of the biggest bull sh!tters in town,so we can get them in the door without a doubt. They just might not like us so well at the coffee shop if we get most of their loiterers away from them.

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massey333

01-25-2008 13:51:14




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 Re: New farm store in reply to rrlund, 01-25-2008 12:25:17  
First off good luck with what ever you do.I would hope you have plenty of money to fall back on,because you are talking over one half Millon dollars before you even get the doors open and min.of $2000 overhead a month.Your building HAS tobe Comm.and state insp.before you can even open.$100,000+.Like the others have said Push a sharp pencil or a pen with plenty of ink in it.



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tinyy

01-25-2008 12:32:17




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 Re: New farm store in reply to rrlund, 01-25-2008 12:25:17  
Where in mich. are you going to locate this store?



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rrlund

01-25-2008 14:06:17




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 Re: New farm store in reply to tinyy, 01-25-2008 12:32:17  
2 miles north of the intersection of M57 and M66.



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Spook

01-25-2008 16:46:48




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 Re: New farm store in reply to rrlund, 01-25-2008 14:06:17  
I am way the heck down in Howell, and I wanna come up just for coffee!!!!



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Not El Toro

01-25-2008 12:01:31




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 Re: New farm store in reply to Dave from MN, 01-25-2008 11:41:10  
I'm not sure I'd borrow money in order to give away free coffee. Of course these boys said they'd show up. Why not? It's free and they've got nothing better to do.



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