Setting up in a mall kiosk

[Bret Gordon]

Hi, I am brand new to the laser engraving industry but have been doing tons of research and am extremely excited about launching my own laser engraving venture. I am thinking about leasing a kiosk in a mall and doing the engraving there. I don't yet have a laser but have narrowed in on the VLS 3.50 - 50 watt. I understand that I will also need a filtration unit to setup indoors (although I've seen pictures of engravers setup indoors without a blower or a filtration unit which has me confused). Has anyone ever setup their laser in a mall kiosk or a similar setting? If so, I'd love to hear some of your advice and about your experiences!

Thanks in advance!

Bret

[Mike Null]

Bret

Welcome to the forum.

I have no personal experience with kiosks in mall but I have a friend who had one for years offering all manner of engraved gifts. He also had a store location. He closed the kiosk last year because it was losing money.

A number of years ago there were a handful of laser engraver kiosks in malls but I haven't seen one for a long time.

I'd proceed with extreme caution.

[Tim Bateson]

I would suggest you study this forum from start to finish. That will take you a few months. After that if you still want to pursue your venture, I have only one piece of advice. First play the Lottery & hope you hit it big, so as to put food on your table while your venture slowly goes south.

I would be the last person to spit on someone's dream, but I would hate more to know I did nothing & someone failed and lost everything.

I love doing this & wish everyone well. I too almost made your same mistake, but was wise enough to listen to those here that have the experience and know better and to have REALLY studied the market place.

Final advice - buy your laser, study, do your research and pay cash for everything - owe nobody and you'll be fine. This includes cutting all overhead such as renting a store front/kiosk.

Follow this advise and in a few years you'll have a good part time income. Follow it not & you'll be selling that laser in a matter of months for pennies on the dollar.

[Garrett Nors]

The overhead is extreme with mall kiosks/mall storefronts, and when I walk through the malls around here every 3-6 weeks there's always someone new...no one stays for long.

I think you would do 100x better by getting away from the mall aspect of what you want to do. I know there's a lot of foot traffic but those people are usually completely ignorant of your existence just because if they really wanted something they'd go to a store for it.

It's a good idea in theory but I know from personal experience the foot traffic will NOT make you money.

Sorry This is a tough industry (trust me, we're struggling ourselves) but if you get your niche and you really get a good base and footing, you'll be set for life.

[Phil Salvati]

Welcome Bret!

I have to say...Tim said it straight forward!

My personal opinion, depending on your location malls are real expensive to rent a booth and it will be tough just to make it on Laser products. Another thought.... most people in a mall will want it right away.... Kind of tough with what you are offering..... You might get away with "While you shop" but you are going to have a huge cash layout for on hand product.

As for myself.... My laser is an addition to several machines in my shop, which is also a retail store. Honestly... my machine runs full time three days a week with orders... In the down time, we are trying new things, making store stock.

As a full service sign & award, embroidery, sublimation and screen printing shop it was a great addition....almost a must in fact! I don't know if I can make it on just lazed products alone.

I would like to hear your thoughts on a business plan.....


Phil

[Bret Gordon]

Thanks everybody for the warm welcome and the advice! I would like to clear a few things up: I have a stable full-time job and intend to keep it that way. I would like to setup the kiosk with a trusted employee or my fiancee running it (preferably the latter for cost reasons). Mall kiosks are indeed expensive: my research has found roughly $3,000 / month in rent and about triple that in November & December. I know it is expensive and I must have a tight business model, which I am working on. Knowing that, I am still interested in hearing people's experiences and advice (even if it is run the other way)!

Thanks,

Bret

[Rodne Gold]

Theres no such thing as a trusted employee
Letting your fiance manage it , imho, is pretty much a recipe for a pre marital "divorce".
In terms of malls , the general consensus on this board is that its VERY difficult to make money out of gifts novelties and onesies

I suggest you use the 1/2 x2 rule.
Whatever you estimate your income/t/o to be , 1/2 it and double your costs..If it still is economically viable , then go for it.

[Tim Bateson]

Bret,

Making $3,000+/mo - every month is something few of us have yet to accomplish. Those that have do more then engraving and likely work primarily with commercial customers not the general mall type of public.

Regardless of what some salesman may have told you there is a large learning curve and this is not a plug & play business. I would suggest you buy your laser and spend 6-12 months learning to use it before signing for a Kiosk. At that point you may have a better idea what your real money making potential is.

BTW: Welcome to the Creek Bret.

[Dave Johnson29]

I am thinking about leasing a kiosk in a mall and doing the engraving there.

Hi Bret,

I have no doubt the current comments are honestly and earnestly well-meaning, but maybe scan through this recent thread for some encouragement.

http://www.sawmillcreek.org/showthread.php?t=115589

Tim nailed the most important factor, "pay cash for everything - owe nobody" but I would follow the dream. If it busts then so be it at least you tried and all that was lost is money but you gained experience.

The term Entrepreneur does not mean guarantee, it means risk taker. You have your solid day job, Rodney may be right about an early pre-marital divorce, but if it feels like it might work then give it a shot.

If you can find a niche that lifts you quickly from the $5.00 labels then it may well be a gold mine. No one knows, least of all me. Maybe you can try marking radical designs on ipods, cell phones or laptops. Maybe tile murals. Albeit as Tim also warned there may be a steep learning curve with some of that.

Do a search here for Contributor Onur Kakir. About 6 months back he was learning fast how to make tile displays. Read his success stories.

It is not all doom and gloom. Far better to have loved and lost than to have never loved at all. OK, a bit foot loose and fancy free with the quotation but you know what I mean.

[Dee Gallo]

Welcome to the Creek, Bret! I'm sure you'll find this place great for info and inspiration.

I cannot talk about a mall kiosk, since we don't have malls where I live... but you can search "laser mall" and you will come up with old threads about this topic. It has pros and cons, but only you know your own area.

I did see a place doing on-site, while-you-wait laser engraving: Cooperstown, NY, the baseball hall of fame town. They did bats, mini-bats, plaques and balls. They only charged $6-15 per bat to engrave them, so that means they'd have to do a lot of volume. It was also only part of the shop's inventory, as they also sold jerseys and autographs and other stuff too.

cheers, dee

[Mike Null]

Well, I'll be a little more emphatic about what I think of your idea. If you can't get a 90 day lease I'd say forget it!

Mall business is at an all time low and kiosks are dying a slow death.

Do yourself a favor and visit all the malls within 50 miles of you. Carefully note the vacancies and the traffic. See if you can talk to some kiosk operators.

[AL Ursich]

As for lasers, as of today I saw there are 3 for sale at a deep discount from members here needing to get out of the business.

As for the Mall, unless your future wife is good at Corel draw or another program to quickly make up artwork and photos for the Laser you will be spending late nights making product.

Then the rage in Laser Marking Laptop Computers and music devices is a great market until you mess one up and they start talking about a lawyer....

As for me.... Well, I fell off the 10 year Credit Cliff trying for my dream business.... It's 10 PM and I am in the shop still working....

You would be better off taking the money to Atlantic City and placing it all on one number....

With that said.... Yes, there is a market for Laser Stuff....

Can it support your equipment expenses? That is the gamble that I lost... Now I do it for fun....

AL

[Scott Shepherd]

my research has found roughly $3,000 / month in rent and about triple that in November & December.

That's $48,000 a year for rent. For $48,000 you could have a 10,000-15,000 square foot building. That is an insane, repeat INSANE amount of money to pay in rent for a kiosk. To cover $48,000 in rent and cover salaries, insurance, etc., you'll have to be selling about $200,000-250,000 a year in sales. I think that's living in a fantasy world. I don't think there's anyone on this forum that's making that kind of money with a single laser. Most probably struggle to make $30,000 with a single laser, with many less than $10,000 a year with their laser.

I'd be looking at other ideas/options if it were me.

Good luck in your venture, I hope you find what works for you and you are able to do it well.

[Bret Gordon]

All, Thank you so much for the great advice. My idea would focus on engraving laptops and cell phones -- something that would carry basically no inventory, needs high foot traffic, and can be done while the customer waits. This is why I've focused in on the mall kiosk. I've visited multiple malls in my local area, spoken to kiosk owners, questioned potential customers, and ran through various financial scenarios. What I found is high demand but no supply, and a workable financial model...unless my demand estimates are off.

However, I know the members on this forum have been doing this a long time and I will not take your advice lightly. I think the idea is great but I will re-evaluate the mall kiosk venue (assuming I can't get a very short-term lease). Tim -- I agree...I will purchase a laser and spend the time to learn it inside and out before jumping into anything.

Either way, this will be an interesting case study for the forum and I plan to keep you all abreast of my progress (or lack there-of)! Thanks again to you all.

Bret

[Dave Johnson29]

Either way, this will be an interesting case study for the forum and I plan to keep you all abreast of my progress (or lack there-of)!

http://tinyurl.com/mobx9f