If you like dealing with people and supplying them with beautiful items then having your own ranch store can be ideal. Creating an alpaca store is not very difficult. Here are steps to take in starting and operating a ranch store:
Retail License – In order to sell in any state you will need to get a retail license. I googled for Arizona Retail License and was forwarded to the Arizona Department of Revenue. I downloaded the forms and paid a small fee and within weeks I received my license number. Basically this license allows you to sell retail and collect sales tax or transaction privilege tax as it is called here. Yes, you do have to collect the sales tax and pay monthly, but this is fairly painless as long as you send yourself reminders. You do not want to be hit with a late penalty fee.
Location – One of the reasons I wanted to open a store was because I could do so on my property (make sure you are zoned for it). What a convenience to not have to jump in the car to go to work, but have the public come to you. Some people have a room in their home where they sell out of or if you have a handy husband, like I do, then an extra room can be attached to the stalls. This is great since I can easily give tours and drive the customers right into the store without dragging them to a distant location.
Merchandise – You have two routes you can go. You can jump on a plane and go to Peru (I did and highly recommend it if you like to travel) to create your own contacts. Remember that we do not pay import duties on alpaca products. Also, you need to know that in South American manufacturers are allowed to state an item is 100 percent alpaca when it is really mixed. Or you can shop online for US distributors or directly from manufacturers in South America. You will pay a little bit more, but the service will be guaranteed. A bit of advice, if you can split an order with a fellow rancher you will save in freight charges. The more you buy the cheaper the freight per item.
Pricing – Alpaca is a luxury fiber. You will need to come up with the appropriate pricing to charge the customers in your area. Check out what others on the Internet are pricing their items at or visit another ranch store. You can make a better decision after some research and then trial and error will determine what works best in your area. Store Set Up – Remember that most customers buy items that catch their eye. Display your products around the store that you feel will appeal to the customer. Invite them to touch the items and educate them on alpaca fiber. Inventory and Sales Invoices – You can go manual by writing up each sale. There are generic sales invoices that can be purchased at any office store. I personally purchased Peachtree software. There are different versions of the software. The software I chose would do my accounting, has a beginners inventory, and allows me to customize my own invoices. I find it looks more professional than a stamped version of my address on a manual invoice. I was also able to include my return policy on the same invoice.
Advertising – Now that you are all set up to go you need to get the customers to come to you. Advertising on the web is great. A mentor advised me that only 10 percent of all her sales came online vs. the other 90 percent being personal or mail order. Therefore, creating an ad in the local paper will be much more helpful until you have an established clientele. Then you should see your web sales pick up a bit more. I try to entice the customers to come over by offering coupons on special occasions.
Customer Service – Getting the customers to your place should be easy, but keeping them will be tough. Make sure you supply them with all information and a return policy that will not create a hassle for them. I give out cards with each item sold advising how to clean the merchandise. Of course it also has my email address, web address, phone number, etc. Just another way to get my name in front of the customer to remind them that I am here to serve them.
In October of 2006 I opened up my ranch store. I found it to be successful and have learned a lot with trial and error. I have set quarterly sales goals and coming up with a whole bunch of different ideas on how to achieve them. You too will need to create your goals or how else will you know if you are succeeding or not?
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