Call me crazy

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Luc

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Nov 1, 2002
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Next door to me, there is a Hallmark store, independely owned called Happy Hour. THey sell, hallmark card, ty plush, wrapping paper etc, and some gifts. THey are getting out of the business and I am looking at purchasing this store.
I would like to know if any of you have a second store that is not a flower shop? If any of you have a hallmark franshise and how easy are they to work with you?
I am compiling information so I can make a proper decision here. Financial statements are in my possession and I will have several people looking at this. Also they have several suppliers that we use together and I would make a decision to which store will carry it.

From what i know I am in the driving seat with this since they just wanted to sell everything. Also I am in the driving seat with the mall since they where Month to month and I can negotiate a proper lease aggreement reasonable for me.
Any feedback is appreciated.
Luc
 
Hallmark

A friend of mine here in town has 2-3 Hallmark franchises. He wishes these days that he could get out of them but alas has too much tied up into them and can not. One thing he said to me about them, is this... they send me what they think I should be able to sell, I do not get to pick the items I want, I do not get to decide how many units of each I get and they are slow to credit for damaged merchandise, and I can not put items on "sale" when I want to.

BE CAREFUL!

P.S. and does not Hallmark sell flowers too?
 
I would question the card business, with the dollar stores carrying cards 2/$1.00, internet cards, and just emails..is there as much card business?is it a growing business? We have a hallmark store in town, they have added other merchandise, jewelry,plush, to the line. Good luck, could be a neat adventure if there is enough profit and growth potential.
 
The greeting card business...

is IN DECLINE...DON'T get caught up in too much euphoria over this!!
People are JUST NOT sending and buying as much in greeting cards as they used to.....hallmarks shops are generally gift stores now.....
I don't see any kind of rebound for perhaps 5-6 years.
 
About 13 years ago we saw Hallmark pull the rug out from an independently owned Hallmark shop in our shopping center to replace it with a company store. The original owner didn't see it coming... Hallmark even sold her cards for the upcoming holiday that she wouldn't be there to use. I'd be REAL careful...
 
Luc,
We started out as a gift & card shop in 1981 as a Hallmark dealer. As time went on dollar cards started turning up everywhere and we decided that it wasn't worth the effort to remain in that industry; I still have cards stored (that I will gladly sell you at a REALLLLY great deal) because to keep selling them I would have to buy the few that we could sell to give a reasonable selection and take up valuable floor space. I always had a problem with their discount 40% off retail and have to pay the freight and spend thousands to buy their card racks; the fact that it was expensive to have staff unpack, check off, sort, display, tidy displays every day or so, go through displays to determine what is needed every couple of weeks (before dollar cards we used to sell quite a few cards). These card companies try to sell you on markup % but don't forget, you can't put % in the bank, only $.
IMNO, cards are not worth the trouble unless you can get a 200% or more profit AND be able to sell the for 2.00; I know the area you operate in is a retirement area and that means your customers are somewhat frugal (you have mentioned that) so I cannot see any big money there and don't get me started on giftwares. As I said we used to sell them and even though we did ok I always used to feel that the 10's of thousands of dollars of inventory that I used to have to count every year end cost me more than it should. Since you're used to the fresh flower industry you will find cards and gifts VERY, VERY DIFFERENT!!! As we say here on the Rock, "It's a different quintal of fish" !!! Beware my friend; call me if you wish and I'll gladly try to answer any questions you have.
 
Cards on consignment works really well as we only pay for what we sell and there is no outlay. The business owner comes in and replenishes the rack regularly.

Luc... I'd be very careful.

V
 
Victoria said:
Cards on consignment works really well as we only pay for what we sell and there is no outlay. The business owner comes in and replenishes the rack regularly.
Luc... I'd be very careful.
Click to expand...

*nods* Yes, you're in a small retirement community but I'd be cautious. Two totally different businesses is going to put double the strain on you.

Audra
 
TURNOVER IS THE KEY TO GIFTWARE, AS STATED IF THE INVENTORY SITS THERE, IT COSTS MONEY, We have a extensive gift shop with the flower shop, over the years, the merchandise mix changes and you have to the know the market......if hallmark sends a cookie cutter giftware plan to every store that doesn't mean it will sell in EVERY select market. You just have to look at all the variables to make a informed decicion, but I am sure you know that! Let us know what you do! :)
 
If you have room, why not buy them at a liquidation prices (10% of WHOLESALE) and fit them into your space. However many people are correct about gifts. They take up space and inventory dollars. We have a lot of space and so do a lot of consignment.

I bought our flower shop at liquidation price ($10,000).
 
Looking at the whole picture.

Some of the gifts would be company I deal with already. It is a hallmark sotre at the moment but Carlton Cards gave me a pretty good deal if I want to switch. It seems carlton is the easiest to work with. Still looking at everything before I make up my mind.
 
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