We are seriously considering moving locations. Our NNN (CAM) has doubled our expenses since moving in 5 years ago and it's really hurting us. Right now we are in a beautiful retail location with lots of windows and our target move location is upscale industrial. We have negoiated a 90-day opt-out on our current lease and some lease reductions to off-set the skyrocketing costs in this area. Even with the negoiations, we pay $5000/month for 2500sqft. The upscale industrial is in the same neighborhood and brings our rent down to $2750 for 2300 sqft. The downside is that we have almost no windows and we lose the emotional association of being in the upscale retail locale. We also put a lot of money into the original upfit which didn't payoff to the extent we hoped but is really awesome.

Right now, I am trying to guess about the impact of moving the dojo. Has anyone ever moved a business and lost or gained customers as a result? Is now a good time to move? What about lease terms-- is it better to go for longer terms right now and lock in a low price or keep the flexability? Any insight folks have is massively appreciated!

Thanks,

Mary

There are so many variables to your question.  Cutting cost by about 45% or $2,250 sounds great.    If you had to generate revenue to get to the savings of $2,250 what would that number be?  Do you get half of every dollar a member pays?  So you would need $4,500 in revenue to generate the savings on rent?  

You say the upscale retail has not paid off.  So walk-ins are not what you expected?  How do you obtain a new customer?  Advertising, networking?  Is location generating the revenue needed to cover the additional rent discussed above?  

In Louisville, many of the dojos are located in nice industrial neighborhoods and seem to depend on word of mouth and showing up at events for demonstrations to get people in.   Some are by upscale retail, but on the side or in the back, not right out front.   That doesn't mean anything.  You could be doing a lot more revenue because of your location.   Only you know that by keeping track of your current clientele.

Can you take advantage of publicity surrounded by moving?  

See, all I did, was ask more questions.   Good Luck.

Theresa   

One huge benefit we have is the relationships we've built with our customers. I've floated the idea by a few select students and there's a lot of support.  My fear is that I'm overestimating our relationships and we'd lose more students with the move than I think. 

We have a new interesting possibility of a lease to own. I'm not sure about becoming an owner of a space and I don't have the credit to secure a loan, but I could possibly find a private investor to lend me the down.

In other news, I'm working with Sarah Symons of the Emancipation Network/Made by Survivors (another Sam's Club winner) to bring self defense and empowerment trainings to survivors.

Today Kevin and I met with our lawyer and a local mentor and we have a pretty good option for moving. We are put together a plan for what we want and what we can live with. We met with our potential new landlord tomorrow. Does anyone have advice on how to message the change to our customers?

Thanks!

Mary