Are you planning to open a skateboard shop? If so, you might be one of those who ask this question, “how much do skateboard shop owners make?” This is a valid question, because after all, business is business. Opening your own skateboard shop will allow you to do two things – earn a profit, and pursue your love for skateboarding. This passion is very important since the potential of earing from a skateboard shop may be considered as average, most particularly in the first few months or years of the business.
Generally speaking, skateboard shop owners report an annual profit between $30,000 and $200,000, and even more. The generated revenue is highly dependent on certain factors, such as the community where you belong, the location of your store, as well as the quality and type of products that you offer.
The gross margins, on the other hand, is usually at 60% on the average, which is considered as relatively high, allowing skateboard shop owners to further grow their business while easily managing costs. If you are wondering whether or not it is possible for you to make money selling skateboards, there is no need to worry about its income potential. It is possible to make money in this business. There are a lot of options that you can take into consideration to take your business to greater heights.
Skateboard Shop Opportunities
Skateboard shops are categorized under the industry of accessory, clothing and general merchandise. Stores under this group feature a narrower product range that are tailored to the needs of a specific client type, in this case, those who are skateboarding enthusiasts.
To achieve a good profit, a shop owner has to sell hundreds, or even thousands, of goods. This means that the income potential of a skateboard shop is relatively associated to the economy of the market. For example, a skateboard shop owner who has a store selling about $475,000 value of goods may only expect about $30,000 net profit. On the other hand, a store that also features online presence aside from a brick-and-mortar business may expect an annual profit of $100,000 with comparable sales.
The actual cost of opening and operating a skateboard shop is usually considered as the primary factor that limits the income potential of a skateboard owner. The rent for the retail space, for example, may range between $3000 to $6000 per month, depending on the size of the store and the location. Also, purchasing a retail storefront with ample space may reach up to as high as $100,000.
There are also other factors which may further increase the cost for startup. This includes inventory for the skateboards, ball bearings, and even the accessories like hockey sticks. Other requirements which may further have an impact on the expense of the business include fixtures in the store, such as display racks and shelving, staff salary, and utilities, which may range from $500 to $1000 every month, depending on the size of the store.
Vision in the Industry
Federal statistics has it that the progress in the clothing, accessories and general merchandise store field is seen to par the industry and average job growth in the country. This means that the potential for income will become much better for skateboard shops that also operate online, since this removes the need to pay for rent for an actual store for displaying goods and sales engagement. Even though industry of retail usually goes through high rates in business turnover, networking opportunities and consulting services may be achieved by joining communities and organizations in this field.
How to Start a Skateboard Shop
Before making a decision to start a skateboard shop, there are some things that you need to take into consideration. For one, you need to be balanced with the advantages and disadvantages of this venture. As for the advantages, it has been mentioned that there is a good income potential in this field. The markups for skateboarding items are quite high. Also, you can opt to start an online skateboarding shop from your home too. A shop is just a bonus if you also consider skateboarding your passion. You can also help others enjoy what they love.
On the other hand, you may have to consider that there is also a possibility to spend a hefty amount of money on startup costs. This is particularly true if you are planning to open a physical shop. You also need to know that the market for skateboarding items is quite saturated. You may have to complete with other skateboarding shops, and other sporting goods stores.
However, if you have already considered these and still would like to push through with your plan, the next step in your list is to do research. You may want to search other skateboarding shops in your area, checking their products, customer reviews and price points. Check out for a market gap that you can fill.
You can also determine the products that you would like to sell. Are you purely selling skateboards? Or would you like to offer skating apparel, gears and helmets? You can even expand further by adding rollerblades, roller skates and snowboards, together with their related equipment. It is also best to determine your target market in advance. For this niche, your target market will most likely be a younger group with accounts on Instagram and TikTok.
How much do skateboard shop owners make? On the average, the potential income of a skateboard shop may range between $30,000 and $200,000. Still, there are some factors that need to be considered, including the store location, other expenses involved in starting up the business, and whether online retail presence is also available aside from a traditional store. Needless to say, this is a good opportunity for growth in this type of business. With hard work and passion, one can be successful in this field. Do you have an experience in opening a skateboard shop? Share your story with us in the comments section below!