LYS Debate

[IdleHands]

SO and I are having quite the debate. He thinks there's only two types of LYS owners. One is the person is financially well-off where they don't care too much if the business makes money or not. The other is someone who is retired and needs something to do so they open a LYS as a hobby.

 

I would agree that it's a challenge for LYS's to compete with the big box stores, but I think there are many out there that do not fall into SO's narrow groupings. Depending on the location and market I could see an LYS owner making a decent wage.

[christinanthemum]

One I love to go to, she's stemmed of another small LYS that's closing due to factory cut-backs, and that's half of how she makes her living. She works with the factory on marketing the yarn, but that's not enough to make a living so she does her store as well.

 

The store that's closing was opened in a small town there the dye factory was. Basically, that town is all about "shop local" and support your fellow man, forget big box when possible. The yarn is all NC made and did decently well until the factories started cutbacks.

 

For another viewpoint.

[Ninn]

I still plan to open my own little yarn shop, but if I am in business, you can bet your boots I'm in it to make money. As much as I love to play with yarns, I certainly cannot afford to take that kind of financial risk without some projected returns.

 

And for the record, I am nowhere near retiring, and definitely NOT bored!

[PBLKNP]

On other forum, I was reading a post where someone mentioned that in order to stay in business as a LYSO, you really need to court the expensive yarn junkies, as the high-end brands are the ones that are the bread and butter of the business--I think she said that 90% of the business comes from 10% of the yarn. Unfortunately, yarn stores can't really make a good profit on less expensive yarns, as the big-box stores are able to negotiate huge discounts, which a small shop can't really do.

 

Another thing I read is that you also have to give lots of classes, as that will bring people in the door.

[crochetstepmom]

I don't have any first-hand knowledge of owning a yarn store, but I can offer an educated guess. I would think that the goal of any business would be to make money. No one, even a wealthly person or a bored retiree, sets out to lose money. In fact, wealthy people (and I do know a few of these) are typically wealthy because their businesses *make* money. I don't think that many people would hold on to a business that bled money.

 

It takes a tremendous amount of capital and energy start any business. I would think that few people would do it just because they needed something to do.

[cjansen]

I guess I need to put my two cents in. We don't own a store but have a small electrical contracting business. and in the 20+ years we had it. it was a good thing that I was a nurse! at times I think he paid people to work on their houses. And has never made more than my son (HS grad only) makes now. The government is the biggest problem in most businesses. Sometimes you do have a business for the love of it, and not to get rich. It does have to pay for it self most of the time. but usually it doesn't pay much in income.

[Schmetterling]

While we were out of town in March for a triathlon of my husband's, we visited the LYS. It was in a small building with a couple other merchants.

 

The LYS was at the front corner of the building.

 

If you entered the back corner, the one behind the LYS, it was a beauty salon.

 

If you entered either the LYS or the salon, you'd find they were completely the same store. There is NO wall in between.

 

It turned out the LYS was the owner's true love but it couldn't support her, so she runs a salon in the same store. It's 1/2 and 1/2 and she hopes to save up enough with the salon to someday be able to have a full-sized LYS.

[adagio]

The LYS here is owned and run by a couple of sisters. I imagine it has made a profit, as they are starting up a website, or at least were. They've been in business for years, and even been featured in the local paper. But they also design knit and crochet patterns, and have been published in major crochet/knit publications. They also sell their original patterns in their store. I've never seen anything that indicated they gave classes/lessons, though. However, one day, one of them was sitting in a rocker, crocheting something, and I sat down next to her and chatted for a while. I'm sure if I'd had a question about what she was doing, she would have answered. But she was making a granny square, and I've been doing those for over 30 years. Link to their site:

http://www.stitchesandstuffonline.com/index.html

 

Obviously, they love what they are doing, but it must be making a living for them!

[Creations248]

My LYS owner was neither rich nor retired. She ran the shop at a modist profit, had classes and worked her tail off to make the shop work. It is not a frivolous business - as some may think. It is hard work. I know, I worked there for a number of years. It is very hard work and you really better LOVE what you do.

[Ninn]

The current economic downturn is the only reason I have not gone ahead and opened my store. The nearest place to buy yarn at all is at least a 30 minute drive in any given direction.

 

I did some market research, and I am still getting emails a year later from people who want to know if I am going to open soon. I'm thinking it will probably be beneficial to me to open up at least in a small way, right from my home if I have to. Then I can see if people will actually buy the yarns.

 

And you are right, catering to yarn junkies does help. Keeping a good stock of wools and fashion yars helps as well. There is a store right in my town that carries yarn. However, she is thinking of clearing it out because it doesn't sell. I had to tell her that A) nobody even knew she carried yarn and B) she was carrying the lowest possible quality and very small quantities. I am seriously considering leasing the rear of her store for my own store, just to try it out.

[christinanthemum]

The thing is though, there are a few who do it "just for fun"

 

Next to the computer shop in Hickory is a LYS. Her husband makes a TON of money, she has her store just for the fun of it. She does lessons and 'fixes' peoples projects, but with the little amount of time that she's open, I know she doesn't make any profit. She's a young lady too, mid to late 20s.

 

See, there are some out there just "for the fun of it" but most people can't afford to put that much into a business and not make a profit.

[snugsmontreal]

one of the lys here is run by a couple young ladies who teamed up to do it together and keep a part time job elsewhere. they said it was their dream and they just had to do it, but i dont shop with them much because their slection is mostly wools and sock yarn and i dont really use either much. it is more like they gear to socks and felting.

[appy_lover]

I really doubt that our LYS is open without making a profit. There are 2 businesses in the building, a quilt shop and the LYS. They offer classes and a sit and stitch time. If you buy the supplies from them the sit and stitch is free and they will help you with projects at that time. They do have mostly wool and sock yarn, but they also have beads, specialty yarns, cotton, alpaca, and a ton of stuff I want to try. They have a ball winder that you can use when you purchase yarn from them, and the lady there was really sweet when she patiently showed me how to use it (I caught on a little slow). They also have a good web site http://www.needlenookonline.com/ I enjoy going there, and do purchase yarn from them when I have a special project in mind. I want to get better at knitting, so I am waiting for a class that will work with my schedule. Maybe one on socks...They don't carry a lot of acrylic, but then again we have Wal-Mart, Michaels & Joanne's so I don't see that they'd need to.

[IdleHands]

I think the basic sentiment is there may be a handful of people who open a LYS for the enjoyment of it, but most are out there as a profitable company. To me that would make common business sense. I'm not sure how SO figured the LYS owners are there as just a hobby. Muggle. <humph>.

[shelbyolivia]

I agree with your DH, a young person can't count on making much money....at first.....in any business. As for a yarn shop, most people who shop there are looking for the types of yarns you cannot buy at Walmart or Joann's. Making a profit depends on location and advertising, if you know a lot of people into crocheting/knitting, who buy a lot of yarn & know others who do the same, you can make a living.