In our last blog, we pointed out some telltale signs that it may be time to renovate your retail shop. They included the needs to increase sales, boost employee morale and save money on energy bills. Saving money and renovating your store – you may be thinking – don’t exactly go hand in hand, do they? Renovations – you’re likely assuming – are very costly.
You’re not wrong. This is why Synergy Merchants is very proud of its unique merchant cash advance program. It enables all types of business owners to get their hands on much-needed funding for everything from launching new advertising campaigns to completing new renovations. Regardless of your credit history or length of time in business, you can be approved in less than 24 hours!
But just how much does it cost to renovate a store?
The answer, of course, varies. It all depends on the size of your store and the type of renovations you wish to complete. Some store owners only need minor adjustments made. Others prefer to do full makeovers of their shops. Is a total revamp in order? If so, it’s best to ask the experts about the costs involved. Rob Wilbrink of Burlington Merchandising and Fixtures is one such expert.
“To do a full renovation with completely new fixturing, new counters and millwork, a complete signage package, and professional merchandising with specialized accessories and displays costs $20-40 per square foot,” he reveals, “Larger stores normally are at the lower end and small stores at the higher end. An average 8000 square foot store will do about $4 million in sales and cost $280,000 to renovate.”
How much will sales increase once the renovations are completed?
The answer often lies in the type of marketing strategy a business owner chooses to employ. Needless to say, it’s important to advertise the fact that your store has been newly renovated. One thing is for sure. When you promote the fact that there is a brand new reason to visit your shop, customers will come. To clarify, Wilbrink notes that the average building centre does about $500 per square foot in annual sales at a 26% margin.
“Renovated stores consistently generate sales increases of 10-30%,” he reports, “At the low end using the above example, that’s $400,000 in sales and $104,000 in margin. Overall gross margin percentages also tend to increase 2-3%. Using a conservative 1% of the higher sales number creates an additional $44,000 of gross margin for a total of $148,000. This renovation comfortably pays for itself within two years.”
What other benefits are there to renovating a store?
Without question, your store renovation will communicate to the public that your business is forward-moving. It connotes that your brand is successful and worth checking out. But, as Wilbrink informs us, renovations also significantly improve the resale value of your store. “A professionally renovated business is much more marketable if you are planning to sell your business,” he writes.
Wilbrink also points out that “meaningful improvements to your business can be the factor that knocks a weak competitor out of your market especially during a recession.” As well, “employees are proud to work in a well-presented store and customers are glad to shop there.”
Are you ready to renovate your store?
To learn all about how Synergy Merchants’ unique merchant cash advance program can help you to pay for your renovations, please don’t hesitate to call us at 1-877-718-2026 or email us at firstname.lastname@example.org. You can also apply online for a free, no obligation quote!